{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2016-belec-p-btext","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended 2016 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2017-10-20"],"dcterms_description":["Financial report of the Floyd 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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended 2016 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"  \n   \n   \n\n  \n \n      \n\n   \n         \n \n   \n  \n   \n     \n       \n        \n  \n     \n \n \n  \n   \n    \n \n \n    \n \n \n \n\n    \n \n \n \n\n        \n \n \n      \n       \n        \n \n   \n     \n    \n\n\n \n \n \n\n    \n \n \n  # \n                      \n        \n \n   \n  \n \n \n      # \n               \n\n\n \n \n \n\n   \n \n \n   \n\n           \n\n\n     \n \n \n    \n   \n     \n      \n  \n  \n \n   \n \n\n   \n  \n\n      \n  \n  \n \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! \" $ % \u0026 ' \n (\" ($ (% (\u0026 (' \n \n                             \n-\n./012343435411671489                             \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   \u0026  \n       ' \n \n   +    \n  \n  ,\n    \n\n   \n     \n    \n   \n     \n \n   \n  \n    \n        \n         \n  \n\n      \n     \n \n \n       \n \n    \n \n      \n \n   \n      ,         \n    \n      \n        \n\n   \n \n  \n        \n \n            \n \n    \n\n   \n    \n \n      \n \n   \n \n \n!+ ! !  !( !\" \n \n                             \n-\n./012343435411671489                             \n \n                            \n\n   \n                                \n \n                             \n-\n./012343435411671489                             \n \n  \n \n \n \n \n \n \n \n \n \n  \n   \n    \n \n \n \n \n \n \n  \n     \n \n \n \n \n \n \n \n \n    \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n     \n \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$%! !\" \n \n \n \n\u0026 '  ()\u0026(*+* '*( \n \n \n \n,\"- \n \n \n \n*#$\"\" \n \n \n \n.  !\"  #\"/ \"\"    / \"\"\"  \n \n0!///\"\"/!\"\"$%! !\" \n \n1 \"\"2        3!4\n \n 5       \n \n\"\"6\"\"#\"\"\"+\"\"\" \n \n\"\"7 \n \n  \n    \n \n\n\n  \n \n \n \n/ \" #\"   ##\"  \" #\"   \"\" \n \n\"6\"!\"/#\"\"#/#\")\" \n \n\"8\"\"!\"/\"#\"\"\" \n \n  ##\"  \" #\"  \"\"      \" \n \n\"6!!7 \n \n   \n     \n \n \n \n! #\"\"\" \"  9# #\"\"   \"\"    ! !\"7 . \n \n! ! !\" \"  6\" !\"\"/  / # \"  )\"   \"    ##\"  \"\" !\" \" \"  \n \n   \"!   %#    )\" 7 (  \n \n:!\"  6 #  #  !\"  \"  ! ! 6  \n \n\"\"\"\"7 \n \n \n \n !\" \" #\"/ #!  \" !\" \" !  !  \n \n\"! \"  \"\" 7  ( #!  #   !\"+ \n \n0!/ \"!\"/     \";  \" \"   \"\" \n \n 6 !  !  7 \u0026 ;\"/  \";   !\" \n \n\"\"\"+##\"\"#\"\"\" \n \n\"\"/!\"#!###\"\"\"!! \n \n  #!#  9#\"/  #\"\"   \"   \"+ \" 7 \n \n \n \n                             \n-\n./012343435411671489                             \n \n    \"/69#!#\"\"7!\"\"!!\"/###\" !\"/#\"\"!\"/\"\"!\"/\" /6!\"/#\"\"\"7  .\"!\"\"6\"\"!\"\"###\"#\" \"!!\"#\"\"7     \n  \u0026 ! #\"\"  \" \"\"     # \" \"  \" ##\"\"\"#\"\"/\"\"\"0! ///\"\"/!\"\"\"\"3!4\n \n 5 #\"/\"\"\"#\"\"\"6\"!\"/ #\"\"#/#\")\"\"7     \n \n\n   \" \"     \"\"  \" \n 5   \"\" # 6 !\"//!\"!\"/127  \n \n  \n \n       7  4  \n \n \n   \n  \n    \n \n \n   \n \n \n  \n !\n \n   \n  \n \"\n \n\n # $\n%\u0026'\n\n \n \n(\n     \n \n\"\n \n# $\n%)\n\n%\u0026'\n 7 \u003c(\n*\n+ \n    \n\n   \n   $\n!#\"\" \"\"6\"#\"7  \"! \" =\"\"\" \n 5\"\" #\" #\" \"\"    \"7 ! #\"\"   \"\" 6\" #\"7  \n   ,\n  \n+    !\"/ #\"\"# / # \"  )\"   \" :!\"   /+ \"!\"  \" !  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'\":!\"# \"\"\"7  ( #\"/ !## \"\" \"  #\"\"\"  /  6 \"\"!\"/!\"/!## \"\"\"7!\"\"!0!\"\"/#! ##\"\"!\"\"\"\"\"\"\"#!\"!\"/ #\"/  \"\"/ ! \"\" \"   !\"/ !\"/    !  ##  \" \"\"     \" \"\"     \"\" #! \"  6\" !\"\"/  / # \" )\"  \"7 \u0026 ! #\"\"  \"\" \" \" \"  \"#\"\"\"\"\"67  *#\"/*:!\" \n\n \n  \u0026  6\"  \n \n   6   \"! ! #   \n \n    ! \"\"    \"\"+ \"   \"\" #\"/!\"#\"6\"\"#\"\"6/!\" //7(#!##\"\"# ! \"/  \"   \"\" #\"/  #\"   !   \"/#\"#\"\"\"\"\"#\"/#\"7 ( # \"  \"/#   !\" # \" 6\"  \n \n   \" \"\"/   \"\"+ \"   \"\" #\"/  #\"7  #\"#\"#\"\"!\" \"##\"\"\"%/\" \"=\n\u003e5\u003e ?7  \n*#!!\" \n /7\"\" !\"    \n \n                             \n-\n./012343435411671489                             \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nINTRODUCTION \nThe School District's financial statements for the fiscal year ended June 30, 2016 includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a shortterm 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 2016 fiscal year are as follows: \nOn the government-wide financial statements: \n The School District's net position at June 30, 2016 was $72.1 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 shortterm and long-term, and deferred inflows of resources. The net position at June 30, 2016 of $72.1 million represented an increase of almost $4.5 million when compared to the prior year. The increase in net position has been reduced by a restatement of capital assets as of July 1, 2015, due to correction of inflated capital assets balances in the amount of $6.8 million, which occurred in prior years due to an internal fraud. \n The School District had $105.5 million in expenses relating to governmental activities; $69.6 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $47.2 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $47.2 million or 40.4% of all revenues totaling almost $116.8 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.) \n \nSource of Revenues \nProgram Revenues 59.6% \n \nGeneral Revenue Property Taxes 27.3% \nGeneral Revenue Sales Taxes 7.8% \n \nGeneral Revenue All Other 5.3% \n \ni \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \nOn the fund financial statements: \n Among major funds, the general fund had $108.3 million in revenues and $104.5 million in expenditures. The general fund balance of $15.7 million at June 30, 2016 remained virtually unchanged as compared to prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the 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. The `Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the general fund, capital projects funds, and debt service funds 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 Floyd 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 and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \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: \nx Capitalize current outlays for capital assets x Depreciate capital assets x Report long-term debt, including pension obligations, as a liability x Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting x 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 \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 two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \niii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n \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. \n \nIn the case of the Floyd County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $72.1 million at June 30, 2016. 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 $72.1 million of net position, $12.1 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 $131.0 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. \n \nBecause of the restrictions on net position as discussed above and because of the implementation of GASB No. 68 in fiscal year 2015, the School District had a deficit of $71.0 million at June 30, 2016. However, the School District's overall net position can also be viewed in the following manner: \n \nPension related net position Non pension related net position \n \n$ \n \n(88,402,323) \n \n160,542,205 \n \nNet pension, June 30, 2016 \n \n$ \n \n72,139,882 \n \nThe above analysis reflects, despite pension obligations, the School District's net position is a positive $72.1 million and management believes the School District's financial position is sound. \n \niv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \n \nTable 1 Net Position \n \nGovernmental Activities \n \nAssets Current and Other Assets Capital Assets, Net \n \nFiscal Year 2016 \n \nFiscal Year 2015 (1) \n \n$ 42,252,108 $ 54,361,687 \n \n160,382,044 \n \n155,288,983 \n \nTotal Assets \n \n202,634,152 \n \n209,650,670 \n \nDeferred Outflows of Resources Total Assets and Deferred Outflows of Resources \n \n8,215,751 210,849,903 \n \n7,436,753 217,087,423 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability \n \n14,398,490 27,693,457 81,509,221 \n \n14,430,282 34,037,877 69,046,663 \n \nTotal Liabilities \n \n123,601,168 \n \n117,514,822 \n \nDeferred Inflows of Resources \n \n15,108,853 \n \n31,891,732 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n138,710,021 \n \n149,406,554 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \nTotal Net Position \n \n131,033,566 12,088,744 (70,982,428) \n \n132,917,597 12,031,265 (77,267,993) \n \n$ 72,139,882 $ 67,680,869 \n \n(1) Fiscal year 2015 balances do not reflect the effect of the Restatement of Net Position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \nTotal net position increased $4.5 million in fiscal year 2016 from the prior year. This increase is primarily attributable to revenues exceeding expenses by $11.2 million in fiscal year 2016 less a restatement of capital assets as of July 1, 2015, of $6.8 million. The $11.2 million revenues exceeding expenditures was comparable to the prior year. In connection with deficit shown above, management presents the following additional information: \n \nTotal unrestricted net pension (deficit) Less unrestricted deficit in net position \nresulting from recognitiion of net pension obligations \nUnrestricted net position, exclusive of the net pension liability effect \n \n$ (72,660,056) 88,402,323 \n$ 15,742,267 \n \nv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nTable 2 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \nTable 2 \nChange 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 2016 \n \nFiscal Year 2015 (1) \n \n$ 2,247,998 66,470,363 858,377 69,576,738 \n \n$ 2,235,303 64,799,839 67,035,142 \n \nGeneral Revenues: Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Loss of Disposal of Capital Assets \nTotal General Revenues \n \n31,894,405 9,150,334 3,236,149 104,099 3,449,991 \n(644,403) 47,190,575 \n \n31,856,465 8,562,488 4,674,525 94,924 3,337,235 \n(284,470) 48,241,167 \n \nTotal Revenues and Special Items \n \n116,767,313 \n \n115,276,309 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n65,876,783 \n3,939,402 2,456,773 1,297,814 1,956,251 6,973,852 \n648,546 8,517,447 4,890,085 1,798,720 \n584,706 \n317,235 5,684,834 \n584,597 \n \n63,579,400 \n3,711,457 2,767,193 1,369,443 1,708,732 6,740,896 \n652,939 8,897,028 4,951,899 1,337,647 \n534,496 \n292,980 5,755,845 \n793,112 \n \nTotal Expenses \n \n105,527,045 \n \n103,093,067 \n \nIncrease in Net Position \n \n$ 11,240,268 \n \n$ 12,183,242 \n \n(1) Fiscal year 2015 balances do not reflect the effect of the Restatement of Net Position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \n \nvi \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \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. \n \nOverall School District expenses increased $2.4 million from the prior year, while the net costs of services remained essentially flat from the prior year. This situation occurred because the increase in program revenues essentially kept pace with the increase in expenditures. \nTable 3 Cost of Services \n \nTotal Cost of Services \n \nFiscal Year 2016 \n \nFiscal Year 2015 (1) \n \nNet Cost of Services \n \nFiscal Year 2016 \n \nFiscal Year 2015 (1) \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \n$ 65,876,783 $ 63,579,400 $ 14,517,709 $ 14,917,883 \n \n3,939,402 2,456,773 1,297,814 1,956,251 6,973,852 \n648,546 8,517,447 4,890,085 1,798,720 \n584,706 \n \n3,711,457 2,767,193 1,369,443 1,708,732 6,740,896 \n652,939 8,897,028 4,951,899 1,337,647 \n534,496 \n \n3,370,343 918,263 4,978 \n1,635,636 3,233,519 \n569,627 4,715,833 4,227,980 1,691,351 \n372,944 \n \n3,084,280 873,798 95,257 \n1,401,213 3,008,848 \n576,660 4,991,029 4,384,360 1,211,440 \n336,117 \n \n317,235 5,684,834 \n584,597 \n \n292,980 5,755,845 \n793,112 \n \n315,452 (207,925) 584,597 \n \n291,218 92,710 \n793,112 \n \n$ 105,527,045 $ 103,093,067 $ 35,950,307 $ 36,057,925 \n \n(1) Fiscal year 2015 balances do not reflect the effect of the Restatement of Net Position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISRICT'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 $117.7 million and total expenditures of $129.9 million in fiscal year 2016. Total governmental fund balances of $27.3 million at June 30, 2016, decreased $12.1 million from the prior year. This decrease occurred primarily because expenditures for capital outlay in fiscal year 2016 were made from reserves that accumulated in prior years. \n \nvii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nGeneral Fund Budget Highlights \n \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 2016, the School District amended its general fund budget as needed. \n \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. \n \nFor the general fund, the final actual revenues of $108.3 million exceeded the final budgeted revenues by $3.3 million. This variance was primarily due to revenues from state funds exceeding the final budgeted amount by $1.0 million and miscellaneous revenues exceeding the final budgeted amount by $2.7 million. \n \nThe general fund's final actual expenditures of $104.5 million exceeded the final budget amount by about $700,000. This small variance indicates the School District did a creditable job in forecasting its expenditures for fiscal year 2016. \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets \n \nAt fiscal year ended June 30, 2016, the School District had $160.4 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nTable 4 \nCapital Assets at June 30 \n(Net of Depreciation) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2016 \n \n2015 (1) \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \n \n$ 2,810,285 9,783,687 \n143,336,548 3,713,136 738,388 \n \n$ 2,810,285 16,420,281 \n130,503,918 4,408,525 1,145,974 \n \nTotal \n \n$ 160,382,044 $ 155,288,983 \n \n(1) Fiscal year 2015 balances do not reflect the effect of the Restatement of Net Position. See Note 15 in the Note 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. \nviii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \n \nLong-Term Debt \n \nAt June 30, 2016, the School District had $27.7 million in total debt outstanding which consisted of almost $24.2 million in bond debt, $1.8 million in unamortized bond premiums and $1.7 million in capital lease debt. Table 5 summarizes the School District's debt as compared to the prior fiscal year. \nTable 5 \nChange in Long-Term Debt \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2016 \n \n2015 \n \nGeneral Obligation Bonds Payable QZAB Bonds Payable Unamortized Bond Premiums Capital Lease Debt \n \n$ 22,175,000 2,000,000 1,796,424 1,722,033 \n \n$ 27,205,000 2,000,000 2,379,049 2,453,828 \n \nTotal \n \n$ 27,693,457 \n \n$ 34,037,877 \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \nFACTORS BEARING ON THE 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: \nx The School District is financially stable. The School District's operating millage for fiscal year 2016 was 18.58 mills, which produced over $1.7 million per mill. The School District will construct additional facilities to accommodate the growth at various schools as needed. The School District plans to fund additional capital outlays, in part, with the one percent local sales tax revenue and state capital outlay grants. \nx The School District has experienced very little revenue growth in fiscal year 2016 compared to the prior year. General fund revenues increased only about $0.5 million from the prior year, whereas expenditures increased about $1.5 million as compared with the prior year. The general fund had an unassigned fund balance of $12.7 million at June 30, 2016, which was a decrease of $650,000 from the prior year. 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. \nx The School District is involved in an ongoing investigation by both state and local authorities associated with a situation where school personnel were allegedly involved in a fraudulent scheme where inflated invoices were submitted and paid by the School District in return for various types of kickbacks from the vendors involved. The School District intends to prosecute the parties involved and seek reimbursement in this matter. The School District does not believe the outcome of this situation will be detrimental to the School District's ability to continue to deliver quality educational services to the citizenry of Floyd County. \n \nix \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 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. Chris Toles, Executive Director of Financial Services, Floyd County Board of Education, 600 Riverside Parkway, NE, Rome, Georgia. You may also email your questions to Mr. Toles at ctoles@floydboe.net. \nx \n \n                             \n \n   \n                              \n \n                             \n-\n./012343435411671489                             \n \n    \n \n  \n \n     FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd 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. \nBLENDED COMPONENT UNIT \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are used to cover the cost of its operations. The financial statements of the Charter School have been included with the School District's general fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGOVERNMENT-WIDE STATEMENTS: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \n \n- 9 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFUND FINANCIAL STATEMENTS: \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \nx 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. \nx 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. \nx The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \nThe School District reports the following fiduciary fund type: \nx Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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. \n \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and claims and judgments, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement. \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. If an external investment pool meets the criteria in this statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. The School District participates in an external investment pool, the State of Georgia local government investment pool (Georgia Fund 1), which does not meet the criteria of this statement. Therefore, the investment in this pool is measured at fair value as provided in paragraph 11 of GASB Statement No. 31, as amended. \n \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCASH AND CASH EQUIVALENTS \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nRESTRICTED ASSETS \nCertain resources set aside for repayment of debt are classified as restricted assets on the Statement of Net Position because their use is limited by applicable debt statutes, e.g. Qualified Zone Academy Bond sinking funds. \nCAPITAL ASSETS \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings and Improvements $ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAll 5,000.00 10,000.00 5,000.00 200,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n3 to 20 years 10 to 20 years \n \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \nPENSIONS \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nFUND BALANCES \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \n \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe School District's fund balances are classified as follows: \n \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \n \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \n \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \n \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \n \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \n \nPROPERTY TAXES \nThe Floyd County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on August 4, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on November 16, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The Floyd County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $30,195,224.24. \n \nThe tax millage rate levied for the 2015 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.58 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,823,926.40 during fiscal year ended June 30, 2016. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $8,693,916.66 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization expires on March 31, 2019. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts and after school program, 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 under review. \nNOTE 4: DEPOSITS, CASH EQUIVALENTS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nO.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2016, School District had deposits with a carrying amount of $7,281,903.99 and a bank balance of $13,894,972.31. The bank balances insured by Federal depository insurance were $635,557.98. \nAt June 30, 2016, $13,259,414.33 of the School District's bank balance was exposed to custodial credit risk as follows: \n \nUninsured and Uncollateralized Uninsured with collateral held by the pledging \nfinancial institution Uninsured with collateral held by the pledging \nfinancial institution's trust department or agent but not in the School District's name \n \n$ \n \n- \n \n- \n \n13,259,414.33 \n \nTotal \n \n$ 13,259,414.33 \n \nReconciliation of cash and cash equivalents balances to carrying value of deposits: \n \nStatement of Net Position Cash and cash equivalents \nStatement of Fiduciary Net Position Cash and cash equivalents \nTotal cash and cash equivalents \nAdd: Deposits with original maturity of three months or more \nreported as investments Less: Investment pools reported as cash and cash equivalents \nGeorgia Fund 1 \nTotal carrying value of deposits - June 30, 2016 \n \n$ 20,955,594.19 292,011.76 \n21,247,605.95 \n60,743.64 \n14,026,445.60 $ 7,281,903.99 \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF CASH EQUIVALENTS \nThe School District reported cash equivalents of $14,026,445.60 in Georgia Fund 1, a local government investment pool. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days. \nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2016, the School District had the following investments: \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less Than 1 Year \n \nDebt Securities \n \nU.S. Agencies \n \nImplicitly Guaranteed \n \n$ \n \n1,860,943.17 $ \n \n1,860,943.17 \n \nOther Investments Bond Mutual Funds \n \n7,147,427.92 \n \nTotal Investments \n \n$ \n \n9,008,371.09 \n \nFair Value of Investments \nThe School District measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: \nLevel 1: Quoted prices for identical measurements in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs. \nThe School District has the following recurring fair value measurements as of June 30, 2016: \nBond Mutual Funds of $7,147,427.92 are valued using quoted prices for identical measurements in active markets (Level 1 inputs). U.S. Agencies Debt Securities of $1,860,943.17 are valued using market observable information for identical or similar instruments in the market (Level 2 inputs). \nInterest Rate Risk \nInterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \n \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nCustodial Credit Risk \nCustodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \nAt June 30, 2016, $9,008,371.09 of the School District's applicable investments were held by the investment's counterparty, not in the School District's name. \nCredit Quality Risk \nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. State law limits investments to those prescribed O.C.G.A. 36-83-4. The School District does not have a formal policy that would further limit its investment choices or one that addresses credit risk. \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities U. S. Agencies Implicitly Guaranteed $ \n \n1,860,943.17$ \n \n1,860,943.17 \n \nConcentration of Credit Risk \nConcentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investment is 20.7% of the School District's total investments. \nNOTE 5: RESTRICTED ASSETS \nThe restricted assets represent the investment balance, totaling $1,860,943.17, for the QZAB Bond Sinking Fund. \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the capital assets for governmental activities during fiscal year 2016: \n \nBalances July 1, 2015 (Restated) \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2016 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ 2,810,285.00 $ \n \n- $ \n \n16,540,353.00 16,161,448.00 \n \n- $ \n \n- $ \n \n- (22,918,114.00) \n \n2,810,285.00 9,783,687.00 \n \nTotal Capital Assets Not Being Depreciated \n \n19,350,638.00 16,161,448.00 \n \n- (22,918,114.00) \n \n12,593,972.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n164,442,074.00 18,816,565.00 4,138,735.00 \n \n100,555.00 523,051.00 \n- \n \n2,377,132.00 248,736.00 - \n \n22,918,114.00 - \n \n185,083,611.00 19,090,880.00 4,138,735.00 \n \n40,516,939.00 14,408,040.00 3,315,305.00 \n \n2,938,072.00 1,202,470.00 \n85,042.00 \n \n1,707,948.00 232,766.00 - \n \n- \n \n41,747,063.00 \n \n- \n \n15,377,744.00 \n \n- \n \n3,400,347.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n129,157,090.00 \n \n(3,601,978.00) \n \n685,154.00 22,918,114.00 147,788,072.00 \n \nGovernmental Activity Capital Assets - Net $ 148,507,728.00 $ 12,559,470.00 $ 685,154.00 $ \n \n- $ 160,382,044.00 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \n \n$ 34,319.00 24,114.00 \n255,743.00 114,305.00 634,685.00 \n \n$ 3,014,588.00 \n1,063,166.00 147,830.00 \n \n$ 4,225,584.00 \nNOTE 7: INTERFUND TRANSFERS INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2016, consisted of the following: \n \nTransfers to Capital Projects Fund \n \nTransfers From \n \nGeneral Fund \n \nDebt Service Fund \n \n$ 3,828,718.92 $ 5,662,757.72 \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nTransfers were made during the fiscal year for the following purposes: \n(1) Transfers were made from the general fund to the capital projects fund as a supplemental funding source for capital construction projects. \n(2) Transfers were made from the debt service fund to the capital projects fund to move sales tax proceeds to the capital projects fund as funding for various capital projects as approved by a local voter referendum. \n \nNOTE 8: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2015 \n \n$GGLWLRQV \n \nGovernmental Activities \n \nDeductions \n \nBalance June 30, 2016 \n \nDue Within One Year \n \nGeneral Obligation Bonds \n \n$ \n \nUnamortized Bond Premuims \n \nQualified Zone Academy Bonds \n \nCapital Leases \n \n27,205,000.00 $ 2,379,048.74 2,000,000.00 2,453,828.13 \n \n- $ 5,030,000.00 $ \n \n- \n \n582,624.18 \n \n- \n \n- \n \n- \n \n731,795.22 \n \n22,175,000.00 $ 1,796,424.56 2,000,000.00 1,722,032.91 \n \n5,185,000.00 582,624.18 770,768.74 \n \n$ 34,037,876.87 $ \n \n- $ 6,344,419.40 $ 27,693,457.47 $ 6,538,392.92 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \nGeneral obligation bonds currently outstanding are as follows: \n \nDescription \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - Series 2014 \n \n3.00 - 5.00% 5/28/2014 \n \n7/1/2019 $ 27,205,000.00 $ 22,175,000.00 \n \nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2017 \n \n$ \n \n2018 \n \n2019 \n \n2020 \n \nTotal Principal and Interest $ \n \n5,185,000.00 $ 5,390,000.00 5,660,000.00 5,940,000.00 \n22,175,000.00 $ \n \n953,200.00 $ 714,750.00 438,500.00 148,500.00 \n2,254,950.00 $ \n \n582,624.18 582,624.18 582,624.18 \n48,552.02 \n1,796,424.56 \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nQUALIFIED ZONE ACADEMY BONDS (QZAB) \nSection 226 of the Taxpayer Relief Act of 1997 (Public Law 105-34) provides for a source of capital at no or at nominal interest rates for costs incurred by School Districts in connection with the establishment of special academic programs, in partnership with the business community. The School District, in agreement with Bank of America, has entered into such an arrangement. \nThis agreement establishes a method of repayment for qualified interest-free debt instrument. The agreement requires the School District to deposit funds annually into a sinking fund account on or before August 1, 2005 to August 1, 2009, in the amount of $264,922.11, for five annual installments. The amount on deposit at June 30, 2016 was $1,860,943.17. \nDebt currently outstanding under Qualified Zone Academy Bonds is as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nGeneral Government - QZAB - Series 2004 0.00% 6/29/2004 \n \n6/29/2018 $ 2,000,000.00 $ 2,000,000.00 \n \nThe following schedule reports the annual Qualified Zone Academy Bond payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n2018 \n \n$ \n \n2,000,000.00 \n \nCAPITAL LEASES \nThe School District has acquired an energy management system under the provisions of a long-term lease agreement classified as capital leases for accounting purposes because they provide 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 Funds \n \nBuildings and Improvements Less: Accumulated Depreciation \n \n$ 1,708,467.00 1,272,140.00 \n \n$ 436,327.00 \n \nCapital leases currently outstanding is as follows: \n \nPurpose \n \nInterest Rate \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nEnergy Management System \n \n5.20% \n \n2/28/2002 \n \n8/15/2018 $ 9,335,586.32 $ 1,722,032.91 \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nThe following is a schedule of total capital lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \n2017 \n \n$ \n \n2018 \n \n2019 \n \nTotal Principal and Interest $ \n \n770,768.74 $ 811,817.89 139,446.28 \n1,722,032.91 $ \n \nInterest \n71,347.82 30,298.67 \n907.06 102,553.55 \n \nNOTE 9: RISK MANAGEMENT \nINSURANCE \nCommercial Insurance \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \nWORKERS' COMPENSATION \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. The School District accounts for claims within the general fund with expenses/expenditures and liability is reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $400,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2015 2016 \n \n$ 164,731.33 $ 260,164.92 \n \n$ 451,442.92 $ 54,421.29 \n \n$ 356,009.33 $ 200,019.11 \n \n$ 260,164.92 $ 114,567.10 \n \nUNEMPLOYMENT COMPENSATION \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2015 $ \n \n- \n \n$ 17,031.00 $ 17,031.00 $ \n \n- \n \n2016 $ \n \n- \n \n$ \n \n620.00 $ \n \n620.00 $ \n \n- \n \nSURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ 100,000.00 \n \nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \n \nNonspendable Inventories \nRestricted Continuation of state programs Continuation of federal programs Capital projects Debt service \nCommitted School activity accounts \nAssigned After school program Record retention Unemployment compensation Workers' compensation \nUnassigned \n \n$ \n \n210,217.20 \n \n$ \n \n12,404.83 \n \n807,307.40 \n \n3,276,047.08 \n \n8,311,217.59 \n \n12,406,976.90 \n \n1,601,791.82 \n \n$ \n \n20,819.24 \n \n176,112.69 \n \n125,000.00 \n \n4,319.46 \n \n326,251.39 12,741,549.64 \n \nFund Balance, June 30, 2016 \n \n$ 27,286,786.95 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \n- 23 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2016, together with funding available: \n \nProject \n \nUnearned Executed Contracts (1) \n \nPayments through June 30, 2016 (2) \n \nFunding Available From State (1) \n \nNew Coosa High School Armuchee Middle School Coosa Middle School Model Middle School Johnson Elementary School \n \n$ \n \n6,355,092.76 $ 28,208,333.31 $ \n \n125,932.89 \n \n231,032.17 \n \n179,062.83 \n \n165,466.39 \n \n185,968.55 \n \n174,757.02 \n \n778,885.47 \n \n668,014.53 \n \n$ \n \n7,624,942.50 $ 29,447,603.42 $ \n \n11,389.90 38,096.60 28,546.83 48,172.80 \n126,206.13 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include retainages payable at year-end. \n \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nFEDERAL GRANTS \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nLITIGATION \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \n \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \n \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2016: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 1, 2015  June 30, 2016 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2015  December 31, 2015 $596.20 per member per month \n \nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2016 2015 2014 \n \n100% 100% 100% \n \n$ \n \n10,277,461.41 \n \n$ \n \n9,956,541.86 \n \n$ \n \n9,841,742.04 \n \n- 25 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nNOTE 14: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2016. The School District's contractually required contribution rate for the year ended June 30, 2016 was 14.27% of annual School District Payroll, of which 14.23% of payroll was required from the School District and 0.04% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $8,174,247.00 and $20,043.93 from the School District and the State, respectively. \nEMPLOYEES' RETIREMENT SYSTEM \nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \n \n- 26 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $41,504.00 for the current fiscal year. \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \n \n- 27 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $168,293.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2016, the School District reported a liability of $81,509,221.00 for its proportionate share of the net pension liability for TRS $(81,193,131.00) and ERS $(316,090.00). \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability State of Georgia's proportionate share of the net pension liability associated with the School District \nTotal \n \n$ 81,193,131.00 \n248,913.00 $ 81,442,044.00 \n \nThe net pension liability for TRS and ERS was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2015. \nAt June 30, 2015, the School District's TRS proportion was 0.533323%, which was a decrease of 0.010704% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.007802%, which was a decrease of 0.000624% from its proportion measured as of June 30, 2014. \nAt June 30, 2016, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $648,453.00. \nThe PSERS net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2015. \nFor the year ended June 30, 2016, the School District recognized pension expense of $3,192,114.00 for TRS, $(55,698.00) for ERS and $38,670.00 for PSERS and revenue of $14,719.00 for TRS and $38,670.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS, the State of Georgia support is provided only for certain support personnel. \n \n- 28 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nDeferred Outflows of Resources \n \nTRS Deferred Inflows of Resources \n \nERS \n \nDeferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience $ \n \n- $ 714,135.00 $ \n \n- $ 2,526.00 \n \nNet difference between projected and actual earnings on pension plan investments \n \n- \n \n6,848,726.00 \n \n- \n \n22,806.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \nSchool District contributions subsequent to the measurement date \nTotal \n \n- \n \n7,466,829.00 \n \n- \n \n53,831.00 \n \n8,174,247.00 \n \n- \n \n41,504.00 \n \n- \n \n$ 8,174,247.00 $ 15,029,690.00 $ 41,504.00 $ 79,163.00 \n \nThe School District contributions subsequent to the measurement date of $8,174,247.00 for TRS and $41,504.00 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \nERS \n \n2017 2018 2019 2020 2021 \n \n$ (5,463,911.00) $ \n \n$ (5,463,911.00) $ \n \n$ (5,463,917.00) $ \n \n$ \n \n1,466,191.00 $ \n \n$ \n \n(104,142.00) $ \n \n(59,856.00) (16,831.00) (10,165.00) \n7,689.00 - \n \nActuarial assum ptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: Inflation Salary increases Investment rate of return \n \n3.00% \n3.75%  7.00%, average, including inflation \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nEmployees' Retirement System: Inflation Salary increases Investment rate of return \n \n3.00% \n5.45%  9.25%, average, including inflation 7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nPublic School Employees Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nTarget allocation \n30.00% 39.70% \n3.70% 1.60% 18.90% 6.10% \n100.00% \n \nLong-term expected real rate of return* \n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \n \n- 30 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n \nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the net pension liability \n \n$ 139,524,257.00 $ \n \n81,193,131.00 $ 33,114,404.00 \n \nEmployees' Retirement System: \nSchool District's proportionate share of the net pension liability \n \n1% Decrease (6.50%) \n \nCurrent Discount Rate (7.50%) \n \n$ \n \n448,069.00 $ \n \n316,090.00 $ \n \n1% Increase (8.50%) \n203,573.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \n \nDEFINED CONTRIBUTION PLAN \nThe Floyd County Board of Education provides two defined contribution plans for the group of employees covered by the Public School Employees Retirement System (PSERS). The Board adopted these plans because the Board believed that PSERS did not provide an adequate retirement income for this group of employees. \nThe first plan is an employer matching 403(b) annuity plan. The Board selected VALIC as the 3rd party plan administrator. All contributions to the plan are paid to VALIC and then VALIC distributes funds to other companies as required. For each employee covered under the plan, the Board contributes to the plan an amount matching up to 4% of the employee's base pay. \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of continuous employment to Floyd County Board of Education. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \n \n- 31 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \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 \n2016 2015 2014 \n \n100% \n \n$ \n \n30,908.75 \n \n100% \n \n$ \n \n34,693.04 \n \n100% \n \n$ \n \n43,104.36 \n \nUnder the second plan, the Board operates an employer only paid contribution to TIAA-CREF annuity plan. The Board pays $25.00 per month for 12 months for employees covered under PSERS. This plan was in place prior to the above mentioned matching plan that was added an additional retirement savings incentive that began in 2003. \n \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. Funds accumulated in the employer paid accounts are only available to the employee after termination and at no early than 59 and one-half years of age. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2016 2015 2014 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n53,950.00 35,084.78 46,475.00 \n \nNOTE 15: RESTATEMENT OF PRIOR YEAR NET POSITION \nIn fiscal year 2015, the School District became aware of a situation where capital assets acquired were caused to be recorded at an inflated amount on the financial statements because of an internal fraud. As a result of this matter, net position as of July 1, 2015, has been restated as described below: \n \nNet position, July 1, 2015 as previously reported \n \n$ 67,680,868.89 \n \nAdjustment of overstatement of capital assets associated with an internal fraud \n \n(6,781,255.00) \n \nNet position, July 1, 2015, as restated \n \n$ 60,899,613.89 \n \nThis change is in accordance with generally accepted accounting principles. \n \n- 32 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2016 \n \nEXHIBIT \"H\" \n \nMISAPPROPRIATED FUNDS \nDuring fiscal year 2015, the School District became aware of a situation where school personnel were allegedly involved in a fraudulent scheme where inflated and altered invoices were submitted by various vendors and paid by the School District. It is believed kickbacks were obtained from the vendors involved and funds were received by school personnel. This matter continues to be under investigation by law enforcement officials from both the State and local governments. The School District has determined that $6.8 million was misappropriated prior to June 30, 2016 and covers multiple years. \nNOTE 16: SPECIAL ITEM \nDuring the year under review, the School District demolished the old Coosa High School buildings and sold various equipment items for amounts totaling $40,751.41, as noted on Exhibit E of this report. The equipment items had a book value of $15,970.00 at the time of their sale, therefore, the School District realized a net gain totaling $24,781.41 for the equipment items. The Coosa High School had a book value of $669,184.00 at the time of the demolition, which resulted in a net loss of $669,184.00 for the building. Overall, there is a loss on the disposal of capital assets totaling $644,402.59 shown on the Statement of Activities. \n \n- 33 - \n \n                             \n-\n./012343435411671489                             \n \n                                      \n-\n./012343435411671489                             \n \n  \n \n                             \n-\n./012343435411671489                             \n \n                            \n\n   \n     \n    \n   \n                            \n \n                             \n-\n./012343435411671489                             \n \n  \n \n \n \n \n \n \n \n \n \n  \n   \n    \n \n \n \n \n \n \n  \n     \n \n \n \n \n \n \n \n \n    \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n     \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n !\" \n \n \n \n!#\" \n \n$%! !\" \n \n \n \n\u0026 '\u0026()( \u0026*%(\u0026*+ \u0026$)%)*\u0026 '\u0026()%'*)% ( \u0026 \n \n(( \u0026 ,)($$)%)*((  (' \u0026$\u0026 )%%\u0026% -)(  \n    \n \n  \n \n) '  (,)(\u0026.\u0026 '\u0026(  *\"/  -!\"\"0\"!\"\"11#\",\"  \"    ##\"  \"\" !\" \" \"  \n  \"!  %#   ,\"   \"\"    1 \"\"\"  2 !   111 \"\"1 ! \"\"  $ %!   !\" 3 \"\"4        5!6\n \n 7       \"\"  0\" \" #\"   \"\". \" \"\"\"!!# \n \n  8  )%$\"\"\u0026#\"1  )#\"1#\"1!!\"\"\"0\"\"\". \"\"\"#\"13\"4\"!\"#! ###\" \"  \"!   #!#  9#\"1 ! #\"\"   \"\"  !    #!#  9#\"1  #\"\"   \"    \"\".\"8\"109##\"\"\" \"\".\"8       9\" 0  \"1  #\"      0 1#\"!#\"1\"\"1!\"#     \"   \" \"8   ! \"  \"\"  \"\"  \"\"\" \" \"  !   \"   #\"\"\"   \" \"   \". \"\"  0\"   #    \"\"8 \"\"\"\"\"\"\"\" \"\"\"\"0:\"#!1\"\" 10\"18     \n \n                             \n-\n./012343435411671489                             \n \n    !\"\"\"0\"\"#!#\"\"\"#1# \"\"0\"1\"\"\"\"\"\"\"\"1\" 0:  \"1\"\" \"\"\"8 \"  \"\"\" !\"1 ! !\" 0 \"  \"\"  \"\"\" \" \"   0 \"   \" 0:8 0 \" 0:9\"\"\"\"8  %#\"   #  \"\"1  ! ! 0   \"\". \"\"  \"\"0#\"#\"0\"\"#\"\" 01!\"11#\"0\"0\"!\" \"\"\"\"\"!80#\"\"1#\"\"  #\" 0\"  #\"\" 0   2\"  ! !\"  \"1 0   9#!#\"\"8(!!\"\"#\" ;!\"#! \n \"  '!#\"\u0026#  ( #!#  \" # \"   \"  #  ! \"1  \"   #\"!\"1#\"#\"\"\" \"\".\"#\"8(\"#\"\"1#!\"# \" 0\" \n \"\"\"1\"\".\" #\"8\"1\"!\"\"\"!\"#!#8  \n\u0026#!!\" \n 18\"\" !\"     \n \n                             \n-\n./012343435411671489                             \n \n  \n \n \n \n \n \n \n \n \n \n  \n   \n    \n \n \n \n \n \n \n  \n     \n \n \n \n \n \n \n \n \n    \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n     \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n !\" \n \n \n \n!#\" \n \n$%! !\" \n \n \n \n\u0026 '\u0026(%')*% $\u0026 %+\u0026'\u0026\u0026*( \u0026)%(\u0026), \u0026 \n \n%')*% \u0026 -.*\u0026 /( .*$\u0026.*%  \n \n \n \n* '  (.*(\u00260\u0026 '\u0026( \n \n \n \n)\"1 \n \n \n \n\u0026#%#\" 2$'3 \n \n \n \n4  !\" $ %!   !\"0 5 \"\"6 #\" 7\"  #  #\"8!\"\"\" \n    !\" \n \n\"\"2#3+!9\n \n :;( \n \n\"\"0 2  #3  \"\"\" \"  !  !\"0 \u0026! \"   \n \n#\"3!$\"\"3-!\"%; \n \n    \n\n \n \n \n \n \n3 \" #\"  #\" 7\"  ! 3!\"     \n \n\"\"\"7##\"\"#3; \n \n \n \n\n \n \n \n \n \n!#\"\"\"\"\u003c##\"\"#\"\"\"=2 \n \n#3   ! !\"   #  #\" 8!\"   ; 4 \n \n!!!\"#\"\"7\"!\"\"33#\" .\"   \"\u003e   ##\"  \"\" !\" \" \"    \n\n    \"!   %#    .\" \u003e   !\" 8!\"  (\"  .;;      \n  ' \n\n  \n \n \n\n  \n !  \"\n  \n !   \n  \n     # 5.\" !\"6; \n \n(    .\" !\" 8!\"  7 #  #  !\"  \" \n \n ! ! 7 #\" 7\"  #  #\" 8!\" \n \n!\"\"2#3!; \n \n!\"\"!\u003c\"\"3\"\"!\"\"0 #\"7\" \n \n 8!\"  #\"3 !  #!  7 \"  \"  \n \n\"!; \n \n \n \n \n \n                             \n-\n./012343435411671489                             \n \n    4\"!!\"#\"\"!#\"\"#\"2  #3; 7 ! !\"   #\"  3 \"\"    \"\"0 #\";  \n \n  $ %\u0026 \"  * ! #\"\"   \"\" #\" \"  \" # 7\"  #  #\" 8!\"!\"\"\"2 #3+!9\n \n :;  \u0026#*%%#\"  3\"\"\"#\"\"\"3\"\"\"3\"\" #\"7\"##\"8!\";*#\"3 #\"3 ! !\"  #\" 7 \"   \"\"0 \"   #\"7\"#8!\"!\"\"2 #3\"!\"\"3#!###\"\"\"! #!#\u003c#\"3#\"\"#\"2#3 #\"#\"\"7\".\"!\"! #!#\u003c#\"3#\"\"\"\"#\";\"3 7   \u003c#  #\"\"   \"    \"\"0 \"   #\";  \n \n  \n \n        \n  \u003c\"7\"3#\" #\"   7 3  # \"   !  #\"3 \" \"3 !\"  #     #\" 7\"  #  #\" 8!\"    #3   \" \";  \n  #'  \n  \n           \n  \"\"\"\"\"\"\"\"\"\"#\"!   \"   #\"\"\"  \" #\" 7\"  #  #\" 8!\"#37\"#\"\";  \n \n\n   \n \n   \n  \n           \n   \"  \"\"   \"\"  \"\"\"\"\"#\"7\"##\"8!\" #3  \"     \" 7? \" \"   #\"  \"#!3\"\"37\"3;  !\"\"\"#\"7\"\"#!#\"\"\" #3#  \" \"  7  \"3  \"\"  \"\"\" \" \"   #\"  \"3  \" 7?  \"3\"\" \"\"\"; 4 \"  \"\"  \"\"\"\"\"#\"7\"\"7?;7 \"7?\u003c\"\"\"\";  (#!#\"#\"#\"\"\"#! \"3\"#\"!\"38!\" .\"!\";\"3\"#\"!\"#!#;  \n\u0026#!!\" \n 3;\"\" !\"    \n \n                             \n-\n./012343435411671489                             \n \n                            \n\n   \n \n  \n        \n \n                            \n \n                             \n-\n./012343435411671489                             \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 !\"#$%!\u0026##'() *+ \u0026#, !-* \u0026,*-' \n \n \n \n* \u0026,*-!\u0026#)*,./    00*% \u0026( )* \u0026,*-' \n \n \u0026#, !-* \u0026,*-12!0\u0026/ !\u0026#,(!-3#!4 #'' \n \n*12-(! 0#12!0\u0026/  * # \n \n \n \n( \"( )\u0026!\u0026%'/   ,#5(*%'-. #2*,\u0026#\"*,,#0\u0026(5# 0\u0026(* 12-#1# \u0026#\" \n \n \n \n6 !\"#$%!\u0026##'() *+ \u0026#, !-* \u0026,*-' \n \n \n \n* \u0026,*-!\u0026#)*,./    00*% \u0026( )* \u0026,*-' \n \n \u0026#, !-* \u0026,*-12!0\u0026/ !\u0026#,(!-3#!4 #'' \n \n*12-(! 0#12!0\u0026/  * # \n \n \n \n( \"( )\u0026!\u0026%'/   ,#5(*%'-. #2*,\u0026#\"*,,#0\u0026(5# 0\u0026(* 12-#1# \u0026#\" \n \n \n \n       3      \n \n \n \n \n \n*1!\u0026\u0026#,'7#,#,#2*,\u0026#\"8 \n \n \n \n \n \n \n \n                             \n-\n./012343435411671489                             \n \n                            \n\n   \n    \n \n                            \n \n                             \n-\n./012343435411671489                             \n \n  \n   \n  \n \n    \n \n \n \n     \n \n \n \n \n \n    \n  \n \n \n \n \n !\"\"#$#\"% \n \n \n \n \n\u0026'#()*+\"(,%,#'(,\"%%*#- \n \n(.#,$#\"!   \".\"#%/ ##,! *+/ '\"! 0,(1# \"% *+/ #2\" \n \n#,. #*+/ 33,#3\"# #$3*+)(,$\"( \n \n \n \n \"#,! (\",(!(.#,) !,#'(,\"3-  \"#,!4#5#%%+#\")#+6  3) \"+#) # \u0026+#\")#+6 \n \n \n \n( ($'! #$\"#,!\"() !%\"\"#$#\"%(\"#+- \n \n \n \n \n \n#+#,! 4,+% \n \n \n \n\"#,!(\",(!(.#,$1(,',(3,$%-  \"#,!4#5#%%+#\")#+6  3) \"+#) # \u0026+#\")#+6 \n \n  \n\u0026'#()*+\"(,%,#'(,\"%%*#+( ($'! #)(,$1(,',(3,$%- \n \n   !!$1(,',(3,$% \n \n \n \n \u0026*+\")+3%+% !(%#+\"7\",#,#8*,#+\"(2#,#'(,\"#+ \n \n (,+ #4\"7 9:;\u003c6 \n \n \n \n +#\") \"(()$1(,',(3,$%- \n \n \n \n  *$2#,%  \n \n$#()#+#,!0,(3,$(,!*%\"#, \n \n \n \n9::9::: \n \n7!+ *\",\"(!*%\"#, \n \n \n \n(!!,\"7,#%7(!+*%#+\"(+%\"3*%72#\"4##\n\u0026'# +\n\u0026'#',(3,$%- \n \n \n \n *+\"##8*!)#+%!(4?,%5*+\"##6 \n \n \n \n \n \n     \n \n \n    \n \n \n \n \n \n($\"\"#,%4#,#,#'(,\"#+9 \n \n \n \n    @      \n \n \n \n \n \n($\"\"#,%4#,#,#'(,\"#+9 \n \n \n \n \n \n \n \n \n \n \n \n$(+)#+ ( \n(# #'(,\"#+ ( \n( (# #'(,\"#+ \n$(+)#+ ( \n=\u003e:9 ( \n \n \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2015-belec-p-btext","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2016-11-03"],"dcterms_description":["Financial report of the Floyd 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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nPage \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \ni \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n3 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \n4 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n5 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n6 \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \n7 \n \nH 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 \n32 \n \n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \n \nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \n \n33 \n \n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS' RETIREMENT SYSTEM OF GEORGIA \n \n34 \n \n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 36 \n \n5 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \n \n38 \n \n6 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n39 \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n7 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 8 SCHEDULE OF STATE REVENUE 9 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 10 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n40 41 42 43 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n SECTION I FINANCIAL \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 3, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, the major funds  General Fund and Debt Service Fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of and for the year ended June 30, 2015, and the related notes to the financial statements. We were engaged to audit the financial statements of the major fund  District-wide Capital Projects Fund. These financial statements collectively comprise the Board's basic financial statements as listed in the table of contents (Exhibits A through H). \nManagement's Responsibility for the Financial Statements \nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditor's Responsibility \nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Because of the matter described in the \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the District-wide Capital Projects Fund. \n \n2015ARL-19B \n \n (This page left intentionally blank) \n \n An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \n \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \n \nSummary of Opinions \n \nOpinion Unit Governmental Activities Governmental Fund  General Fund Governmental Fund  District-wide Capital Projects Fund Governmental Fund  Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Qualified Qualified Disclaimer \nUnmodified Unmodified \n \nBasis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund \n \nDuring the fiscal year under review, it was discovered various School District personnel perpetrated apparent fraud through collusion with vendors of the School District. The investigation is currently in progress and preliminary evidence indicates that the apparent fraud involved disbursements related to capital outlay and maintenance expenditures during the year under review and previous fiscal years. We were not able to determine, however, the full impact the apparent fraud had on the School District's financial statements. The amount by which this departure would affect the assets, net position and expenses/expenditures of the Governmental Activities, General Fund, and the District-wide Capital Projects fund has not been determined. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on Districtwide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion for District-wide Capital Projects Fund. Accordingly, we do not express an opinion on these financial statements. \n \nQualified Opinions \n \nIn our opinion, except for the matter described in the \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph above, the financial statements referred to above present fairly, in all material respects, the respective \n \n2015ARL-19B \n \n (This page left intentionally blank) \n \n financial position of the governmental activities and the major fund  General Fund - of the Floyd County Board of Education, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nUnmodified Opinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the the debt service fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2015, the Floyd County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions  an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB Statement No. 68. The School District restated beginning Net Position for the cumulatve effect of these accounting changes. Our opinion is not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through xi and pages 32 through 39 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 7 through 10, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \n2015ARL-19B \n \n (This page left intentionally blank) \n \n The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. Due to the significance of the matter disclosed in \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, it is inappropriate to, and we do not express an opinion on the supplementary information. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated November 3, 2016, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Floyd County Board of Education's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \nRespectfully submitted, \n \nGSG:es 2015ARL-19B \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nINTRODUCTION \nThe District's financial statements for the fiscal year ended June 30, 2015 includes a series of basic financial statements that report financial information for the District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the District's finances on a global basis. The fund financial statements provide information about all of the District's funds. Information about these funds, such as the District's General Fund, is important in its own right, but will also give insight into the District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. The adoption of these statements had a significant impact on the School District's District-wide financial statements, and in many cases distorts comparability of fiscal year 2015 financial statements with those of the prior year. Prior year financial statements, as presented herein, have not been restated for implementation of GASB No. 68 and GASB No. 71. The District's Governmental Fund Financial Statements were not affected by implementation of GASB No. 68 and GASB No. 71. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2015 are as follows: \nOn the District-wide financial statements: \n The District's net position at June 30, 2015 was $67.7 million. Net position reflects the difference between all assets and deferred outflows of resources of the District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2015 of $67.7 million represented a decrease of $85.8 million when compared to the prior year. However, this decrease includes the effect of the implementation of GASB 68 and GASB 71, which decreased beginning net position by $98.0 million. After accounting for this restatement, the District had an increase of net position in fiscal year 2015 activities of $12.2 million. The increase in net position occurred in large part from an increase in program revenues of $2.2 million vs. the prior year, while expenses remained virtually flat as compared to the prior year. \n The School District had $103.1 million in expenses relating to governmental activities; $67.0 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $48.2 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $48.2 million or 42% of all revenues totaling almost $115.3 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 FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nSource of Revenues \nProgram Revenues \n58.2% \n \nGeneral Revenue - Property Taxes \n27.6% \nGeneral Revenue - Sales Taxes 7.4% \n \nGeneral Revenue - All Other 6.8% \nOn the fund financial statements: \n Among major funds, the General Fund had $107.7 million in revenues and $103.0 million in expenditures. The General Fund balance of almost $15.8 million at June 30, 2015 increased $3.1 million from the prior year. This increase in General Fund Balance resulted primarily because of actual revenues exceeded actual expenditures in the General Fund by about $4.7 million, whereas the Board had budgeted for only an excess of revenues over expenditures of $1.3 million. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial Statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The `Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are all considered to be major funds. The 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. \nii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into 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 District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt, including pension 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 \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the District has no nonmajor funds as defined by generally accepted accounting principles. \niii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets and deferred outflows of resources, and total liabilities and deferred inflows of resources, is one indicator of the financial condition of the 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 District's operating results. The District's net position, as measured in the Statement of Net Position is one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net position, as measured in the Statement of Activities, are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the District. \nIn the case of the Floyd County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $67.7 million at June 30, 2015. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $67.7 million of net position, $12.0 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 District's ongoing obligations to citizens and creditors. \nIn addition, the District had $132.9 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \niv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nBecause of the restrictions on net position as discussed above and because of implementation of GASB 68, the District had an unrestricted deficit of $77.3 million at June 30, 2015. However, the District's overall Net Position can also be viewed in the following manner: \n \nPension Related Net Position Non Pension related Net Position \n \n$ -93.5 million 161.2 million \n \nNet Position, June 30, 2015 \n \n$ $ 67.7 milion \n \nThe above analysis reflects, despite pension obligations, the District's Net Position is a positive $67.7 million and management believes the District's financial position is sound. \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 (1) \n \n$ 54,361,687 $ 67,234,275 \n \n155,288,983 \n \n140,675,951 \n \nTotal Assets \n \n209,650,670 \n \n207,910,226 \n \nDeferred Outflow of Resources \n \n7,436,753 \n \nTotal Assets and Deferred Outflow of Resources \n \n217,087,423 \n \n207,910,226 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n83,476,945 34,037,877 \n \n12,023,977 42,357,179 \n \nTotal Liabilities \n \n117,514,822 \n \n54,381,156 \n \nDeferred Inflows of Resources \n \n31,891,732 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n149,406,554 \n \n54,381,156 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n132,917,597 12,031,265 -77,267,993 \n \n127,679,139 12,306,479 13,543,452 \n \nTotal Net Position \n \n$ 67,680,869 $ 153,529,070 \n \n(1) Fiscal year 2014 balances do not reflect the effect of the Restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \n \nv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nTotal net position decreased $85.8 million in fiscal year 2015 from the prior year, primarily due to the implementation of GASB No. 68 and GASB No. 71 accounting standards for pensions. In connection with this accounting change, management presents the following additional information: \n \nTotal unrestricted Net Position (deficit) \n \n$ \n \nLess unrestricted deficit in Net Position \n \nresulting from recognition of net pension obligations \n \nUnrestricted Net Position, exclusive of the Net Pension Liability effect $ \n \n-77,267,993 93,501,642 16,233,649 \n \nvi \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nTable 2 provides a summary of the School District's Net Position for this fiscal year as compared to the prior fiscal year. \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 (1) \n \n$ \n \n2,235,303 $ \n \n2,124,270 \n \n64,799,839 \n \n62,468,314 \n \n391,788 \n \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Item Loss of Disposal of Capital Assets \n \n67,035,142 \n \n64,984,372 \n \n31,856,465 8,562,488 \n4,674,525 94,924 \n3,337,235 \n-284,470 \n \n31,694,251 9,248,158 \n4,982,103 68,943 \n2,694,402 \n \nTotal General Revenues and Special Item \nTotal Revenues \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \n48,241,167 115,276,309 \n \n48,687,857 113,672,229 \n \n63,579,400 \n3,711,457 2,767,193 1,369,443 1,708,732 6,740,896 \n652,939 8,897,028 4,951,899 1,337,647 \n534,496 \n292,980 5,755,845 \n793,112 \n103,093,067 \n \n64,718,801 \n3,707,897 2,494,147 1,378,496 1,618,508 6,586,145 \n587,854 9,019,555 5,467,064 \n816,745 572,451 \n267,282 5,965,813 \n591,817 \n103,792,575 \n \nIncrease in Net Position \n \n$ 12,183,242 $ \n \n9,879,654 \n \n(1) Fiscal year 2014 balances do not reflect the effect of the Restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \n \nvii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \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 Governmental Activities \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2015 \n \n2014 (1 ) \n \nNet Cost of Services \n \nFiscal Year Fiscal Year \n \n2015 \n \n2014 (1 ) \n \nInstruction \n \n$ 63,579,400 $ 64,718,801 $ \n \nSupport Services \n \nPupil Services \n \n3,711,457 \n \n3,707,897 \n \nImprovement of Instructional Services \n \n2,767,193 \n \n2,494,147 \n \nEducational Media Services \n \n1,369,443 \n \n1,378,496 \n \nGeneral Administration \n \n1,708,732 \n \n1,618,508 \n \nSchool Administration \n \n6,740,896 \n \n6,586,145 \n \nBusiness Administration \n \n652,939 \n \n587,854 \n \nMaintenance and Operation of Plant \n \n8,897,028 \n \n9,019,555 \n \nStudent Transportation Services \n \n4,951,899 \n \n5,467,064 \n \nCentral Support Services \n \n1,337,647 \n \n816,745 \n \nOther Support Services \n \n534,496 \n \n572,451 \n \nOperations of Non-Instructional Services \n \nCommunity Services \n \n292,980 \n \n267,282 \n \nFood Services \n \n5,755,845 \n \n5,965,813 \n \nInterest on Short-Term and Long-Term Debt \n \n793,112 \n \n591,817 \n \n14,917,883 $ 18,046,359 \n \n3,084,280 873,798 95,257 \n1,401,213 3,008,848 \n576,660 4,991,029 4,384,360 1,211,440 \n336,117 \n \n3,192,399 972,723 46,396 \n1,334,807 2,829,871 \n515,184 4,954,559 4,812,830 \n717,610 390,370 \n \n291,218 92,710 \n793,112 \n \n12,745 390,533 591,817 \n \nTotal Expenses \n \n$ 103,093,067 $ 103,792,575 $ 36,057,925 $ 38,808,203 \n \n(1) Fiscal year 2014 balances do not reflect the effect of the Restatement of Net Position See Note 2 in the Notes to the Basic Financial Statements for additional information. \nOverall District expenses decreased $0.7 million from the prior year, while the net costs of services decreased by $2.8 million from the prior year or 7%. This situation occurred because program revenues increased by $1.8 million from the prior year, largely due to an increase in State funding of $0.8 million and an increase in Federal funding of $1.0 million. \n \nviii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS Information about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental Funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $116.0 million and total expenditures of $130.7 million in fiscal year 2015. Total governmental fund balances of $39.4 million at June 30, 2015, decreased $14.5 million from the prior year. This decrease in fund balance resulted primarily because the District made significant capital expenditures in fiscal year 2015 from reserves that had accumulated in prior years. General Fund Budget Highlights The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal year 2015, the School District amended its general fund budget as needed. The School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. For the General Fund, the final actual revenues of $107.7 million exceeded the final budgeted revenues by $2.4 million. This variance was primarily due to revenues from miscellaneous sources exceeding the final budgeted amount by $2.7 million. This variance was largely because school activity accounts (principals' accounts) were not included in the Board's final budget. The General Fund's final actual expenditures of $103.0 million were less than the final budget amount by $1.0 million. The variance was primarily due to actual expenditures for instruction less than the budgeted amount by $1.7 million. \nix \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \n \nCAPITAL ASSETS AND DEBT ADMINISTRATION \n \nCapital Assets \n \nAt fiscal year ended June 30, 2015, the School District had $155.3 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \n \nTable 4 Capital Assets at June 30 \n(Net of Depreciation) \n \nGovernmental Activities Fiscal Year 2015 Fiscal Year 2014 \n \nLand Construction in Progress Land Improvements Buildings and Improvements Equipment \n \n$ \n \n2,810,285 $ \n \n2,826,345 \n \n16,420,281 \n \n3,878,893 \n \n1,145,974 \n \n1,114,471 \n \n130,503,918 \n \n127,989,757 \n \n4,408,525 \n \n4,866,485 \n \nTotal \n \n$ \n \n155,288,983 $ \n \n140,675,951 \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, 2015, the School District had $34.0 million in total debt outstanding which was consisted of $29.2 million in bond debt, $2.5 million in capital lease debt, and $2.4 million in Unamortized Bond Premiums. Table 5 summarizes the School District's debt as compared to the prior fiscal year. \n \nTable 5 Change in Long-Term Debt \n \nGovernmental Activities Fiscal Year 2015 Fiscal Year 2014 \n \nBonds Payable Unamortized Bond Premiums Capital Lease Debt \n \n$ \n \n29,205,000 $ \n \n36,205,000 \n \n2,379,049 \n \n2,961,673 \n \n2,453,828 \n \n3,190,506 \n \nTotal \n \n$ \n \n34,037,877 $ \n \n42,357,179 \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \nx \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \nFACTORS BEARING ON THE DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The District is financially stable. The School District's operating millage for fiscal year 2015 was 18.58 mills, which produced over $1,729,476 per mill. The District will construct additional facilities to accommodate the growth and reduce portable classrooms at various schools if needed. The District plans to fund additional capital outlays with the one percent local sales tax revenue and state capital outlay grants. \n Even though the economy continues to improve, revenues from the State of Georgia in fiscal year 2015 increased only about 2% from the prior year. Property tax revenues showed a modest increase as well as compared to the prior year. The General Fund had an unassigned fund balance of almost $13.4 at June 30, 2015, which is an increase of $3.1 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. 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 The School District is involved in an ongoing investigation by both State and Local authorities associated with a situation where school personnel were allegedly involved in a fraudulent scheme where inflated invoices were submitted and paid by the school District in return for various types of kickbacks from the vendors involved. The School District intends to prosecute the parties involved and seek reimbursement in this matter. The School District does not believe the final outcome of this situation will be detrimental to the District's ability to continue to deliver quality educational services to the citizenry of Floyd County. \nCONTACTING 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. Chris Toles, Executive Director of Financial Services, Floyd County Board of Education, 600 Riverside Parkway, NE, Rome, Georgia. You may also email your questions to Mr. Toles at ctoles@floydboe.net. \nxi \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2015 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Interest Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year Net Pension Liability \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nRelated to Defined Benefit Pension Plans \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n31,404,988.50 \n \n11,519,461.66 \n \n2,132,848.88 7,483,524.75 1,056,565.06 \n74,000.63 425,527.19 264,770.74 19,230,566.00 136,058,417.00 \n \n209,650,670.41 \n \n7,436,753.00 \n \n182,519.00 12,070,530.09 \n260,164.92 603,900.00 \n86,894.22 1,226,155.43 \n118.99 \n6,344,419.40 27,693,457.47 69,046,663.00 \n117,514,822.52 \n \n31,891,732.00 \n \n132,917,597.27 \n618,528.44 10,770,071.19 \n642,665.41 -77,267,993.42 \n \n$ \n \n67,680,868.89 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nPROGRAM REVENUES \n \nOPERATING \n \nCHARGES FOR \n \nGRANTS AND \n \nSERVICES \n \nCONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \n \n$ \n \n63,579,399.83 $ \n \n3,711,456.44 2,767,192.63 1,369,442.95 1,708,732.46 6,740,896.44 \n652,939.31 8,897,027.67 4,951,898.89 1,337,647.19 \n534,495.54 \n \n292,980.42 5,755,845.30 \n793,111.98 \n \n$ 103,093,067.05 $ \n \n873,214.95 $ \n14,357.96 1,347,729.75 \n \n47,788,301.93 $ \n627,176.34 1,893,394.18 1,274,185.50 \n307,519.68 3,732,048.88 \n76,279.30 3,905,998.69 \n553,181.38 126,206.84 198,378.68 \n1,762.06 4,315,405.87 \n \n2,235,302.66 $ \n \n64,799,839.33 \n \n-14,917,882.95 \n-3,084,280.10 -873,798.45 -95,257.45 \n-1,401,212.78 -3,008,847.56 \n-576,660.01 -4,991,028.98 -4,384,359.55 -1,211,440.35 \n-336,116.86 \n-291,218.36 -92,709.68 \n-793,111.98 \n-36,057,925.06 \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Loss on Disposal of Capital Assets \n \n31,814,096.36 42,367.99 \n8,142,945.47 419,542.67 \n4,674,525.00 94,924.22 \n3,337,234.84 \n-284,469.86 \n \nTotal General Revenues and Special Items \n \n48,241,166.69 \n \nChange in Net Position \n \n12,183,241.63 \n \nNet Position - Beginning of Year, Restated \n \n55,497,627.26 \n \nNet Position - End of Year \n \n$ \n \n67,680,868.89 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n FLOYD COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2015 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES \nUnavailable Revenue - Property Taxes \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \n \nGENERAL FUND \n \nDISTRICT-WIDE CAPITAL PROJECTS FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 18,185,239.65 $ 60,592.31 \n2,132,848.88 7,483,524.75 1,056,565.06 \n74,000.63 45,677.19 264,770.74 \n \n13,219,748.85 $ \n379,850.00 \n \n$ 11,458,869.35 \n \n31,404,988.50 11,519,461.66 \n2,132,848.88 7,483,524.75 1,056,565.06 \n74,000.63 425,527.19 264,770.74 \n \n$ 29,303,219.21 $ 13,599,598.85 $ 11,458,869.35 $ \n \n54,361,687.41 \n \n$ \n \n97,620.84 \n \n12,070,530.09 \n \n$ \n \n118.99 \n \n12,168,269.92 \n \n$ 86,894.22 1,226,155.43 \n1,313,049.65 \n \n84,898.16 $ 84,898.16 \n \n182,519.00 12,070,530.09 \n86,894.22 1,226,155.43 \n118.99 \n13,566,217.73 \n \n1,377,497.51 \n \n1,377,497.51 \n \n264,770.74 353,757.70 1,457,677.93 293,047.50 13,388,197.91 \n15,757,451.78 \n \n12,286,549.20 12,286,549.20 \n \n11,373,971.19 11,373,971.19 \n \n264,770.74 24,014,278.09 \n1,457,677.93 293,047.50 \n13,388,197.91 \n39,417,972.17 \n \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 29,303,219.21 $ 13,599,598.85 $ 11,458,869.35 $ \n \n54,361,687.41 \n \nThe notes to the basic financial statements are an integral part of this statement. - 3 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2015 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \nLand Construction in Progress Land Improvements Accumulated Depreciation - Land Improvements Buildings and Improvements Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment \nTotal Capital Assets \nSome liabilities, including net pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds. \nNet Pension Liability \nDeferred Outflows and Inflows of Resources related to pensions are applicable to future periods and, therefore, are not reported in the governmental funds. \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \nProperty Taxes \nSome Liabilities reported in the Governmental Activities do not require the use of current financial resources, and therefore are not reported as expenditures in the Governmental Fund Statements. \nAccrued Interest Payable \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These consist of: \nBonds Payable Bond Premiums, Net of Amortization Capital Leases Payable Claims and Judgments Payable \nTotal Long-Term Liabilities \n \n$ 39,417,972.17 \n \n$ 2,810,285.00 16,420,281.00 4,506,161.00 -3,360,187.00 \n171,326,410.00 -40,822,492.00 18,816,565.00 -14,408,040.00 \n \n155,288,983.00 \n \n-69,046,663.00 -24,454,979.00 \n \n1,377,497.51 \n \n-603,900.00 \n \n$ -29,205,000.00 -2,379,048.74 -2,453,828.13 -260,164.92 \n \n-34,298,041.79 \n \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 67,680,868.89 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds from Sale of Capital Assets Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICT-WIDE CAPITAL PROJECTS FUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ \n \n32,133,665.64 \n \n419,542.67 \n \n59,954,564.85 \n \n9,650,854.48 \n \n2,235,302.66 \n \n16,955.85 $ \n \n3,294,850.09 \n \n107,705,736.24 \n \n$ \n11,777.28 42,384.75 54,162.03 \n \n$ 8,142,945.47 \n66,191.09 \n \n32,133,665.64 8,562,488.14 \n59,954,564.85 9,650,854.48 2,235,302.66 94,924.22 3,337,234.84 \n \n8,209,136.56 \n \n115,969,034.83 \n \n64,117,254.87 \n3,825,082.44 2,886,895.63 1,404,489.93 1,761,581.00 7,093,687.60 \n724,039.85 8,991,430.55 4,591,353.53 1,105,773.09 \n546,226.54 290,088.42 5,708,655.55 \n103,046,559.00 \n4,659,177.24 \n \n119,350.00 \n13,723.17 7,000.00 \n27,450.68 437,300.10 \n18,359,427.53 736,678.05 631.72 148,529.43 \n19,850,090.68 -19,795,928.65 \n \n7,000,000.00 827,265.01 \n7,827,265.01 381,871.55 \n \n64,236,604.87 \n3,825,082.44 2,886,895.63 1,404,489.93 1,775,304.17 7,093,687.60 \n731,039.85 9,018,881.23 4,591,353.53 1,543,073.19 \n546,226.54 290,088.42 5,708,655.55 18,359,427.53 \n7,736,678.05 631.72 \n975,794.44 \n130,723,914.69 \n-14,754,879.86 \n \n17,931.14 -1,568,659.19 -1,550,728.05 3,108,449.19 12,649,002.59 \n \n230,000.00 1,568,659.19 \n1,798,659.19 -17,997,269.46 30,283,818.66 \n \n381,871.55 10,992,099.64 \n \n247,931.14 1,568,659.19 -1,568,659.19 \n247,931.14 \n-14,506,948.72 \n53,924,920.89 \n \n$ \n \n15,757,451.78 $ \n \n12,286,549.20 $ \n \n11,373,971.19 $ 39,417,972.17 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2015 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense - Buildings Depreciation Expense - Equipment Depreciation Expense - Land Improvements \nExcess of Capital Outlay over Depreciation Expense \nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nDeferred Inflows - Unavailable Property Taxes \nJune 30, 2014 June 30, 2015 \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments Amortization of Bond Premiums \nTotal Long-Term Debt Repayments \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nAccrued Interest Expense June 30, 2014 June 30, 2015 \nClaims Incurred but not Reported June 30, 2014 June 30, 2015 \nPension Expense, Net \n \n$ -14,506,948.72 \n \n$ 19,339,482.00 -2,854,604.00 -1,234,911.00 -104,534.00 \n \n15,145,433.00 -532,401.00 \n \n$ -1,654,698.80 1,377,497.51 \n \n-277,201.29 \n \n$ 7,000,000.00 736,678.05 582,624.18 \n \n8,319,302.23 \n \n$ \n \n204,590.00 \n \n-603,900.00 \n \n$ \n \n164,731.33 \n \n-260,164.92 \n \n-399,310.00 \n-95,433.59 4,529,801.00 \n \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ 12,183,241.63 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2015 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 252,683.51 $ 252,683.51 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are used to cover the cost of its operations. The financial statements of the Charter School have been blended with the School District's General Fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 8 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and claims, 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. \n \n- 9 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nRESTATEMENT OF PRIOR YEAR NET POSITION \nFor fiscal year 2015, the School District made several prior period adjustments due to the adoption of GASB Statement No. 68 and GASB Statement No. 71, as described in \"New Accounting Pronouncements\" below, which require the restatement of the June 30, 2014, Net Position in Governmental Activities. The result is a decrease in Net Position at July 1, 2014 of $98,031,443.00. This change is in accordance with generally accepted accounting principles. \n \nNet position, July 1, 2014 as previously reported \n \n$ 153,529,070.26 \n \nPrior Period adjustment - Implementation of GASB 68: Net Pension Liability (measurement date) \nTeachers' Retirement System Employees' Retirement System Deferred Outflows - School District's contribution made during fiscal year 2014 Teachers' Retirement System Employees' Retirement System \nNet Position, July 1, 2014, as restated \n \n$ -104,315,612.00 -566,449.00 \n$ 6,815,594.00 35,024.00 $ \n \n-104,882,061.00 \n6,850,618.00 55,497,627.26 \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. The adoption of this statement has a significant impact on the School District's financial statements. As noted above the School District restated beginning Net Position for the cumulative effect of this accounting change. \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. The School District did not have any activities of this type during the fiscal year and the adoption of this statement does not have a significant impact on the School District's financial statements. \nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions. The adoption of this statement has a significant impact on the School District's financial statements. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \n \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nCASH AND CASH EQUIVALENTS \nComposition of Deposits \nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments \nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n(1) Obligations issued by the State of Georgia or by other states, \n(2) Obligations issued by the United States government, \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n(4) Obligations of any corporation of the United States government, \n(5) Prime banker's acceptances, \n(6) The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \n(7) Repurchase agreements, and \n(8) Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, or interest rate risks. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nPROPERTY TAXES \nThe Floyd County Board of Commissioners adopted the property tax levy for the 2014 tax digest year (calendar year) on July 22, 2014 (levy date) based on property values as of January 1, 2014. Taxes were due on November 17, 2014 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2014 tax digest are reported as revenue in the governmental funds for fiscal year 2015. The Floyd County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2015, for maintenance and operations amounted to $30,446,777.62. \nThe tax millage rate levied for the 2014 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.58 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,644,520.03 during fiscal year ended June 30, 2015 \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $8,142,945.47 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 on March 31, 2019. \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAll \n \n$ \n \n5,000.00 \n \n$ \n \n10,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n200,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n3 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets. \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the Statement of Net Position and/or the balance sheet will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. Under the full accrual method of accounting, the School District has reported deferred outflows of resources related to a defined benefit pension plan, as discussed in Note 16  Retirement Plans. \nIn addition to liabilities, the Statement of Net Position and/or the balance sheet will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. Under the full accrual method of accounting, the School District has reported deferred inflows of resources related to a defined benefit pension plan, as discussed in Note 16 - Retirement Plans. This item is reported only in the District-wide Statement of Net Position. Additionally, the School District has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and this amount is deferred and will be recognized as an inflow of resources in the period in which the amount becomes available. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \n \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nPENSIONS \nFor purposes of measuring the Net Pension Liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers' Retirement System of Georgia (TRS), the Employees' Retirement System of Georgia (ERS) and the Public School Employees Retirement System (PSERS) and additions to/deductions from TRS/ERS/PSERS fiduciary net position have been determined on the same basis as they are reported by TRS/ERS/PSERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. See Note 14 - Retirement Plans. \nNET POSITION \nThe School District's Net Position in the District-wide Statements is classified as follows: \nNet Investment in Capital Assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of Net Investment in Capital Assets. \nRestricted Net Position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted Net Position - Unrestricted Net Position is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of Investment of Capital Assets and Restricted Net Position. Included in the net deficit reported is the School District's Net Pension Liability of $69,046,663.00. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nFund Balances of the Governmental Funds at June 30, 2015, are as follows: \n \nNonspendable \n \nRestricted \n \nContinuation of State and Federal Programs $ \n \nCapital Projects \n \nDebt Service \n \nCommitted \n \nSchool Activity Accounts \n \nAssigned \n \nAfter School Program \n \n$ \n \nSelf-Insurance \n \nRecords Retention \n \n$ \n353,757.70 12,286,549.20 11,373,971.19 \n19,894.15 125,495.48 147,657.87 \n \n264,770.74 24,014,278.09 \n1,457,677.93 293,047.50 \n \nUnassigned \n \n13,388,197.91 \n \nFund Balance, June 30, 2015 \n \n$ 39,417,972.17 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity accounts and after school program, 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 Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal yearend. \nSee Schedule 6  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during fiscal year under review. \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNOTE 4: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2015, School District had deposits with a carrying amount of $31,718,264.32, which includes $60,592.31 in Certificates of Deposit that are reported as Investments, and a bank balance of $37,082,031.51. The bank balances insured by Federal depository insurance were $698,031.99. \n \nThe amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial credit risk category at June 30, 2015, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 2 3 \nTotal \n \n$ \n \n0.00 \n \n0.00 \n \n36,383,999.52 \n \n$ 36,383,999.52 \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2015, the carrying value of the School District's total investments was $11,519,461.66. This includes $60,592.31 invested in Certificates of Deposit, which are collateralized in the same manner as other cash deposits. The School District's investments as of June 30, 2015, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \nDebt Securities U.S Agencies Implicity Guranteed $ \nOther Investments Bond Mutual Funds \n \nFair Value \n \nInvestment Maturity Less Than 1 Year \n \n1,791,928.32 $ 1,791,928.32 9,666,941.03 \n \n$ 11,458,869.35 \n \nInterest Rate Risk \nInterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \nCustodial Credit Risk \nCustodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \nAt June 30, 2015, $11,458,869.35 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \nCredit Quality Risk \nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \nThe investments subject to credit quality risk are reflected below: \n \nEXHIBIT \"H\" \n \nRated Debt Investments \nDebt Securities U. S. Agencies Implicity Guaranteed \n \nFair Value \n \nQuality Ratings Unrated \n \n$ 1,791,928.32 $ 1,791,928.32 \n \nConcentration of Credit Risk \nConcentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investments is 15.6% of the School District's total investments. \nNOTE 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories. \nNOTE 6: CAPITAL ASSETS \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2014 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2015 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ \n \n2,826,345.00 \n \n$ \n \n16,060.00 $ \n \n3,878,893.00 $ 18,562,531.00 \n \n6,021,143.00 \n \n2,810,285.00 16,420,281.00 \n \nTotal Capital Assets Not Being Depreciated \n \n6,705,238.00 \n \n18,562,531.00 \n \n6,037,203.00 \n \n19,230,566.00 \n \nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n166,807,875.00 18,289,614.00 4,407,395.00 \n38,818,118.00 13,423,129.00 \n3,292,924.00 \n \n5,885,106.00 776,951.00 136,037.00 \n \n1,366,571.00 250,000.00 37,271.00 \n \n2,854,604.00 1,234,911.00 \n104,534.00 \n \n850,230.00 250,000.00 \n37,271.00 \n \n171,326,410.00 18,816,565.00 4,506,161.00 \n40,822,492.00 14,408,040.00 \n3,360,187.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n133,970,713.00 \n \n2,604,045.00 \n \n516,341.00 \n \n136,058,417.00 \n \nGovernmental Activity Capital Assets - Net $ 140,675,951.00 $ 21,166,576.00 $ 6,553,544.00 $ \n \n155,288,983.00 \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nCapital assets acquired under capital leases as of June 30, 2015, are as follows: \nGovernmental Activities \n \nBuildings and Improvements \n \n$ \n \n1,708,467.00 \n \nLess: Accumulated Depreciation \n \n1,216,882.00 \n \n$ \n \n491,585.00 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nEducational Media Services \n \n$ \n \nGeneral Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n33,719.00 27,643.00 11,898.00 76,789.00 680,103.00 \n \n$ \n \n3,200,669.00 \n830,152.00 163,228.00 4,194,049.00 \n \nNOTE 7: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2015, consisted of the following: \n \nTransfers to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects \n \n$ 1,568,659.19 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \nNOTE 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and the related liability is reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $400,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2014 \n \n$ \n \n160,996.00 $ \n \n302,193.28 $ \n \n2015 \n \n$ \n \n164,731.33 $ \n \n451,442.92 $ \n \n298,457.95 $ 356,009.33 $ \n \n164,731.33 260,164.92 \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and the related liability is reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2014 $ 2015 $ \n \n0.00 $ 0.00 $ \n \n232,123.00 $ 17,031.00 $ \n \n232,123.00 $ 17,031.00 $ \n \n0.00 0.00 \n \nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n100,000.00 \n \nNOTE 9: LONG-TERM LIABILITIES \n \nCAPITAL LEASES \n \nThe Floyd County Board of Education entered into various lease agreements for construction and energy management systems. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nEXHIBIT \"H\" Amount \n \nGeneral Government - QZAB - Series 2004 General Government - Series 2014 \n \n0.00% 3.00% - 5.00% \n \n$ 2,000,000.00 27,205,000.00 \n$ 29,205,000.00 \n \nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2015, were as follows: \n \nBalance July 1, 2014 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2015 \n \nDue Within One Year \n \nG.O. Bonds \n \n$ \n \nCapital Leases \n \nUnamortized Premiums Amortized \n \n36,205,000.00 $ 3,190,506.18 2,961,672.92 \n \n0.00 $ \n \n7,000,000.00 $ 736,678.05 582,624.18 \n \n29,205,000.00 $ 2,453,828.13 2,379,048.74 \n \n5,030,000.00 731,795.22 582,624.18 \n \n$ 42,357,179.10 $ \n \n0.00 $ 8,319,302.23 $ 34,037,876.87 $ 6,344,419.40 \n \nAt June 30, 2015, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2016 2017 2018 2019 \nTotal Principal and Interest \n \n$ \n \n731,795.22 $ \n \n770,768.74 \n \n811,817.89 \n \n139,446.28 \n \n$ \n \n2,453,828.13 $ \n \n110,321.34 71,347.82 30,298.67 907.06 \n212,874.89 \n \nFiscal Year Ended June 30: \n2016 2017 2018 2019 2020 \nTotal Principal and Interest \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n$ \n \n5,030,000.00 $ 1,132,350.00 $ \n \n582,624.18 \n \n5,185,000.00 \n \n953,200.00 \n \n582,624.18 \n \n7,390,000.00 \n \n714,750.00 \n \n582,624.18 \n \n5,660,000.00 \n \n438,500.00 \n \n582,624.18 \n \n5,940,000.00 \n \n148,500.00 \n \n48,552.02 \n \n$ \n \n29,205,000.00 $ 3,387,300.00 $ 2,379,048.74 \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nNOTE 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $192,597.05 for retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $23,248.05 \nOffice of State Treasurer Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $169,349.00 \nFunds paid on behalf of the School District are reported in governmental funds. See Note 16 Retirement Plans for the State support related to the Net Pension Liability. \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2015: \n \nProject \n \nUnearned Executed Contracts \n \nNew Coosa High School \n \n$ 17,818,691.51 \n \nThe amount described in this note is not reflected in the basic financial statements. \nNOTE 12: SPECIAL ITEMS \nDuring the year under review, the School District sold the old Coosa Middle School property for $230,000.00 and various other equipment items for $17,931.14, as noted on Exhibit E of this report. The equipment items were fully depreciated at the time of their sale, therefore the School District realized a net gain of the $17,931.14 for the equipment items. The old Coosa Middle School had a book value of $532,401.00 at the time of the sale, which resulted in a net loss of $302,401.00 for the property. Overall, there is a loss on the sale of these items in the amount of $284,469.86 shown on the State of Activities, Exhibit B, of this report. \nNOTE 13: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 14: SUBSEQUENT EVENTS \nDuring Fiscal year 2015, the School District became aware of a situation where school personnel were allegedly involved in fraudulent schemes where inflated and altered invoices were submitted by various vendors and paid by the School District. It is believed kickbacks were obtained from the vendors involved and funds were received by school personnel. In addition, personal purchases were \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nmade by School District personnel. This matter continues to be under investigation by law enforcement officials from both the State and Local governments. The amount of funds misappropriated is not known but is believed to be in excess of $4.0 million and covers multiple years. The resolution of this event is expected to take several more years as the individuals involved have only recently been arrested and there is no court date set at this time. \nNOTE 15: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees' Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \n \n- 23 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2015: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other \n \neligible participants: \n \nJuly 1, 2014  June 30, 2015 \n \n$945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2014  June 30, 2015 \n \n$596.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2015 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ \n \n9,956,541.86 \n \n$ \n \n9,841,742.04 \n \n$ 10,484,363.57 \n \nNOTE 16: RETIREMENT PLANS \nThe Floyd County Board of Education participates in various retirement plans administered by the State of Georgia, as further explained below. \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description: All teachers of the District as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers' Retirement System of Georgia (TRS). TRS, a cost-sharing multiple- employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers' Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nannual pay during fiscal year 2015. The School District's contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual school district payroll. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ \n \n7,430,808.11 \n \n$ \n \n6,710,335.80 \n \n$ \n \n6,915,683.57 \n \nEMPLOYEES' RETIREMENT SYSTEM \nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2015 was 21.96% of annual covered payroll for old and new plan members and 18.87% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \n \n- 25 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% 100% 100% \n \n$ 38,684.40 $ 35,484.20 $ 42,580.45 \n \nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers' Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2015, the School District reported a liability of $69,046,663.00 for its proportionate share of the Net Pension Liability for TRS ($68,730,636.00) and ERS ($316,027.00). \n \n- 26 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nThe TRS Net Pension Liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the Net Pension Liability, the related State of Georgia support, and the total portion of the Net Pension Liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the Net Pension Liability \n \n$ 68,730,636.00 \n \nState of Georgia's proportionate share of the Net Pension Liability associated with the School District \n \n193,801.00 \n \nTotal \n \n$ 68,924,437.00 \n \nThe Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The School District's proportion of the Net Pension Liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2014. \nAt June 30, 2014, the School District's TRS proportion was 0.544027%, which was a decrease of 0.054632% from its proportion measured as of June 30, 2013. At June 30, 2014, the School District's ERS proportion was 0.008426 %, which was a decrease of 0.003247% from its proportion measured as of June 30, 2013. \nAt June 30, 2015, the School District did not have a PSERS liability for a proportionate share of the Net Pension Liability because of a Special Funding Situation with the State of Georgia, which is responsible for the Net Pension Liability of the plan. The amount of the State's proportionate share of the Net Pension Liability associated with the School District is $611,047.00. \nThe PSERS Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The State's proportion of the Net Pension Liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2014. \nFor the year ended June 30, 2015, the School District recognized pension expense of $2,956,730.00 for TRS, $-41,302 for ERS and $53,066.00 for PSERS and revenue of $8,476.00 for TRS and $53,066.00 for PSERS was recognized. The revenue is support provided by the State of Georgia. For TRS, the State of Georgia support is provided only for certain support personnel. \n \n- 27 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nAt June 30, 2015, the School District reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: \n \nTRS \n \nDeferred Outflows Deferred Inflows \n \nof Resources \n \nof Resources \n \nERS \n \nDeferred Outflows Deferred Inflows \n \nof Resources \n \nof Resources \n \nNet difference between projected and actual earnings on pension plan investments \n \n$ 23,960,957.00 \n \n$ 77,133.00 \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n7,756,679.00 \n \n96,963.00 \n \nSchool District contribtions subsequent to the \n \nmeasurement date \n \n$ 7,398,069.00 \n \n$ \n \n38,684.00 \n \nTotal \n \n$ 7,398,069.00 $ 31,717,636.00 $ \n \n38,684.00 $ 174,096.00 \n \nFloyd County Board of Education contributions subsequent to the measurement date of June 30, 2014 for TRS and ERS are reported as deferred outflows of resources and will be recognized as a reduction of the Net Pension Liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nFiscal year June 30: \n \nTRS \n \nERS \n \n2016 2017 2018 2019 2020 \n \n$ \n \n-7,753,119.00 $ -79,885.00 \n \n$ \n \n-7,753,119.00 $ -55,644.00 \n \n$ \n \n-7,753,119.00 $ -19,283.00 \n \n$ \n \n-7,753,125.00 $ -19,284.00 \n \n$ \n \n-705,154.00 \n \nActuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers' Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \n3.75  7.00%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \n \nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \n- 28 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nEmployees' Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \n5.45  9.25%, average, including inflation \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nPublic School Employees Retirement System: \n \nInflation \n \n3.00% \n \nSalary increases \n \nN/A \n \nInvestment rate of return \n \n7.50%, net of pension plan investment expense, including inflation \n \nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \n \nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \n \nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset class \nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \nTotal \n* Rates shown are net of the 3.00% assumed rate of inflation \n \nTarget allocation \n30.00% 39.70% \n3.70% 1.60% 18.90% 6.10% \n100.00% \n \nLong-term expected real rate of return* \n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \n \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the Floyd County Board of Education's proportionate share of the Net Pension Liability to changes in the discount rate: The following presents the School District's proportionate share of the Net Pension Liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the Net Pension Liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \n \nTeachers' Retirement System: \nSchool District's proportionate share of the Net Pension Liability \n \n1% Decrease (6.50%) \n \nCurrent discount rate (7.50%) \n \n1% Increase (8.50%) \n \n$ 126,661,340.00 $ \n \n68,730,636.00 $ 21,025,904.00 \n \nEmployees' Retirement System: \n \n1% Decrease (6.50%) \n \nCurrent discount rate (7.50%) \n \n1% Increase (8.50%) \n \nSchool District's proportionate share of the \n \nNet Pension Liability \n \n$ \n \n460,830.00 $ \n \n316,027.00 $ \n \n192,766.00 \n \nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \nDEFINED CONTRIBUTION PLANS \nThe Floyd County Board of Education provides two defined contribution plans for the group of employees covered the Public School Employees Retirement System (PSERS). The Board adopted these plans because the Board believed that PSERS did not provide an adequate retirement income for this group of employees. \nThe first plan is an employer matching 403(b) annuity plan. The Board selected VALIC as the 3rd party plan administrator. All contributions to the plan are paid to VALIC and then VALIC distributes funds to other companies as required. For each employee covered under PSERS, the Board contributes to the plan an amount matching up to a maximum of 4% of the employee's base pay. \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of continuous employment with Floyd County Board of Education. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \n \n- 30 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2015 \n \nEXHIBIT \"H\" \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% \n \n$ \n \n34,693.04 \n \n100% \n \n$ \n \n43,104.36 \n \n100% \n \n$ \n \n41,371.23 \n \nUnder the second plan, the Board operates an employer only paid contribution to TIAA-CREF annuity plan. The Board pays $25.00 per month for 12 months for employees covered under PSERS. This plan was in place prior to the above mentioned matching plan that was added as an additional retirement savings incentive that began in 2003. \n \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. Funds accumulated in the employer paid accounts are only available to the employee after termination and at no early than 59 and one-half years of age. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2015 2014 2013 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n35,084.78 46,475.00 66,800.00 \n \n- 31 - \n \n FLOYD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"1\" \n \nSchool District's proportion of the Net Pension Liability School District's proportionate share of the Net Pension Liability State of Georgia's proportionate share of the Net Pension Liability \nassociated with the School District Total \nSchool District's covered-employee payroll School District's proportionate share of the Net Pension Liability \nas a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability \n \n2015 0.544027% $ 68,730,636.00 \n193,801.00 $ 68,924,437.00 $ 54,644,428.34 \n125.78% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Schedule includes all significant plans and funds administered by Floyd County Board of Education. \n- 32 - \n \n FLOYD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30, 2015 \nSchool District's proportion of the Net Pension Liability School District's proportionate share of the Net Pension Liability School District's covered-employee payroll School District's proportionate share of the Net Pension Liability \nas a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability \n \nSCHEDULE \"2\" \n2015 0.008426% $ 316,027.00 $ 192,222.10 \n164.41% 77.99% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Schedule includes all significant plans and funds administered by Floyd County Board of Education. \n- 33 - \n \n FLOYD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \n2015 \n \n2014 \n \n2013 \n \nContractually required contribution \n \n$ 7,430,808.11 $ 6,710,335.80 $ 6,915,683.57 \n \nContributions in relation to the contractually required contribution $ 7,430,808.11 $ 6,710,335.80 $ 6,915,683.57 \n \nContribution deficiency (excess) \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \nSchool District's covered-employee payroll \n \n$ 56,508,046.46 $ 54,644,428.34 $ 60,610,723.66 \n \nContributions as a percentage of covered-employee payroll \n \n13.15% \n \n12.28% \n \n11.41% \n \nThis schedule is intended to show information for 10 years. Due to the retention policy of the Floyd County Board of Education, the School District is only able to display 6 years of information. Additional years will be displayed as they become available. \n- 34 - \n \n SCHEDULE \"3\" \n \n2012 \n \n2011 \n \n2010 \n \n$ 6,533,913.66 $ 6,530,152.03 $ 6,307,364.76 \n \n$ 6,533,913.66 $ 6,530,152.03 $ 6,307,364.76 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 63,559,471.40 $ 63,522,879.67 $ 64,757,338.40 \n \n10.28% \n \n10.28% \n \n9.74% \n \n- 35 - \n \n FLOYD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \nFOR THE YEAR ENDED JUNE 30 \n \nContractually required contribution Contributions in relation to the contractually required contribution Contribution deficiency (excess) School District's covered-employee payroll Contributions as a percentage of covered-employee payroll \n \n2015 \n \n2014 \n \n2013 \n \n$ \n \n38,684.40 $ \n \n35,484.20 $ 42,580.45 \n \n$ \n \n38,684.40 $ \n \n35,484.20 $ 42,580.45 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ \n \n176,158.47 $ \n \n192,222.10 $ 285,774.83 \n \n21.96% \n \n18.46% \n \n14.90% \n \nThis schedule is intended to show information for 10 years. Due to the retention policy of the Floyd County Board of Education, the School District is only able to display 6 years of information. Additional years will be displayed as they become available. \n- 36 - \n \n EXHIBIT \"4\" \n \n2012 \n \n2011 \n \n2010 \n \n$ 36,203.00 $ 31,673.00 $ 31,039.00 \n \n$ 36,203.00 $ 31,673.00 $ 31,039.00 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n0.00 \n \n$ 311,289.77 $ 304,255.52 $ 298,165.23 \n \n11.63% \n \n10.41% \n \n10.41% \n \n- 37 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"5\" \n \nTeachers' Retirement System \n \nChanges of assumptions : In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \n \nMethod and assumptions used in calculations of actuarially determined contributions : The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2015 reported in that schedule: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \n \nJune 30, 2012 Entry age Level percentage of payroll, open 30 years Seven-year smoothed market 3.00% 3.75  7.00%, including inflation 7.50%, net of pension plan investment \nexpense, including inflation \n \nEmployees' Retirement System \n \nChanges of assumptions : There were no changes in assumptions or benefits that affect the measurement of the total pension liability since the prior measurement date. \n \nMethod and assumptions used in calculations of actuarially determined contributions : The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2015 reported in that schedule: \n \nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases \nInvestment rate of return \n \nJune 30, 2012 Entry age Level dollar, open 30 years Seven-year smoothed market 3.00% 2.725%  4.625% for FY 2012-2013, 5.45% - 9.25% for FY2014+ 7.50%, net of pension plan investment \nexpense, including inflation \n \n- 38 - \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"6\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Financing Sources Other Financing Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 31,922,661.00 $ 31,922,661.00 $ 32,133,665.64 $ \n \n355,000.00 \n \n355,000.00 \n \n419,542.67 \n \n59,617,737.00 \n \n59,818,047.50 \n \n59,954,564.85 \n \n9,300,178.72 \n \n10,280,998.11 \n \n9,650,854.48 \n \n2,285,000.00 \n \n2,285,000.00 \n \n2,235,302.66 \n \n8,000.00 \n \n8,000.00 \n \n16,955.85 \n \n3,919,000.00 \n \n645,000.00 \n \n3,294,850.09 \n \n107,407,576.72 \n \n105,314,706.61 \n \n107,705,736.24 \n \n211,004.64 64,542.67 \n136,517.35 -630,143.63 \n-49,697.34 8,955.85 \n2,649,850.09 \n2,391,029.63 \n \n68,529,491.20 \n2,715,058.00 2,882,658.62 1,363,063.60 1,560,147.82 6,423,452.07 \n656,160.00 9,439,388.35 4,799,172.89 \n828,425.00 201,817.06 6,604,200.00 \n31,125.11 \n106,034,159.72 \n1,373,417.00 \n \n65,829,595.35 \n2,728,849.87 3,089,313.15 1,362,373.93 1,680,178.28 6,417,712.89 \n654,910.00 9,450,846.45 4,899,683.00 1,002,959.66 \n263,068.92 6,604,540.00 \n31,125.11 \n104,015,156.61 \n1,299,550.00 \n \n64,117,254.87 \n3,825,082.44 2,886,895.63 1,404,489.93 1,761,581.00 7,093,687.60 \n724,039.85 8,991,430.55 4,591,353.53 1,105,773.09 \n546,226.54 5,708,655.55 \n290,088.42 \n103,046,559.00 \n4,659,177.24 \n \n1,712,340.48 \n-1,096,232.57 202,417.52 -42,116.00 -81,402.72 -675,974.71 -69,129.85 459,415.90 308,329.47 -102,813.43 -283,157.62 895,884.45 -258,963.31 \n968,597.61 \n3,359,627.24 \n \n50,000.00 -1,510,000.00 -1,460,000.00 \n-86,583.00 11,889,373.24 \n2,092.00 \n \n50,000.00 -1,510,000.00 -1,460,000.00 \n-160,450.00 11,348,146.56 \n-53,074.02 \n \n17,931.14 -1,568,659.19 -1,550,728.05 3,108,449.19 12,649,002.59 \n \n-32,068.86 -58,659.19 -90,728.05 3,268,899.19 1,300,856.03 53,074.02 \n \nFund Balances - Ending \n \n$ 11,804,882.24 $ 11,134,622.54 $ 15,757,451.78 $ \n \n4,622,829.24 \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 and after school programs. The actual revenues and expenditures of these funds are shown below and do not include transfers in and out to other Funds. \n \nRevenues \n \nExpenditures \n \nSchool Activity Accounts After School Programs \n \n$ \n \n2,818,398.90 $ \n \n2,845,217.48 \n \n276,265.72 \n \n274,411.92 \n \n$ \n \n3,094,664.62 $ \n \n3,119,629.40 \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 FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"7\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n5,430,098.39 (1) \n \n5,430,098.39 \n \n10.665 \n \nN/A \n \n(3) \n \n10.560 \n \nN/A \n \n(2) 5,430,098.39 \n \n84.027 \n \nN/A \n \n84.173 \n \nN/A \n \n2,460,604.00 70,926.68 \n2,531,530.68 \n \nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships Striving Readers Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \n \n84.395 \n \nN/A \n \n84.048 \n \nN/A \n \n84.196 \n \nN/A \n \n84.365 \n \nN/A \n \n* 84.367 \n \nN/A \n \n84.366 \n \nN/A \n \n84.371 \n \nN/A \n \n84.010 \n \nN/A \n \n27,802.95 91,798.50 25,819.41 57,885.87 346,222.04 182,721.16 217,660.65 2,030,755.59 \n2,980,666.17 \n5,512,196.85 \n \nTotal Expenditures of Federal Awards \n \n$ 10,942,295.24 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $240,675.56. \n \n(2) Expenditures for the funds earned on State Administrative Expenses for Child Nutrition Program ($9,898.16) and the School Breakfast Program ($951,045.26) were not maintained separately and are included in the 2015 National School Lunch Program. \n \n(3) Funds earned on this program, in the amount of $4,161.40, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 40 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2015 \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Teacher of the Year Teachers' Retirement Vocational Education \nNatural Resources, Department of Arrowhead Grant \nOffice of the State Treasurer Public School Employees Retirement \nOther Connections for Classrooms Technology Grant \n \nSee notes to the basic financial statements. \n \n- 41 - \n \nSCHEDULE \"8\" \nGOVERNMENTAL FUND TYPE GENERAL FUND \n$ 1,576,335.93 \n1,563,498.00 1,895,330.00 3,928,484.00 6,007,252.00 2,750,555.00 1,270,146.00 5,706,928.00 5,037,273.00 1,570,710.00 10,703,025.00 5,018,099.00 \n255,799.00 409,782.00 425,583.00 1,099,487.00 308,860.00 215,855.00 \n1,384,525.00 2,589,247.00 2,494,035.00 \n914,441.00 -5,020,407.00 \n830,894.00 \n1,249,381.00 185,739.00 26,136.00 \n4,674,525.00 \n154,283.00 31,924.12 \n172,549.00 1,014.25 \n23,248.05 142,569.00 \n26,000.00 \n169,349.00 \n162,110.50 \n$ 59,954,564.85 \n \n FLOYD COUNTY BOARD OF EDUCAITON SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"9\" \n \nAMOUNT \n \nAMOUNT \n \nPROJECT \n \nORIGINAL \n \nCURRENT \n \nEXPENDED \n \nEXPENDED \n \nTOTAL \n \nEXCESS \n \nESTIMATED \n \nESTIMATED \n \nESTIMATED \n \nIN CURRENT \n \nIN PRIOR \n \nCOMPLETION \n \nPROCEEDS NOT COMPLETION \n \nCOST (1) \n \nCOSTS (2) \n \nYEAR (3) (4) \n \nYEARS (3)(4) \n \nCOST \n \nEXPENDED \n \nDATE \n \n2009 SPLOST \n \n(1) Renovating, Repairing, improving and equipping \n \nexisting schools and facilities including roof \n \nreplacements and HVAC systems \n \n$ 8,842,000.00 $ 11,949,139.07 $ \n \n(2) Technology system-wide including purchasing \n \nhardware \n \n2,500,000.00 \n \n2,692,566.47 \n \n(3) Transportation Department Improvements and Bus \n \nPurchases \n \n2,000,000.00 \n \n1,584,256.06 \n \n826,202.55 $ 11,122,936.52 $ 11,949,139.07 $ \n \n119,350.00 \n \n2,573,216.47 \n \n2,692,566.47 \n \n1,584,256.06 \n \n1,584,256.06 \n \n0.00 COMPLETE COMPLETE COMPLETE \n \n13,342,000.00 16,225,961.60 \n \n945,552.55 15,280,409.05 16,225,961.60 \n \n0.00 \n \n2014 SPLOST (1) New Coosa High School (2) System Security Upgrades (Lighting and Entrance) (3) Technology (4) Building Improvements (HVAC, etc.) (5) Legal and Administrative Costs \n \n36,500,000.00 2,775,000.00 2,000,000.00 4,910,000.00 35,000.00 \n \n36,500,000.00 3,256,417.57 2,000,000.00 4,910,000.00 266,543.83 \n \n14,384,144.43 2,781,959.66 437,300.10 344,364.99 8,531.72 \n \n212,825.65 474,457.91 \n258,012.11 \n \n0.00 \n \n0.00 \n \n6/30/2017 6/30/2019 6/30/2019 6/30/2019 6/30/2019 \n \n46,220,000.00 46,932,961.40 17,956,300.90 \n \n945,295.67 \n \n0.00 \n \n0.00 \n \nTOTAL \n \n$ 59,562,000.00 $ 63,158,923.00 $ 18,901,853.45 $ 16,225,704.72 $ 16,225,961.60 $ \n \n0.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 6,761,261.54 \n \nCurrent Year \n \n827,265.01 \n \nTotal \n \n$ 7,588,526.55 \n \nSee notes to the basic financial statements. \n \n- 42 - \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2015 \n \nSCHEDULE \"10\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \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 \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory III \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n1,888,446.00 $ 2,225,978.00 4,642,387.00 6,855,698.00 3,223,503.00 1,552,406.00 6,616,194.00 5,852,863.00 1,834,184.00 12,520,563.00 \n5,747,497.00 312,467.00 475,352.00 500,389.00 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n54,247,927.00 \n \nMedia Center Program Staff and Professional Development \n \n1,281,441.00 243,573.00 \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n3,259,937.26 \n \n$ 3,259,937.26 \n \n9,937,101.10 $ 116,788.72 \n \n10,053,889.82 \n \n6,209,261.47 \n \n52,901.46 \n \n6,262,162.93 \n \n8,143,860.65 9,680,116.40 1,452,132.23 \n \n128,504.15 304,080.71 166,008.88 \n \n8,272,364.80 9,984,197.11 1,618,141.11 \n \n71,794.74 10,066,503.11 \n221,914.87 2,741,278.55 \n \n487,947.57 41,540.52 \n \n71,794.74 10,554,450.68 \n221,914.87 2,782,819.07 \n \n456,957.81 334,187.19 \n \n1,505.98 \n \n456,957.81 335,693.17 \n \n52,575,045.38 \n \n1,299,277.99 \n \n53,874,323.37 \n \n1,145,514.39 30,523.78 \n \n157,834.04 131,598.17 \n \n1,303,348.43 162,121.95 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n55,772,941.00 $ 53,751,083.55 $ 1,588,710.20 $ 55,339,793.75 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 43 - \n \n (This page left intentionally blank) \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 3, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the major funds  General Fund and Debt Service fund, and the aggregate remaining fund information of Floyd County Board of Education as of and for the year ended June 30, 2015, and the related notes to the financial statements. Also, we were engaged to audit the financial statements of the major fund - District-wide Capital Projects Fund. These financial statements collectively comprise Floyd County Board of Education's basic financial statements and have issued our report thereon dated November 3, 2016. Our report qualifies an opinion on governmental activities and the major fund - General Fund. Our report also disclaims an opinion on the major fund - District-wide Capital Projects Fund. All modified opinions are as a result of the ongoing investigation of apparent fraudulent activity. The effects if the apparent fraud had on these have not been determined, but it is believed to be material for the District-wide Capital Projects Fund. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Floyd County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control. \nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. \n2015YB-41 \n \n (This page left intentionally blank) \n \n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS-2015-001, to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted a certain matter that we have reported to management of Floyd County Board of Education in a separate letter dated November 3, 2016. \nFloyd County Board of Education's Response to Findings \nFloyd County Board of Education's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Floyd County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:es 2015YB-41 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nNovember 3, 2016 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Floyd County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. Floyd County Board of Education's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for each of Floyd County Board of Education's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \n \n2015SA-10 \n \n (This page left intentionally blank) \n \n We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Floyd County Board of Education's compliance. \nOpinion on Each Major Federal Program \nIn our opinion, the Floyd County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. \nReport on Internal Control over Compliance \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Floyd County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:es 2015SA-10 \n \nGreg S. Griffin State Auditor \n \n (This page left intentionally blank) \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS 2014-001 \n \nUnresolved - See Corrective Action/Responses \n \nCORRECTIVE ACTION/RESPONSES \n \nACCOUNTING CONTROLS Inadequate Accounting Procedures Material Weakness Finding Control Number: FS 2014-001 \n \nTo strengthen purchasing and procurement practices, the Floyd County Board of Education adopted a new purchasing policy in July 2015. This policy also included a regulation that places stringent purchasing and bidding regulations to guide staff in practices that adds accountability for the transparent procurement of goods and services. \n \nAdditionally, the Board reorganized staff and established the position of Director of Internal Audits and Compliance effective July 1, 2015. This position oversees all purchasing and procurement practices as well as trains and monitors employees on proper purchasing practices. The Board is also in the process of implementing new state of the art software that has enhanced workflow and digital approval capability which will be used to authenticate prior approval at the various levels specified in the purchasing regulation. The implementation is scheduled to be completed sometime in 2016. Finally, each employee has attended mandatory meetings that discussed these new guidelines and made aware of consequences on non-compliance and intentional abuse of taxpayer funds. \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFA 2014-001 \n \nPreviously Reported Corrective Action Implemented \n \n (This page left intentionally blank) \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Debt Service Fund; Aggregate Remaining Fund Information Governmental Activities; General Fund Capital Projects Fund \n \nUnmodified Qualified \nDisclaimer \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nYes None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.367 \n \nChild Nutrition Cluster Improving Teacher Quality State Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$328,393.70 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2015-001 Inadequate Design of Internal Controls \n \nControl Category: \n \nAccounting Controls \n \nInternal Control Impact: \n \nMaterial Weakness \n \nCompliance Impact: \n \nNone \n \nRepeat of Prior Year Finding: FS 2014-001 \n \nDescription: Controls were not designed adequately to ensure that misstatements are detected timely. \n \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nCondition: In April 2015, it was discovered that an employee in the maintenance department was able to perpetuate a fraud dating back to fiscal year 2007 by circumventing internal controls in place at the School District. The action involved collusion with vendors of the School District and personal purchases of the employee. The total amount of this action is not known but is believed to be significant and/or material. \n \nCause: The internal controls in place were circumvented by School District management. \n \nEffect or Potential Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls impacted its reporting of its financial position and results of operations. \n \nRecommendation: The School District should review accounting procedures in place and design and implement procedures to strengthen the internal controls over the accounting functions. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with the documented finding; our current policy regarding purchasing needed to have been more detailed. In this instance, controls that were in place were circumvented by alleged illegal activity involving collusion with vendors. To strengthen purchasing and procurement practices, the Floyd County Board of Education adopted a new purchasing policy in July, 2015. This policy also included a regulation that places stringent purchasing and bidding regulations to guide staff in practices that adds accountability for the transparent procurement of goods and services. The details of this this policy and regulation can be found in our online policies and regulations on E-Board (See Floyd County Schools Policy \u0026 Regulation DJEG \u0026 DJEG-R, or use links below): \nhttps://simbli.eboardsolutions.com/ePolicy/policy.aspx?PC=DJEG\u0026Sch=4068\u0026S=4068\u0026C=D\u0026RevN o=1.21\u0026Z=P \nhttps://simbli.eboardsolutions.com/ePolicy/policy.aspx?PC=DJEGR(2)\u0026Sch=4068\u0026S=4068\u0026C=\u0026RevNo=1.02\u0026Z=R \nhttps://simbli.eboardsolutions.com/ePolicy/policy.aspx?PC=DJEGR(3)\u0026Sch=4068\u0026S=4068\u0026C=D\u0026RevNo=1.01\u0026Z=R \n \n- 2 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2015 \n \nAdditionally, the Board reorganized staff and established the position of Director of Internal Audits and Compliance effective July 1, 2015, and acting in those positions by the end of April, 2015. This position oversees all purchasing and procurement practices as well as trains and monitors employees on proper purchasing practices. The Board is also in the process of implementing new state of the art software that has enhanced workflow and digital approval capability which will be used to authenticate prior approval at the various levels specified in the purchasing regulation. \n \nFinally, each employee has attended mandatory meetings that discussed these new guidelines and made aware of consequences of non-compliance and intentional abuse of taxpayer funds. \n \nContact Persons: \nPhone: Fax: E-mail: \n \nChris Toles, Executive Director of Finance Lee Kaylor, Director of Internal Audits and Compliance (706) 234-1031 (706) 236-1816 ctoles@floydboe.net or lkaylor@floydboe.net \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n- 3 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2014-belec-p-btext","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended 2014 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2015-10-20"],"dcterms_description":["Financial report of the Floyd 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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended 2014 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 (Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \ni \n1 2 4 5 6 7 8 9 \n27 \n \n  FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n28 29 30 31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 20, 2015 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, the major funds - General Fund and Debt Service Fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of and for the year ended June 30, 2014, and the related notes to the financial statements. We were engaged to audit the financial statements of the major fund Capital Projects Fund. These financial statements collectively comprise the Board's basic financial statements as listed in the table of contents (Exhibits A through H). \nManagement's Responsibility for the Financial Statements \nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditor's Responsibility \nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because of the matter described in the \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the District-wide Capital Projects Fund. \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 \n2014ARL-19X \n \n  error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \n \nExcept for the matter described in the \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nSummary of Opinions \n \nOpinion Unit Governmental Activities Governmental Fund - General Fund Governmental Fund - District-Wide Capital Projects Fund Governmental Fund - Debt Service Fund Aggregate Remaining Fund Information \n \nType of Opinion Qualified Qualified Disclaimer \nUnmodified Unmodified \n \nBasis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund \n \nDuring the subsequent fiscal year, it was discovered that various School District personnel perpetrated apparent fraud through collusion with vendors of the School District. The investigation is currently in progress and preliminary evidence indicates that the apparent fraud involved disbursements related to capital outlay and maintenance expenditures during the year under review and previous fiscal years. We were not able to determine, however, the full impact the apparent fraud had on the School District's financial statements. The amount by which this departure would affect the assets, net position and expenses/expenditures of the Governmental Activities, General Fund, and the District-wide Capital Projects fund has not been determined. \nDisclaimer of Opinion \n \nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on Districtwide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion for District-wide Capital Projects Fund. Accordingly, we do not express an opinion on this financial statements. \nQualified Opinions \n \nIn our opinion, except for the matter described in the \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph above, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and the major fund - General Fund - of the Floyd County Board of Education, as of June 30, 2014, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \n \n2014ARL-19X \n \n  Unmodified Opinions \nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the debt service fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2014, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2014 the Floyd County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The School District restated beginning Net Position for the cumulative effect of this accounting change. Our opinion is not modified with respect to this matter. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through x and page 27 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. Due to the significance of the matter disclosed in \"Basis for Disclaimer of Opinion on District-wide Capital Projects Fund and Qualified Opinions on Governmental Activities and General Fund\" paragraph, it is inappropriate to, and we do not express an opinion on the supplementary information. \n2014ARL-19X \n \n  Other Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated October 20, 2015, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Floyd County Board of Education's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:as 2014ARL-19X \n \nGreg S. Griffin State Auditor \n \n  FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nINTRODUCTION \nThe District's financial statements for the fiscal year ended June 30, 2014 includes a series of basic financial statements that report financial information for the District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the District's finances on a global basis. The fund financial statements provide information about all of the District's funds. Information about these funds, such as the District's General Fund, is important in its own right, but will also give insight into the District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2014 are as follows: \nOn the District-wide financial statements: \n The District's net position at June 30, 2014 was $153.5 million. Net position reflects the difference between all assets and deferred outflows of resources of the 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, 2014 of $153.5 million represented an increase of almost $9.9 million when compared to the prior year. \n The School District had $103.8 million in expenses relating to governmental activities; about $65.0 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $48.7 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $48.7 million or about 43% of all revenues totaling $113.7 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \n(Percentages in table below rounded to one decimal place) \n \nSource of Revenues \n \n2 27.9% \n \n1.00 57.2% \n \n3 8.1% \n \n4 6.8% \n \ni \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \nOn the fund financial statements: \n Among major funds, the General Fund had $104.1 million in revenues and $98.4 million in expenditures. Additionally, $1.4 million was transferred from the General Fund to the Capital Projects Fund. The General Fund balance of over $12.6 million at June 30, 2014 increased by roughly $4.3 million from the prior year. The increase in General Fund Balance occurred primarily because District's expenditures were about $7.0 million less than the prior year, mainly because of a Reduction in Force of approximately 120 employees and ten (10) reduced work days for all employees. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial Statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Position' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The 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. \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Position' and the 'Statement of Activities' provide the basis for answering this question. These financial statements include all District's assets and liabilities and 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. \nii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \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 District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net position as follows: \no Net Investment in capital assets o Restricted net position is 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 District has no nonmajor Funds as defined by generally accepted accounting principles. \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \niii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Net 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 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 District's operating results. The District's net position, as measured in the Statement of Net Position is one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net position- as measured in the Statement of Activities- are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the District. In the case of the Floyd County School District, assets exceeded liabilities by $153.5 million at June 30, 2014. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $153.5 million of net position, $12.3 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 District's ongoing obligations to citizens and creditors. In addition, the District had just over $127.8 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. The remaining balance of unrestricted net position of $13.5 million may be used to meet the District's ongoing obligations to citizens and creditors. \niv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \n \nTable 1 Net Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2014 \n \n(Restated) \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n67,234,275 $ 33,529,171 \n \n140,675,951 \n \n142,061,572 \n \nTotal Assets \n \n207,910,226 \n \n175,590,743 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n12,023,977 42,357,179 \n \n12,945,037 18,996,290 \n \nTotal Liabilities \n \n54,381,156 \n \n31,941,327 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted \n \n127,679,139 12,306,479 13,543,452 \n \n123,176,907 11,644,852 8,827,657 \n \nTotal Net Position \n \n$ \n \n153,529,070 $ 143,649,416 \n \nTotal net position increased $9.9 million in fiscal year 2014 from the prior year, primarily because expenses on District-wide basis, decreased $8.1 from the prior year. This change in net position is detailed in Table 2 as presented below. Table 2 also shows the changes in net position as compared to the prior fiscal year. \n \nv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2014 \n \n2013 \n \n$ \n \n2,124,270 $ \n \n2,590,665 \n \n62,468,314 \n \n63,458,045 \n \n391,788 \n \n85,960 \n \nTotal Program Revenues \n \n64,984,372 \n \n66,134,670 \n \nGeneral Revenues: Taxes Property Taxes Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n31,694,251 9,248,158 \n4,982,103 68,943 \n2,694,402 \n \n31,414,926 9,874,694 \n4,613,068 92,077 \n2,775,500 \n \nTotal General Revenues \n \n48,687,857 \n \n48,770,265 \n \nTotal Revenues \n \n113,672,229 \n \n114,904,935 \n \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n64,718,801 \n3,707,897 2,494,147 1,378,496 1,618,508 6,586,145 \n587,854 9,019,555 5,467,064 \n816,745 572,451 \n267,282 5,965,813 \n591,817 \n \n69,547,045 \n3,927,438 3,176,749 2,311,278 1,670,109 7,815,155 \n731,554 8,835,570 5,649,805 \n682,950 661,818 \n277,747 6,181,814 \n442,665 \n \nTotal Expenses \n \n103,792,575 \n \n111,911,697 \n \nIncrease in Net Position \n \n$ \n \n9,879,654 $ \n \n2,993,238 \n \nvi \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \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. \nBoth expenditures and net cost of services remained virtually unchanged from the prior fiscal year. \n \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \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 \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n64,718,801 $ \n3,707,897 2,494,147 1,378,496 1,618,508 6,586,145 \n587,854 9,019,555 5,467,064 \n816,745 572,451 \n267,282 5,965,813 \n591,817 \n \n69,547,045 $ \n3,927,438 3,176,749 2,311,278 1,670,109 7,815,155 \n731,554 8,835,570 5,649,805 \n682,950 661,818 \n277,747 6,181,814 \n442,665 \n \n18,046,359 $ \n3,192,399 972,723 46,396 \n1,334,807 2,829,871 \n515,184 4,954,559 4,812,830 \n717,610 390,370 \n12,745 390,533 591,817 \n \n24,303,055 \n3,154,391 1,261,185 \n789,726 1,192,681 3,319,373 \n597,775 4,549,375 4,773,956 \n559,222 433,871 \n21,626 378,125 442,665 \n \nTotal Expenses \n \n$ \n \n103,792,575 $ \n \n111,911,697 $ \n \n38,808,203 $ \n \n45,777,026 \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 $113.4 million and total expenditures of $109.3 million in fiscal year 2014. Total governmental fund balances of $53.9 million at June 30, 2014, increased about $34.4 million from the prior year. This increase in fund balance resulted primarily because the District sold bonds in fiscal year 2014 that brought in proceeds of about $30.3 million, which remained largely unexpended at June 30, 2014. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal year 2014, the School District amended its general fund budget as needed. \nvii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \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 $104.1 million exceeded the final budget by $2.6 million. This variance occurred largely because property taxes exceeded by budget by roughly $1.1 million and miscellaneous revenues exceed the final budget by $2.0 million. \nThe General Fund's final actual expenditures of $98.4 million were less than the final budget amount of $99.5 million by roughly $1.0 million. This variance was primarily due to actual expenditures for instruction less than the budgeted amount by $1.7 million. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2014, the School District had almost $140.7 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \nLand Construction In Progress Land Improvements Building and Improvements Equipment \n \n$ \n \n2,826,345 $ \n \n3,878,893 \n \n1,114,471 \n \n127,989,757 \n \n4,866,485 \n \n2,826,345 1,512,561 1,034,487 130,701,585 5,986,594 \n \nTotal \n \n$ 140,675,951 $ \n \n142,061,572 \n \nAdditional information about the School District's Capital Assets can be found in the Notes to the Financial Statements. \nLong-Term Debt \nAt June 30, 2014, the School District had almost $42.4 million in total debt outstanding which was consisted of just over $36.2 million in bond debt, $3.2 million in Capital lease debt, and almost $3.0 million in unamortized bond premiums. Table 5 summarizes the School District's debt as compared to the prior fiscal year. \n \nviii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \nBonds Payable Capital Leases Unamortized Bond Premium \n \n$ \n \n36,205,000 $ \n \n15,000,000 \n \n3,190,506 \n \n3,889,907 \n \n2,961,673 \n \n106,383 \n \nTotal \n \n$ \n \n42,357,179 $ \n \n18,996,290 \n \nAdditional information about the School District's debt can be found in the Notes to the Financial Statements. \n \nFACTORS BEARING ON THE 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 student population is fairly static. The District is continuing to reduce portable classrooms at various schools. The District will continue to renovate existing facilities to accommodate the growth and reduce portable classrooms at various schools as needed. The District plans to fund additional capital outlays with the one percent local sales tax revenue, general obligation bonds, and state capital outlay grants. A new Coosa High School is being constructed to replace an aging facility to provide a new state-of-the-art learning environment which will open in 2016. Additionally, other safety and school security lighting will be installed using the special purpose sales tax. \n \n In fiscal year 2015, the School District will adopt Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Based on information provided by the Teacher Retirement System of Georgia (TRS), the School District's liability for its proportionate share of the Net Pension Liability of the pension plan administered through TRS is estimated to be $68.7 million at June 30, 2015. \n \n The District is financially stable. The School District's operating millage for fiscal year 2014 was 18.588, which produced almost $1,690,927 per mill. Despite the constrained levels of revenues realized in fiscal year 2014, the School District is in excellent financial condition. The General Fund had an unassigned fund balance of $10.3 million at June 30, 2014, which is up almost $4.4 million from the prior year. The District expects continued challenges going forward due to continued flat revenues from a slow but gradual decline in enrollment and higher health insurance 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 \nix \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \n The 2014 General Assembly approved the Governor's recommendation to partially restore austerity funds which Floyd County Schools' portion was approximately $2.6 million. With those funds, the District planned for and restored the 10 reduced work days (furlough days) for all employees and provided a full year school calendar for students in fiscal year 2015. Additional staffing is carefully considered before any vacancy is filled. \n The School District is involved in an ongoing investigation by both State and Local authorities associated with a situation where school personnel were allegedly involved in a fraudulent scheme where inflated invoices were submitted and paid by the School District in return for various types of kickbacks from the vendors involved. The School District intends to prosecute the parties involved and seek reimbursement in this matter. The School District does not believe the financial outcome of this situation will be detrimental to the School District's ability to continue to deliver quality educational services to the citizenry of Floyd County. \n During fiscal year 2014, the District made up of the Board, the Superintendent, Local School Governance Team members, administrators, students, and the community redefined the District's mission which is focused on one mission in Pre-K through 12: \"Destination Graduation . . .for Every Child.\" \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. Chris Toles, Executive Director of Financial Services, Floyd County Board of Education, 600 Riverside Parkway, NE, Rome, Georgia. You may also email your questions to Mr. Toles at ctoles@floydboe.net. \nx \n \n FLOYD COUNTY BOARD OF EDUCATION \n \n  FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2014 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Interest Payable Contracts Payable Retainages Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal and State Programs Debt Service Capital Projects Unrestricted \nTotal Net Position \n \nEXHIBIT \"A\" \nGOVERNMENTAL ACTIVITIES \n$ 45,791,278.67 9,702,542.80 3,058,516.22 7,830,522.56 559,118.36 33,381.30 27,007.00 228,317.02 3,590.91 6,705,238.00 \n133,970,713.00 207,910,225.84 \n118,239.32 11,313,876.55 \n164,731.33 204,590.00 199,912.84 \n22,626.44 8,319,302.23 34,037,876.87 54,381,155.58 \n127,679,138.85 553,631.51 \n10,787,509.64 965,337.38 \n13,543,452.88 \n$ 153,529,070.26 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2014 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Position \nNet Position - Beginning of Year (Restated) \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 64,718,799.61 $ \n3,707,896.80 2,494,146.85 1,378,495.79 1,618,508.04 6,586,145.38 \n587,853.84 9,019,554.78 5,467,064.00 \n816,745.40 572,451.06 \n267,282.31 5,965,813.40 \n591,817.40 \n$ 103,792,574.66 $ \n \n572,264.76 \n12,681.98 252,752.43 1,286,570.81 2,124,269.98 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 45,735,327.69 $ \n515,497.35 1,521,424.33 1,328,435.62 \n280,726.24 3,756,274.72 \n72,669.72 4,064,995.62 \n641,551.55 99,135.30 \n182,081.26 \n1,784.83 4,268,409.72 \n$ 62,468,313.95 $ \n \n364,848.41 $ 3,664.50 2,974.86 \n20,300.23 391,788.00 \n \n-18,046,358.75 \n-3,192,399.45 -972,722.52 -46,395.67 \n-1,334,806.94 -2,829,870.66 \n-515,184.12 -4,954,559.16 -4,812,830.47 \n-717,610.10 -390,369.80 \n-12,745.05 -390,532.64 -591,817.40 \n-38,808,202.73 \n \n31,655,174.35 39,076.28 \n8,777,243.20 470,914.99 \n4,982,103.00 68,942.66 \n2,694,402.30 \n48,687,856.78 \n9,879,654.05 \n143,649,416.21 \n \n$ \n \n153,529,070.26 \n \n- 3 - \n \n FLOYD COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2014 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 15,002,747.95 $ 30,083,972.03 $ 704,558.69 $ 45,791,278.67 \n \n142,032.13 \n \n9,560,510.67 \n \n9,702,542.80 \n \n2,331,485.94 7,438,734.56 \n559,118.36 33,381.30 \n228,317.02 \n \n391,788.00 \n27,007.00 3,590.91 \n \n727,030.28 \n \n3,058,516.22 7,830,522.56 \n559,118.36 33,381.30 27,007.00 \n228,317.02 3,590.91 \n \n$ 25,735,817.26 $ 30,506,357.94 $ 10,992,099.64 $ 67,234,274.84 \n \nLIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES \n \nLIABILITIES \n \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \n \n$ 118,239.32 11,313,876.55 $ \n \n199,912.84 22,626.44 \n \n$ 118,239.32 11,313,876.55 199,912.84 22,626.44 \n \nTotal Liabilities \n \n11,432,115.87 \n \n222,539.28 \n \n11,654,655.15 \n \nDEFERRED INFLOWS OF RESOURCES \n \nUnavailable Revenue - Property Taxes \n \n1,654,698.80 \n \n1,654,698.80 \n \nFUND BALANCES \n \nNonspendable Restricted Committed Assigned Unassigned \n \n228,317.02 325,314.31 1,549,661.98 233,137.68 10,312,571.60 \n \n30,283,818.66 $ 10,992,099.64 \n \n228,317.02 41,601,232.61 \n1,549,661.98 233,137.68 \n10,312,571.60 \n \nTotal Fund Balances \n \n12,649,002.59 30,283,818.66 10,992,099.64 53,924,920.89 \n \nTotal Liabilities, Deferred Inflows of Resources and Fund Balances \n \n$ 25,735,817.26 $ 30,506,357.94 $ 10,992,099.64 $ 67,234,274.84 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2014 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \nLand Construction in Progress Land Improvements Accumulated Depreciation - Land Improvements Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \nProperty Taxes \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Accrued Interest Payable Capital Leases Payable Bond Premiums, Net of Amortization Claims and Judgments Payable \nTotal Long-Term Liabilities \n \n$ 53,924,920.89 \n \n$ 2,826,345.00 3,878,893.00 4,407,395.00 -3,292,924.00 \n166,807,875.00 -38,818,118.00 18,289,614.00 -13,423,129.00 \n \n140,675,951.00 \n \n1,654,698.80 \n \n$ -36,205,000.00 -204,590.00 \n-3,190,506.18 -2,961,672.92 \n-164,731.33 \n \n-42,726,500.43 \n \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 153,529,070.26 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Long-Term Capital Related Debt Premiums on Bonds Sold Sale of Equipment Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 31,430,944.10 470,914.99 $ \n58,790,856.80 8,659,560.15 2,124,269.98 3,552.71 2,636,035.20 \n \n762,744.87 $ 391,788.00 \n1,623.47 \n \n$ 8,014,498.33 \n63,766.48 \n \n31,430,944.10 9,248,158.19 \n59,182,644.80 8,659,560.15 2,124,269.98 68,942.66 2,636,035.20 \n \n104,116,133.93 \n \n1,156,156.34 \n \n8,078,264.81 113,350,555.08 \n \n61,193,800.11 \n3,707,896.80 2,494,146.85 1,331,125.91 1,572,028.43 6,586,145.38 \n587,853.84 8,997,108.99 4,570,346.73 \n816,745.40 572,451.06 267,282.31 5,718,465.82 \n98,415,397.63 \n5,700,736.30 \n \n69,458.54 \n8,050.01 \n3,318,494.75 699,400.60 257,312.11 185,806.88 \n4,538,522.89 -3,382,366.55 \n \n6,000,000.00 322,325.00 \n6,322,325.00 1,755,939.81 \n \n61,263,258.65 \n3,707,896.80 2,494,146.85 1,331,125.91 1,580,078.44 6,586,145.38 \n587,853.84 8,997,108.99 4,570,346.73 \n816,745.40 572,451.06 267,282.31 5,718,465.82 3,318,494.75 \n6,699,400.60 257,312.11 508,131.88 \n109,276,245.52 \n4,074,309.56 \n \n13,667.70 -1,396,082.70 -1,382,415.00 4,318,321.30 8,330,681.29 \n \n27,205,000.00 3,058,776.95 44,699.40 2,171,334.04 \n32,479,810.39 \n29,097,443.84 \n1,186,374.82 \n \n-775,251.34 -775,251.34 980,688.47 10,011,411.17 \n \n27,205,000.00 3,058,776.95 58,367.10 2,171,334.04 -2,171,334.04 \n30,322,144.05 \n34,396,453.61 \n19,528,467.28 \n \nFund Balances - Ending \n \n$ 12,649,002.59 $ 30,283,818.66 $ 10,992,099.64 $ 53,924,920.89 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2014 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense - Buildings Depreciation Expense - Equipment Depreciation Expense - Land Improvements \nExcess of Capital Outlay over Depreciation Expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nDeferred Inflows - Unavailable Property Taxes June 30, 2013 June 30, 2014 Total Deferred Inflows - Unavailable Property Taxes \nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Position. In the current period, proceeds were received from: \nProceeds from Sale of General Obligation Bonds Premium derived from Sales of General Obligation Bonds \nTotal Bond Proceeds \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \nBond Principal Retirements Capital Lease Payments Amortization of Bond Premiums \nTotal Long-Term Debt Repayments \nSome expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \nAccrued Interest Expenses June 30, 2013 June 30, 2014 \nClaims Incurred but not Reported June 30, 2013 June 30, 2014 \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ 34,396,453.61 \n \n$ 2,854,027.00 -2,873,237.00 -1,264,815.00 -101,596.00 \n \n-1,385,621.00 \n \n$ -1,391,392.27 1,654,698.80 \n \n263,306.53 \n \n$ -27,205,000.00 -3,058,776.95 \n \n-30,263,776.95 \n \n$ 6,000,000.00 699,400.60 203,487.42 \n \n6,902,888.02 \n \n$ \n \n174,729.17 \n \n-204,590.00 \n \n$ \n \n160,996.00 \n \n-164,731.33 \n \n-29,860.83 -3,735.33 \n \n$ 9,879,654.05 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2013 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 214,720.56 \n$ 214,720.56 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been blended with the School District's General Fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistrict-wide Statements: The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n \n- 9 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), Bond Proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and claims, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nRESTATEMENT OF PRIOR YEAR POSITION \nFor fiscal year 2014, the School District made several prior period adjustments due to the adoption of GASB Statement No. 65, as described in \"New Accounting Pronouncements\" below, which require the restatement of the June 30, 2013, net position in Governmental Activities. The result is a decrease in Net Position at July 1, 2013 of $24,817.12. This change is in accordance with generally accepted accounting principles. \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nNet Position, July 1, 2013, as previously reported $ 143,674,233.33 \n \nReclassification of Bond Issuance Costs \n \n-24,817.12 \n \nNet Position, July 1, 2013, as restated \n \n$ 143,649,416.21 \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2014, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The provisions of this Statement establish accounting and financial reporting standards that reclassify, as deferred outflows or inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows or inflows of resources, certain items that were previously reported as assets and liabilities. \nFUTURE ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2015, the School District will adopt Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Based on information provided by the Teacher Retirement System of Georgia (TRS), the School District's liability for its proportionate share of the Net Pension Liability of the pension plan administered through TRS is estimated to be $68.7 million at June 30, 2015. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \n6. The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit quality risks, custodial credit risks, concentration of credit risks, or interest rate risks. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe Floyd County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on July 27, 2013 (levy date) based on property values as of January 1, 2013. Taxes were due on November 15, 2013 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2013 tax digest are reported as revenue in the governmental funds for fiscal year 2014. The Floyd County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2014, for maintenance and operations amounted to $30,129,991.10. \nThe tax millage rate levied for the 2013 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.588 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,261,876.72 during fiscal year ended June 30, 2014. \nSALES TAXES \nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $8,777,243.20 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAll $ 5,000.00 $ 10,000.00 $ 5,000.00 $ 200,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n3 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \nIn addition to assets, the statement of net position and/or the balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. The School District did not have any items that qualified for reporting in this category for the year ended June 30, 2014. \nIn addition to liabilities, the statement of net position and/or the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. The School District has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reporting only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and grants and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \nNET POSITION \nThe School District's net position in the District-wide Statements is classified as follows: \nNet investment in capital assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal and State programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nFund Balances of the Governmental Funds at June 30, 2014, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted School Activity Accounts \nAssigned After School Program Self-Insurance Records Retention \nUnassigned \n \n$ \n \n228,317.02 \n \n$ \n \n325,314.31 \n \n30,283,818.66 \n \n10,992,099.64 \n \n41,601,232.61 \n \n1,549,661.98 \n \n$ \n \n86,967.66 \n \n128,129.67 \n \n18,040.35 \n \n233,137.68 \n \n10,312,571.60 \n \nFund Balance, June 30, 2014 \n \n$ 53,924,920.89 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \n \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nNOTE 4: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \n \nAt June 30, 2014, $454,558.69 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2014, the School District had deposits with a carrying amount of $46,005,990.30 which includes $142,032.13 in Certificates of Deposit that are reported as Investments, and a bank balance of $49,145,380.35. The bank balances insured by Federal depository insurance were $969,876.90. \n \nThe amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial risk category at June 30, 2014, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ \n \n454,558.69 \n \n2 \n \n0.00 \n \n3 \n \n47,720,944.76 \n \nTotal \n \n$ 48,175,503.45 \n \nCATEGORIZATION OF INVESTMENTS \n \nAt June 30, 2014, the carrying value of the School District's total investment was $9,702,542.80. This includes $142,032.13 invested in Certificates of Deposit, which are collateralized in the same manner as other cash deposits. The School District's investments as of June 30, 2014, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less than 1 Year \n \nDebt Securities U. S. Agencies Implicitly Guaranteed $ 1,725,948.22 $ 1,725,948.22 \n \nOther Investments U. S. Treasury Money Market Funds \n \n7,834,562.45 \n \nTotal Investments \n \n$ 9,560,510.67 \n \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk for investments. \nAt June 30, 2014, $1,725,948.22 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing custodial credit risk. \n \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \n$ 1,725,948.22 $ 1,725,948.22 \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investment is 18.05% of the School District's total investments. \nNOTE 5: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNOTE 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2013 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2014 \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction in Progress \n \n$ \n \n2,826,345.00 \n \n$ \n \n2,826,345.00 \n \n1,512,561.00 $ 2,697,702.00 $ \n \n331,370.00 \n \n3,878,893.00 \n \nTotal Capital Assets Not Being Depreciated \n \n4,338,906.00 \n \n2,697,702.00 \n \n331,370.00 \n \n6,705,238.00 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n166,646,466.00 18,196,108.00 4,225,815.00 \n \n161,409.00 144,706.00 181,580.00 \n \n51,200.00 \n \n166,807,875.00 18,289,614.00 4,407,395.00 \n \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n35,944,881.00 12,209,514.00 \n3,191,328.00 \n \n2,873,237.00 1,264,815.00 \n101,596.00 \n \n51,200.00 \n \n38,818,118.00 13,423,129.00 \n3,292,924.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n137,722,666.00 \n \n-3,751,953.00 \n \n0.00 \n \n133,970,713.00 \n \nGovernmental Activity Capital Assets - Net \n \n$ 142,061,572.00 $ -1,054,251.00 $ \n \n331,370.00 $ 140,675,951.00 \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nCapital assets being acquired under capital leases as of June 30, 2014, are as follows: \nGovernmental Funds \n \nBuildings and Improvements Less: Accumulated Depreciation \n \n$ 1,708,467.00 1,133,145.00 \n \n$ \n \n575,322.00 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration Student Transportation Services Food Services \n \n$ \n \n$ \n \n39,650.00 \n \n32,188.00 \n \n744,485.00 \n \n3,203,676.00 \n816,323.00 219,649.00 \n \n$ 4,239,648.00 \n \nNOTE 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2014, consisted of the following: \n \nTransfer to \n \nTransfers From \n \nGeneral \n \nDebt Service \n \nFund \n \nFund \n \nDistrict-wide Capital Projects \n \n$ 1,396,082.70 $ \n \n775,251.34 \n \nTransfers are used to move property tax revenues collected by the General Fund to (1) the Districtwide Capital Projects Fund as supplemental funding source for capital construction projects and (2) to move Special Local Option Sales Tax revenue collected by the Debt Service Fund to the District-wide Capital Projects Fund to cover allowable capital outlay expenditures. \nNOTE 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $400,000.00 loss per occurrence, up to the statutory limit. \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2013 2014 \n \n$ 178,665.36 $ 133,124.28 $ 150,793.64 $ 160,996.00 $ 160,996.00 $ 302,193.28 $ 298,457.95 $ 164,731.33 \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2013 \n \n$ \n \n2014 \n \n$ \n \n0.00 $ 0.00 $ \n \n32,057.98 $ 232,123.00 $ \n \n32,057.98 $ 232,123.00 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Blanket Employee \n \n$ \n \n100,000.00 \n \n$ \n \n100,000.00 \n \nNOTE 9: LONG-TERM LIABILITIES \nCAPITAL LEASES \nThe Floyd County Board of Education also entered into various lease agreements for construction, energy management systems, and bus radios. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - QZAB - Series 2004 General Government - Series 2009 General Government - Series 2014 \n \n0.00% 3.00% - 4.00% 3.00% - 5.00% \n \n$ 2,000,000.00 7,000,000.00 \n27,205,000.00 \n \n$ 36,205,000.00 \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2014, were as follows: \n \nBalance July 1, 2013 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2014 \n \nDue Within One Year \n \nG.O. Bonds Capital Leases Bond Premiums Amortized \n \n$ 15,000,000.00 $ 27,205,000.00 $ \n \n3,889,906.78 \n \n106,383.39 \n \n3,058,776.95 \n \n6,000,000.00 $ 36,205,000.00 $ \n \n699,400.60 \n \n3,190,506.18 \n \n203,487.42 \n \n2,961,672.92 \n \n7,000,000.00 736,678.05 582,624.18 \n \n$ 18,996,290.17 $ 30,263,776.95 $ 6,902,888.02 $ 42,357,179.10 $ 8,319,302.23 \n \nAt June 30, 2014, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2015 2016 2017 2018 2019 \n \n$ \n \n736,678.05 $ \n \n148,529.43 \n \n731,795.22 \n \n110,321.34 \n \n770,768.74 \n \n71,347.82 \n \n811,817.89 \n \n30,298.67 \n \n139,446.28 \n \n907.06 \n \nTotal Principal and Interest \n \n$ 3,190,506.18 $ \n \n361,404.32 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2015 2016 2017 2018 2019 2020 \n \n$ 7,000,000.00 $ \n \n827,265.00 $ \n \n5,030,000.00 \n \n1,132,350.00 \n \n5,185,000.00 \n \n953,200.00 \n \n7,390,000.00 \n \n714,750.00 \n \n5,660,000.00 \n \n438,500.00 \n \n5,940,000.00 \n \n148,500.00 \n \n582,624.18 582,624.18 582,624.18 582,624.18 582,624.18 \n48,552.02 \n \nTotal Principal and Interest \n \n$ 36,205,000.00 $ 4,214,565.00 $ 2,961,672.92 \n \nNOTE 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $5,238,486.22 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $5,052,660.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $18,364.22 \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $167,462.00 \n \nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2014: \n \nProject \n \nUnearned Executed Contracts \n \nCollege and Career Academy Armuchee Elementary School HVAC Coosa High School \n \n$ \n \n437,200.00 \n \n370,070.26 \n \n29,657,504.23 \n \n$ 30,464,774.49 \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 13: SUBSEQUENT EVENTS \nDuring fiscal year 2015, the School District became aware of a situation where school personnel were allegedly involved in a fraudulent scheme where inflated and altered invoices were submitted and paid by the School District to various vendors. It is believed kickbacks were obtained from the vendors involved and funds were received by school personnel. This matter is under investigation by law enforcement officials from both the state and local governments. The amount of funds misappropriated is not known at this time but is believed to be in excess of $600,000.00 and covers multiple fiscal years. \nNOTE 14: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the \n \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nauthority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2014: \nFor certificated teachers, librarians and regional educational service agencies and certain other \neligible participants: \n \nJuly 1, 2013 - June 30, 2014 $945.00 per member per month \n \nFor non-certificated school personnel: \n \nJuly 1, 2013 - June 30, 2014 $596.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n100% \n \n$ \n \n9,841,742.04 \n \n100% \n \n$ \n \n10,484,363.57 \n \n100% \n \n$ \n \n10,406,972.17 \n \n- 23 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nNOTE 15: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \n \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2014, were 6.00% of annual salary. Employer contributions required for fiscal year 2014 were 12.28% of annual salary as required by the June 30, 2011, actuarial valuation. \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 \n2014 2013 2012 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n6,710,335.80 6,915,683.57 6,533,913.66 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \n \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2014 \n \nEXHIBIT \"H\" \n \nDEFINED CONTRIBUTION PLAN \n \nIn July 2003, Floyd County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees' Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \nThe Board paid contributions to Hartford Life Insurance Company, TIAA-CREF, and VALIC for fiscal year 2009 and part of the fiscal year 2010 through January 2010. VALIC was designated as the 3rd party plan administrator of this plan as of February 2010 and all contributions are paid to them directly. VALIC then distributes funds to the other companies as necessary. For each employee covered under PSERS, the Board began contributing to the plan an amount matching up to a maximum of 4% of the employee's base pay, dependent upon the employee's actual contribution election. \n \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. Funds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of continuous employment with Floyd County Board of Education. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2014 2013 2012 \n \n100% \n \n$ \n \n100% \n \n$ \n \n100% \n \n$ \n \n43,104.36 41,371.23 37,805.63 \n \n- 25 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nSale or Compensation for Loss of Fixed Assets Transfers from Other Funds Transfers to Other Funds \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 30,322,661.00 $ 30,322,661.00 $ 31,430,944.10 $ 1,108,283.10 \n \n325,000.00 \n \n325,000.00 \n \n470,914.99 \n \n145,914.99 \n \n58,275,734.24 \n \n58,357,734.24 \n \n58,790,856.80 \n \n433,122.56 \n \n8,591,891.54 \n \n9,576,590.54 \n \n8,659,560.15 \n \n-917,030.39 \n \n2,275,000.00 \n \n2,275,000.00 \n \n2,124,269.98 \n \n-150,730.02 \n \n10,500.00 \n \n10,500.00 \n \n3,552.71 \n \n-6,947.29 \n \n600,000.00 \n \n600,000.00 \n \n2,636,035.20 2,036,035.20 \n \n100,400,786.78 101,467,485.78 104,116,133.93 2,648,648.15 \n \n62,709,301.94 \n2,624,033.00 2,433,979.20 1,258,950.60 1,492,047.47 6,481,542.62 \n625,869.00 8,617,120.53 4,560,541.00 \n738,013.00 196,889.13 6,624,970.29 \n29,233.00 \n98,392,490.78 \n2,008,296.00 \n \n62,923,045.34 \n2,802,271.00 2,735,280.21 1,390,775.60 1,555,775.84 6,374,692.33 \n625,369.00 8,824,365.07 4,558,629.00 \n783,713.97 231,280.84 6,624,758.58 \n29,233.00 \n99,459,189.78 \n2,008,296.00 \n \n61,193,800.11 \n3,707,896.80 2,494,146.85 1,331,125.91 1,572,028.43 6,586,145.38 \n587,853.84 8,997,108.99 4,570,346.73 \n816,745.40 572,451.06 5,718,465.82 267,282.31 \n98,415,397.63 \n5,700,736.30 \n \n1,729,245.23 \n-905,625.80 241,133.36 \n59,649.69 -16,252.59 -211,453.05 37,515.16 -172,743.92 -11,717.73 -33,031.43 -341,170.22 906,292.76 -238,049.31 \n1,043,792.15 \n3,692,440.30 \n \n125,000.00 50,000.00 \n-1,055,000.00 \n-880,000.00 \n1,128,296.00 \n6,067,538.54 \n \n125,000.00 50,000.00 \n-1,055,000.00 \n-880,000.00 \n1,128,296.00 \n6,067,538.54 \n \n13,667.70 -1,396,082.70 -1,382,415.00 4,318,321.30 8,330,681.29 \n \n-111,332.30 -50,000.00 \n-341,082.70 \n-502,415.00 \n3,190,025.30 \n2,263,142.75 \n \n$ 7,195,834.54 $ 7,195,834.54 $ 12,649,002.59 $ 5,453,168.05 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts were $2,673,375.86 and $2,611,519.01, respectively. These amounts do not include transfers in and out to other Funds. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships Title I Grants to Local Educational Agencies \nTotal Other Programs \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ 5,433,091.55 (1) \n \n5,433,091.55 \n \n10.665 \n \nN/A \n \n(3) 5,433,091.55 \n \n* 84.027 \n \nN/A \n \n* 84.173 \n \nN/A \n \n84.048 \n \nN/A \n \n84.196 \n \nN/A \n \n84.365 \n \nN/A \n \n84.367 \n \nN/A \n \n84.366 \n \nN/A \n \n* 84.010 \n \nN/A \n \n1,941,524.08 79,398.26 \n2,020,922.34 \n84,663.00 55,053.88 40,834.62 226,914.65 21,555.89 2,149,425.40 \n2,578,447.44 \n4,599,369.78 \n \nTotal Expenditures of Federal Awards \n \n$ 10,032,461.33 \n \nN/A = Not Available \n \nNotes to the Schedule of Expenditures of Federal Awards \n \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $299,467.75. \n(2) Expenditures for the funds earned on the School Breakfast Program ($934,333.61) were not maintained separately and are included in the 2014 National School Lunch Program. \n(3) Funds earned on this program, in the amount of $4,196.52, do not require reporting of expenditures. \n \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \n \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 28 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Other State Programs Charter System Grant Food Services Math and Science Supplements Move on when ready Grant Preschool Handicapped Program Teachers' Retirement Technology to Support Learning 7MM Grant Vocational Education \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nNatural Resources, Georgia Department of Arrowhead Grant \nOffice of the State Treasurer Public School Employees' Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,504,149.60 \n \n$ 1,504,149.60 \n \n2,046,890.00 2,012,022.00 4,500,750.00 5,395,559.00 2,924,550.00 1,817,310.00 5,728,294.00 5,131,395.00 1,641,650.00 11,507,183.00 4,744,660.00 \n350,539.00 402,446.00 478,120.00 1,150,657.00 324,673.00 246,536.00 \n1,405,839.00 2,643,846.00 2,569,870.00 -7,926,661.00 \n1,248,297.00 191,800.00 26,733.00 \n4,982,103.00 \n785,792.00 154,280.00 \n41,109.98 100.00 \n303,262.00 18,364.22 81,990.00 \n163,286.00 \n \n2,046,890.00 2,012,022.00 4,500,750.00 5,395,559.00 2,924,550.00 1,817,310.00 5,728,294.00 5,131,395.00 1,641,650.00 11,507,183.00 4,744,660.00 \n350,539.00 402,446.00 478,120.00 1,150,657.00 324,673.00 246,536.00 \n1,405,839.00 2,643,846.00 2,569,870.00 -7,926,661.00 \n1,248,297.00 191,800.00 26,733.00 \n4,982,103.00 \n785,792.00 154,280.00 \n41,109.98 100.00 \n303,262.00 18,364.22 81,990.00 \n163,286.00 \n \n$ 391,788.00 26,000.00 167,462.00 \n \n391,788.00 26,000.00 \n167,462.00 \n \n$ 58,790,856.80 $ 391,788.00 $ 59,182,644.80 \n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $5,052,660.00 are included as part of the Quality Basic Education revenue allotments above. \nSee notes to the basic financial statements. \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"4\" \n \nPROJECT \n \n2009 SPLOST \n \n(1) Additional Classrooms \n \n$ \n \n(2) Renovating, Repairing, improving and \n \nequipping existing schools and facilities including \n \nroof replacements and HVAC systems \n \n(3) Technology system-wide including purchasing \n \nhardware \n \n(4) Transportation Department Improvements and \n \nBus Purchases \n \n(5) acquiring any capital property necessary or \n \ndesirable for the foregoing purposes, both real \n \nand personal. \n \n(6) Legal and Administrative Costs \n \nORIGINAL ESTIMATED \nCOST (1) 6,174,000.00 $ \n8,842,000.00 2,500,000.00 2,000,000.00 \n700,000.00 \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n4,565,046.31 $ 1,189,039.31 $ 3,376,007.00 $ 4,565,046.31 \n \n9,132,142.00 2,546,762.00 1,610,208.00 \n \n954,331.86 10,168,604.66 69,458.54 2,503,757.93 1,584,256.06 \n \n184,373.00 481,849.43 \n \n7,350.01 \n \n184,373.00 474,499.42 \n \n184,373.00 $ 481,849.43 \n \n0.00 \n \nESTIMATED COMPLETION \nDATE COMPLETE \n12/31/2014 10/31/2014 12/31/2014 \nCOMPLETE COMPLETE \n \n20,216,000.00 18,520,380.74 2,220,179.72 18,291,498.07 5,231,268.74 \n \n0.00 \n \n2014 SPLOST (1) New Coosa High School (2) System Security Upgrades (Lighting and Entrance) (3) Technology (4) Building Improvements (HVAC, etc.) (5) Legal and Administrative Costs \n \n36,500,000.00 36,500,000.00 \n \n2,775,000.00 2,000,000.00 4,910,000.00 \n35,000.00 \n \n2,775,000.00 2,000,000.00 4,910,000.00 \n258,012.11 \n \n212,825.65 474,457.91 \n258,012.11 \n \n6/30/2016 \n6/30/2019 6/30/2019 6/30/2019 6/30/2019 \n \n46,220,000.00 46,443,012.11 \n \n945,295.67 \n \n0.00 \n \n0.00 \n \n0.00 \n \nTOTAL \n \n$ 66,436,000.00 $ 64,963,392.85 $ 3,165,475.39 $ 18,291,498.07 $ 5,231,268.74 $ \n \n0.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 6,438,936.54 \n \nCurrent Year \n \n322,325.00 \n \nTotal \n \n$ 6,761,261.54 \n \nSee notes to the basic financial statements. \n \n- 30 - \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2014 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ 2,356,960.00 $ 3,670,727.36 $ \n \n199.50 $ 3,670,926.86 \n \n2,408,503.00 \n \n5,198,215.00 \n \n9,867,534.69 \n \n92,681.88 \n \n9,960,216.57 \n \n6,223,193.00 \n \n3,448,619.00 \n \n5,474,459.24 \n \n52,754.13 \n \n5,527,213.37 \n \n2,042,385.00 6,642,361.00 5,956,945.00 1,927,809.00 13,268,070.00 \n5,342,791.00 410,253.00 478,960.00 544,557.00 \n \n2.88 7,653,608.38 9,234,409.74 1,492,830.23 \n69,405.19 9,884,585.93 \n282,825.21 2,416,595.68 \n433,951.16 320,009.67 \n \n105,193.96 356,314.04 146,132.70 \n419,750.72 36,027.40 \n1,877.44 \n \n2.88 7,758,802.34 9,590,723.78 1,638,962.93 \n69,405.19 10,304,336.65 \n282,825.21 2,452,623.08 \n433,951.16 321,887.11 \n \n56,249,621.00 50,800,945.36 1,210,931.77 52,011,877.13 \n \n1,331,759.00 278,020.00 \n \n1,094,088.95 38,641.11 \n \n157,676.55 80,013.03 \n \n1,251,765.50 118,654.14 \n \n$ 57,859,400.00 $ 51,933,675.42 $ 1,448,621.35 $ 53,382,296.77 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 20, 2015 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the major funds - General Fund and Debt Service Fund, and the aggregate remaining fund information of the Floyd County Board of Education as of and for the year ended June 30, 2014, and the related notes to the financial statements. Also, we were engaged to audit the financial statements of the major fund - District-wide Capital Projects Fund. These financial statements collectively comprise the Floyd County Board of Education's basic financial statements and we have issued our report thereon dated October 20, 2015. Our report qualifies an opinion on governmental activities and the major fund - General Fund. Our report also disclaims an opinion on the major fund - Districtwide Capital Projects Fund. All modified opinions are as a result of the ongoing investigation of apparent fraudulent activity. The effects of the apparent fraud had on these financial statements have not been determined, but it is believed to be material for the Capital Projects Fund. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Floyd County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control. \nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. \n2014YB-41X \n \n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. . A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2014-001 to be a material weakness. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Floyd County Board of Education in a separate letter dated October 20, 2015. \nFloyd County Board of Education's Response to Findings \nFloyd County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Floyd County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2014YB-41X \n \nGreg S. Griffin State Auditor \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 20, 2015 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Floyd County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. Floyd County Board of Education's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for each of Floyd County Board of Education's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Floyd County Board of Education's compliance. \n2014SA-40 \n \n  Opinion on Each Major Federal Program \nIn our opinion, the Floyd County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. \nOther Matters \nThe results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA 2014-001. Our opinion on each major federal program is not modified with respect to this matter. \nFloyd County Board of Education's response to the noncompliance findings identified in our audit is described in the accompanying schedule of findings and questioned costs. Floyd County Board of Education's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \nReport on Internal Control over Compliance \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Floyd County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain a deficiency in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as item FA 2014-001 that we consider to be a significant deficiency. \n2014SA-40 \n \n  Floyd County Board of Education's response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of 'Findings and Questioned Costs. Floyd County Board of Education's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2014SA-40 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Debt Service Fund; Aggregate Remaining Fund Information Governmental Activities; General Fund Capital Projects Fund \n \nUnmodified Qualified \nDisclaimer \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nYes None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-143, Section 510(a)? \n \nYes \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010 84.027, 84.173 \n \nChild Nutrition Cluster Title I Grants to Local Educational Agencies Special Education Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$301,099.74 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \n- 1 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFS 2014-001 Inadequate Accounting Procedures \n \nControl Category: \n \nAccounting Controls \n \nInternal Control Impact: \n \nMaterial Weakness \n \nCompliance Impact: \n \nNone \n \nDescription: Controls were not designed adequately to ensure that misstatements are detected in a timely manner. \n \nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \n \nCondition: Subsequent to the end of fiscal year 2014 it was discovered an employee in the maintenance department was able to perpetuate a fraud dating back to fiscal year 2007 by circumventing internal controls in place at the School District. The action involved collusion with vendors of the School District and personal purchases of the employee. The total amount of this action is not known but is believed to be significant and/or material. \n \nCause: The internal controls in place were circumvented by School District management. \n \nEffect or Potential Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls impacted its reporting of its financial position and results of operations. \n \nRecommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with the documented finding; our current policy regarding purchasing needed to have been more detailed. In this instance, controls that were in place were circumvented by alleged illegal activity involving collusion with vendors. To strengthen purchasing and procurement practices, the Floyd County Board of Education adopted a new purchasing policy in July, 2015. This policy also included a regulation that places stringent purchasing and bidding regulations to guide staff in practices that adds accountability for the transparent procurement of goods and services. The details of this policy and regulation can be found in our online policies and regulation on E-Board. (See Floyd County School Policy and Regulation DJEG and DJEG-R, or use link below): \n \nhttps://eboard.eboardsolution.com/ePolicy/policy.aspx?PC=DJEGR(1)\u0026Sch=4068\u0026S=4068\u0026RevNo=1.22\u0026C=D\u0026Z=R \n \nAdditionally, the Board reorganized staff and established the position of Director of Internal Audits and Compliance effective July 1, 2015, and acting in those positions by the end of April, 2015. This position oversees all purchasing and procurement practices as well as trains and monitors employees \n \n- 2 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \non proper purchasing practices. The Board is also in the process of implementing new state of the art software that has enhanced workflow and digital approval capability which will be used to authenticate prior approval at the various levels specified in the purchasing regulation. The implementation is schedules to be completed sometime in 2016. \n \nFinally, each employee has attended mandatory meetings that discussed these new guidelines and made aware of consequences on non-compliance and intentional abuse of taxpayer funds. \n \nContact Person: \nTelephone: Fax: Email: \n \nChris Toles, Executive Director of Finance Lee Kaylor, Director of Internal Audits and Compliance (706) 234-1031 (706) 236-1816 ctoles@floydboe.net or lkaylor@floydboe.net \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nFA 2014-001 Matching, Level of Effort, Earmarking \n \nInternal Control Impact: \n \nFailure to Meet Maintenance of Effort \n \nCompliance Impact: \n \nSignificant Deficiency \n \nFederal Awarding Agency: U. S. Department of Education \n \nPass-Through Entity: \n \nGeorgia Department of Education \n \nCFDA Number and Title: \n \nSpecial Education Cluster (84.027 and 84.173) \n \nDescription: The School District did not meet the maintenance of effort requirement for the Special Education Cluster. \nCriteria: 34CFR 300.203(a) and the Compliance Supplement, Part 4 (4-84.027, III, G.2.1. IDEA, Part B) indicate that funds received by a Local Education Agency (LEA) cannot be used, except under certain limited circumstances, to reduce the level of expenditures for the education of children with disabilities made by the LEA from local funds below the level of those expenditures for the preceding fiscal year. To meet this requirement, an LEA must expend, in any particular fiscal year, an amount of local funds for the education of children with disabilities that is at least equal to the amount of local funds expended for this purpose by the LEA in the prior fiscal year. \n \nCondition: \n \nLocal funds for the education of children with disabilities decreased both in the aggregate and per \n \npupil during the year under review. \n \nFiscal \n \nFiscal \n \nYear 2014 \n \nYear 2013 \n \nLocal Expenditures Number of Students Local Expenditures per Student \n \n$ 442,855.81 $ 484,689.05 \n \n1,518 \n \n1525 \n \n$ \n \n7,642.95 $ \n \n7,839.22 \n \n- 3 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2014 \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nQuestioned Cost: $41,833.24 \n \nCause: The School District did not properly monitor its expenditures to ensure compliance with the maintenance of effort requirement related to the education of children with disabilities. \n \nEffect or Potential Effect: Failure to monitor expenditures for compliance with the maintenance of effort requirement can lead to a material noncompliance with the provisions of this Federal grant. \n \nRecommendation: The School District should implement adequate procedures to ensure that the maintenance of effort requirements are met in accordance with the requirements of the Special Education Cluster. The Georgia Department of Education should review this matter to determine if a refund is appropriate. \n \nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. In fiscal year 2014, the Board imposed a Reduction in Force along with eight (8) reduced work days for all employees. Because of this drastic reduction in staff and salaries across the entire school district, the expenditures in fiscal year 2014 could not meet or exceed those expended in fiscal year 2013. \n \nThe administration worked with the GDOE IDEA Program Manager which forwarded us the final calculation of the amount under expended to meet Maintenance of Effort. In reviewing the local capital purchases, the Board was able to reduce the final calculation per GDOE of $39,417.05 by using $5,221.80 of local capital expenditures. On August 21, 2015, a reimbursement was made from General Funds to GDOE in the amount of $34,195.25 to satisfy the MOE requirement for fiscal year 2014. \n \nFinally, the district financial staff will work closely with the district special education administration to ensure that MOE will be met. The district fully understands the requirement of meeting MOE and will work with the GDOE staff to assist as needed to ensure compliance. \n \nContact Person: \nTelephone: Fax: Email: \n \nChris Toles, Executive Director of Finance Lee Kaylor, Director of Internal Audits and Compliance (706) 234-1031 (706) 236-1816 ctoles@floydboe.net or lkaylor@floydboe.net \n \n- 4 - \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2012-h2013-belec-p-btext","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2013-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed February 20, 2023).","Fiscal year ended June 30, 2016 (Received via FTP on January 31, 2018 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed February 20, 2023)."],"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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2012-h2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n(Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S REPORT \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET POSITION \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET POSITION \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET POSITION \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \ni \n1 2 4 5 6 7 9 10 \n29 \n \n  FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n30 32 33 35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 28, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT \nLadies and Gentlemen: \nReport on the Financial Statements \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Floyd County Board of Education, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents. \nManagement's Responsibility for the Financial Statements \nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \nAuditor's Responsibility \nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express \n2013ARL-11 \n \n  no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nOpinions \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2013, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nEmphasis of Matter \nAs described in Note 2 to the financial statements, in 2013, the Floyd County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No. 34 and GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to these matters. \nOther Matters \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 29, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nOther Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the \n2013ARL-11 \n \n  audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \nOther Reporting Required by Governm ent Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated October 28, 2014, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Floyd County Board of Education's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:as 2013ARL-11 \n \nGreg S. Griffin State Auditor \n \n  FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nINTRODUCTION \nThe District's financial statements for the fiscal year ended June 30, 2013 includes a series of basic financial statements that report financial information for the District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Position and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the District's finances on a global basis. The fund financial statements provide information about all of the District's funds. Information about these funds, such as the District's General Fund, is important in its own right, but will also give insight into the District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2013 are as follows: \nOn the District-wide financial statements: \n District-wide Net Position at June 30, 2013 was $143,674,233. Net Position reflects the difference between all assets of the District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The Net Position at June 30, 2013 of $143,674,233 represented an increase of $2,993,238 in Net Position when compared to the prior year. \n The School District had $111.9 million in expenses relating to governmental activities; only $66.13 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $48.8 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $48.8 million or about 43% of all revenues totaling $114.9 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \n \nSource of Revenues \nProgram Revenues \n57.6% \n \nGeneral Revenue - Property Taxes \n27.3% \nGeneral Revenue - Sales Taxes 8.6% \nGeneral Revenue - All Other 6.5% \n \nThe District decreased its outstanding bond debt by $5.0 million. The existing bond debt of $15.0 million will be retired by a Special Option Local Sales Tax and interest earned thereon that was approved by the citizenry in conjunction with the Bond Sale. \ni \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nOn the fund financial statements: \n Among major funds, the General Fund had $105.5 million in revenues and $104.9 million in expenditures. The General Fund balance of $8.3 million at June 30, 2013 decreased only approximately $256,400 from the prior year fund balance. Although the District had budgeted to use almost $4.5 million of its fund balance, careful planning and unanticipated revenues decreased the amount needed from fund balance. In February, 2013, the Board approved a Reduction in Force of 119 employees with the next school year to provide a balanced budget where budgeted revenues slightly exceeded budgeted expenditures for fiscal year 2014. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial Statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Position' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Position' and the 'Statement of Activities' provide the basis for answering this question. These financial statements include all District's assets and liabilities and 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. \nii \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nWhen analyzing District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate Net Position as follows: \no Net Investment in Capital Assets o Restricted Net Position are those with constraints placed on the use by external \nsources such as creditors, grantors, contributors or laws and regulations. o Unrestricted Net Position are Net Position that do not meet any of the above \nrestrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the District has no nonmajor Funds as defined by generally accepted accounting principles. \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet Position, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the District. When revenues exceed expenses, the result is an increase in Net Position. When expenses exceed revenues, the result is a decrease in Net Position. The relationship between revenues and expenses can be thought of as the District's operating results. The District's Net Position, as measured in the Statement of Net Position, can be one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's Net Position- \niii \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nas measured in the Statement of Activities- are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the District. \nIn the case of the Floyd County School District, assets exceeded liabilities by $143.7 million at June 30, 2013. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net asset category. For example, of the $143.7 million of Net Position, almost $11.63 million was restricted for continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the District's ongoing obligations to citizens and creditors. The District also had unrestricted Net Position of just over $8.85 million. Unrestricted Net Position decreased by approximately $429,000 over the prior year. The amount of unrestricted Net Position is still sufficient to allow the District to meet the ongoing needs of its citizens and creditors. \nIn addition, the District also had $123.0 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and on-going use of the assets being reported in this component of Net Position, it must be recognized that this portion of the Net Position is not available for future spending. \nTable 1 provides a summary of the School District's Net Position for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Position \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n33,553,988 $ 35,246,456 \n \n142,061,572 \n \n143,758,819 \n \nTotal Assets \n \n$ \n \n175,615,560 $ 179,005,275 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n12,945,037 $ 13,451,213 \n \n18,996,290 \n \n24,873,066 \n \nTotal Liabilities \n \n$ \n \n31,941,327 $ 38,324,279 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted \n \n$ \n \n123,176,907 $ 119,005,083 \n \n11,644,852 \n \n12,394,694 \n \n8,852,474 \n \n9,281,219 \n \nTotal Net Position \n \n$ \n \n143,674,233 $ 140,680,996 \n \niv \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nTable 2 shows the Changes in Net Position for this fiscal year as compared to the prior fiscal year. \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2013 \n \n2012 \n \n$ \n \n2,590,665 $ \n \n2,563,742 \n \n63,458,045 \n \n61,905,529 \n \n85,960 \n \n1,601,972 \n \nTotal Program Revenues \n \n$ \n \n66,134,670 $ \n \n66,071,243 \n \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes - Railroad Equipment Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Taxes Real Estate and Intangible Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \n \n$ \n \n31,414,926 $ \n \n32,122,200 \n \n38,545 \n \n9,335,891 \n538,803 4,613,068 \n92,077 2,775,500 \n \n5,594,350 4,544,313 \n359,935 \n5,895,594 95,862 \n3,112,670 \n \nTotal General Revenues \n \n$ \n \n48,770,265 $ \n \n51,763,469 \n \nTotal Revenues \n \n$ \n \n114,904,935 $ \n \n117,834,712 \n \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ \n \n69,547,045 $ \n \n70,722,532 \n \n3,927,438 3,176,749 2,311,278 1,670,109 7,815,155 \n731,554 8,835,570 5,649,805 \n682,950 661,818 \n \n3,673,468 2,645,591 2,318,226 1,934,763 8,286,667 \n802,053 9,048,570 5,168,747 \n838,289 700,668 \n \n277,747 6,181,814 \n442,665 \n \n278,699 6,238,215 \n638,763 \n \nTotal Expenses \n \n$ \n \n111,911,697 $ \n \n113,295,251 \n \nIncrease in Net Position \n \n$ \n \n2,993,238 $ \n \n4,539,461 \n \nv \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \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. \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \n \nInstruction \n \n$ \n \nSupport Services: \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services: \n \nCommunity Services \n \nFood Services \n \nInterest on Short-Term and Long-Term Debt \n \n69,547,045 $ \n3,927,438 3,176,749 2,311,278 1,670,109 7,815,155 \n731,554 8,835,570 5,649,805 \n682,950 661,818 \n277,747 6,181,814 \n442,665 \n \n70,722,532 $ \n3,673,468 2,645,591 2,318,226 1,934,763 8,286,667 \n802,053 9,048,570 5,168,747 \n838,289 700,668 \n278,699 6,238,215 \n638,763 \n \n24,303,055 $ \n3,154,391 1,261,185 \n789,726 1,192,681 3,319,373 \n597,775 4,549,375 4,773,956 \n559,222 433,871 \n21,626 378,125 442,665 \n \n24,447,632 \n2,650,249 1,001,731 \n961,429 1,557,291 4,261,425 \n712,253 4,979,363 4,290,163 \n748,754 486,748 \n23,337 464,870 638,763 \n \nTotal Expenses \n \n$ 111,911,697 $ 113,295,251 $ \n \n45,777,026 $ \n \n47,224,008 \n \nThe table above shows that while the total cost of services for providing services decreased by 1% from the prior year, the net cost to the local taxpayers decreased by 3% from the prior year. In other words, as compared to the proceeding fiscal year, a percentage of the cost of providing services in fiscal year 2013 was reduced to the taxpayers of Floyd County from increased from state grants and reduced expenditures. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" and Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $115.0 million and total expenditures of $116.1 million in fiscal year 2013. Total governmental fund balances of $19.5 million at June 30, 2013, decreased approximately $1.0 million from the prior year. This decrease in fund balance occurred primarily because of slight increase in expenditures for completion of capital projects. \n \nvi \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \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 2013, 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 $105.5 million were over the final budgeted amount of almost $101.3 million by approximately $4.2 million. This difference (final actual vs. final budget) was primarily attributable to revenues for property taxes over final budget of $1.5 million, revenues for State Funds over the final budget of $957,000, decrease in Federal funds by $674,000 and miscellaneous revenues over final budget of $1.9 million. The District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. The General Fund's final actual expenditures of $104.9 million were over the final budget amount of $104.8 million by approximately $100,000. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction under the final budget of $1.0 million, expenditures for pupil services exceeding the final budget by $947,000, expenditures for Improvement of Instruction under the final budget by $124,000, expenditures for school administration exceeding the final budget by $601,000, expenditures for M\u0026O under the final budget by $96,000, expenditures for other support services exceeding final budget of over $362,000, Food Services under the final budget by $667,000 and other community services exceeding the final budget by $250,000 (for reimbursed after school care), and other functions totaling approximately $280,000 under the final budget. Please note budgets are not appropriated for individual Principals Accounts for which actual expenditures are included in the overall General Fund budget and the result is noted in the variances above. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2013, the School District had almost $142.06 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. This year's major additions totaled a little over $6.0 million and included: \n Completed roof replacement and HVAC projects at Pepperell High School PE Building, McHenry HVAC system, and Model High School re-roof of existing facility, and renovations at Floyd County Education Center \n Classroom additions at Model Middle School, Garden Lakes Elementary  Various technology and security system upgrades \nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nvii \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \n \nTable 4 Capital Assets (Net of Depreciation) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \n \nLand Construction In Progress Land Improvements Building and Improvements Equipment \n \n$ \n \n2,826,345 $ \n \n1,512,561 \n \n1,034,487 \n \n130,701,585 \n \n5,986,594 \n \n2,826,345 2,527,700 1,004,707 130,317,352 7,082,715 \n \nTotal \n \n$ 142,061,572 $ \n \n143,758,819 \n \nAdditional information about the School District's Capital Assets can be found in the Notes to the Financial Statements. \nLong-Term Debt \nAt June 30, 2013, the School District had almost $19.0 million in total debt outstanding which consisted of $15.0 million in bond debt, $3.9 million in capital lease debt, and $106,383 in unamortized bond premium. Table 5 summarizes the School District's debt as compared to the prior fiscal year. In September 2008, the citizens of Floyd County passed an Educational Local Option Sales Tax (ELOST) for a period of five years which began on April 1, 2009 for the purpose of construction and renovation, technology and transportation. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2013 \n \nYear 2012 \n \nBonds Payable Unamortized Bond Premium Capital Leases \n \n$ \n \n15,000,000 $ \n \n106,383 \n \n3,889,907 \n \n20,000,000 319,150 \n4,553,916 \n \nTotal \n \n$ \n \n18,996,290 $ \n \n24,873,066 \n \nAdditional information about the School District's debt can be found in the Notes to the Financial Statements. \n \nviii \n \n FLOYD COUNTY SCHOOL DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \nFACTORS BEARING ON THE 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 The District is financially stable. The School District's current operating millage is 18.588, which produces approximately $1,614,353 per mill net of fees. The School District's enrollment saw a slight decline this school year as compared to past 3 years with a loss of approximately 150 students. The District also began work on other classroom additions in the next year to reduce portable classrooms at various schools and replacements of roofs and HVAC systems funded in part by state capital outlay grants as well as enhanced security systems. The District plans to fund additional capital outlays with the one percent local sales tax revenue, general obligation bonds and state capital outlay grants. \n The District will continue to face challenges from the nationwide economic downturn resulting in the state funding decreases. From Fiscal 2003 through Fiscal 2013, the QBE formula adjustments (austerity cuts) have totaled almost $51 million dollars. For Fiscal Year 2013 alone, the Amended QBE Formula Adjustment is projected to be $8.7 million. To meet these funding reductions, the District will reduce its expenditures thoughtfully to avoid reducing services that directly impact student achievement. In February, 2013, The District reduced the number of staff by 119 positions through a Reduction in Force which will be effective in the next school (fiscal year). The District will also continue to be impacted by little or no increase in state funding and declining property values. In the midst of these challenges, the District remains confident in the ability to maximize resources to provide the best possible educational experience for all of our students as the budget is stabilized and revenues will meet or exceed expenditures. \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \nThis 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. Chris Toles, Executive Director of Financial Services, Floyd County School District, 600 Riverside Parkway, NE, Rome, GA. You may also email your questions to Mr. Toles at \nctoles@floydboe.net. \nix \n \n  FLOYD COUNTY BOARD OF EDUCATION \n \n  FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable \nTaxes State Government Federal Government Local Government Inventories Prepaid Items Deferred Charges - Bond Issuance Costs Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Retainages Payable Interest Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET POSITION \nNet Investment in Capital Assets Restricted for \nContinuation of Federal/State Programs Debt Services Capital Projects Unrestricted \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n13,661,560.98 \n \n8,663,582.95 \n \n3,010,196.69 7,327,591.02 \n654,399.70 19,430.91 \n188,817.58 3,590.91 \n24,817.12 4,338,906.00 137,722,666.00 \n \n$ \n \n175,615,559.86 \n \n$ \n \n280,017.07 \n \n12,271,548.18 \n \n160,996.00 \n \n57,745.94 \n \n174,729.17 \n \n6,805,783.99 12,190,506.18 \n \n$ \n \n31,941,326.53 \n \n$ \n \n123,176,907.53 \n \n621,795.00 9,836,682.00 1,186,374.82 8,852,473.98 \n \n$ \n \n143,674,233.33 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2013 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Community Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \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 \nTotal General Revenues \nChange in Net Position \nNet Position - Beginning of Year \nNet Position - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 69,547,044.88 $ \n3,927,437.81 3,176,748.60 2,311,278.49 1,670,108.79 7,815,154.95 \n731,553.74 8,835,569.92 5,649,805.45 \n682,950.06 661,818.09 \n6,181,813.95 277,747.23 442,664.77 \n$ 111,911,696.73 $ \n \n805,096.59 \n34,296.50 1,500,488.72 \n250,783.58 2,590,665.39 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n$ 44,373,932.90 $ \n773,047.24 1,915,564.07 1,520,897.19 \n477,000.38 4,495,781.62 \n133,778.27 4,286,194.67 \n825,292.31 123,727.59 227,946.85 \n4,299,543.76 5,337.77 \n$ 63,458,044.62 $ \n \n64,960.14 $ 655.78 427.60 \n16,260.46 3,656.26 \n85,960.24 $ \n \n-24,303,055.25 \n-3,154,390.57 -1,261,184.53 \n-789,725.52 -1,192,680.81 -3,319,373.33 \n-597,775.47 -4,549,375.25 -4,773,956.18 \n-559,222.47 -433,871.24 \n-378,125.21 -21,625.88 \n-442,664.77 \n-45,777,026.48 \n \n$ \n \n31,414,925.53 \n \n9,335,890.63 538,803.14 \n4,613,068.00 92,076.98 \n2,775,500.01 \n \n$ \n \n48,770,264.29 \n \n$ \n \n2,993,237.81 \n \n140,680,995.52 \n \n$ \n \n143,674,233.33 \n \n- 3 - \n \n FLOYD COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2013 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories Prepaid Items \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 11,660,441.70 $ 1,250,885.90 $ 750,233.38 $ 13,661,560.98 \n \n142,672.26 \n \n8,520,910.69 \n \n8,663,582.95 \n \n2,269,929.59 7,327,591.02 \n654,399.70 19,430.91 \n188,817.58 \n \n3,590.91 \n \n740,267.10 \n \n3,010,196.69 7,327,591.02 \n654,399.70 19,430.91 \n188,817.58 3,590.91 \n \n$ 22,263,282.76 $ 1,254,476.81 $ 10,011,411.17 $ 33,529,170.74 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ 269,661.02 $ 12,271,548.18 \n1,391,392.27 \n$ 13,932,601.47 $ \n \n10,356.05 $ 57,745.94 \n68,101.99 $ \n \n0.00 $ 280,017.07 12,271,548.18 57,745.94 1,391,392.27 \n0.00 $ 14,000,703.46 \n \n$ 188,817.58 \n \n$ 188,817.58 \n \n432,977.42 $ 1,186,374.82 $ 10,011,411.17 11,630,763.41 \n \n1,501,249.67 \n \n1,501,249.67 \n \n267,590.08 \n \n267,590.08 \n \n5,940,046.54 \n \n5,940,046.54 \n \n$ 8,330,681.29 $ 1,186,374.82 $ 10,011,411.17 $ 19,528,467.28 \n \n$ 22,263,282.76 $ 1,254,476.81 $ 10,011,411.17 $ 33,529,170.74 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2013 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Accumulated Depreciation - Land Improvements Buildings Accumulated Depreciation - Buildings Machinery and Equipment Accumulated Depreciation - Machinery and Equipment Construction in Progress \nTotal Capital Assets \nBond Issuance Costs are recorded as expenditures in the Governmental Funds when paid, but are amortized as expenses in the Governmental Activities over the life of the Bond Issue. \nSome of the School District's tax revenues will be collected after year-end but are not available soon enough to pay for the current periods expenditures. \nProperty Taxes \nSome Liabilities reported in the Governmental Activities do not require the use of current financial resources, and therefore are not reported as considered liabilities in the Governmental Fund Statements. \nAccrued Interest on Long-Term Debt Claims Incurred but not Reported \nTotal \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nUnamortized Bond Premiums General Obligation Bonds Payable Capital Leases Payable \nTotal Long-Term Liabilities \nNet Position of Governmental Activities (Exhibit \"A\") \n \n$ 19,528,467.28 \n \n$ 2,826,345.00 4,225,815.00 -3,191,328.00 \n166,646,466.00 -35,944,881.00 18,196,108.00 -12,209,514.00 \n1,512,561.00 \n \n142,061,572.00 \n \n24,817.12 \n \n1,391,392.27 \n \n$ -174,729.17 -160,996.00 \n \n-335,725.17 \n \n$ -106,383.39 -15,000,000.00 -3,889,906.78 \n \n-18,996,290.17 \n \n$ 143,674,233.33 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nSale of Capital Assets/Equipment Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 31,621,232.75 538,803.14 $ \n58,497,852.07 9,573,260.55 2,590,665.39 25,385.90 2,666,685.22 \n \n777,362.37 $ 85,960.24 \n5,276.50 \n \n$ 8,558,528.26 \n61,414.58 \n \n31,621,232.75 9,874,693.77 \n58,583,812.31 9,573,260.55 2,590,665.39 92,076.98 2,666,685.22 \n \n$ 105,513,885.02 $ 868,599.11 $ 8,619,942.84 $ 115,002,426.97 \n \n$ 64,603,627.07 $ 867,821.08 \n \n$ 65,471,448.15 \n \n3,927,437.81 3,176,748.60 2,269,968.82 1,629,076.06 7,815,154.95 \n681,919.50 8,658,519.95 4,624,714.25 \n682,950.06 661,818.09 277,747.23 5,939,455.25 \n \n14,050.00 217,161.08 199,328.00 \n3,492,322.28 \n \n3,927,437.81 3,176,748.60 2,269,968.82 1,643,126.06 7,815,154.95 \n681,919.50 8,875,681.03 4,824,042.25 \n682,950.06 661,818.09 277,747.23 5,939,455.25 3,492,322.28 \n \n664,009.48 $ 5,000,000.00 \n \n221,198.00 \n \n506,850.00 \n \n5,664,009.48 728,048.00 \n \n$ 104,949,137.64 $ 5,675,889.92 $ 5,506,850.00 $ 116,131,877.56 \n \n$ \n \n564,747.38 $ -4,807,290.81 $ 3,113,092.84 $ -1,129,450.59 \n \n$ \n \n108,814.79 \n \n$ \n \n$ 930,000.00 \n \n-930,000.00 \n \n0.00 $ \n \n108,814.79 930,000.00 -930,000.00 \n \n$ \n \n-821,185.21 $ 930,000.00 $ \n \n0.00 $ \n \n108,814.79 \n \n$ \n \n-256,437.83 $ -3,877,290.81 $ 3,113,092.84 $ -1,020,635.80 \n \n8,587,119.12 5,063,665.63 \n \n6,898,318.33 \n \n20,549,103.08 \n \n$ 8,330,681.29 $ 1,186,374.82 $ 10,011,411.17 $ 19,528,467.28 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2013 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay - Net Change Depreciation Expense-Buildings Depreciation Expense-Equipment Depreciation Expense-Land Improvements \nExcess of Capital Outlay over Depreciation Expense \nBecause some taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nDeferred Property Taxes June 30, 2012 June 30, 2013 Total Deferred Property Taxes \nBond Issuance Cost is recorded as an expenditure in the Government Funds when paid, but is amortized over the life of the Bond Issue in the Statement of Activities \nDeferred Charge-Bond Issuance Costs June 30, 2012 June 30, 2013 Total Bond Issuance Cost \nSome expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures in the Governmental Funds. \nAccrued Interest Expense June 30, 2012 June 30, 2013 \nClaims Incurred but Not Reported June 30, 2012 June 30, 2013 \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \nAmortization of Bond Premiums Payment of Capital Lease Debt Redemption of Bond Principal \nTotal Debt Repayment \nChange in Net Position of Governmental Activities (Exhibit \"B\") \n \n$ -1,020,635.80 \n \n$ 2,670,900.00 -2,886,256.00 -1,386,833.00 -95,058.00 \n \n-1,697,247.00 \n \n$ -1,597,699.49 1,391,392.27 \n \n-206,307.22 \n \n$ \n \n-74,451.36 \n \n24,817.12 \n \n-49,634.24 \n \n$ 247,345.63 -174,729.17 \n$ 178,665.36 -160,996.00 \n \n72,616.46 17,669.36 \n \n$ 212,766.77 664,009.48 \n5,000,000.00 \n \n5,876,776.25 \n \n$ 2,993,237.81 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \nFIDUCIARY FUNDS JUNE 30, 2013 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 213,801.76 \n$ 213,801.76 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been blended with the School District's General Fund. \nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistrict-wide Statements: The Statement of Net Position and the Statement of Position display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Position presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governmental or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement establish accounting and financial reporting standards for governments who enter into Service Concession Arrangements (SCA) with other governmental or nongovernmental entities. As of June 30, 2013, the School District has not entered into any arrangements that meet the qualifications to be reported as a SCA in accordance with this standard. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No. 34. The provisions of this Statement modify certain requirements for inclusion of component units in the financial reporting entity. The effects of the adoption of this statement did not change the reporting of the School District's blended component unit, Floyd County Schools College and Career Academy, Inc. There were no other applicable reporting changes for the School District. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement incorporate certain accounting and financial reporting guidance into authoritative GASB literature. \nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement establish financial reporting standards for the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. The School District changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable reporting changes for the School District. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \n(1) Obligations issued by the State of Georgia or by other states, \n \n(2) Obligations issued by the United States government, \n \n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n(4) Obligations of any corporation of the United States government, \n \n(5) Prime banker's acceptances, \n \n(6) The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n \n(7) Repurchase agreements, and \n \n(8) Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Floyd County Board of Commissioners fixed the property tax levy for the 2012 tax digest year (calendar year) on July 28, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on November 15, 2012 (lien date). Motor Vehicle taxes were due on the tax payer's birthday (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2012 tax digest are reported as revenue in the governmental funds for fiscal year 2013. The Floyd 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, 2013, for maintenance and operations amounted to $31,251,307.18. \n \nThe tax millage rate levied for the 2012 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.588 mills \n \nAdditionally, Title Ad Valorem Taxes in the amount of $331,299.44 were collected during the fiscal year. \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $9,335,890.63 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nINVENTORIES \n \nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \n \nstatements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Land Improvements Buildings and Inprovements Equipment Intangible Assets \n \nAll \n \n$ \n \n5,000.00 \n \n$ \n \n10,000.00 \n \n$ \n \n5,000.00 \n \n$ 200,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n3 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \nNET POSITION \nThe School District's net position in the District-wide Statements is classified as follows: \nNet investment in capital assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted School Activity Accounts \nAssigned After School Program Self-Insurance Records Retention \nUnassigned \n \n$ \n \n188,817.58 \n \n$ \n \n432,977.42 \n \n1,186,374.82 \n \n10,011,411.17 \n \n11,630,763.41 \n \n1,501,249.67 \n \n$ \n \n16,816.09 \n \n135,221.97 \n \n115,552.02 \n \n267,590.08 5,940,046.54 \n \nFund Balance, June 30, 2013 \n \n$ 19,528,467.28 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \nUSE OF ESTIMATES \n \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNote 3: BUDGETARY DATA \n \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, 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 \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nOfficial Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \nNote 4: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \nAt June 30, 2013, $500,233.38 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2013, the bank balances were $17,753,747.34. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2013, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 500,233.38 \n \n2 \n \n0.00 \n \n3 \n \n16,274,265.43 \n \nTotal \n \n$ 16,774,498.81 \n \nCATEGORIZATION OF INVESTMENTS \n \nThe School District's investments as of June 30, 2013, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less than 1 Year \n \nDebt Securities U. S. Agencies Implicitly Guaranteed $ 1,661,950.14 $ 1,661,950.14 \n \nOther Investments U. S. Treasury Money Market Funds \n \n6,858,960.55 \n \nTotal Investments \n \n$ 8,520,910.69 \n \nThe First American Treasury Obligations Fund invests primarily in a portfolio of short-term U. S. Treasury obligations, including repurchase agreements secured by the U. S. Treasury obligations. \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nInterest Rate Risk \nInterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \nCustodial Credit Risk \nCustodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \nAt June 30, 2013, $1,661,950.14 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \nCredit Quality Risk \nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing custodial credit risk. \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities U. S. Agencies Implicitly Guaranteed $ \n \n1,661,950.14 $ \n \n1,661,950.14 \n \nConcentration of Credit Risk \nConcentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. These investments are 19.50% of the School District's total investments. \nNote 5: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNote 6: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2012 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2013 \n \n$ 2,826,345.00 \n \n$ 2,826,345.00 \n \n2,527,700.00 $ 2,328,259.00 $ 3,343,398.00 \n \n1,512,561.00 \n \nTotal Capital Assets, Not Being Depreciated $ 5,354,045.00 $ 2,328,259.00 $ 3,343,398.00 $ 4,338,906.00 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 163,375,977.00 $ 18,804,473.00 4,100,977.00 \n \n3,270,489.00 290,712.00 $ 124,838.00 \n \n$ 899,077.00 \n \n166,646,466.00 18,196,108.00 4,225,815.00 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n33,058,625.00 11,721,758.00 \n3,096,270.00 \n \n2,886,256.00 1,386,833.00 \n95,058.00 \n \n899,077.00 \n \n35,944,881.00 12,209,514.00 \n3,191,328.00 \n \nTotal Capital Assets, Being Depreciated, Net $ 138,404,774.00 $ -682,108.00 $ \n \n0.00 $ 137,722,666.00 \n \nGovernmental Activity Capital Assets - Net $ 143,758,819.00 $ 1,646,151.00 $ 3,343,398.00 $ 142,061,572.00 \n \nCapital assets being acquired under capital leases as of June 30, 2013, are as follows: \n \nGovernmental Activities \n \nBuildings and Improvements Less: Accumulated Depreciation \n \n$ \n \n2,515,964.00 \n \n1,803,876.00 \n \nCurrent year depreciation expense by function is as follows: \n \n$ \n \n712,088.00 \n \nInstruction Support Services \nEducational Media Services General Administration Student Transportation Services Food Services \n \n$ \n \n3,301,008.00 \n \n$ \n \n33,324.00 \n \n21,729.00 \n \n826,290.00 \n \n881,343.00 185,796.00 \n \n$ \n \n4,368,147.00 \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNote 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2013, consisted of the following: \n \nTransfer to \n \nTransfers From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ \n \n930,000.00 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \n \nNote 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2012 $ 2013 $ \n \n306,665.74 $ 178,665.36 $ \n \n93,251.90 $ 133,124.28 $ \n \n221,252.28 $ 150,793.64 $ \n \n178,665.36 160,996.00 \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as \n \nfollows: \n \nClaims and \n \nBeginning of Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \n2012 $ 2013 $ \n \n0.00 $ 0.00 $ \n \n4,175.00 $ 32,057.98 $ \n \n4,175.00 $ 32,057.98 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Blanket Employee \nNote 9: LONG-TERM DEBT \n \n$ \n \n100,000.00 \n \n$ \n \n100,000.00 \n \nCAPITAL LEASES \n \nThe Floyd County Board of Education entered into various lease agreements for construction, energy management systems, and bus radios. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - QZAB - Series 2004 General Government - Series 2009 \n \n0.00% 3.00% - 4.00% \n \n$ 2,000,000.00 13,000,000.00 \n \n$ 15,000,000.00 \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2013, were as follows: \n \nBalance July 1, 2012 \n \nAdditions \n \nGovernmental Activities \n \nBalance \n \nDeductions \n \nJune 30, 2013 \n \nDue Within One Year \n \nG. O. Bonds Capital Leases Bond Premiums Amortized \n \n$ 20,000,000.00 $ 4,553,916.26 319,150.16 \n \n0.00 $ \n \n5,000,000.00 $ 15,000,000.00 $ \n \n664,009.48 \n \n3,889,906.78 \n \n212,766.77 \n \n106,383.39 \n \n6,000,000.00 699,400.60 106,383.39 \n \n$ 24,873,066.42 $ \n \n0.00 $ 5,876,776.25 $ 18,996,290.17 $ 6,805,783.99 \n \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nAt June 30, 2013, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \n2014 2015 2016 2017 2018 2019 \n \n$ \n \n699,400.60 $ \n \n185,806.88 \n \n736,678.05 \n \n148,529.43 \n \n731,795.22 \n \n110,321.34 \n \n770,768.74 \n \n71,347.82 \n \n811,817.89 \n \n30,298.67 \n \n139,446.28 \n \n907.06 \n \nTotal Principal and Interest \n \n$ \n \n3,889,906.78 $ \n \n547,211.20 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2014 2015 2018 \n \n$ \n \n6,000,000.00 $ \n \n7,000,000.00 \n \n2,000,000.00 \n \n322,325.00 $ 112,650.00 \n \n106,383.39 \n \nTotal Principal and Interest \n \n$ 15,000,000.00 $ \n \n434,975.00 $ \n \n106,383.39 \n \nNote 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $6,551,665.95 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $6,383,832.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $20,581.95 \nOffice of State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $147,252.00 \nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \n \n- 23 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNote 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2013: \n \nUnearned \n \nExecuted \n \nProject \n \nContracts \n \nCoosa Middle School Classroom Addition \n \n$ \n \n126,659.55 \n \nThe amount described in this note is not reflected in the basic financial statements. \n \nNote 12: SIGNIFICANT CONTINGENT LIABILITIES \n \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \nNote 13: POST-EMPLOYMENT BENEFITS \n \nGeorgia School Personnel Post-employment Health Benefit Fund \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2013, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2013, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2013, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of \n \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nCommunity Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2013: \n \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJuly 2012 - February 2013 March 2013 - June 2013 \n \n$912.34 per member per month $937.34 per member per month \n \nFor non-certificated school personnel: \n \nJuly 2012 - June 2013 \n \n$446.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2013 2012 2011 \n \n100% 100% 100% \n \n$ 10,484,363.57 \n \n$ 10,406,972.17 \n \n$ \n \n9,763,226.47 \n \n- 25 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nNote 14: RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2013, were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 11.41% of annual salary as required by the June 30, 2010, actuarial valuation. The employer contribution rate will increase to 12.28% effective July 1, 2013. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2013 2012 2011 \n \n100% 100% 100% \n \n$ \n \n6,915,683.57 \n \n$ \n \n6,533,913.66 \n \n$ \n \n6,530,152.03 \n \n- 26 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2013 \n \nEXHIBIT \"H\" \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \nDEFINED CONTRIBUTION PLAN \nIn July 2003, Floyd County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees' Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \nThe Board paid contributions to Hartford Life Insurance Company, TIAA-CREF, and VALIC for fiscal year 2009 and part of the fiscal year 2010 through January 2010. VALIC was designated as the 3rd party plan administrator of this plan as of February 2010 and all contributions are paid to them directly. VALIC then distributes funds to the other companies as necessary. For each employee covered under PSERS, the Board began contributing to the plan an amount matching up to a maximum of 4% of the employee's base pay, dependent upon the employee's actual contribution election. \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. \nFunds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of continuous employment with Floyd County Board of Education. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2013 2012 2011 \n \n100% \n \n$ \n \n41,371.23 \n \n100% \n \n$ \n \n37,805.63 \n \n100% \n \n$ \n \n29,062.65 \n \n- 27 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Financing Sources Other Financing Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 30,083,270.00 $ 30,083,270.00 $ 31,621,232.75 $ 1,537,962.75 \n \n325,000.00 \n \n325,000.00 \n \n538,803.14 \n \n213,803.14 \n \n57,413,991.00 \n \n57,540,741.23 \n \n58,497,852.07 \n \n957,110.84 \n \n10,122,087.00 \n \n10,247,823.00 \n \n9,573,260.55 \n \n-674,562.45 \n \n2,275,000.00 \n \n2,275,000.00 \n \n2,590,665.39 \n \n315,665.39 \n \n35,500.00 \n \n35,500.00 \n \n25,385.90 \n \n-10,114.10 \n \n250,000.00 \n \n750,000.00 \n \n2,666,685.22 1,916,685.22 \n \n$ 100,504,848.00 $ 101,257,334.23 $ 105,513,885.02 $ 4,256,550.79 \n \n$ 65,319,729.39 $ 65,610,646.05 $ 64,603,627.07 $ 1,007,018.98 \n \n2,731,078.00 2,735,923.81 2,208,102.00 1,624,523.00 7,597,540.66 \n773,815.00 8,751,909.60 4,599,526.00 \n815,435.00 293,591.54 6,607,500.00 \n27,761.00 \n \n2,979,554.00 3,301,105.72 2,207,102.00 1,625,530.17 7,213,415.48 \n773,815.00 8,755,293.97 4,627,373.44 \n814,435.00 299,901.54 6,606,712.19 \n27,761.00 \n \n3,927,437.81 3,176,748.60 2,269,968.82 1,629,076.06 7,815,154.95 \n681,919.50 8,658,519.95 4,624,714.25 \n682,950.06 661,818.09 5,939,455.25 277,747.23 \n \n-947,883.81 124,357.12 -62,866.82 \n-3,545.89 -601,739.47 \n91,895.50 96,774.02 \n2,659.19 131,484.94 -361,916.55 667,256.94 -249,986.23 \n \n$ 104,086,435.00 $ 104,842,645.56 $ 104,949,137.64 $ -106,492.08 \n \n$ -3,581,587.00 $ -3,585,311.33 $ \n \n564,747.38 $ 4,150,058.71 \n \n$ \n \n30,000.00 $ \n \n30,000.00 $ \n \n-930,000.00 \n \n-930,000.00 \n \n$ \n \n-900,000.00 $ \n \n-900,000.00 $ \n \n$ -4,481,587.00 $ -4,485,311.33 $ \n \n6,226,919.83 \n \n6,229,111.83 \n \n108,814.79 $ -930,000.00 \n \n78,814.79 0.00 \n \n-821,185.21 $ 78,814.79 \n \n-256,437.83 $ 4,228,873.50 \n \n8,587,119.12 2,358,007.29 \n \nFund Balances - Ending \n \n$ 1,745,332.83 $ 1,743,800.50 $ 8,330,681.29 $ 6,586,880.79 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $2,983,506.81 and $2,918,073.16, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships \nTotal Other Programs \nTotal U. S. Department of Education \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Governor's Office of Workforce Development Workforce Investment Act Youth Activities \nTotal Expenditures of Federal Awards \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n10.665 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n5,696,818.22 (1) \n \n$ \n \n5,696,818.22 \n \nN/A \n \n(3) \n \n$ \n \n5,696,818.22 \n \n84.027 84.173 \n84.010 \n84.048 84.196 84.410 84.365 84.367 84.366 \n \nN/A \n \n$ \n \n1,777,994.53 \n \nN/A \n \n93,567.03 \n \n$ \n \n1,871,561.56 \n \nN/A \n \n$ \n \n2,226,561.74 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n87,941.59 38,673.97 \n4,655.00 57,770.34 356,242.57 653,191.11 \n \n$ \n \n1,198,474.58 \n \n$ \n \n5,296,597.88 \n \n17.259 \n \nN/A \n \n$ \n \n134,770.63 \n \n$ 11,128,186.73 \n \n- 30 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $240,154.20. \n(2) Expenditures for the funds earned on the School Breakfast Program ($965,463.50) were not maintained separately and are included in the 2013 National School Lunch Program. \n(3) Funds earned on this program, in the amount of $4,181.47, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Other State Programs Charter Schools - Facilities Communities in Schools - America Reads Food Services Math and Science Supplements Move on When Ready Preschool Handicapped Program Teachers' Retirement Vocational Education \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nNatural Resources, Georgia Department of Arrowhead Grant \nOffice of the State Treasurer Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,498,505.24 \n \n$ 1,498,505.24 \n \n1,763,316.00 2,908,900.00 3,954,450.00 6,140,754.00 3,305,327.00 1,657,704.00 5,853,082.00 5,329,467.00 1,847,081.00 11,292,467.00 3,924,233.00 \n406,863.00 488,146.00 434,997.00 1,177,631.00 339,747.00 239,626.00 \n1,508,576.00 2,694,568.00 2,588,698.00 -8,780,747.00 \n \n1,763,316.00 2,908,900.00 3,954,450.00 6,140,754.00 3,305,327.00 1,657,704.00 5,853,082.00 5,329,467.00 1,847,081.00 11,292,467.00 3,924,233.00 \n406,863.00 488,146.00 434,997.00 1,177,631.00 339,747.00 239,626.00 \n1,508,576.00 2,694,568.00 2,588,698.00 -8,780,747.00 \n \n1,244,987.00 165,936.00 28,123.00 \n4,613,068.00 \n880,599.00 38,905.84 \n147,536.00 74,660.04 200.00 \n313,205.00 20,581.95 \n218,407.00 \n \n1,244,987.00 165,936.00 28,123.00 \n4,613,068.00 \n880,599.00 38,905.84 \n147,536.00 74,660.04 200.00 \n313,205.00 20,581.95 \n218,407.00 \n \n$ 85,960.24 \n \n85,960.24 \n \n31,000.00 \n \n31,000.00 \n \n147,252.00 \n \n147,252.00 \n \n$ 58,497,852.07 $ 85,960.24 $ 58,583,812.31 \n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $6,383,832.00 are included as part of the Quality Basic Education revenue allotments. \nSee notes to the basic financial statements. \n- 32 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \n2009 SPLOST \n \n(1) Additional Classrooms \n \n$ \n \n(2) Renovating, Repairing, improving and \n \nequipping existing schools and facilities including roof replacements and HVAC systems \n \n(3) Technology system-wide including \n \npurchasing hardware \n \n(4) Transportation Department Improvements and Bus Purchases \n \n(5) Acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal. \n \n(6) Legal and Administrative Costs \n \n6,174,000.00 $ \n8,842,000.00 2,500,000.00 2,000,000.00 \n700,000.00 \n \n4,929,164.00 $ 1,275,753.00 $ \n \n9,132,142.00 1,962,198.00 \n \n2,546,762.00 \n \n969,104.00 \n \n1,610,208.00 \n \n199,328.00 \n \n250,000.00 500,000.00 \n \n0.00 60,863.00 \n \n2,100,254.00 \n8,206,406.66 1,534,653.93 1,384,928.06 \n184,373.00 413,636.42 \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \nJune 30, 2014 \nJune 30, 2014 June 30, 2014 June 30, 2014 \nJune 30, 2014 June 30, 2014 \n \n$ 20,216,000.00 $ 18,968,276.00 $ 4,467,246.00 $ 13,824,252.07 $ \n \n0.00 $ \n \n0.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 5,932,086.54 \n \nCurrent Year \n \n506,850.00 \n \nTotal \n \n$ 6,438,936.54 \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n2,318,731.00 $ 3,448,163.72 $ 29,811.67 $ 3,477,975.39 \n \n2,927,694.00 \n \n5,207,004.00 10,174,462.35 \n \n217,171.07 10,391,633.42 \n \n6,189,103.00 \n \n-1,612.76 \n \n-1,612.76 \n \n3,882,660.00 \n \n5,680,428.31 \n \n27,999.20 \n \n5,708,427.51 \n \n1,706,140.00 6,811,476.00 6,145,353.00 2,134,994.00 13,219,981.00 \n4,521,221.00 443,624.00 565,074.00 500,365.00 \n \n89,087.53 8,306,066.10 9,964,304.74 1,696,733.55 \n65,497.52 10,532,830.13 \n346,625.97 2,021,156.75 \n721,794.54 313,865.26 \n \n81,692.35 357,046.93 227,414.26 \n97,736.63 104,630.25 \n36,662.20 \n2,652.15 \n \n89,087.53 8,387,758.45 10,321,351.67 1,924,147.81 \n65,497.52 10,630,566.76 \n451,256.22 2,057,818.95 \n721,794.54 316,517.41 \n \n$ \n \n56,573,420.00 $ 53,359,403.71 $ 1,182,816.71 $ 54,542,220.42 \n \n1,356,061.00 275,682.00 \n \n2,008,494.09 26,194.16 \n \n154,059.36 43,127.89 \n \n2,162,553.45 69,322.05 \n \n$ \n \n58,205,163.00 $ 55,394,091.96 $ 1,380,003.96 $ 56,774,095.92 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. (3) Allotments do not include the State Health payments made by GDOE to the Department of Community Health for the certified employees. \n \nSee notes to the basic financial statements. \n \n- 35 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 28, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Floyd County Board of Education as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise Floyd County Board of Education's basic financial statements and have issued our report thereon dated October 28, 2014. \nInternal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered Floyd County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \n \n2013YB-10 \n \n  Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted a certain matter that we have reported to management of Floyd County Board of Education in a separate letter dated October 28, 2014. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, not to provide an opinion on the effectiveness of the Floyd County Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Floyd County Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2013YB-10 \n \nGreg S. Griffin State Auditor \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nOctober 28, 2014 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \nLadies and Gentlemen: \nReport on Compliance for Each Major Federal Program \nWe have audited Floyd County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. Floyd County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nManagement's Responsibility \nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. \nAuditor's Responsibility \nOur responsibility is to express an opinion on compliance for each of Floyd County Board of Education's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of Floyd County Board of Education's compliance. \n2013SA-10 \n \n  Opinion on Each Major Federal Program \nIn our opinion, the Floyd County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. \nReport on Internal Control over Compliance \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Floyd County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \n \nGSG:as 2013SA-10 \n \nGreg S. Griffin State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2013 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nUnmodified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnmodified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: \n \nCFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 \n \nChild Nutrition Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$338,845.60 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2011-h2012-belec-p-btext","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2012 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2012-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed February 20, 2023).","Fiscal year ended June 30, 2016 (Received via FTP on January 31, 2018 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed February 20, 2023)."],"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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2012 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n(Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \ni \n1 2 4 5 6 7 9 10 \n27 \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n28 30 31 33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 9, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Floyd County Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Floyd County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \n2012ARL-11 \n \n In accordance with Government Auditing Standards, we have also issued our report dated May 9, 2013, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nGSG:as 2012ARL-11 \n \nGreg S. Griffin State Auditor \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nINTRODUCTION \nThe District's financial statements for the fiscal year ended June 30, 2012, includes a series of basic financial statements that report financial information for the District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Assets and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the District's finances on a global basis. The fund financial statements provide information about all of the District's funds. Information about these funds, such as the District's General Fund, is important in its own right, but will also give insight into the District's overall soundness as reported in the Statement of Net Assets and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2012 are as follows: \nOn the District-wide financial statements: \n District-wide net assets at June 30, 2012, were $140,680,996. Net assets reflect the difference between all assets of the District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net assets at June 30, 2012, of $140,680,996 represented an increase of $4,232,795 in net assets when compared to the prior year. \n The School District had $113.3 million in expenses relating to governmental activities; only $66.1 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $51.76 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $51.76 million or about 44% of all revenues totaling $117.83 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \n \nSource of Revenues \nProgram Revenues \n56.1% \n \nGeneral Revenue - Property Taxes \n27.3% \nGeneral Revenue - Sales Taxes 8.9% \nGeneral Revenue - All Other 7.7% \n \nThe District decreased its outstanding bond debt by $4.0 million. The existing bond debt of $20.0 million will be retired by a Special Option Local Sales Tax and interest earned thereon that was approved by the citizenry in conjunction with the Bond Sale. \ni \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nOn the fund financial statements: \n Among major funds, the General Fund had $105.5 million in revenues and $107.8 million in expenditures. The General Fund balance of $8.6 million at June 30, 2012, decreased $3.1 million from the prior year fund balance. Although the District had budgeted to use almost $4.3 million of its fund balance, careful planning and unanticipated revenues decreased the amount needed from fund balance. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial Statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Assets' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-Wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-Wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Assets' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into 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 assets and any changes in those assets. The change in net assets 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 FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nWhen analyzing District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Assets: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net assets as follows: \no Net Assets invested in capital assets, net of related debt o Restricted net assets are those with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted net assets are net assets that do not meet any of the above restrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the District has no nonmajor Funds as defined by generally accepted accounting principles. \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet assets, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the District. When revenues exceed expenses, the result is an increase in net assets. When expenses exceed revenues, the result is a decrease in net assets. The relationship between revenues and expenses can be thought of as the District's operating results. The District's net assets, as measured in the Statement of Net Assets, can be one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net assetsas measured in the Statement of Activities- are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the District. \niii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nIn the case of the Floyd County School District, assets exceeded liabilities by $140.7 million at June 30, 2012. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net asset category. For example, of the $140.7 million of net assets, $12.4 million was restricted for continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the District's ongoing obligations to citizens and creditors. The District also had unrestricted net assets of just under $9.3 million. Unrestricted net assets decreased by over $2.2 million over the prior year. The amount of unrestricted net assets is still sufficient to allow the District to meet the ongoing needs of its citizens and creditors. \nIn addition, the District also had $119.0 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \nTable 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n35,246,456 $ 39,996,051 \n \n143,758,819 \n \n141,138,600 \n \nTotal Assets \n \n$ \n \n179,005,275 $ 181,134,651 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n13,451,213 $ 14,827,986 \n \n24,873,066 \n \n29,858,464 \n \nTotal Liabilities \n \n$ \n \n38,324,279 $ 44,686,450 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ \n \n119,005,083 $ 111,577,460 \n \n12,394,694 \n \n13,486,589 \n \n9,281,219 \n \n11,384,152 \n \nTotal Net Assets \n \n$ \n \n140,680,996 $ 136,448,201 \n \nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. \n \niv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nTable 2 Change in Net Assets \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes - Railroad Equipment Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Taxes Real Estate and Intangible Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Change in Liability for Compensated Absences \nTotal General Revenues and Special Items \nTotal Revenues \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2012 \n \n2011 \n \n$ \n \n2,563,742 $ \n \n2,287,135 \n \n61,905,529 \n \n69,012,003 \n \n1,601,972 \n \n1,263,298 \n \n$ \n \n66,071,243 $ \n \n72,562,436 \n \n$ \n \n32,122,200 $ \n \n32,153,161 \n \n38,545 \n \n40,904 \n \n5,594,350 4,544,313 \n \n4,714,350 4,840,530 \n \n359,935 \n \n363,285 \n \n5,895,594 95,862 \n3,112,670 \n \n6,607,324 106,255 \n3,145,524 \n \n6,812,107 \n \n$ \n \n51,763,469 $ \n \n58,783,440 \n \n$ 117,834,712 $ 131,345,876 \n \n$ \n \n70,722,532 $ \n \n71,353,681 \n \n3,673,468 2,645,591 2,318,226 1,934,763 8,286,667 \n802,053 9,048,570 5,168,747 \n838,289 700,668 \n \n3,268,405 2,129,903 2,300,779 2,257,088 8,542,179 \n769,906 8,996,374 4,334,337 \n757,204 618,888 \n \n278,699 6,238,215 \n638,763 \n \n11,926 249,196 5,648,077 786,631 \n \n$ 113,295,251 $ 112,024,574 \n \n$ \n \n4,539,461 $ \n \n19,321,302 \n \nv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \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. \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nInstruction 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: Community Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$ 70,722,532 $ 71,353,681 $ 24,447,632 $ 17,514,071 \n \n3,673,468 2,645,591 2,318,226 1,934,763 8,286,667 \n802,053 9,048,570 5,168,747 \n838,289 700,668 \n \n3,268,405 2,129,903 2,300,779 2,257,088 8,542,179 \n769,906 8,996,374 4,334,337 \n757,204 618,888 \n \n2,650,249 1,001,731 \n961,429 1,557,291 4,261,425 \n712,253 4,979,363 4,290,163 \n748,754 486,748 \n \n2,137,126 1,077,752 \n912,921 1,681,753 4,753,201 \n709,858 5,240,379 3,347,947 \n695,095 418,386 \n \n278,699 \n6,238,215 638,763 \n \n249,196 11,926 \n5,648,077 786,631 \n \n23,337 \n464,870 638,763 \n \n24,025 11,926 151,068 786,631 \n \nTotal Expenses \n \n$ 113,295,251 $ 112,024,574 $ 47,224,008 $ 39,462,139 \n \nThe table above shows that while the total cost of services for providing services increased by 1% from the prior year, the net cost to the local taxpayers increased by 19% from the prior year. In other words, as compared to the proceeding fiscal year, a percentage of the cost of providing services in fiscal year 2012 increased to the taxpayers of Floyd County. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" and Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $117.1 million and total expenditures of $121.3 million in fiscal year 2012. Total governmental fund balances of $20.5 million at June 30, 2012, decreased almost $4.0 million from the prior year. This decrease in fund balance occurred primarily because of reduction in state and Federal funding. \n \nvi \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \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 2012, 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 $105.5 million were over the final budgeted amount of almost $102.5 million by approximately $3.0 million. This difference (final actual vs. final budget) was primarily attributable to revenues for property taxes over final budget of $600 thousand, revenues for State Funds under the final budget of $239,000, decrease in Federal funds by $617,000 and miscellaneous revenues over final budget of $2.9 million. The District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. The General Fund's final actual expenditures of $107.8 million were under the final budget amount of $108.4 million by approximately $610,000. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction under the final budget of $2.3 million, expenditures for pupil services exceeding the final budget by $778,000, expenditures for Improvement of Instruction under the final budget by $323,000, expenditures for administration exceeding the final budget by $699,000, expenditures for M \u0026 O over the final budget by $508,000, expenditures for other support services exceeding final budget of over $283,000, Food Services under the final budget by $215,000 and other community services exceeding the final budget by $251,000 (for reimbursed after school care), and other functions totaling approximately $280,000 under the final budget. Please note budgets are not appropriated for individual Principals Accounts for which actual expenditures are included in the overall General Fund budget and the result is noted in the variances above. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2012, the School District had $143.8 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. This year's major additions totaled a little over $7.4 million and included: \n Completed roof replacement projects at McHenry, Alto Park, and Pepperell High School Gym, and McHenry HVAC system \n Classroom additions at Johnson and Alto Park Elementary Schools (completed) Garden Lakes Elementary and Model Middle School (in progress) \n Various technology security systems funded in part by E-Rate \nvii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nTable 4 Capital Assets (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nLand Construction In Progress Land Improvements Building and Improvements Equipment \n \n$ \n \n2,826,345 $ \n \n2,527,700 \n \n1,004,707 \n \n130,317,352 \n \n7,082,715 \n \n2,650,991 3,498,053 1,082,949 127,514,743 6,391,864 \n \nTotal \n \n$ 143,758,819 $ \n \n141,138,600 \n \nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \nLong-Term Debt \nAt June 30, 2012, the School District had over $24.87 million in total debt outstanding which consisted of $20.0 million in bond debt, $4.5 million in capital lease debt, zero liability in compensated absences (from change in policy), and $319,150 in unamortized bond premium. Table 5 summarizes the School District's debt as compared to the prior fiscal year. In September 2008, the citizens of Floyd County passed an Educational Local Option Sales Tax (ELOST) for a period of five years which began on April 1, 2009, for the purpose of construction and renovation, technology and transportation. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nBonds Payable Unamortized Bond Premium Capital Leases Compensated Absences \n \n$ \n \n20,000,000 $ \n \n319,150 \n \n4,553,916 \n \n24,000,000 531,917 \n5,029,223 297,324 \n \nTotal \n \n$ \n \n24,873,066 $ \n \n29,858,464 \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \nviii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nFACTORS BEARING ON THE DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The District is financially stable. The School District's current operating millage is 18.588, which produces approximately $1,615,384 per mill net of fees. The School District's enrollment saw a slight decline this school year as compared to past 3 years with a loss of approximately 150 students. The District completed construction on a new Model High School which opened on August 1st, 2010. The District also began work other classroom additions in the next year to reduce portable classrooms at various schools and replacements of roofs and HVAC systems funded in part by state capital outlay grants. The District plans to fund additional capital outlays with the one percent local sales tax revenue, general obligation bonds and state capital outlay grants. \n The District will continue to face challenges from the nationwide economic downturn resulting in the state funding decreases. From fiscal year 2003 through fiscal year 2012, the QBE formula adjustments (austerity cuts) have totaled just under $42.0 million. For fiscal year 2013 alone, the Amended QBE Formula Adjustment is projected to be $8.5 million. To meet these funding reductions, the District will reduce its expenditures thoughtfully to avoid reducing services that directly impact student achievement. The District will also continue to be impacted by little or no increase in state funding and declining property values. In the midst of these challenges, the District remains confident in the ability to maximize resources to provide the best possible educational experience for all of our students. \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. Chris Toles, Executive Director of Financial Services, Floyd County School District, 600 Riverside Parkway, NE, Rome, GA. You may also email your questions to Mr. Toles at ctoles@floydboe.net. \nix \n \n FLOYD COUNTY BOARD OF EDUCATION \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Government Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Interest Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal/State Programs Debt Services Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. \n- 1 - \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n13,777,273.92 \n \n9,896,188.84 \n \n3,251,091.54 7,236,465.49 \n744,487.39 83,743.17 \n182,754.31 74,451.36 \n5,354,045.00 138,404,774.00 \n \n$ \n \n179,005,275.02 \n \n$ \n \n13,995.06 \n \n12,853,193.03 \n \n178,665.36 \n \n95,341.50 \n \n62,672.50 \n \n247,345.63 \n \n5,876,776.25 18,996,290.17 \n \n$ \n \n38,324,279.50 \n \n$ \n \n119,005,082.58 \n \n680,055.24 6,650,972.70 5,063,665.63 9,281,219.37 \n \n$ \n \n140,680,995.52 \n \n$ \n \n179,005,275.02 \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance And Operation Of Plant Services Student Transportation Service Support Services - Central Other Support Services Operations of Non-Instructional; Services School Nutrition Program Community Services Operations Interest On Short-Term And Long-Term Debt and Fees \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Outlay/Debt Services Other Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year (Restated) \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n70,722,532.32 $ \n \n596,052.22 \n \n3,673,467.99 2,645,591.30 2,318,226.35 1,934,762.65 8,286,666.74 \n802,053.04 9,048,569.80 5,168,746.96 \n838,289.30 700,667.88 \n \n71,351.81 \n \n6,238,215.32 278,698.73 638,763.21 \n \n1,644,226.42 252,111.29 \n \n$ 113,295,251.59 $ \n \n2,563,741.74 \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 44,326,874.55 $ 1,351,973.59 $ -24,447,631.96 \n \n1,023,218.67 1,643,860.01 1,354,626.35 \n377,471.46 4,023,437.47 \n89,800.13 4,069,206.76 \n578,573.76 89,535.52 \n213,920.20 \n \n2,170.75 1,804.45 \n228,658.50 \n \n-2,650,249.32 -1,001,731.29 \n-961,429.25 -1,557,291.19 -4,261,424.82 \n-712,252.91 -4,979,363.04 -4,290,162.89 \n-748,753.78 -486,747.68 \n \n4,111,753.55 3,250.34 \n \n17,364.95 \n \n-464,870.40 -23,337.10 \n-638,763.21 \n \n$ 61,905,528.77 $ 1,601,972.24 $ -47,224,008.84 \n \n$ 32,160,745.09 \n \n10,138,663.16 359,934.69 \n5,895,594.00 95,861.62 \n3,112,670.37 \n \n$ 51,763,468.93 \n \n$ \n \n4,539,460.09 \n \n136,141,535.43 \n \n$ 140,680,995.52 \n \n- 3 - \n \n FLOYD COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2012 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 12,231,661.98 $ 1,545,611.94 \n \n$ 13,777,273.92 \n \n141,681.39 2,856,189.12 $ 6,898,318.33 \n \n9,896,188.84 \n \n2,434,551.93 7,233,126.53 \n744,487.39 83,743.17 \n182,754.31 \n \n816,539.61 3,338.96 \n \n3,251,091.54 7,236,465.49 \n744,487.39 83,743.17 \n182,754.31 \n \n$ 23,052,006.70 $ 5,221,679.63 $ 6,898,318.33 $ 35,172,004.66 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ \n \n13,995.06 \n \n12,853,193.03 \n \n$ \n \n1,597,699.49 \n \n95,341.50 62,672.50 \n \n$ 14,464,887.58 $ 158,014.00 \n \n$ \n \n13,995.06 \n \n12,853,193.03 \n \n95,341.50 \n \n62,672.50 \n \n1,597,699.49 \n \n$ 14,622,901.58 \n \n$ 182,754.31 \n \n$ 182,754.31 \n \n497,300.93 $ 5,063,665.63 $ 6,898,318.33 12,459,284.89 \n \n1,450,080.82 \n \n1,450,080.82 \n \n274,455.79 \n \n274,455.79 \n \n6,182,527.27 \n \n6,182,527.27 \n \n$ 8,587,119.12 $ 5,063,665.63 $ 6,898,318.33 $ 20,549,103.08 \n \n$ 23,052,006.70 $ 5,221,679.63 $ 6,898,318.33 $ 35,172,004.66 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \nBond Issuance Costs are recorded as expenditures in the Governmental Funds when paid, but are amortized as expenses in the Governmental Activities over the life of the Bond Issue. \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nBonds Payable Accrued Interest Payable Capital Leases Payable Unamortized Bond Premiums Claims and Judgments Payable \nTotal Long-Term Liabilities \n \n$ 20,549,103.08 \n \n$ 2,826,345.00 2,527,700.00 4,100,977.00 \n163,375,977.00 18,804,473.00 -47,876,653.00 \n \n143,758,819.00 \n \n1,597,699.49 \n \n74,451.36 \n \n$ -20,000,000.00 -247,345.63 \n-4,553,916.26 -319,150.16 -178,665.36 \n \n-25,299,077.41 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 140,680,995.52 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nSale or Compensation for Disposal of Capital Assets Capital Leases Proceeds Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 31,394,184.39 \n \n$ 31,394,184.39 \n \n359,934.69 $ 4,544,313.16 $ 5,594,350.00 \n \n10,498,597.85 \n \n58,154,395.72 \n \n359,924.76 \n \n58,514,320.48 \n \n9,875,385.54 \n \n9,875,385.54 \n \n2,563,741.74 \n \n2,563,741.74 \n \n29,280.67 \n \n7,469.91 \n \n59,111.04 \n \n95,861.62 \n \n3,149,425.66 \n \n1,013,388.99 \n \n4,162,814.65 \n \n$ 105,526,348.41 $ 5,925,096.82 $ 5,653,461.04 $ 117,104,906.27 \n \n$ 66,726,865.94 $ 399,196.19 \n \n$ 67,126,062.13 \n \n3,673,467.99 2,696,814.05 2,288,564.31 1,899,423.62 8,425,675.34 \n759,413.61 9,191,901.15 4,385,125.48 \n776,823.56 700,667.88 278,698.73 6,022,574.66 \n \n10,675.00 \n53,329.94 1,498,119.50 \n61,465.74 \n5,952,011.35 \n \n3,673,467.99 2,696,814.05 2,288,564.31 1,910,098.62 8,425,675.34 \n759,413.61 9,245,231.09 5,883,244.98 \n838,289.30 700,667.88 278,698.73 6,022,574.66 5,952,011.35 \n \n594,636.38 $ 4,000,000.00 \n \n247,480.18 \n \n654,350.00 \n \n4,594,636.38 901,830.18 \n \n$ 107,826,016.32 $ 8,816,914.28 $ 4,654,350.00 $ 121,297,280.60 \n \n$ -2,299,667.91 $ -2,891,817.46 $ 999,111.04 $ -4,192,374.33 \n \n$ \n \n111,660.71 \n \n$ 119,330.00 \n \n930,000.00 \n \n-930,000.00 \n \n$ \n \n111,660.71 \n \n119,330.00 \n \n930,000.00 \n \n-930,000.00 \n \n$ \n \n-818,339.29 $ 1,049,330.00 \n \n$ \n \n230,990.71 \n \n$ -3,118,007.20 $ -1,842,487.46 $ 999,111.04 $ -3,961,383.62 \n \n11,705,126.32 \n \n6,906,153.09 5,899,207.29 \n \n24,510,486.70 \n \n$ 8,587,119.12 $ 5,063,665.63 $ 6,898,318.33 $ 20,549,103.08 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2012 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay - Net Change Depreciation Expense-Buildings Depreciation Expense-Equipment Depreciation Expense-Land Improvements \nExcess of Capital Outlay over Depreciation Expense \nIn the Statement of Activities, only the gain or loss on the sale or disposal of the capital capital assets equipment is reported, whereas in the Governmental Funds, the entire proceeds from the sale increase financial resources. Thus, the change in net assets sold differs from the change in fund balances by the carrying value of the assets sold or disposed of. \nProceeds Received from the execution of Capital Leases, Installment Sales, and from Bond Proceeds reported as Liabilities in the Statement of Activities. Whereas in the Governmental Funds these proceeds are reported as Other Financing Sources. \nCapital Lease \nBecause some taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nDeferred Property Taxes June 30, 2011 June 30, 2012 Total Deferred Property Taxes \nBond Issuance Cost is recorded as an expenditure in the Government Funds when paid, but is amortized over the life of the Bond Issue in the Statement of Activities \nDeferred Charge-Bond Issuance Costs June 30, 2011 June 30, 2012 Total Bond Issuance Cost \nSome expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures in the Governmental Funds. \nAccrued Interest Expense June 30, 2011 June 30, 2012 \nClaims Incurred but Not Reported June 30, 2011 June 30, 2012 \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nNet Decrease in Liability for Compensated Absences Amortization of Bond Premiums Payment of Capital Lease Debt Redemption of Bond Principal \nTotal Debt Repayment \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \nThe notes to the basic financial statements are an integral part of this statement. \n- 7 - \n \n$ -3,961,383.62 \n \n$ 7,102,813.00 -2,813,203.00 -1,429,372.00 -91,603.00 \n \n2,768,635.00 \n \n-148,416.00 \n \n-119,330.00 \n \n$ -831,138.79 1,597,699.49 \n \n766,560.70 \n \n$ -124,085.59 74,451.36 \n \n-49,634.23 \n \n$ 297,645.83 -247,345.63 \n$ 306,665.74 -178,665.36 \n \n50,300.20 128,000.38 \n \n$ \n \n297,324.51 \n \n212,766.77 \n \n594,636.38 \n \n4,000,000.00 \n \n5,104,727.66 \n \n$ 4,539,460.09 \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2012 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 187,083.51 \n$ 187,083.51 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible for providing a seamless blend of academics with career and technical education and skills to better serve the Floyd County community. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been included with the School District's General Fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and claims and judgments which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nRESTATEMENT OF PRIOR YEAR NET ASSETS \nFor fiscal year 2012, the School District restated beginning net assets to account for Claims Incurred but Not Reported (IBNR) which were not reported as a liability in the prior year. The result is a decrease in Net Assets at July 1, 2011, of $306,665.74. This change is in accordance with generally accepted accounting principles. \n \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nCASH AND CASH EQUIVALENTS \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit quality risks, custodial credit risks, concentration of credit risks, or interest rate risks. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe Floyd County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on July 26, 2011 (levy date). Taxes were due on November 15, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The Floyd County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2012, for maintenance and operations amounted to $31,355,639.37. \n \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe tax millage rate levied for the 2011 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.588 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $10,138,663.16 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \nINVENTORIES \n \nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \n \nstatements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAll $ 5,000.00 $ 10,000.00 $ 5,000.00 $ 200,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n3 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \n \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \n \nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted School Activity Accounts \nAssigned After School Program Self-Insurance Records Retention \nUnassigned \n \n$ \n \n182,754.31 \n \n$ \n \n497,300.93 \n \n5,063,665.63 \n \n6,898,318.33 \n \n12,459,284.89 \n \n1,450,080.82 \n \n$ \n \n14,921.75 \n \n135,944.76 \n \n123,589.28 \n \n274,455.79 6,182,527.27 \n \nFund Balance, June 30, 2012 \n \n$ 20,549,103.08 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \n \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 4: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \n \nAt June 30, 2012, $621,584.43 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $17,538,927.37. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial risk category at June 30, 2012, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 2 3 \nTotal \n \n$ \n \n621,584.43 \n \n90,104.79 \n \n15,427,330.13 \n \n$ 16,139,019.35 \n \nCATEGORIZATION OF INVESTMENTS \nThe School District's investments as of June 30, 2012, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less than 1 Year \n \nDebt Securities U. S. Agencies Implicitly Guaranteed $ 1,600,935.96 $ 1,600,935.96 \n \nOther Investments U. S. Treasury Money Market Funds \n \n8,153,571.49 \n \nTotal Investments \n \n$ 9,754,507.45 \n \nThe First American Treasury Obligations Fund invests primarily in a portfolio of short-term U. S. Treasury obligations, including repurchase agreements secured by the U. S. Treasury obligations. \nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk for investments. \nAt June 30, 2012, $1,600,935.96 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing custodial credit risk. \n \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities U. S. Agencies Implicitly Guaranteed $ 1,600,935.96 $ 1,600,935.96 \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investment is 16% of the School District's total investments. \nNOTE 5: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \nNOTE 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2011 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2012 \n \n$ \n \n2,650,991.00 $ \n \n175,354.00 \n \n$ \n \n2,826,345.00 \n \n3,498,053.00 \n \n3,272,240.00 $ 4,242,593.00 \n \n2,527,700.00 \n \nTotal Capital Assets, Not Being Depreciated $ \n \n6,149,044.00 $ 3,447,594.00 $ 4,242,593.00 $ \n \n5,354,045.00 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 157,781,221.00 $ 5,615,812.00 $ \n \n21,056.00 $ 163,375,977.00 \n \n17,803,557.00 \n \n2,268,639.00 \n \n1,267,723.00 \n \n18,804,473.00 \n \n4,087,616.00 \n \n13,361.00 \n \n4,100,977.00 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n30,266,478.00 11,411,693.00 \n3,004,667.00 \n \n2,813,203.00 1,429,372.00 \n91,603.00 \n \n21,056.00 1,119,307.00 \n \n33,058,625.00 11,721,758.00 \n3,096,270.00 \n \nTotal Capital Assets, Being Depreciated, Net $ 134,989,556.00 $ 3,563,634.00 $ \n \n148,416.00 $ 138,404,774.00 \n \nGovernmental Activity Capital Assets - Net $ 141,138,600.00 $ 7,011,228.00 $ 4,391,009.00 $ 143,758,819.00 \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nCapital assets being acquired under capital leases as of June 30, 2012, are as follows: \nGovernmental Funds \n \nBuildings and Improvements Less: Accumulated Depreciation \n \n$ \n \n2,515,964.00 \n \n1,630,406.00 \n \n$ \n \n885,558.00 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration Student Transportation Services Food Services \n \n$ \n \n$ \n \n26,140.00 \n \n21,729.00 \n \n797,882.00 \n \n3,279,320.00 \n845,751.00 209,107.00 \n \n$ \n \n4,334,178.00 \n \nNOTE 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2012, consisted of the following: \n \nTransfers to \n \nTransfers From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ \n \n930,000.00 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \nNOTE 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2011 $ 2012 $ \n \n399,917.74 $ 306,665.74 $ \n \n443,400.99 $ 93,251.90 $ \n \n536,652.99 $ 221,252.28 $ \n \n306,665.74 178,665.36 \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nClaims and \n \nBeginning of Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \n2011 $ 2012 $ \n \n0.00 $ 0.00 $ \n \n40,210.00 $ 4,175.00 $ \n \n40,210.00 $ 4,175.00 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Blanket Employee \n \n$ \n \n100,000.00 \n \n$ \n \n100,000.00 \n \nNOTE 9: LONG-TERM DEBT CAPITAL LEASES \n \nThe Floyd County Board of Education entered into various lease agreements for construction, energy management systems, and bus radios. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - QZAB - Series 2004 General Government - Series 2009 \n \n0.00% 3.00% - 4.00% \n \n$ 2,000,000.00 18,000,000.00 \n \n$ 20,000,000.00 \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2012, were as follows: \n \nBalance July 1, 2011 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30, 2012 \n \nDue Within One Year \n \nG. O. Bonds \n \n$ \n \nCapital Leases \n \nCompensated Absences \n \nBond Premiums Amortized \n \n24,000,000.00 5,029,222.64 $ 297,324.51 531,916.93 \n \n$ 119,330.00 \n \n4,000,000.00 $ 594,636.38 297,324.51 212,766.77 \n \n20,000,000.00 $ 4,553,916.26 0.00 319,150.16 \n \n5,000,000.00 664,009.48 \n212,766.77 \n \n$ 29,858,464.08 $ 119,330.00 $ 5,104,727.66 $ 24,873,066.42 $ 5,876,776.25 \n \nAt June 30, 2012, payments due by fiscal year which includes principal and interest for these items \n \nare as follows: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \n2013 2014 2015 2016 2017 2018 - 2019 \n \n$ 664,009.48 $ 221,198.00 \n \n699,400.60 \n \n185,806.88 \n \n736,678.05 \n \n148,529.43 \n \n731,795.22 \n \n110,321.34 \n \n770,768.74 \n \n71,347.82 \n \n951,264.17 \n \n31,205.73 \n \nTotal Principal and Interest \n \n$ 4,553,916.26 $ 768,409.20 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2013 2014 2015 2018 \n \n$ 5,000,000.00 $ 6,000,000.00 7,000,000.00 2,000,000.00 \n \n506,850.00 $ 322,325.00 112,650.00 \n \n212,766.77 106,383.39 \n \nTotal Principal and Interest \n \n$ 20,000,000.00 $ 941,825.00 $ 319,150.16 \n \nNOTE 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $7,904,525.78 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $7,783,408.00 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $25,612.78 \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $95,505.00 \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2012, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \nMcHenry HVAC - 11-657-019 Garden Lakes Classroom Addition Model Middle School Classroom Addition Coosa Middle School Classroom Addition \n \n$ \n \n83,474.00 $ \n \n42,802.07 \n \n352,990.76 \n \n716,158.83 \n \n66,758.04 \n \n$ \n \n1,195,425.66 $ \n \n66,758.04 \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated \n \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nDecember 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2012: \nFor certificated teachers, librarians and regional educational service agencies and certain other \neligible participants: \n \nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \n \n1.429% of covered payroll for July coverage 18.534% of covered payroll for August coverage 24.000% of covered payroll for September - April coverage \n3.958% of covered payroll for May - July coverage \n \nFor non-certificated school personnel: \n \nJuly 2011 - August 2011 \n \n$246.20 per member per month \n \nSeptember 2011 - June 2012 $296.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ 10,406,972.17 $ 9,763,226.47 $ 9,260,601.40 \n \n- 23 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 14: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \n \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ 6,533,913.66 $ 6,530,152.03 $ 6,307,364.76 \n \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \n \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \n \nDEFINED CONTRIBUTION PLAN \n \nIn July 2003, Floyd County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees' Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \nThe Board paid contributions to Hartford Life Insurance Company, TIAA-CREF, and VALIC for fiscal year 2009 and part of the fiscal year 2010 through January 2010. VALIC was designated as the 3rd party plan administrator of this plan as of February 2010 and all contributions are paid to them directly. VALIC then distributes funds to the other companies as necessary. For each employee covered under PSERS, the Board began contributing to the plan an amount matching up to a maximum of 4% of the employee's base pay, dependent upon the employee's actual contribution election. \n \nThe employee becomes vested in the plan with 5 years of experience. Employees who had already achieved 5 years of experience at the time the plan was implemented were vested upon enrollment. \n \nFunds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of continuous employment with Floyd County Board of Education. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \n \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ \n \n37,805.63 \n \n$ \n \n29,062.65 \n \n$ \n \n27,606.24 \n \n- 25 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ 30,206,808.00 $ 30,706,808.00 $ 31,394,184.39 $ 687,376.39 \n \n325,000.00 \n \n325,000.00 \n \n359,934.69 \n \n34,934.69 \n \n57,733,402.73 \n \n58,393,402.73 \n \n58,154,395.72 \n \n-239,007.01 \n \n9,727,805.46 \n \n10,492,490.06 \n \n9,875,385.54 \n \n-617,104.52 \n \n2,275,000.00 \n \n2,275,000.00 \n \n2,563,741.74 \n \n288,741.74 \n \n36,500.00 \n \n36,500.00 \n \n29,280.67 \n \n-7,219.33 \n \n250,000.00 \n \n250,000.00 \n \n3,149,425.66 2,899,425.66 \n \n$ 100,554,516.19 $ 102,479,200.79 $ 105,526,348.41 $ 3,047,147.62 \n \n$ 68,734,169.96 $ 69,038,641.45 $ 66,726,865.94 $ 2,311,775.51 \n \n2,346,611.00 2,544,403.00 2,317,710.45 2,018,610.27 7,996,722.11 \n776,121.00 8,469,569.27 4,763,693.00 \n729,256.00 279,306.88 \n26,779.00 6,238,000.00 \n \n2,895,219.57 3,019,862.20 2,317,792.90 1,652,035.37 7,974,326.01 \n768,579.70 8,684,088.13 4,633,212.25 \n770,568.75 417,394.48 \n27,622.69 6,237,397.23 \n \n3,673,467.99 2,696,814.05 2,288,564.31 1,899,423.62 8,425,675.34 \n759,413.61 9,191,901.15 4,385,125.48 \n776,823.56 700,667.88 278,698.73 6,022,574.66 \n \n-778,248.42 323,048.15 \n29,228.59 -247,388.25 -451,349.33 \n9,166.09 -507,813.02 248,086.77 \n-6,254.81 -283,273.40 -251,076.04 214,822.57 \n \n$ 107,240,951.94 $ 108,436,740.73 $ 107,826,016.32 $ 610,724.41 \n \n$ -6,686,435.75 $ -5,957,539.94 $ -2,299,667.91 $ 3,657,872.03 \n \n$ \n \n30,000.00 $ \n \n30,000.00 $ \n \n111,660.71 $ 81,660.71 \n \n-930,000.00 \n \n-930,000.00 \n \n-930,000.00 \n \n0.00 \n \n$ \n \n-900,000.00 $ \n \n-900,000.00 $ \n \n-818,339.29 $ 81,660.71 \n \n$ -7,586,435.75 $ -6,857,539.94 $ -3,118,007.20 $ 3,739,532.74 \n \n10,072,113.08 \n \n9,854,253.72 \n \n11,705,126.32 1,850,872.60 \n \n-5,755.25 \n \n5,755.25 \n \n$ 2,485,677.33 $ 2,990,958.53 $ 8,587,119.12 $ 5,596,160.59 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include actual revenues of $2,778,061.56 or expenditures of $2,972,874.28 for the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 27 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nSchools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \nOther Programs Pass-Through From Georgia Department of Education Food Services ARRA - Child Nutrition Discretionary Grants Limited Availability \nTotal U. S. Department of Agriculture \nAppalachian Regional Commission Direct Appalachian Research, Technical Assistance, and Demonstration Projects \nEducation, U. S. Department of Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships \nTotal Other Programs \nTotal U. S. Department of Education \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Georgia Department of Labor ARRA - Workforce Investment Act Youth Activities \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A $ 5,612,230.11 (1) \n \n$ 5,612,230.11 \n \n10.665 \n \nN/A \n \n(3) \n \n10.579 \n \nN/A \n \n18,349.00 \n \n$ 5,630,579.11 \n \n23.011 \n \n$ \n \n5,639.25 \n \n84.196 \n \nN/A $ \n \n54,763.00 \n \n84.391 84.392 84.027 84.173 \n \nN/A $ \n \n670.41 \n \nN/A \n \n3,230.70 \n \nN/A \n \n2,133,215.27 \n \nN/A \n \n97,526.85 \n \n$ 2,234,643.23 \n \n84.010 \n \nN/A $ 2,481,690.74 \n \n84.048 84.410 84.365 * 84.367 * 84.366 \n \nN/A $ N/A N/A N/A N/A \n \n78,918.25 28,768.00 48,867.67 349,975.47 551,520.46 \n \n$ 1,058,049.85 \n \n$ 5,829,146.82 \n \n17.259 \n \nN/A $ \n \n75,784.26 \n \nTotal Expenditures of Federal Awards N/A = Not Available \n \n- 28 - \n \n$ 11,541,149.44 \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2012 \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $187,772.07. \n(2) Expenditures for the funds earned on the School Breakfast Program ($953,871.52) were not maintained separately and are included in the 2012 National School Lunch Program. \n(3) Funds earned on this program, in the amount of $4,443.24, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSCHEDULE \"2\" \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Education Equalization Funding Grant Food Services Nursing Services Other State Programs Communities in Schools - Georgia Dual Enrollment Funding Math and Science Supplements Move On When Ready Grant Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Virtual Schools Grant Vocational Education \nGeorgia Emergency Management Agency/Homeland Security GEMA Funds \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nNatural Resources, Georgia Department of Arrowhead Grant \nOffice of the State Treasurer Public School Employees' Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,439,122.36 \n \n$ 1,439,122.36 \n \n3,461,656.00 342,067.00 \n7,831,486.00 729,909.00 \n3,709,605.00 429,980.00 \n6,240,832.00 5,304,799.00 1,854,783.00 12,417,460.00 3,897,863.00 \n241,804.00 500,825.00 429,909.00 1,180,415.00 339,669.00 233,296.00 \n1,679,797.00 2,703,106.00 2,619,186.00 \n151,810.00 -8,978,025.00 \n880,599.00 \n1,239,442.00 5,908,271.00 \n152,868.00 156,387.00 \n117,833.78 23,114.00 18,474.05 200.00 \n241,789.00 228,658.50 \n25,612.78 1,225.00 \n253,646.00 \n \n3,461,656.00 342,067.00 \n7,831,486.00 729,909.00 \n3,709,605.00 429,980.00 \n6,240,832.00 5,304,799.00 1,854,783.00 12,417,460.00 3,897,863.00 \n241,804.00 500,825.00 429,909.00 1,180,415.00 339,669.00 233,296.00 \n1,679,797.00 2,703,106.00 2,619,186.00 \n151,810.00 -8,978,025.00 \n880,599.00 \n1,239,442.00 5,908,271.00 \n152,868.00 156,387.00 \n117,833.78 23,114.00 18,474.05 200.00 \n241,789.00 228,658.50 \n25,612.78 1,225.00 \n253,646.00 \n \n23,416.25 \n \n23,416.25 \n \n$ 359,924.76 \n \n359,924.76 \n \n26,000.00 \n \n26,000.00 \n \n95,505.00 \n \n95,505.00 \n \n$ 58,154,395.72 $ 359,924.76 $ 58,514,320.48 \n \nSee notes to the basic financial statements. \n \n- 30 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \n2003 SPLOST (5) \n \n(1) Renovating, Repairing, improving and equipping \n \nexisting schools and facilities including roof \n \nreplacements and HVAC systems \n \n$ \n \n3,701,000.00 $ \n \n3,756,199.09 $ \n \n95,300.05 $ 3,618,982.72 $ 3,714,282.77 $ \n \n41,916.32 \n \nCompleted \n \n(2) Technology system-wide including purchasing hardware \n2009 SPLOST \n(1) Additional Classrooms \n \n2,300,000.00 6,174,000.00 \n \n2,494,997.44 \n \n4,715.46 \n \n6,538,937.00 1,063,265.52 \n \n2,468,997.44 2,473,712.90 1,036,988.48 \n \n21,284.54 \n \nCompleted \n \nJune 30, 2014 \n \n(2) Renovating, Repairing, improving and equipping existing schools and facilities including roof replacements and HVAC systems \n(3) Technology system-wide including purchasing hardware \n \n8,842,000.00 2,500,000.00 \n \n9,171,248.04 4,238,638.71 \n \n2,389,230.77 \n \n761,814.22 \n \n3,967,767.95 772,839.71 \n \nJune 30, 2014 June 30, 2014 \n \n(4) Transportation Department Improvements and Bus Purchases \n \n2,000,000.00 \n \n1,940,000.00 1,378,789.50 \n \n6,138.56 \n \nJune 30, 2014 \n \n(5) Acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal. \n(6) Legal and Administrative Costs \n \n700,000.00 0.00 \n \n250,000.00 413,636.42 \n \n174,853.00 89,936.26 \n \n9,520.00 323,700.16 \n \nJune 30, 2014 June 30, 2014 \n \n$ 26,217,000.00 $ 26,954,248.76 $ 7,807,312.72 $ 12,204,935.02 $ 6,187,995.67 $ \n \n63,200.86 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 5,277,736.54 \n \nCurrent Year \n \n654,350.00 \n \nTotal \n \n$ 5,932,086.54 \n \n(5) Only projects not completed prior to July 1, 2011, are included in this report for 2003 SPLOST and include current and ongoing project expenditures. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n3,472,566.00 $ \n \n3,672,355.33 $ \n \n19,256.21 $ 3,691,611.54 \n \n325,801.00 \n \n178.43 \n \n178.43 \n \n7,850,986.00 \n \n10,856,951.43 \n \n222,255.46 \n \n11,079,206.89 \n \n731,712.00 \n \n44,411.96 \n \n44,411.96 \n \n3,720,646.00 \n \n6,031,242.36 \n \n25,099.40 \n \n6,056,341.76 \n \n412,769.00 6,197,213.00 5,315,589.00 1,890,206.00 12,437,956.00 \n3,877,479.00 250,596.00 499,099.00 424,246.00 \n \n76,018.55 8,991,887.63 10,653,280.29 1,548,327.15 \n133,879.28 11,060,118.47 \n357,292.08 2,163,362.80 \n740,155.25 318,004.95 \n \n120,108.89 200,763.17 250,772.41 \n88,086.22 42,021.73 40,558.44 \n \n76,018.55 9,111,996.52 10,854,043.46 1,799,099.56 \n133,879.28 11,148,204.69 \n399,313.81 2,203,921.24 \n740,155.25 318,004.95 \n \n$ \n \n47,406,864.00 $ 56,647,465.96 $ 1,008,921.93 $ 57,656,387.89 \n \n1,195,603.00 266,841.00 \n \n2,089,583.37 45,347.72 \n \n149,902.09 61,710.90 \n \n2,239,485.46 107,058.62 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n48,869,308.00 $ 58,782,397.05 $ 1,220,534.92 $ 60,002,931.97 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 9, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Floyd County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Floyd County Board of Education's basic financial statements and have issued our report thereon dated May 9, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Floyd County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \n \n2012YB-10 \n \n Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted a certain matter that we have reported to management of Floyd County Board of Education in a separate letter dated May 9, 2013. \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nGSG:as 2012YB-10 \n \nGreg S. Griffin State Auditor \n \n Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 9, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited Floyd County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. Floyd County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Floyd County Board of Education's management. Our responsibility is to express an opinion on Floyd County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Floyd County Board of Education's compliance with those requirements. \nIn our opinion, the Floyd County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. \n \n2012SA-10 \n \n Internal Control Over Compliance \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Floyd County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nGSG:as 2012SA-10 \n \nGreg S. Griffin State Auditor \n \n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nUnqualified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnqualified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: CFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.367 84.366 \n \nChild Nutrition Cluster Improving Teacher Quality State Grants Mathematics and Science Partnerships \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$346,234.48 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2010-h2011-belec-p-btext","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2011-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed February 20, 2023).","Fiscal year ended June 30, 2016 (Received via FTP on January 31, 2018 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed February 20, 2023)."],"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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2010-h2011-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n(Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \ni \n1 2 4 5 6 7 8 9 \n27 \n \n  FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n28 30 31 33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  SECTION I FINANCIAL \n \n  Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 18, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Floyd County Board of Education, as of and for the year ended June 30, 2011, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Floyd County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \n2011ARL-11 \n \n  In accordance with Government Auditing Standards, we have also issued our report dated May 18, 2012, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through x and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n \nRWH:as 2011ARL-11 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n  FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nINTRODUCTION \nThe District's financial statements for the fiscal year ended June 30, 2011, includes a series of basic financial statements that report financial information for the District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Assets and the Statement of Activities provide financial information about all of the District's activities and present both a short-term and long-term view of the District's finances on a global basis. The fund financial statements provide information about all of the District's funds. Information about these funds, such as the District's General Fund, is important in its own right, but will also give insight into the District's overall soundness as reported in the Statement of Net Assets and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2011 are as follows: \nOn the District-wide financial statements: \n District-wide net assets at June 30, 2011, were $136,448,201. Net assets reflect the difference between all assets of the District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net assets at June 30, 2011, of $136,448,201 represented an increase of 19,321,302 in net assets when compared to the prior year. \n The School District had $112.02 million in expenses relating to governmental activities; only $72.56 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $51.97 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $51.97 million or about 42% of all revenues totaling $124.5 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \n \nSource of Revenues \nProgram Revenues \n58.3% \n \nGeneral Revenue - Property Taxes \n25.9% \nGeneral Revenue - Sales Taxes 8.0% \nGeneral Revenue - All Other 7.8% \n \nThe District decreased its outstanding bond debt by $3.0 million. The existing bond debt of $24.0 million will be retired by a Special Option Local Sales Tax and interest earned thereon that was approved by the citizenry in conjunction with the Bond Sale. \ni \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nOn the fund financial statements: \n Among major funds, the General Fund had almost $113.3 million in revenues and almost $107.7 million in expenditures. The General Fund balance of $11.7 million at June 30, 2011, increased almost $4.7 million from the prior year fund balance. Careful planning along with staff furloughs and staff reductions through attrition (retirements, resignations) allowed the District to avoid a major decrease in fund balance. Additionally, there were some increases in state funding from grants such as Charter System grants and increases in training and experience and fewer reductions in the QBE formula over the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial Statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Assets' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Assets' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets 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 District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Assets: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net assets as follows: \no Net Assets invested in capital assets, net of related debt o Restricted net assets are those with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted net assets are net assets that do not meet any of the above restrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the District has no nonmajor Funds as defined by generally accepted accounting principles. \nThe District has two kinds of funds as discussed below: \nGovernmental Funds  Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds  The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the district-wide financial statements because it cannot use these assets to finance its operations. \niii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Net assets, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the District. When revenues exceed expenses, the result is an increase in net assets. When expenses exceed revenues, the result is a decrease in net assets. The relationship between revenues and expenses can be thought of as the District's operating results. The District's net assets, as measured in the Statement of Net Assets, can be one way to measure the District's financial health, or financial position. Over time, increases or decreases in the District's net assetsas measured in the Statement of Activities- are one indicator of whether its financial health is improving or deteriorating. However, the District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the District In the case of the Floyd County School District, assets exceeded liabilities by $136.4 million at June 30, 2011. To better understand the District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net asset category. For example, of the $136.4 million of net assets, almost $13.49 million was restricted for continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the District's ongoing obligations to citizens and creditors. The District also had unrestricted net assets of just under $11.4 million. Unrestricted net assets increased by over $7.0 million over the prior year just from the elimination of the severance pay liability as of December 31, 2011. The amount of unrestricted net assets will allow the District to meet the ongoing needs of its citizens and creditors. In addition, the District also had $111.58 million (net of related debt) invested in capital assets (e.g., land, buildings, and equipment). The District uses these capital assets to provide educational services to students within geographic boundaries served by the District. Because of the very nature and on-going use of the assets being reported in this component of net assets, it must be recognized that this portion of the net assets is not available for future spending. \niv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nTable 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year. \n \nTable 1 Net Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n39,996,051 $ 36,030,224 \n \n141,138,600 \n \n138,234,179 \n \nTotal Assets \n \n$ 181,134,651 $ 174,264,403 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n14,827,986 $ 16,486,893 \n \n29,858,464 \n \n40,650,611 \n \nTotal Liabilities \n \n$ \n \n44,686,450 $ 57,137,504 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ 111,577,460 $ 104,895,703 \n \n13,486,589 \n \n12,693,209 \n \n11,384,152 \n \n-462,013 \n \nTotal Net Assets \n \n$ 136,448,201 $ 117,126,899 \n \nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. \n \nv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nTable 2 Change in Net Assets \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Taxes - Railroad Equipment Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Gain or Loss on Disposal of Assets Change in Liability for Compensated Absences \nTotal General Revenues and Special Items \nTotal Revenues \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \n \nGovernmental Activities \n \nFiscal Year 2011 \n \nFiscal Year 2010 \n \n$ \n \n2,287,135 $ \n \n2,382,737 \n \n69,012,003 \n \n63,527,768 \n \n1,263,298 \n \n404,471 \n \n$ \n \n72,562,436 $ \n \n66,314,976 \n \n$ \n \n32,153,161 $ \n \n31,831,177 \n \n40,904 \n \n37,607 \n \n4,714,350 4,840,530 \n310,568 52,717 \n \n2,737,510 7,002,087 \n280,559 66,086 \n \n6,607,324 106,255 \n3,145,524 \n \n6,431,471 461,877 \n2,784,932 \n \n6,812,107 \n \n-1,339,480 \n \n$ \n \n58,783,440 $ \n \n50,293,826 \n \n$ \n \n131,345,876 $ \n \n116,608,802 \n \n$ \n \n71,353,681 $ \n \n71,552,486 \n \n3,268,405 2,129,903 2,300,779 2,257,088 8,542,179 \n769,906 8,996,374 4,334,337 \n757,204 618,888 \n \n3,179,706 1,926,579 2,228,307 1,866,100 8,723,131 \n692,354 8,407,192 4,285,219 \n804,558 643,712 \n \n11,926 249,196 5,648,077 786,631 \n \n9,108 259,856 5,539,432 988,771 \n \n$ \n \n112,024,574 $ \n \n111,106,511 \n \n$ \n \n19,321,302 $ \n \n5,502,291 \n \nvi \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \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. \nTable 3 Governmental Activities \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nInstruction 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: Community Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$ \n \n71,353,681 $ \n \n71,552,486 $ \n \n17,514,071 $ \n \n23,626,146 \n \n3,268,405 2,129,903 2,300,779 2,257,088 8,542,179 \n769,906 8,996,374 4,334,337 \n757,204 618,888 \n \n3,179,706 1,926,579 2,228,307 1,866,100 8,723,131 \n692,354 8,407,192 4,285,219 \n804,558 643,712 \n \n2,137,126 1,077,752 \n912,921 1,681,753 4,753,201 \n709,858 5,240,379 3,347,947 \n695,095 418,386 \n \n2,560,198 998,410 856,970 \n1,228,279 4,628,692 \n610,869 4,367,389 3,588,181 \n710,785 447,001 \n \n249,196 11,926 \n5,648,077 786,631 \n \n259,856 9,108 \n5,539,432 988,771 \n \n24,025 11,926 151,068 786,631 \n \n257,140 9,108 \n-86,405 988,771 \n \nTotal Expenses \n \n$ 112,024,574 $ 111,106,511 $ \n \n39,462,139 $ \n \n44,791,534 \n \nThe table above shows that while the total cost of services for providing services increased by 1% from the prior year, the net cost to the local taxpayers decreased by 12% from the prior year. In other words, as compared to the proceeding fiscal year, a percentage of the cost of providing services in fiscal year 2011 was reduced to the taxpayers of Floyd County and funded by state grants which offset the cost for fiscal year 2011. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" and Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $123.7 million and total expenditures of $118.9 million in fiscal year 2011. Total governmental fund balances of $24.5 million at June 30, 2011, increased over $5.0 million from the prior year. This increase in fund balance occurred primarily because increase in state funding. \n \nvii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \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 2011, 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 $113.3 million were over the final budgeted amount of $111.0 million by almost $2.3 million. This difference (final actual vs. final budget) was primarily attributable to revenues for property taxes over final budget of $500 thousand, revenues for State Funds over the final budget of $4.0 million, decrease in Federal funds by $2.3 million (from expiration of ARRA funds) and miscellaneous revenues under final budget of $0.3 million. The District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. The General Fund's final actual expenditures of $107.7 million were under the final budget amount of $111.2 million by almost $4.0 million. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction under the final budget of $4.61 million, expenditures for pupil services exceeding the final budget by $900,000, expenditures for Improvement of Instruction under the final budget by $705,000, expenditures for school administration exceeding the final budget by $556,000 expenditures for M\u0026O over the final budget by $600,000, expenditures for other support services exceeding final budget of over $353,000, Food Services under the final budget by $600,000 and other community services exceeding the final budget by $222,000 (for reimbursed after school care) other functions totaling approximately $100,000 over the final budget. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2011, the School District had almost $141.1 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. This year's major additions totaled a little over $7.0 million and included: \n Completion of a New Model High School  Major renovations at Coosa High School  new PE facility  Completed roof replacement projects at Garden Lakes, McHenry, Alto Park, and \nPepperell High School  Classroom additions at Johnson and Alto Park Elementary Schools \nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nviii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nLand Construction In Progress Land Improvements Building and Improvements Equipment \nTotal \n \nTable 4 Capital Assets \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \n$ \n \n2,650,991 $ \n \n3,498,053 \n \n1,082,949 \n \n127,514,743 \n \n6,391,864 \n \n2,651,464 29,229,347 \n1,077,462 98,278,790 \n6,997,116 \n \n$ 141,138,600 $ \n \n138,234,179 \n \nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \nLong-Term Debt \nAt June 30, 2011, the School District had over $29.86 million in total debt outstanding which consisted of $24.0 million in bond debt, $5.0 million in capital lease debt, a decrease from $7.3 million in compensated absences debt to just under $300,000 (from change in policy), and $531,917 in unamortized bond premium. Table 5 summarizes the School District's debt as compared to the prior fiscal year. In September 2008, the citizens of Floyd County passed an Educational Local Option Sales Tax (ELOST) for a period of five years which began on April 1, 2009 for the purpose of construction and renovation, technology and transportation. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nBonds Payable Unamortized Bond Premium Capital Leases Compensated Absences \n \n$ \n \n24,000,000 $ \n \n531,917 \n \n5,029,223 \n \n297,324 \n \n27,000,000 744,684 \n5,593,792 7,312,135 \n \nTotal \n \n$ \n \n29,858,464 $ \n \n40,650,611 \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \nix \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nFACTORS BEARING ON THE DISTRICT'S FUTURE Currently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The District is financially stable. The School District's current operating millage is 18.588, which produces approximately $1,673,278 per mill net of fees. The School District's enrollment saw a slight decline this school year as compared to past 3 years with a loss of approximately 150 students. The District completed construction on a new Model High School which opened on August 1st, 2010. The District also began work on other classroom additions in the next year to reduce portable classrooms at various schools. The District plans to fund additional capital outlays with the one percent local sales tax revenue, general obligation bonds and state capital outlay grants. \n The District will continue to face challenges from the nationwide economic downturn resulting in the state funding decreases. From fiscal year 2003 through fiscal year 2011, the QBE formula adjustments (austerity cuts) have totaled just under $30 million. For fiscal year 2012 alone, the Amended QBE Formula Adjustment is projected to be $8.5 million. To meet these funding reductions, the District will reduce its expenditures thoughtfully to avoid reducing services that directly impact student achievement, and with the use of Stimulus funding, save or create jobs that will positively impact student achievement. The District will also continue to be impacted by little or no increase in state funding and declining property values. In the midst of these challenges, the District remains confident in the ability to maximize resources to provide the best possible educational experience for all of our students. \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mr. Chris Toles, Executive Director of Financial Services, Floyd County School District, 600 Riverside Parkway, NE, Rome, GA. You may also email your questions to Mr. Toles at ctoles@floydboe.net. \nx \n \n FLOYD COUNTY BOARD OF EDUCATION \n \n  FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Government Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Interest Payable Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal/State/Local Programs Debt Services Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n18,915,633.58 \n \n9,468,013.06 \n \n2,515,184.61 7,432,536.72 1,182,274.65 \n106,858.77 251,464.19 124,085.59 6,149,044.00 134,989,556.00 \n \n$ 181,134,651.17 \n \n$ \n \n51,959.05 \n \n14,478,381.04 \n \n297,645.83 \n \n5,104,727.66 24,753,736.42 \n \n$ \n \n44,686,450.00 \n \n$ 111,577,460.43 \n870,789.44 5,601,561.46 6,906,153.09 11,492,236.75 \n$ 136,448,201.17 \n \n$ 181,134,651.17 \n \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2011 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Community Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Outlay/Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Change in School District's Liability for Compensated Absences (See Note 10) \nTotal General Revenues and Special Items \nChange in Net Assets \nNet Assets - Beginning of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 71,353,681.19 $ \n3,268,404.65 2,129,903.43 2,300,779.22 2,257,088.45 8,542,179.02 \n769,906.23 8,996,373.98 4,334,337.29 \n757,203.61 618,887.73 \n11,926.00 5,648,076.57 \n249,196.01 786,630.89 \n$ 112,024,574.27 $ \n \n382,089.58 \n86,534.66 1,595,518.98 \n222,991.55 2,287,134.77 \n \nNet Assets - End of Year \n \nThe notes to the basic financial statements are an integral part of this statement. - 2 - \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 52,698,460.84 $ \n1,131,278.10 1,052,151.76 1,384,746.57 \n575,335.79 3,785,919.02 \n60,048.58 3,755,995.04 \n442,103.13 62,108.57 \n200,501.63 \n3,861,173.74 2,179.90 \n$ 69,012,002.67 $ \n \n759,059.61 $ 3,111.33 3,059.16 \n457,752.00 \n40,315.89 1,263,297.99 $ \n \n-17,514,071.16 \n-2,137,126.55 -1,077,751.67 \n-912,921.32 -1,681,752.66 -4,753,200.84 \n-709,857.65 -5,240,378.94 -3,347,947.50 \n-695,095.04 -418,386.10 \n-11,926.00 -151,067.96 \n-24,024.56 -786,630.89 \n-39,462,138.84 \n \n$ \n \n32,194,065.59 \n \n9,554,879.97 363,285.72 \n6,607,324.00 106,254.95 \n3,145,523.69 \n \n6,812,107.20 \n \n$ \n \n58,783,441.12 \n \n$ \n \n19,321,302.28 \n \n117,126,898.89 \n \n$ \n \n136,448,201.17 \n \n- 3 - \n \n ASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories \nTotal Assets \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Committed Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nFLOYD COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2011 \n \nEXHIBIT \"C\" \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 16,264,603.12 $ 2,651,030.46 \n \n$ \n \n205,702.48 \n \n3,363,103.29 $ 5,899,207.29 \n \n1,698,645.00 7,351,317.02 1,182,274.65 \n106,858.77 251,464.19 \n \n816,539.61 81,219.70 \n \n18,915,633.58 9,468,013.06 \n2,515,184.61 7,432,536.72 1,182,274.65 \n106,858.77 251,464.19 \n \n$ 27,060,865.23 $ 6,911,893.06 $ 5,899,207.29 $ \n \n39,871,965.58 \n \n$ \n \n46,219.08 $ \n \n14,478,381.04 \n \n831,138.79 \n \n$ 15,355,738.91 $ \n \n5,739.97 5,739.97 \n \n$ \n \n51,959.05 \n \n14,478,381.04 \n \n831,138.79 \n \n$ \n \n15,361,478.88 \n \n$ 251,464.19 \n \n$ \n \n619,325.25 $ 6,906,153.09 $ 5,899,207.29 \n \n1,491,079.68 \n \n249,848.75 \n \n9,093,408.45 \n \n$ 11,705,126.32 $ 6,906,153.09 $ 5,899,207.29 $ \n \n251,464.19 13,424,685.63 \n1,491,079.68 249,848.75 \n9,093,408.45 \n24,510,486.70 \n \n$ 27,060,865.23 $ 6,911,893.06 $ 5,899,207.29 $ \n \n39,871,965.58 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Accumulated Depreciation - Land Improvements Buildings Accumulated Depreciation - Buildings Machinery and Equipment Accumulated Depreciation - Machinery and Equipment Construction in Progress \nTotal Capital Assets \nBond Issuance Costs are recorded as expenditures in the Governmental Funds when paid, but are amortized as expense in the Governmental Activities over the life of the Bond Issue. \nSome of the School Districts tax revenues will be collected after year-end but are not available soon enough to pay for the current periods expenditures. \nProperty Taxes \nSome Liabilities reported in the Governmental Activities do not require the use of current financial resources, and therefore are not reported as liabilities in the Governmental Fund Statements. \nAccrued Interest on Long-Term Debt \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nCompensated Absences Unamortized Bond Premiums General Obligation Bonds Payable Capital Leases Payable \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 24,510,486.70 \n \n$ 2,650,991.00 4,087,616.00 -3,004,667.00 \n157,781,221.00 -30,266,478.00 17,803,557.00 -11,411,693.00 \n3,498,053.00 \n \n141,138,600.00 \n \n124,085.59 \n \n831,138.79 \n \n-297,645.83 \n \n$ -297,324.51 -531,916.93 \n-24,000,000.00 -5,029,222.64 \n \n-29,858,464.08 \n \n$ 136,448,201.17 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nInsurance Proceeds Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 31,597,855.56 \n \n$ 31,597,855.56 \n \n363,285.72 $ 4,840,529.97 $ 4,714,350.00 \n \n9,918,165.69 \n \n62,686,272.06 \n \n805,546.00 \n \n63,491,818.06 \n \n13,390,806.60 \n \n13,390,806.60 \n \n2,287,134.77 \n \n2,287,134.77 \n \n41,444.60 \n \n7,748.61 \n \n57,061.74 \n \n106,254.95 \n \n2,916,965.16 \n \n2,916,965.16 \n \n$ 113,283,764.47 $ 5,653,824.58 $ 4,771,411.74 $ 123,709,000.79 \n \n$ 68,565,361.37 $ 395,404.27 \n \n$ 68,960,765.64 \n \n3,257,850.99 2,084,757.83 2,270,758.61 2,216,378.03 8,253,591.03 \n709,772.62 8,931,682.64 4,286,946.29 \n742,527.64 623,957.07 \n11,926.00 249,196.01 5,470,847.22 \n \n40,452.30 \n60,917.71 48,600.00 23,062.78 \n6,081,678.94 \n \n3,257,850.99 2,084,757.83 2,270,758.61 2,256,830.33 8,253,591.03 \n709,772.62 8,992,600.35 4,335,546.29 \n765,590.42 623,957.07 \n11,926.00 249,196.01 5,470,847.22 6,081,678.94 \n \n564,568.90 $ 3,000,000.00 \n \n277,547.66 \n \n759,350.00 \n \n3,564,568.90 1,036,897.66 \n \n$ 107,675,553.35 $ 7,492,232.56 $ 3,759,350.00 $ 118,927,135.91 \n \n$ 5,608,211.12 $ -1,838,407.98 $ 1,012,061.74 $ 4,781,864.88 \n \n$ 258,793.53 \n \n930,000.00 \n \n$ \n \n-930,000.00 \n \n$ \n \n258,793.53 \n \n930,000.00 \n \n-930,000.00 \n \n$ \n \n-930,000.00 $ 1,188,793.53 \n \n$ \n \n258,793.53 \n \n$ 4,678,211.12 $ -649,614.45 $ 1,012,061.74 $ 5,040,658.41 \n \n7,026,915.20 \n \n7,555,767.54 4,887,145.55 \n \n19,469,828.29 \n \n$ 11,705,126.32 $ 6,906,153.09 $ 5,899,207.29 $ 24,510,486.70 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay - Net Change Depreciation Expense-Buildings Depreciation Expense-Equipment Depreciation Expense-Land Improvements \nExcess of Capital Outlay over Depreciation Expense \nBecause some taxes will not be collected for several months after the School District's fiscal year ends, they are not considered \"available\" revenues. \nDeferred Property Taxes June 30, 2010 June 30, 2011 Total Deferred Property Taxes \nBond Issuance Cost is recorded as an expenditure in the Government Funds when paid, but is amortized over the life of the Bond Issue in the Statement of Activities \nDeferred Charge-Bond Issuance Costs June 30, 2010 June 30, 2011 Total Bond Issuance Cost \nSome expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore are not reported as expenditures in the Governmental Funds. \nAccrued Interest Expense June 30, 2010 June 30, 2011 Total Accrued Interest Expense \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nNet Decrease in Liability for Compensated Absences Amortization of Bond Premiums Payment of Capital Lease Debt Redemption of Bond Principal \nTotal Debt Repayment \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 5,040,658.41 \n \n$ 7,046,790.40 -89,753.00 \n-2,700,577.00 -1,352,039.00 \n \n2,904,421.40 \n \n$ -234,928.76 831,138.79 \n \n596,210.03 \n \n$ -173,719.82 124,085.59 \n \n-49,634.23 \n \n$ 335,145.83 -297,645.83 \n \n37,500.00 \n \n$ 7,014,811.00 212,766.77 564,568.90 \n3,000,000.00 \n \n10,792,146.67 \n \n$ 19,321,302.28 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2011 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 178,599.44 \n$ 178,599.44 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible for to provide a seamless blend of academics with career and technical education and skills to better serve the Floyd County community. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been included with the School District's General Fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements: \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n- 9 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \n \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1  June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits \nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments \nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \n \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \nThe Floyd County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on July 27, 2010 (levy date). Taxes were due on November 15, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. The Floyd County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2011, for maintenance and operations amounted to $31,547,916.16. \nThe tax millage rate levied for the 2010 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.588 mills \n \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $9,554,879.97 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAll $ 5,000.00 $ 10,000.00 $ 5,000.00 $ 200,000.00 \n \nN/A 20 to 80 years 10 to 80 years \n3 to 20 years 10 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \n \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 10 to 20 years. \nCOMPENSATED ABSENCES \n \nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. \nEmployees of the Floyd County Board of Education shall receive severance pay based upon: (1) years of service and (2) amount of accumulated sick leave at the time of retirement or voluntary termination of employment. The amount of severance pay due shall be calculated according to a set of formulas, definitions, and regulations approved by the Board. Severance pay will be paid only once in an employee's tenure with the school system. All payments are based on the total number of years of service as a full-time employee for a full day. Partial days will be computed only as a portion of a day (i.e. .5 must be paired with another .5 to equal a full day.) The amount will be paid from local funds. This policy will terminate on January 1, 2012. Any employee who retires or voluntarily terminates their employment after December 31, 2011, will not be entitled to any severance pay. The Board was notified by June 30, 2011, by those employees who are retiring before December 31, 2011. Therefore, the dollar amount for the true liability as of June 30, 2011, is known to be $297,324.51. The remainder of the accrued compensated absences liability is considered lapsed at June 30, 2011, and is shown as a decrease in liability below. Activity for the preceding three years is as follows: \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2009 2010 2011 \n \n$ 7,271,054.62 $ 2,974,284.68 $ 2,651,975.46 $ 7,593,363.84 \n \n$ 7,593,363.84 $ 2,942,748.46 $ 3,223,976.79 $ 7,312,135.51 \n \n$ 7,312,135.51 $ 2,716,847.76 $ 9,731,658.73 $ \n \n297,324.54 \n \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \n \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nFUND BALANCES \nThe School District's fund balances are classified as follows: \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \n \nNonspendable Inventories \nRestricted Continuation of Federal Programs Capital Projects Debt Service \nCommitted School Activity Accounts \nAssigned After School Program Rome Floyd Records Retention Program Self-Insurance \nUnassigned \n \n$ \n$ 619,325.25 6,906,153.09 5,899,207.29 \n \n$ \n \n13,724.99 \n \n108,084.69 \n \n128,039.07 \n \n251,464.19 \n13,424,685.63 1,491,079.68 \n249,848.75 9,093,408.45 \n \nFund Balance, June 30, 2011 \n \n$ 24,510,486.70 \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2011, the bank balances were $24,292,077.08. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial risk category at June 30, 2011, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 821,361.02 \n \n2 \n \n0.00 \n \n3 \n \n21,350,754.97 \n \nTotal \n \n$ 22,172,115.99 \n \nCATEGORIZATION OF INVESTMENTS \n \nThe School District's investments as of June 30, 2011, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity \nLess Than 1 Year \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \n$ 1,541,000.00 $ 1,541,000.00 \n \nOther Investments U. S. Treasury Money Market Funds \n \n7,721,310.58 \n \nTotal Investments \n \n$ 9,262,310.58 \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe First American Treasury Obligations Fund administered by First American Funds, Incorporated, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The First American Treasury Obligations Fund invests primarily in a portfolio of short-term U. S. Treasury obligations, including repurchase agreements secured by the U. S. Treasury obligations. \nThe First American Treasury Obligations Fund is registered with the SEC as an investment company and operates in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the fund's share price, $1.00 per share. The fund is an AAAm rated investment pool by Standard and Poor's and Aaa by Moody's. The weighted average maturity for First American Treasury Obligations Fund was 44 days. \nInterest Rate Risk \n \nInterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \nCustodial Credit Risk \nCustodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk for investments. \nAt June 30, 2011, $1,541,000.00 of the School District's applicable investments were (1) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the name of the School District and (2) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \nCredit Quality Risk \nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing custodial credit risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Unrated \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \n$ 1,541,000.00 $ 1,541,000.00 \n \nConcentration of Credit Risk \nConcentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investment is 17% of the School District's total investments. \nNOTE 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2010 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2011 \n \n$ 2,651,464.00 \n \n$ \n \n473.00 $ \n \n29,229,346.60 $ 6,782,653.00 32,513,946.60 \n \n2,650,991.00 3,498,053.00 \n \nTotal Capital Assets, Not Being Depreciated \n \n$ 31,880,810.60 $ 6,782,653.00 $ 32,514,419.60 $ 6,149,044.00 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 125,847,539.00 $ 31,939,284.00 $ \n \n17,219,036.00 \n \n773,795.00 \n \n3,992,376.00 \n \n95,240.00 \n \n5,602.00 $ 157,781,221.00 \n \n189,274.00 \n \n17,803,557.00 \n \n4,087,616.00 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n27,568,749.00 10,221,920.00 \n2,914,914.00 \n \n2,700,577.00 1,352,039.00 \n89,753.00 \n \n2,848.00 162,266.00 \n \n30,266,478.00 11,411,693.00 \n3,004,667.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n$ 106,353,368.00 $ 28,665,950.00 $ \n \n29,762.00 $ 134,989,556.00 \n \nGovernmental Activity Capital Assets - Net \n \n$ 138,234,178.60 $ 35,448,603.00 $ 32,544,181.60 $ 141,138,600.00 \n \nCapital assets being acquired under capital leases as of June 30, 2011, are as follows: \nGovernmental Funds \n \nBuildings and Improvements Less: Accumulated Depreciation \n \n$ \n \n2,515,964.00 \n \n1,456,936.00 \n \n$ \n \n1,059,028.00 \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nEducational Media Services \n \n$ \n \nGeneral Administration \n \nStudent Transportation Services \n \nFood Services \n \n$ \n16,155.00 15,741.00 711,659.00 \n \n$ \n \n3,191,696.00 \n743,555.00 207,118.00 4,142,369.00 \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 6: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2011, consisted of the following: \n \nTransfer to \n \nTransfers From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ \n \n930,000.00 \n \nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects. \nNOTE 7: RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2010 $ 2011 $ \n \n353,374.00 $ 399,917.74 $ \n \n309,195.31 $ 443,400.99 $ \n \n262,651.57 $ 536,652.99 $ \n \n399,917.74 306,665.74 \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nClaims and \n \nBeginning of Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \n2010 $ 2011 $ \n \n0.00 $ 0.00 $ \n \n46,871.00 $ 40,210.00 $ \n \n46,871.00 $ 40,210.00 $ \n \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Blanket Employee \n \n$ \n \n100,000.00 \n \n$ \n \n100,000.00 \n \nNOTE 8: LONG-TERM DEBT \n \nCAPITAL LEASES \n \nThe Floyd County Board of Education entered into a lease agreement for construction and energy management systems. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nCOMPENSATED ABSENCES \n \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - QZAB - Series 2004 General Government - Series 2009 \n \n0.00% 3.00% - 4.00% \n \n$ 2,000,000.00 22,000,000.00 \n \n$ 24,000,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \n \nBalance July 1, 2010 \n \nAdditions \n \nGovernmental Funds Deductions \n \nBalance June 30, 2011 \n \nDue Within One Year \n \nG. O. Bonds Capital Leases Compensated Absences Bond Premiums Amortized \n \n$ 27,000,000.00 5,593,791.54 7,312,135.51 $ 744,683.70 \n \n$ 2,716,847.73 \n \n3,000,000.00 $ 24,000,000.00 $ \n \n564,568.90 \n \n5,029,222.64 \n \n9,731,658.73 \n \n297,324.51 \n \n212,766.77 \n \n531,916.93 \n \n4,000,000.00 594,636.38 297,324.51 212,766.77 \n \n$ 40,650,610.75 $ 2,716,847.73 $ 13,508,994.40 $ 29,858,464.08 $ 5,104,727.66 \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nAt June 30, 2011, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nFiscal Year Ended June 30: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n2012 2013 2014 2015 2016 2017 - 2019 \nTotal Principal and Interest \n \n$ 594,636.38 $ 626,305.18 659,660.57 694,792.38 731,795.22 \n1,722,032.91 \n \n247,480.18 215,811.38 182,455.99 147,324.18 110,321.34 102,553.55 \n \n$ 5,029,222.64 $ 1,005,946.62 \n \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \n2012 2013 2014 2015 2018 \n \n$ 4,000,000.00 $ 5,000,000.00 6,000,000.00 7,000,000.00 2,000,000.00 \n \n654,350.00 $ 506,850.00 322,325.00 112,650.00 \n \n212,766.77 212,766.77 106,383.39 \n \nTotal Principal and Interest \n \n$ 24,000,000.00 $ 1,596,175.00 $ 531,916.93 \n \nNOTE 9: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $256,492.65 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certificated Personnel In the amount of $181,728.13 \nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $30,782.52 \nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $43,982.00 \nNOTE 10: SPECIAL ITEMS \nOn May 4, 2010, the School Board approved a revision to the School District's compensated absences policy. The policy was revised to include the following: \"This administrative regulation shall terminate on January 1, 2012, and any employees who retire or voluntarily terminate their employment with the Floyd County Board of Education after December 31, 2011 shall not be entitled \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nto any severance pay benefit pursuant to this policy.\" As a result there will be no liability to the School District as of January 1, 2012. The Board was notified by June 30, 2011 by those employees who are retiring before December 31, 2011, and those employees were issued half-year contracts accordingly. The Superintendent declared that no employee will be released from his or her contract in mid-year in order to receive severance pay. Therefore, the dollar amount for the true liability as of June 30, 2011, is known. The remainder of the accrued compensated absences liability totaling $6,812,107.20 has lapsed and is reported as a Special Item on the Statement of Activities. \nNOTE 11: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n11-657-021 Alto Park Elementary School Addition Pepperell High School Fieldhouse Roof Johnson Elementary School Addition \n \n$ \n \n230,641.00 $ \n \n183,766.00 \n \n204,875.73 \n \n27,519.35 \n \n170,817.50 \n \n$ \n \n633,853.58 $ \n \n183,766.00 \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2011: \nFor certificated teachers, librarians and regional educational service agencies: \n \nJuly 2010 - April 2011 May 2011 - June 2011 \n \n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \n \n$162.72 per member per month $218.20 per member per month $246.20 per member per month \n \nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ \n \n9,763,226.47 \n \n$ \n \n9,260,601.40 \n \n$ \n \n9,570,121.25 \n \nNOTE 15 : RETIREMENT PLANS \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit \n \n- 23 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nplan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ \n \n6,530,152.03 \n \n$ \n \n6,307,364.76 \n \n$ \n \n6,002,396.51 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \nDEFINED CONTRIBUTION PLAN \nIn July 2003, Floyd County Board of Education began an employer paid 403(b) annuity plan for the group of employees covered under the Public School Employees' Retirement System (PSERS). Recognizing that PSERS was a limited defined contribution and defined benefit plan which did not provide for an adequate retirement for this group of employees, it was the Board's desire to supplement the retirement of this group. \n \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe Board paid contributions to Hartford Life Insurance Company, TIAA-CREF, and VALIC for fiscal year 2009 and part of the fiscal year 2010 through January 2010. VALIC was the designated as the 3rd party plan administrator of this plan as of February 2010 and all contributions are paid to them directly. VALIC then distributes funds to the other companies as necessary. For each employee covered under PSERS, the Board began contributing to the plan an amount matching up to a maximum of 4% of the employee's base pay, dependent upon the employee's actual contribution election. \nThe employee becomes vested in the plan with 5 years of continuous employment. Employees who had already achieved 5 years of continuous employment at the time the plan was implemented were vested upon enrollment. \nFunds accumulated in the employer paid accounts are only available to the employee upon termination of employment and 5 years of continuous employment with Floyd County Board of Education. If an employee terminates employment prior to achieving 5 years of continuous employment, funds paid on behalf of the non-vested employee are credited back to the Board. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ \n \n29,062.65 \n \n$ \n \n27,606.24 \n \n$ \n \n27,579.53 \n \n- 25 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Sources Other Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ \n \n30,514,823.00 $ \n \n31,030,985.00 $ \n \n31,597,855.56 \n \n325,000.00 \n \n325,000.00 \n \n363,285.72 \n \n56,980,281.56 \n \n58,526,311.56 \n \n62,686,272.06 \n \n13,376,725.00 \n \n15,636,357.41 \n \n13,390,806.60 \n \n2,245,000.00 \n \n2,245,000.00 \n \n2,287,134.77 \n \n37,000.00 \n \n37,000.00 \n \n41,444.60 \n \n3,250,000.00 \n \n3,250,000.00 \n \n2,916,965.16 \n \n$ \n \n106,728,829.56 $ \n \n111,050,653.97 $ \n \n113,283,764.47 \n \n$ \n \n72,451,548.66 $ \n \n73,175,038.40 $ \n \n68,565,361.37 \n \n2,361,548.00 1,985,508.04 2,174,925.95 2,090,180.23 7,801,581.27 \n674,674.00 8,250,578.40 3,908,228.00 \n779,792.00 326,630.01 6,111,600.00 \n25,803.00 \n \n2,394,788.28 2,789,580.34 2,260,143.64 2,193,307.07 7,697,754.63 \n737,518.76 8,313,771.29 4,445,200.80 \n749,822.35 270,271.31 6,110,774.85 \n26,740.25 \n \n3,257,850.99 2,084,757.83 2,270,758.61 2,216,378.03 8,253,591.03 \n709,772.62 8,931,682.64 4,286,946.29 \n742,527.64 623,957.07 5,470,847.22 \n11,926.00 249,196.01 \n \n$ \n \n108,942,597.56 $ \n \n111,164,711.97 $ \n \n107,675,553.35 \n \n$ \n \n-2,213,768.00 $ \n \n-114,058.00 $ \n \n5,608,211.12 \n \n$ \n \n30,000.00 $ \n \n30,000.00 \n \n-930,000.00 \n \n-930,000.00 $ \n \n$ \n \n-900,000.00 $ \n \n-900,000.00 $ \n \n$ \n \n-3,113,768.00 $ \n \n-1,914,058.00 $ \n \n5,641,451.09 \n \n6,403,261.57 \n \n534,761.43 \n \n-930,000.00 -930,000.00 4,678,211.12 7,026,915.20 \n \nFund Balances - Ending \n \n$ \n \n2,527,683.09 $ \n \n5,023,965.00 $ \n \n11,705,126.32 \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 budgeted revenues or expenditures of the various principal accounts. \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- 27 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nSchools and Roads Cluster Pass-Through From Office of State Treasurer Schools and Roads - Grants to States \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \nEducational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \nTotal Title I, Part A Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Mathematics and Science Partnerships \nTotal Other Programs \nTotal U. S. Department of Education \nLabor, U. S. Department of Workforce Investment Act Cluster Pass-Through From Northwest Georgia Regional Commission ARRA - Workforce Investment Act Youth Activities \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n5,299,488.48 (1) \n \n$ \n \n5,299,488.48 \n \n10.665 \n \nN/A \n \n(3) \n \n$ \n \n5,299,488.48 \n \n84.196 \n \nN/A \n \n$ \n \n59,164.99 \n \n84.318 \n \nN/A \n \n$ \n \n21,023.19 \n \n* 84.391 * 84.392 * 84.027 * 84.173 \n \nN/A \n \n$ \n \n1,086,136.46 \n \nN/A \n \n30,511.59 \n \nN/A \n \n2,024,732.80 \n \nN/A \n \n102,452.43 \n \n$ \n \n3,243,833.28 \n \n* 84.389 * 84.010 \n \nN/A \n \n$ \n \n723,444.00 \n \nN/A \n \n2,459,567.18 \n \n$ \n \n3,183,011.18 \n \n84.048 * 84.410 \n84.365 84.367 84.002 \n \nN/A \n \n$ \n \n106,973.56 \n \nN/A \n \n2,337,688.00 \n \nN/A \n \n36,139.92 \n \nN/A \n \n358,849.74 \n \nN/A \n \n214,337.54 \n \n$ \n \n3,053,988.76 \n \n$ \n \n9,561,021.40 \n \n17.259 \n \nN/A \n \n$ \n \n143,843.02 \n \nTotal Expenditures of Federal Awards N/A = Not Available \n \n$ 15,004,352.90 \n \n- 28 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"2\" \n \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $496,006.41. \n(2) Expenditures for the funds earned on the School Breakfast Program ($770,609.40) were not maintained separately and are included in the 2011 National School Lunch Program. \n(3) Funds earned on this program, in the amount of $4,776.69, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Charter Schools - State Planning Grant Dual Enrollment Funding Health Insurance Math and Science Supplements Move On When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Virtual Schools Grant Vocational Construction Related Equipment - State Bonds \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nNatural Resources, Georgia Department of Arrowhead Grant \nOffice of the State Treasurer Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n1,802,635.58 \n \n$ \n \n1,802,635.58 \n \n3,668,895.00 223,563.00 \n8,167,173.00 765,861.00 \n3,867,826.00 300,539.00 \n6,594,586.09 5,989,820.91 2,047,629.00 13,087,687.00 3,920,847.00 \n302,213.00 508,039.00 419,047.00 1,215,437.00 349,413.00 236,014.00 \n1,731,914.00 2,759,631.00 2,658,937.00 \n1,286,068.00 159,176.00 29,270.00 \n6,607,324.00 167,020.00 226,674.00 \n-8,522,354.00 \n930,129.00 7,633.00 \n181,728.13 39,031.03 200.00 \n312,087.00 457,752.00 \n30,782.52 375.00 \n86,028.80 \n \n3,668,895.00 223,563.00 \n8,167,173.00 765,861.00 \n3,867,826.00 300,539.00 \n6,594,586.09 5,989,820.91 2,047,629.00 13,087,687.00 3,920,847.00 \n302,213.00 508,039.00 419,047.00 1,215,437.00 349,413.00 236,014.00 \n1,731,914.00 2,759,631.00 2,658,937.00 \n1,286,068.00 159,176.00 29,270.00 \n6,607,324.00 167,020.00 226,674.00 \n-8,522,354.00 \n930,129.00 7,633.00 \n181,728.13 39,031.03 200.00 \n312,087.00 457,752.00 \n30,782.52 375.00 \n86,028.80 \n \n$ 25,658.00 43,982.00 \n \n805,546.00 \n \n805,546.00 25,658.00 43,982.00 \n \nSee notes to the basic financial statements. \n \n$ 62,686,272.06 $ \n \n805,546.00 $ 63,491,818.06 \n \n- 30 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \n2003 SPLOST (5) \n \n(1) Renovating, Repairing, improving and equipping existing \n \nschools and facilities including roof replacements and HVAC \n \nsystems \n \n$ \n \n3,701,000.00 $ 3,756,199.09 $ 1,212,412.21 $ 2,406,570.51 \n \n(2) Technology system-wide including purchasing hardware \n(3) Transportation Department Improvements and Bus Purchases \n(4) Acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal \n \n2,300,000.00 2,270,000.00 \n115,000.00 \n \n2,494,997.44 3,808,340.04 \n5,000.00 \n \n277,370.78 48,600.00 \n \n2,191,626.66 3,759,740.04 \n5,000.00 \n \n(5) Legal and Administrative Costs \n \n372,461.33 \n \n38,858.52 \n \n333,602.81 \n \n2009 SPLOST \n(1) Acquiring, constructing, equipping and furnishing a new Model High School with buildings and facilities useful and desirable therewith \n \n28,175,000.00 \n \n27,107,297.74 \n \n2,298,072.12 \n \n24,809,225.62 \n \n(2) Additional Classrooms \n(3) Renovating, Repairing, improving and equipping existing schools and facilities including roof replacements and HVAC systems \n(4) Technology system-wide including purchasing hardware \n \n6,174,000.00 \n8,842,000.00 2,500,000.00 \n \n6,538,937.00 \n9,171,248.04 2,389,230.77 \n \n827,441.31 \n \n209,547.17 \n \n1,558,387.93 304,844.82 \n \n2,409,380.02 467,994.89 \n \n(5) Transportation Department Improvements and Bus Purchases \n(6) Acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal \n \n2,000,000.00 700,000.00 \n \n1,940,000.00 250,000.00 \n \n9,520.00 \n \n6,138.56 \n \n(7) Legal and Administrative Costs \n \n323,700.16 \n \n65,608.31 \n \n258,091.85 \n \nPROJECT STATUS \nOngoing Ongoing Completed Completed Completed \nCompleted Ongoing \nOngoing Ongoing Ongoing Ongoing Ongoing \n \n$ 56,777,000.00 $ 58,157,411.61 $ 6,641,116.00 $ 36,856,918.13 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n \n2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n \n(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 4,518,386.54 \n \nCurrent Year \n \n759,350.00 \n \nTotal \n \n$ 5,277,736.54 \n \n(5) Only projects not completed prior to July 1, 2010, are included in this report for 2003 SPLOST and include current and ongoing project expenditures. \n \nSee notes to the basic financial statements. \n \n- 31 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n4,129,543.00 $ 3,329,792.33 $ \n \n13,424.74 $ 3,343,217.07 \n \n271,269.00 \n \n62,146.53 \n \n62,146.53 \n \n9,263,388.00 9,952,677.06 \n \n209,580.55 \n \n10,162,257.61 \n \n867,436.00 \n \n280,485.63 \n \n280,485.63 \n \n4,401,080.00 5,544,676.30 \n \n43,032.41 \n \n5,587,708.71 \n \n366,973.00 6,919,298.00 6,170,041.00 2,311,918.00 14,581,331.00 \n4,374,462.00 352,848.00 571,975.00 460,624.00 \n \n156,286.75 9,103,365.15 9,463,922.02 1,525,014.77 \n123,004.47 9,049,770.15 \n263,908.35 1,924,971.13 \n1,974.90 643,679.67 291,792.80 \n \n103,722.04 271,841.55 209,505.15 \n97,938.20 144,006.06 \n44,324.20 \n \n156,286.75 9,207,087.19 9,735,763.57 1,734,519.92 \n123,004.47 9,147,708.35 \n407,914.41 1,969,295.33 \n1,974.90 643,679.67 291,792.80 \n \n$ \n \n55,042,186.00 $ 51,717,468.01 $ 1,137,374.90 $ 52,854,842.91 \n \n1,375,525.00 268,163.00 \n \n2,030,794.64 49,910.46 \n \n138,616.21 81,505.10 \n \n2,169,410.85 131,415.56 \n \n$ \n \n56,685,874.00 $ 53,798,173.11 $ 1,357,496.21 $ 55,155,669.32 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 33 - \n \n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 18, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Floyd County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Floyd County Board of Education's basic financial statements and have issued our report thereon dated May 18, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Floyd County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \n \n2011YB-10 \n \n  Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted certain matters that we have reported to management of Floyd County Board of Education in a separate letter dated May 18, 2012. \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2011YB-10 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n  Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nMay 18, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited Floyd County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. Floyd County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Floyd County Board of Education's management. Our responsibility is to express an opinion on Floyd County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Floyd County Board of Education's compliance with those requirements. \nIn our opinion, the Floyd County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. \n \n2011SA-10 \n \n  Internal Control Over Compliance \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Floyd County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over compliance. \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \n \nRWH:as 2011SA-10 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n  FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2011 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nUnqualified \n \nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nUnqualified \n \nAny audit findings disclosed that are required to be reported in \n \naccordance with OMB Circular A-133, Section 510(a)? \n \nNo \n \nIdentification of major programs: CFDA Numbers \n \nName of Federal Program or Cluster \n \n10.553, 10.555 84.010, 84.389 84.027, 84.173, 84.391, 84.392 84.410 \n \nChild Nutrition Cluster Title I, Part A Cluster Special Education Cluster Education Jobs Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$450,130.59 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2009-h2010","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2010-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed February 20, 2023).","Fiscal year ended June 30, 2016 (Received via FTP on January 31, 2018 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed February 20, 2023)."],"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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2009-h2010"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30,2010 \n(Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURESOF FEDERALAWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURESAND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFlDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL \nGENERAL FUND \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WlTH GOVERNMENTAUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REQUIREMENTS THAT COULD HAVE A DIRECTAND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \n \nSECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENOFTAUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2 0 1 1 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Floyd County Board of Education, as of and for the year ended June 30, 2010, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Floyd County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2010, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \nIn accordance with Government Auditing Standards, we have also issued our report dated April 28, 2011, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and \n \n not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessingthe results of our audit. \nAccounting principles generally accepted in the United States of America require that the Management's Discussionand Analysis and the Schedule of Revenues, Expendituresand Changes in Fund Balances - Budget and Actual, as presented on pages i through ix and page 27 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses t o our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence t o express an opinion or provide any assurance. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, fowl Governments, and Nun-Profit Organizations/ are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nCPA, CGFM \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDED JUNE 30,2010 \n \nINTRODUCTION \nThe School District's financial statements for the fiscal year ended June 30, 2010, includes a series of basic financial statements that report financial information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Assets 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 Assets and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2010 are as follows: \nOn the District-wide financial statements: \nDistrict-wide net assets at June 30, 2010, were $117,126,899. Net assets reflect the difference between all assets of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net assets at June 30, 2010, of $117,126,899 represented an increase of $5,383,791 in net assets when compared to the prior year. \nThe School District had $111.11 million in expenses relating to governmental activities; only $66.31 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $50.29 million were adequate to provide for these programs. \nAs stated above, general revenues accounted for $50.29 million or about 43.0% of all revenues totaling $116.6 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \n \nSource of Revenues \n \n--General Revenue Property Taxes \n \n2- 27.3% -General Revenue Sales Taxes 8.7% \nGeneAr7all.l1OR%tehveernue \n \nThe School District decreased its outstanding bond debt by $7.65 million. The existing bond debt of $27.0 million will be retired by a Special Purpose Local Option Sales Tax and interest earned thereon that was approved by the citizenry in conjunction with the Bond Sale. \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDEDJUNE 30,2010 \nOn the fund financial statements: \n= Among major funds, the General Fund had $107.1 million in revenues and $106.5 \nmillion in expenditures. The General Fund balance of $7.03 million at June 30, 2010, decreased $322 thousand from the prior year fund balance. Even though there were decreases in mid-year state funding, careful planning along with staff furloughs and staff reductions through attrition (retirements, resignations) allowed the School District to avoid a major decrease in fund balance. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Assets' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 3 4 for the purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understandingof the financial statements. \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-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 Districtwide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Assets1and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar t o 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 assets and any changes in those assets. The change in net assets 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 \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \nmay be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nWhen analyzing District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Assets: \nCapitalize current outlays for capital assets Depreciate capital assets Report long-term debt as a liability Calculate revenue and expense using the economic resources measurement focus and the accrual basis of accounting Allocate net assets as follows: \no NetAssets investedincapitalasset;s; net ofrelateddebt o R e ~ t ~ c tneedt assetsare those with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o UnrestrictednetasseBare net assets that do not meet any of the above restrictions. \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 two kinds of funds as discussed below: \nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciarv Funds - The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet assets, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net assets. When expenses exceed revenues, the result is a decrease in net assets. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net assets, as measured in the Statement of Net Assets, can be one \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \n \nway to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net assets 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. \n \nIn the case of the Floyd County School District, assets exceeded liabilities by $117.1 million at June 30, 2010. 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 asset category. For example, of the $117.1 million of net assets, almost $12.69 million was restricted for continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. The School District also had a deficit in unrestricted net assets of just over $462,000. The deficit amount of unrestrided net assets of $462,000 reflects reductions in state revenues and the value of the severance pay liability. The School District has resolved to terminate the severance pay policy as of December 31, 2011. The elimination of this liability should return unrestricted net assets to an amount that will allow to School District to meet the ongoing needs of its citizens and creditors. \n \nIn addition, the School District also had $104.9 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 assets, it must be recognized that this portion of the net assets is notavailable for future spending. \n \nTable 1provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Assets \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFY 2010 \n \nFY 2009 \n \nTotal Assets \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \nTotal Liabilities \nNet Assets Invested in Capital Assets, Net of Debt Restricted Unrestricted \nTotal Net Assets \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENTSDISCUSSIONAND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \n \nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. \n \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues \n \nTable 2 Change in Net Assets \n \nGovernmental Activities \n \nFY 2010 \n \nFY 2009 \n \nGeneral Revenues: Property Taxes For Maintenance and Operations Other Taxes - Railroad Equipment Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Intangible RecordingTax Real Estate Grants and Contributions not Restrictedto Specific Programs Investment Earnings Miscellaneous Gain or Loss on Disposal of Assets \nTotal General Revenues \n \nTotal Revenues \n \nProgram Expenses Instruction Support Services Pupil Services Improvementof Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenanceand Operation of Plant Student Transportation Services Central Support Services Other Support Services Operationsof Non-InstructionalServices Enterprise Operations Community Services Food Services Interest on Short-Termand Long-TermDebt \n \nTotal Expenses \n \nIncrease in Net Assets \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDEDJUNE 30,2010 \n \nCost of ProvidingServices \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsettingthese 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 \nCost of Services \n \nTotal Cost of Services \n \nPI2 0 1 0 \n \nPI 2 0 0 9 \n \nNet Cost of Services \n \nPI 2 0 1 0 \n \nPI 2 0 0 9 \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-InstructionalServices Community Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \n \n259,856 988,771 \n \n289,490 434,233 \n \n257,140 988,771 \n \n20,199 434,233 \n \nThe table above shows that while the total cost of services for providing services decreased by 2% from the prior year, the net cost to the local taxpayers also decreased by 1% from the prior year. In other words, as compared to the proceeding fiscal year, a percentage of the cost of providing services in fiscal year 2010 fell to the taxpayers of Floyd County. Even with reductions in budgeted expenditures, this condition is occurring because increased costs for such items as salaries, benefits, maintenance, fuel etc. is occurring at a higher rate than is being funded from program revenues (State, Federal, and revenuesfor services and sales). \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\"and \nExhibit \"ENof this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $118.1 million and total expenditures of $143.9 million in fiscal year 2010. Total governmental fund balances of $19.47 million at June 30, 2010, decreased almost $25.87 million from the prior year. This decrease in fund balance occurred primarily because the School District used revenues from the $25.0 million in General Obligation Bonds issued for capital projects during 2009 with the majority of those funds expended for a new Model High School and other renovations in 2010. \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDED JUNE 30,2010 \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 2010, 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 $107.1 million were under the final budgeted amount of $114.3 million by almost $7.2 million. This difference (final actual vs. final budget) was primarily attributable to revenues for property taxes under final budget of $14 thousand, revenues for State Funds under the final budget of $7.17 million (from mid-year austerity reductions which is the largest reduction ever for public education), revenues for charges for services over final budget of $204 thousand, and miscellaneous revenues under final budget of $672 thousand. The School District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. The General Fund's final actual expenditures of $106.53 million were under the final budget amount of $113.44 million by $6.9 million. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction under the final budget of $6.9 million, expenditures for pupil services exceeding the final budget by $513,000, expenditures for Improvement of Instruction under the final budget by $456,000, expenditures for school administration exceedingthe final budget by $696,000 expenditures for M\u0026O under the final budget by $22,000, expenditures for other support services exceedingfinal budget of over $312,000, Food Services under the final budget by $468,000 and other community services exceeding the final budget by $233,000 (for reimbursed after school care) and other functions totaling approximately $200,000 under the final budget. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2010, the School District had almost $138.2 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and food service, transportation and maintenance equipment. This year's major additions totaled almost $28.2 million and included: \nConstruction in progress of a New Model High School Beginning roof replacement projects at Garden Lakes, McHenry, Alto Park, and Pepperell High School Beginning preliminary work for classroom additions at various schools \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDEDJUNE 30,2010 \nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nTable 4 Capital Assets at June 30 \n(Net of Depreciation) \nGovernmental Activities \nLand Construction in Progress Land lmprovements Buildingsand lmprovements Equipment \nTotal \nAdditional information about the School District's Capital Assets can be found in the Notes to the Basic Financial Statements. \nDebt \nAt June 30, 2010, the School District had over $40.65 million in total debt outstanding which consisted of $27.0 million in bond debt, $5.6 million in capital lease debt, $7.3 million in compensated absences debt, and $744,684 in unamortized bond premium. Table 5 summarizes the School District's debt as compared to the prior fiscal year. In September 2008, the citizens of Floyd County passed an Educational Local Option Sales Tax (ELOST) for a period of five years which began on April 1,2009, for the purpose of construction and renovation, technology and transportation. \nTable 5 Debt at June 30 \nGovernmental Activities \nBonds Payable Unamortized Bond Premium Capital Leases Compensated Absences \nTotal \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \nFACTORS BEARING ON THE DISTRICTS 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: \nThe School District is financially stable. The School District's current operating millage is 18.588, which produces approximately $1,707,610 per mill net of fees. The School District's enrollment remained stable this school year as compared to past 3 years with an average of 1 0 0 students per year over the last three years. The School District completed construction on a new Model High School which opened on August 1, 2010. The School District also began work on other classroom additions in the next year to reduce portable classrooms at various schools. The School District plans to fund additional capital outlays with the one percent local sales tax revenue, general obligation bonds and state capital outlay grants. \nThe School District will continue to face challenges from the nationwide economic downturn resulting in the state funding decreases. From fiscal year 2003 through fiscal year 2010, the QBE formula adjustments (austerity cuts) have totaled just slightly over $24.0 million. For fiscal year 2 0 1 1 alone, the Amended QBE Formula Adjustment is projected to be $10,474,000 with $4,992,992 to be replaced by state fiscal stabilization funds from the American Recovery and Reinvestment Act (ARRA) funded by the Federal government. To meet these funding reductions, the School District will reduce its expenditures thoughtfully to avoid reducing services that directly impact student achievement, and with the use of Stimulus funding, save or create jobs that will positively impact student achievement. The School District will also continue to be impacted by the remedial actions required for under performing schools under the No Child Left Behind Act. In the midst of these challenges, the School District remains confident in the ability to maximize resources to provide the best possible educational experiencefor all of our students. \nCONTACTING THE SCHOOL DISTRICTS FINANCIAL MANAGEMENT \nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and t o 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. Chris Toles, Executive Director of Financial Services, Floyd County School District, 600 Riverside Parkway, NE, Rome, GA. You may also email your questions to Mr. Toles at ctoles@flovdboe.net. \n \n FLOYD COUNTY BOARD OF EDUCATION \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30,2010 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable Taxes State Government Federal Government Local Government Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Depreciation) \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Interest Payable Long-Term Debt Due within one Year Due in more than one Year \nTotal Liabilities \nNET ASSETS Invested in Capital Assets - Net of Related Debt Restricted for: Continuation of Federal Programs Debt Services Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \n \nEXHIBIT \"A\" \nGOVERNMENTAL ACTlVlTl ES \n \nThe notes to the basic financial statements are an integral part of this statement. \n- 1- \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES YEAR ENDEDJUNE 30,2010 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvementof InstructionalServices EducationalMedia Services General Administration School Administration Business Administration MaintenanceAnd Operation Of Plant Services Student TransportationService \nSupport Services - Central \nOther Support Services Operations of Non-InstructionalServices \nEnterprise Operations Food Services Community Services Operations Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenanceand Operations \nOther Taxes - Railroad Equipment \nSales Tax Special Purpose Local Option Sales Tax For Capital Outlay/Debt Services \nOther Sales Taxes Grantsand Contributionsnot Restricted to Specific Programs Investment Earnings Miscellaneous Gain or Loss of Sale and Disposals of Assets \nTotal General Revenues \nChange in Net Assets \n- Net Assets Beginningof Year (Restated) \n- NetAssets End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nThe notes to the basicfinancial statements are an integral part of this statement. \n- 2- \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n FLOYD COUNN BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30,2010 \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable. Net \nTaxes State Government Federal Government Local Inventories \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BAIANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects \nUnre~elved Designated for Capital Outlay Designated for Student Activities Designated for Self-Insurance Designated for Severance Pay Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \nDEBT SERVICE \nFUND \n \nEXHIBIT \"C\" TOTAL \n \nThe notes to the basic financial Statements are an integral part of this statement -4- \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30,2010 \nTotal Fund Balances- GovernmentalFunds (Exhibit\"C\") \nAmounts reportedfor GovernmentalActivities in the Statementof Net Assets are different because: \nCapitalAssets used in Governmental Activities are not financial resources and therefore are not reDortedin the funds. These assets consist of: \nLand Land Improvements Buildings Constructionin Progress Machineryand Equipment Accumulated Depreciation \nTotal Capital Assets \nBond IssuanceCosts are recognizedwhen incurred in the GovernmentalFund Statements,but are amortizedover the life of the Bond Issue in the District-wideStatements. \nSome of the School District's property tax revenues will be collected after yearend but are not available soon enough to pay for the current period's expenditures. \nProperty Taxes \nSome liabilities reported in the Governmental Activities do not require the use of current financial resources, and therefore are not reported as consideredliabilities in the GovernmentalFund Statements. \nAccrued Interest on Long-Term Debt \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nGeneral Obligation Bonds Payable Unamortized Bond Premiums Capital Leases Payable Compensated Absences Payable \nTotal Long-Term Liabilities \nNet Assets of GovernmentalActivities (Exhibit \"A\") \n \nEXHIBIT \"D\" \n \nThe notes to the basicfinancial statements are an integral part of this statement. -5- \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDEDJUNE 30,2010 \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Chargesfor Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenuesover (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nTransfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances- Beginning \n- Fund Balances Ending \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nEXHIBIT \"E\" TOTAL \n \nThe notes to the basic financial statements are an integral part of this statement. \n-6- \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDEDJUNE 30.2010 \n- Total Net Change in Fund Balances Governmental Funds (Exhlbit\"E\") \nAmounts reported for GovernmentalActivities in the Statement of Activities are different because: \nCapital Outlays are reported as expendituresin Governmental Funds. However, In the Statement of Activities. the cost of Capital Assets is allocated over their estimated useful lives as depreciationexpense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nTotal Capital Assets Taxes reported in the Statement of Activities that do not provldecurrent financial resources are not reported as revenues in the funds. In 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 assets differs from the change in fund balances by the carryingvalue of the capltal assets sold or disposed of. Some items in the Statement of Activities are requiredto be amortized over the life of the Bondswhereas the entire transaction is recognized in the Governmental Fund Statements in the year of occurrence. \nAmortization of Bond Issuance Costs Amortization of Bond Premiums Repaymentof Lon\u0026Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces LoneTerm Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: Payment of Capital Lease Debt Redemption of Bond Principal \nTotal Debt Repayment Some items reported on the Statement of Activities do not requirethe use of current financial resourcesand, therefore are not reported as expenditures in the Governmental Funds. These activities consist of: \nNet Increase Accrued Interest Expense Decrease in Workers Compensation Claims (Incurred but not reported) Decrease in Compensated Absences \nChange in Net Assets of GovernmentalActivities (Exhibit\"BR) \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS \nJUNE 30,2010 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS \n \nThe notes to the basic financial statements are an integral part of this statement. -8- \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT - FLOYD COUNTYSCHOOLS COLLEGE AND CAREER ACADEMY, INC. \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible to provide a seamless blend of academics with career and technical education and skills to better serve the Floyd County community. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been reported in the general fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistnstnwcti-de Statements The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \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. Revenuesthat are not classified as program revenues, includingall taxes, are presented as general revenues. \nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nThe School District reports the following major governmental funds: \nGeneral Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \nDistrict-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds, and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \nDebt Service Fund accounts for taxes (sales) legally restricted for the payment of general long-term principal, interest and payingagent's fees. \nThe School District reports the following fiduciary fund type: \nAgency funds account for assets held by the School District as an agent for various funds, governments or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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 are recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nThe State of Georgia reimburses the School District for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1- June 30) and paid over a twelve month contract period, generally September 1through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School District over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2010, the School District adopted the Governmental Accounting and Standards Board (GASB) Statement No. 51,Accounting and Reporthg for Intangible Assets. The provisions of this Statement generally require retroactive reportingfor intangible assets acquired after June 30, 1980, with the exception of those intangible assets that have indefinite useful lives and those that are considered internally generated. \nIn addition, the School District adopted GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. The provisions of this Statement impacts disclosure regarding derivative instruments entered into by the state and local governments. Derivative disclosures, if any, will be identified in Note 3. \n \nRESTATEMENT OF PRIOR YEAR NET ASSETS/FUND BALANCE \nFor fiscal year 2010, the School District made a prior period adjustment due to an omission, which requires the restatement of the June 30,2010, net assets in Governmental Activities. The result is a decrease in Net Assets at July 1, 2009, of $118,500.00. This change is in accordance with generally accepted accounting principles. \n \nNet assets, July 1,2009, as previously reported \n \n$ 111,743,107.85 \n \nBond interest payable \n \n-118,500.00 \n \nNet Assets, July 1,2009, as restated \n \n$ 111,624,607.85 \n \nCASH AND CASH EQUIVALENTS \n \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \n \nINVESTMENTS \n \nComposition of Investments lnvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \ninvestments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, 3. Obligations fully insured or guaranteed by the United States government or a United States \ngovernment agency, \n4. Obligations of any corporation of the United States government, 5 . Prime banker's acceptances, \n6. The Georgia Fund 1administered by the State of Georgia, Office of Treasury and Fiscal Services, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \n \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n \nPROPERTY TAXES \n \nThe Floyd County Board of Commissioners fixed the property tax levy for the 2 0 0 9 tax digest year (calendar year) on July 28, 2009 (levy date). Taxes were due on November 15, 2009 (lien date). Taxes collected within the current fiscal year or within 6 0 days after year-end on the 2009 tax digest are reported as revenue in the governmental funds for fiscal year 2010. The Floyd County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2010, for maintenance and operations amounted to $31,724,477.28. \n \nThe tax millage rate levied for the 2009 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $ 1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.588 mills \n \nSALES TAXES \n \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $10,009,237.98 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nINVENTORIES \n \nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \nAll $ 5,000.00 $ 10,000.00 $ 5,000.00 $ 200,000.00 \n \nN/A 20 to 8 0 years 1 0 to 8 0 years \n3 to 2 0 years 1 0 to 2 0 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \n \nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 1 0 to 2 0 years. \n \nCOMPENSATED ABSENCES \n \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. \n \nEmployees of the Floyd County Board of Education shall receive severance pay based upon: (1)years of service and (2) amount of accumulated sick leave at the time of retirement or voluntary termination of employment. The amount of severance pay due shall be calculated according to a set \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nof formulas, definitions, and regulations approved by the Board. Severance pay will be paid only once in an employee's tenure with the school system. All payments are based on the total number of years of service as a full-time employee for a full day. Partial days will be computed only as a portion \nof a day (i.e. .5 must be paired with another .5to equal a full day). The amount will be paid from \nlocal funds. Activity for the preceding three years is as follows: \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment \nin capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \nRestricted net assets-These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \n-14- \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNOTE 3: DEPOSITS AND INVESTMENTS \n \nCOLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 1 1 0 percent of the daily pool balance. At June 30, 2010, $76,346.07 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. lnsurance on accounts provided by the Federal Deposit lnsurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan MortgageAssociation, and the Federal National MortgageAssociation. \nCATEGORIZATION OF DEPOSITS \n \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a formal policy for managing custodial credit risk. At June 30, 2010, the bank balances were $19,465,069.68. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, 0 r Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial risk category at June 30,2010, are as follows: \n \nCustodial Credit Risk Categotv \n \nBank Balance \n \nTotal \n \n$ 17,631,739.82 \n \nCATEGORIZATION OF INVESTMENTS \n \nThe School District's investments as of June 30, 2010, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nlnvestment Type \n \nFair Value \n \nlnvestment Maturity Less than 1Year \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \n$ 1,484,851.50 $ 1,484,851.50 \n \nOther Investments U. S. Treasury Money Market Funds \nTotal Investments \n \n9,689,753.18 $ 11,174,604.68 \n \nThe First American Treasury Obligations Fund administered by First American Funds, Incorporated, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The First American Treasury Obligations Fund invests primarily in a portfolio of short-term U. S. Treasury obligations, including repurchase agreements secured by U. S. Treasury obligations. \nThe First American Treasury Obligations Fund is registered with the SEC as an investment company and operates in a manner consistent with the SEC's Rule 2a-7 of the lnvestment Company Act of 1940. The investment is valued at the fund's share price, $1.00 per share. The fund is an AAAm rated investment pool by Standard and Poor's and Aaa by Moody's. The weighted average maturity for First American Treasury Obligations Fund was 4 1 days. \nlnterest Rate Risk lnterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nAt June 30, 2010, $1,484,851.50 of the School District's applicable investments were (1) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the name of the School District and (2) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \n \nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings Unrated \n \nDebt Securities U. S. Agencies Implicitly Guaranteed \n \nConcentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Federal National Mortgage Association Discount Notes. This investment is 13% of the School District's total investments. \nNOTE 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally \nassigned value. See Note 2 - Inventories \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1,2009 \n \nIncreases \n \nDecreases \n \nBalances June 30,2010 \n \n$ 2,651,464.00 5,22l,473.60$ 27,334,939.00$ 3,327,066.00 29,229,346.60 \n \nTotal Capital Assets, Not Being Depreciated $ \n \n7,872,937.60$ 27,334,939.00$ \n \n3,327,066.00$ 31,880,810.60 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 125,145,199.00$ 16,733,965.00 3,951,744.00 \n \n3,353,628.00$ 766,072.00 86,434.00 \n \n2,651,288.00$ 281,001.00 45,802.00 \n \n125,847,539.00 17,219,036.00 3,992.376.00 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n26,153,300.00 9,177,778.00 2,866,639.00 \n \n2,742,727.00 1,309,673.00 \n94,077.00 \n \nL327.278.00 265,53100 45,802.00 \n \n27,568,749.00 10,221,920.00 2,914,914.00 \n \nTotal Capital Assets, Being Depreciated, Net $ 107,633,191.00$ \n \n59,657.00 $ \n \nGovernmental Activity Capital Assets - Net $ 115,506,128.60$ 27,394,596.00$ \n \n1,339,480.00$ 106,353,368.00 4,666,546.00$ 138,234,178.60 \n \nCapital assets being acquired under capital leases as of June 30, 2010, are as follows: \nGovernmental Funds \nBuildings and lmprovements Less: Accumulated Depreciation \n \nCurrent year depreciation expense by function is as follows: \nInstruction Support Services \nEducational Media Services General Administration Student TransportationServices Food Services \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30.2010 \n \nEXHIBIT \"H\" \n \nNOTE 6: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2010, consisted of the following: \n \nTransfer to \n \nTransfers From \nGeneral Fund \n \nDistrict-wide Capital Projects \n \n$ 893,180.11 \n \nTransfers are used to move other local revenues collected by the General Fund to the District-wide Capital Projects Fund to fund local capital projects. \n \nNOTE 7 : RISK MANAGEMENT \n \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \n \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \n \nBeginningof Year Liability \n \nChanges in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginningof Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent Blanket Employee \nNOTE 8: POLLUTION REMEDIATIONOBLIGATIONS \n \nThe School District is the owner of Model High School located at Rome, Georgia, and is responsible for asbestos removal. \n \nThe School District has recorded construction in progress related to this pollution remediation in the amount of $850,000.00, on the Statement of Net Assets. The removal of asbestos contamination detected is to be considered a cost of the new high school that is currently being built. Pollution remediation liability activity in fiscal year 2010 was as follows: \n \nBalance July 1,2009 \n \nAdditions \n \nReductions \n \nBalance June 30,2010 \n \nCurrent Portion \n \nPollution Remediation Obligations $ \n \n0.00 $ 677,320.40 $ 677,320.40 $ \n \n0.00 $ \n \n0.00 \n \nNOTE 9: LONG-TERM DEBT \nCAPITAL LEASES \nThe Floyd County Board of Education entered into a lease agreement for construction and energy management systems. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 3 0 , 2 0 1 0 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \nlnterest Rates \n \nGeneral Government - Series QZAB 2004 General Government - Series 2009 \n \n0.00% \n3.00%- 4.00% \n \nEXHIBIT \"H\" \nAmount \n \nThe changes in Long-Term Debt duringthe fiscal year ended June 30,2010, were as follows: \n \nBalance \nJuly 1. 2009 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30,2010 \n \nDue Within One Year \n \nG. 0.Bonds Capital Leases Compensated Absences Bond Premiums Amortized \n \n$ 34,650,000.00 6,129,813.31 7,593,363.84$ 995,819.47 \n \n$ \n2,942,748.46 \n \n7,650,000.00$ 27,000,000.00$ \n \n536,021.77 5,593,791.54 \n \n3,223,976.79 7,312,135.51 \n \n251,135.77 \n \n744,683.70 \n \n3.000.000.00 564,568.90 600,000.00 212,766.77 \n \nAt June 30, 2010, payments due by fiscal year which includes principal and interest for these items are as follows: \n \nCapital Leases \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \nTotal Principal and lnterest \nFiscal Year Ended June 30: \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond Premium \n \nTotal Principal and lnterest \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNOTE 10: ON-BEHALF PAYMENTS \n \nThe School District has recognized revenues and costs in the amount of $215,732.20 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \n \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $157.554.62 \n \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $25,792.91 \n \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $32,384.67 \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30,2010, together with funding available: \n \nProject \n \nUnearned Executed Contracts \n \nFunding Available From State \n \n10-657-064 10-657-065 10-657-066 10-657-067 \nCoosa High School Renovation Model High School \n \nThe amounts described in this note are not reflected in the basic financial statements. \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNOTE 13: SUBSEOUENT EVENTS \nOn May 4, 2010, the School Board approved a revision to the School District's compensated absences policy. The policy was revised to include the following: \"This administrative regulation shall terminate on January 1,2012, and any employees who retire or voluntarily terminate their employment with the Floyd County Board of Education after December 31, 2011, shall not be entitled to any severance pay benefit pursuant to this policy.\" As a result of this change there will be no liability to the School District as of January 1,2012. \nNOTE 14: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL EMPLOYEES POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fun provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Insurance Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of health insurance coverage. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30,2010: \n \nFor certificated teachers, librarians and regional educational service agencies: \n \nJuly 2009 August 2009 -October 2009 November 2009 -June 2010 \n \n18.534% of covered payroll for August Coverage \n14.492% of covered payroll for September - November Coverage 18.534% of covered payroll for December- July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2009 -June 2010 \n \n$162.72 per member per month plus Departmentof Education contribution of $22,838,311.00 \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nNo additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nContributed \n \nContribution \n \nNOTE 15: RETIREMENT PLANS \nTEACHERS RETIREMENTSYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 2 5 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30,2010 \n \nEXHIBIT \"H\" \n \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 1 0 years of service. If a member terminates with less than 1 0 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2010, were 5.25% of annual salary. The member contribution rate will increase to 5.53% effective July 1,2010. Employer contributions required for fiscal year 2010 were 9.74% of annual salary as required by the June 30, 2007, actuarial valuation. The employer contribution rate will increase to 10.28% effective July 1,2010. \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 \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDEDJUNE 30.2010 \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings M~scellaneous \nTotal Revenues \nCurrent Instruction Support Services Pupil Services Improvementof Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Sewices Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nTotal Exoenditures \nExcess of Revenuesover (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther FinancingSources Other FinancingUses \nTotal Other FinancingSources (Uses) \nNet Change in Fund Balances \n- Fund Balances Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nSCHEDULE '1\" \nACTUAL AMOUNTS \n \nThe accompanyingscheduleof revenues, expendituresand changes in fund balances budget and actual is presentedon the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30.2010 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Ch~ldNutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Office of the Treasury and Fiscal Services Schools and Roads Cluster \nTotal U. S. Department of Agriculture \nEducation. U. S. Department of Educationof Homeless Childrenand Youth Cluster Pass-Through From Georgia Departmentof Education Educationfor Homeless Childrenand Youth \nEducationTechnology State Grants Cluster Pass-Through From Georgia Department of Education EducationTechnology State Grants \nPass-ThroughFrom Georgia Departmentof Education Special Education ARRA- Grants to States ARRA- Preschool Grants Grantsto States Preschool Grants \nTotal Special EducationCluster \nState Fiscal Stabilization Fund Cluster Pass-Through From Georgia Department of Educat~on ARRA- Education State Grants \nTitle I. Part A Cluster Pass-Through From Georgia Departmentof Education ARRA- T~tleI Grants to Local EducationalAgencies Title 1 Grants to Local EducationalAgencies \nTotal Title I, Part A Cluster \nOther Programs Pass-Through From Georgia Department of Education \nCareer and Technical Education- Basic Grants to States \nEnglish Language Acquisition Grants ImprovingTeacher QualityState Grants Mathematics and Science Partnerships Pass-Through From Florida State Un~venity Comprehensive School Reform Demonstration \nTotal Other Programs \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURESOF FEDERALAWARDS \nYEAR ENDEDJUNE 30.2010 \n \nSCHEDULE 9' \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-ThroughFrom Bright From the Start: Georgia Department of Early Care and Learning ARRA- Ch~ldCare and Development Block Grant \n \nCFDA NUMBER \n \nPASS THROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \nTotal Federal Financial Assistance \nN/A = Not Available \nNotes to the Schedule of Exoenditures of Federal Awards \n(1) Includesthe Federally assigned value of donated commodities for the Food Donation Program in the amount of $374.821.52. \n(2) Expenditures for the funds earned on the School Breakfast Program ($786.263.58) were not maintained separately and are included in the 2010 National School Lunch Program. \n(3) Funds earned on this program. in the amount of $5,522.61, do not require report~ngoef xpenditures. \nMajor Programs are identified by an aster~sk(*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanyingschedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accountingwhich is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDEDJUNE 30.2010 \n \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducabon. Georgia Department of Quality Basic Education D~recItnstructional Cost Kindergarten Program \nKindergarten Program - Early Intervention Program \nPrimary Grades (1-3) Program \nPrimary Grades - Early lntervention (1-3) Program \nUpper Elementary Grades (4-5) Program \nUpper Elementary Grades - Early lntervention (4-5) Program Middle Grades (MP)rogram \nHigh School General Education(9-12) Program Vocational Laboratory(9-12) Program Students with Disabilities \nGifted Student - Category VI \nRemedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration FacilityMaintenanceand Operations Categorical Grants Pupil Transportation Regular Nuning Services Vocational Superv~sors Mid-termAdjustment Hold-Harmless Education Equalizabon Fund~ngGrant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Funding Georgia Special Needs Scholarship Fund Health Insurance National Teacher Certification Preschool Handicapped Program Rule 1 0 Spec~aEl ducationState Grant Teachen' Retirement Virtual Schools Grant \nGeorgia State Financingand Investment Commission Reimbursement on Construction Projects \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nSCHEDULE \"3' TOTAL \n \nSee notesto the basic financ~asl tatements. \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30,2010 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \n \nPROJECT STATUS \n \n2003 SPLOST (51 \n \n(1) Renovating, Repairing, improvingand equippingexistingschools and facilities including roof replacements and HVAC systems $ (2) Technology system-wide including purchasing hardware (3)TransportationDepartment lmprovements and Bus Purchases (4) acquiringany capital property necessary or desirablefor the foregoingpurposes, both real and personal (5) Legal and AdministrativeCosts \n \n3,701,000.00 $ 2,300.000.00 2,270,000.00 \n115,000.00 \n \n3,465,647.62 $ 2.489.116.01 3,829,740.04 \n130,526.40 333,602.81 \n \n989,105.29 $ 1,417,465.22 Ongoing \n \n274.010.65 \n \n1,917,616.01 Ongoing \n \n3,759,740.04 Completed \n \n52,873.00 \n \n5.000.00 280,729.81 \n \nOngoing Ongoing \n \n2009 SPLOST (1) acquiring. constructing. equippingand furnishinga new Model High School with buildingsand facilities useful and desirable therewith (2) Additional Classrooms \n(3) Renovating.Repairing, improvingand equippingexistingschools and facilities including roof replacements and HVAC systems (4) Technology system-wide including purchasinghardware (5) TransportationDepartmentlmprovements and Bus Purchases (6) acquiringany capital property necessaryor desirablefor the foregoing purposes, both real and personal (7) Legal and Administrative Costs \n \n8,842,000.00 2,500,000.00 2,000,000.00 \n700,000.00 \n \n7,748.755.92 2,500,000.00 2,000,000.00 \n700,000.00 258,091.85 \n \n1,958,337.84 335,825.87 6,138.56 \n2,356.86 \n \nOngoing Ongoing \n \n451.042.18 Ongoing 132,169.02 Ongoing \nOngoing \n \n255.734.99 \n \nOngoing Ongoing \n \n(1)The School District'soriginal cost estimateas specified in the resolutioncalling for the impositionof the Local Option Sales Tax. \n \n2) The School District'scurrent estimate of total cost for the projects. Includesall cost from project inceptionto completion. \n \n(3) The voters of Floyd Countyapprovedthe impositionof a 1%sales tax to fund the above projectsand retire associated debt. Amounts expendedfor these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \n \nPrior Years \n \n$ 3,801,970.00 \n \nCurrent Year \n \n716,416.54 \n \nTotal \n \n(5) Only projects not completed prior to July 1,2009, are included in this report for 2003 SPLOST and include current and ongoing project expenditures. \n \nSee notesto the basic financial statements. \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES- BY PROGRAM \nYEAR ENDEDJUNE 30.2010 \n \nSCHEDULE \"5\" \n \nD~recItnstructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper ElementaryGrades (4-5) Program Upper ElementaryGrades-Early lnterventlon (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category Ill Category IV \nGifted Student - Category VI \nRemedial Education Program Alternative Education Program EnglishSpeakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Profess~onaDl evelopment \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE OBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nTOTAL QBE FORMULA FUNDS \n \n(1) Comprised of State Funds plus Local Five M ~ lSl hare. (2) Allotments do not include the impact of the State amended formula adjustment \n \nSee notes to the basic financial statements. \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404)656-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-1 56 Atlanta, Georgia 30334-8400 \nApril 28,2011 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Floyd County Board of Education as of and for the year ended June 30, 2010, which collectively comprise Floyd County Board of Education's basic financial statements and have issued our report thereon dated April 28, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Re~orting \nIn planning and performing our audit, we considered Floyd County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \nOur consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \n \n Comeliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted a certain matter that we have reported t o management of Floyd County Board of Education in a separate letter dated April 28, 2011. \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nRespectfully submitted, \nState Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404)656-2174 \n \nDEPARTMENOTF AUDITSAND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 28, 2 0 1 1 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REOUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \nLadies and Gentlemen: \n \nWe have audited Floyd County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2010. Floyd County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of Floyd County Board of Education's management. Our responsibility is to express an opinion on Floyd County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, local Governmen6 and Non-Profit Organizations. Those etandards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Floyd County Board of Education's compliance with those requirements. \nIn our opinion, the Floyd County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programsfor the year ended June 30,2010. \n \n Internal Control Over Compliance \n \nManagement of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered Floyd County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over compliance. \n \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \n \nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed t o identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above. \n \nThis report is intended solely for the information and use of management, members of the Floyd \n \nCounty Board of Education, others within the entity, Federal awarding agencies and pass-through \n \nentities and is not intended to be and should not be used by anyone other than these specified \n \nparties. \n \n. Respectfully submitted, \n \n~ y 6 s e lWl . Hinton, CPA, CGFM State Auditor \n \n SECTION Ill AUDITEE'S RESPONSETO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30.2010 \nPRIOR YEAR FINANCIALSTATEMENT FINDINGSAND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30,2010 \n \n1 SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \n \nInternal control over financial reporting: Material weakness identified? \n= Significant deficiency identified? \n \nNoncompliance material t o financial statements noted: \n \nFederal Awards \n \nInternal Control over major programs: Material weakness identified? Significant deficiency identified? \n \nType of auditor's report issued on compliance for major programs: All major programs \n \nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \n \nIdentification of major programs: \n \nCFDA Numberk) \n \nName of Federal Program or Cluster \n \nTitle I, Part A Cluster Special Education Cluster State Fiscal Stabilization Fund Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nII FINANCIALSTATEMENT FINDINGSAND QUESTIONEDCOSTS \n \nNo matters were reported. \n \nIll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \nUnqualified No \nNone Reported \nN 0 None Reported \nUnqualified \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2008-h2009","title":"Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2009 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2009-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (Received via FTP 1/14/16 from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed February 20, 2023).","Fiscal year ended June 30, 2016 (Received via FTP on January 31, 2018 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed February 20, 2023)."],"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":["Floyd County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Floyd County--Auditing--Periodicals","Education--Georgia--Floyd County--Finance--Statistics--Periodicals"],"dcterms_title":["Floyd County Board of Education, Rome, Georgia, annual financial report for the fiscal year ended June 30, 2009 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2008-h2009"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bf6-b2008-h2009"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports","state government reports","audits","financial reports","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"FLOYD COUNTY BOARD OF EDUCATION \nROME, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \n(Including Independent Auditor's Reports) \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \n1 \n \nB \n \nSTATEMENT OF ACTIVITIES \n \n2 \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \n4 \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \n5 \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \n6 \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \n7 \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \n9 \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \n10 \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES - BUDGET AND ACTUAL \n \nGENERAL FUND \n \n27 \n \n FLOYD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nSCHEDULES \n \nSUPPLEMENTARY INFORMATION \n \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \n28 \n \n3 SCHEDULE OF STATE REVENUE \n \n30 \n \n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \n \n32 \n \n5 ALLOTMENTS AND EXPENDITURES \n \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \n \nBY PROGRAM \n \n33 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nREPORT 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 \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \n \nSECTION Ill AUDITEE1S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n SECTION I FINANCIAL \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJune 18, 2010 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nLadies and Gentlemen: \nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Floyd County Board of Education, as of and for the year ended June 30, 2009, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Floyd County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Floyd County Board of Education, as of June 30, 2009, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \n \n2009ARL-11 \n \n In accordance with Government Auditing Standards, we have also issued our report dated June 18, 2010, on our consideration of the Floyd County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through x and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Floyd County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States/ Local Governments/ and Non-Profit Organizations/ are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \n?~tJ.~~ \nRussell W. Hinton, CPA, CGFM State Auditor \nRWH:as 2009ARL-11 \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \n \nINTRODUCTION \nThe School District's financial statements for the fiscal year ended June 30, 2009, includes a series of basic financial statements that report financial Information for the School District as a whole, its funds, and its fiduciary responsibilities. The Statement of Net Assets 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 f inances 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 Assets and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2009 are as follows: \nOn the District-wide financial statements: \n District-wide net assets at June 30, 2009, were $111,743,108. Net assets reflect the difference between all assets of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term. The net assets at June 30, 2009, of $111,743,108 represented an increase of $7,166,100 in net assets when compared to the prior year. \n The School District had $113.09 million in expenses relating to governmental activities; only $68.02 million of these expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of $52.2 million were adequate to provide for these programs. \n As stated above, general revenues accounted for $52.2 million or about 43% of all revenues totaling $120.3 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. \n \nSource of Revenues \n \nGeneral Revenue  Property Taxes \n26.4% \n \nGeneral Revenue  Sales Taxes 8.6% \nGeneral Revenue  All Other 8.4% \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \nThe School District increased its outstanding bond debt by $17.1 million to $34.65 million through the issuance of general obligation bond principal in May, 2009. The existing bond debt of $34.65 million will be retired by a Special Purpose Local Option Sales Tax and interest earned thereon that was approved by the citizenry in conjunction with the Bond Sale. \nOn the fund financial statements: \n Among major funds, the General Fund had almost $107.4 million in revenues and almost $108.4 million in expenditures. The General Fund balance of $7.3 million at June 30, 2009, decreased $1.79 million from the prior year fund balance. The decrease in the fund balance was unplanned due to a decrease in mid-year state funding, and significant unspent budget or unanticipated revenues did not offset the state funding decrease. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the District-wide and fund financial statements. \nThe District-wide financial statements include the 'Statement of Net Assets' and 'Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The 'Governmental Funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. The 'Fiduciary Funds' statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. In the case of the Floyd County School District, the General Fund, Capital Projects Funds, and Debt Service Funds are all considered to be major funds. The School District has no nonmajor funds as defined by GASB Statement 34 for the purposes of this report. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nDistrict-wide Statements \nSince Floyd County School District has no operations that have been classified as \"Business Activities\", the District-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 Districtwide financial statements, a reader might ask the question, are we in a better financial position now than last year? The 'Statement of Net Assets' and the 'Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \nThese two statements report the School District's net assets and any changes in those assets. The change in net assets 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 District-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Assets: \n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt as a liability  Calculate revenue and expense using the economic resources measurement focus and the \naccrual basis of accounting  Allocate net assets as follows: \no Net Assets invested in capital assets, net ofrelated debt o Restricted net assets are those with constraints placed on the use by external \nsources such as creditors, grantors, contributors or laws and regulations. o Unrestricted net assets are net assets that do not meet any of the above \nrestrictions. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no non major funds as defined by generally accepted accounting principles. \nThe School District has two kinds of funds as discussed below: \nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between government activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFiduciary Funds The School District is the trustee, or fiduciary, for assets that belong to clubs, organizations and others within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \niii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Net assets, which is the difference between total assets and total liabilities, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net assets. When expenses exceed revenues, the result is a decrease in net assets. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net assets, as measured in the Statement of Net Assets, can be one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net assets 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. In the case of the Floyd County School District, assets exceeded liabilities by $111.7 million at June 30, 2009. 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 asset category. For example, of the $111.7 million of net assets, almost $13.9 million was restricted for continuation of Federal programs, debt service, and capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. In addition, the School District also had $98.1 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 assets, it must be recognized that this portion of the net assets is notavailable for future spending. \nThe deficit amount of unrestricted net assets of almost $290 thousand reflects reductions in state \nrevenues and the value of the severance pay liability. The School District has resolved to terminate the severance pay policy as of December 31, 2011. The elimination of this liability should return unrestricted net assets to an amount that will allow to School District to meet the ongoing needs of its citizens and creditors. \niv \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \n \nTable 1 provides a summary of the School District's net assets for this fiscal year as compared to the prior fiscal year. \nTable 1 Net Assets \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFY2009 \n \nFY2008 \n \n$ \n \n61,117,266 $ \n \n37,647,631 \n \n115,506,129 \n \n113,603,556 \n \nTota I Assets \n \n$ 176,623,395 $ 151,251,187 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n15,511,290 $ \n \n14,955,819 \n \n49,368,997 \n \n31,718,361 \n \nTotal Liabilities \n \n$ \n \n64,880,287 $ \n \n46,674,180 \n \nNet Assets Invested in Capital Assets, Net of Debt Restricted Unrestricted \n \n$ \n \n98,114,086 $ \n \n89,156,250 \n \n13,918,997 \n \n13,937,251 \n \n-289,975 \n \n1,483,506 \n \nTotal Net Assets \n \n$ 111,743,108 $ 104,577,007 \n \nV \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \n \nTable 2 shows the Changes in Net Assets for this fiscal year as compared to the prior fiscal year. \n \nTable 2 \n \nChange in Net Assets \n \nGovernmental Activities \n \nFY 2009 \n \nFY 2008 \n \nRevenues \n \nProgram Revenues: \n \nCharges for Services and Sales \n \n$ \n \n2,923,520 $ \n \n2,976,370 \n \nOperating Grants and Contributions \n \n62,249,846 \n \n64,901,023 \n \nCapital Grants and Contributions \n \n2,850,541 \n \n2,553,633 \n \nTotal Program Revenues \n \n$ 68,023,907 $ 70,431,026 \n \nGeneral Revenues: \n \nProperty Taxes \n \nFor Maintenance and Operations \n \n$ \n \nOther Taxes - Railroad Equipment \n \nSales Taxes \n \nSpecial Purpose Local Option Sales Tax \n \nFor Debt Service \n \nFor Capital Projects \n \nIntangible Recording Tax \n \nReal Estate \n \nGrants and Contributions not Restricted to Specific Programs \n \nInvestment Earnings \n \nMiscellaneous \n \nSpecial Item \n \nGain or Loss on Disposal of Assets \n \nTotal General Revenues \n \n$ \n \n31,678,700 $ 36,359 \n8,264,020 1,611,090 \n385,907 65,655 \n7,148,941 373,647 \n2,582,690 \n82,228 52,229,237 $ \n \n31,012,856 35,550 \n7,042,621 3,706,810 \n483,994 129,350 5,203,232 1,043,552 2,718,008 \n-93,677 51,282,296 \n \nTotal Revenues \n \n$ 120,253,144 $ 121,713,322 \n \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \n \n$ 72,740,428 $ 71,163,357 \n \n3,230,253 1,877,418 2,225,645 2,031,694 8,586,561 \n652,486 8,596,083 5,260,074 \n839,863 605,279 \n \n3,314,188 2,121,889 2,334,167 2,470,666 8,701,737 \n682,325 9,861,626 5,018,765 \n713,062 550,112 \n \n15,302 289,490 5,702,234 434,233 \n \n21,773 5,820,943 \n846,147 \n \nTotal Expenses \n \n$ 113,087,043 $ 113,620,757 \n \nIncrease in Net Assets \n \n$ \n \n7,166,101 $ \n \n8,092,565 \n \nvi \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \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 \nCost of Services \n \nTotal Cost of Services \n \nFY2009 \n \nFY 2008 \n \nNet Cost of Services \n \nFY2009 \n \nFY2008 \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 Community Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$ 72,740,428 $ 71,163,357 $ 24,404,611 $ 21,340,128 \n \n3,230,253 1,877,418 2,225,645 2,031,694 8,586,561 \n652,486 8,596,083 5,260,074 \n839,863 605,279 \n \n3,314,188 2,121,889 2,334,167 2,470,666 8,701,737 \n682,325 9,861,626 5,018,765 \n713,062 550,112 \n \n1,918,088 1,113,745 \n866,973 1,444,545 4,493,269 \n562,022 4,395,340 4,139,385 \n731,856 439,549 \n \n1,850,731 1,281,927 \n954,005 1,763,573 4,475,597 \n569,937 4,478,926 4,097,399 \n605,633 517,156 \n \n289,490 15,302 \n5,702,234 434,233 \n \n21,773 \n5,820,943 846,147 \n \n20,199 15,302 84,020 434,233 \n \n18,056 \n390,516 846,147 \n \nTotal Expenses \n \n$ 113,087,043 $ 113,620,757 $ 45,063,137 $ 43,189,731 \n \nThe table above shows that while the total cost of services for providing services decreased by 0.5% from the prior year, the net cost to the local taxpayers increased 4.3% from the prior year. In other words, as compared to the proceeding fiscal year, a larger percentage of the cost of providing services in fiscal year 2009 fell to the taxpayers of Floyd County. Even with reductions in budgeted expenditures, this condition is occurring because increased costs for such items as salaries, benefits, maintenance, fuel etc. is occurring at a higher rate than is being funded from program revenues (State, Federal, and revenues for services and sales). \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" and Exhibit \"E\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $119.8 million and total expenditures of $123.3 million in fiscal year 2009. Total governmental fund balances of $45.3 million at June 30, \n2009, increased almost $22. 7 million from the prior year. This increase in fund balance occurred \nprimarily because the School District sold $25.0 million in General Obligation Bonds for capital projects at a premium of $1.06 million. Expenditures for general funds and capital projects exceeded current year revenues dedicated to general fund and capital projects. \n \nvii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \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 2009, 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 $107.41 million were under the final budgeted amount of $112.08 million by $4.67 million. This difference (final actual vs. final budget) was primarily attributable to revenues for property taxes under final budget of $0.2 million, sales taxes over final budget of $0.4 million, revenues for State Funds under the final budget of $5.3 million (from mid-year austerity reductions), revenues for charges for services over final budget of $0. 7 million, and miscellaneous revenues under final budget of $0. 7 million The School District traditionally estimates revenue on a conservative basis to avoid shortfalls in actual revenues. The General Fund's final actual expenditures of $108.35 million were under the final budget amount of $112.85 million by $4.5 million. This difference (final actual vs. final budget) was primarily attributable to actual expenditures for instruction under the final budget of $4.9 million, expenditures for pupil services exceeding the final budget by $740,000, expenditures for school administration exceeding the final budget by $840,000, expenditures for maintenance and operation of plant under the final budget by $290,000, expenditures for other support services exceeding final budget of over $350,000, Food Services under the final budget by $340,000 and other community services exceeding the final budget by over $260,000 (for reimbursed after school care), and other functions totaling less than $50,000. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt fiscal year ended June 30, 2009, the School District had $115.5 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; and food service, transportation and maintenance equipment. This year's major additions totaled almost $6 million and included: \n Finalizing the construction of a new classroom building at the Floyd County College and Career Academy funded by the Charter School Grant. \n Completion of the re-roofing of the Central Office warehouse complex.  Other small renovation projects.  Beginning the demolition and site work for a New Model High School. \nTable 4 reflects a summary of these balances, net of accumulated depreciation, as compared to the prior fiscal year. \nviii \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \n \nLand Construction in Progress Land Improvements Buildings and Improvements Equipment \nTotal \n \nTable 4 Capital Assets at June 30 \n(Net of Depreciation) \n \nGovernmental Activities \n \nFY 2009 \n \nFY 2008 \n \n$ \n \n2,651,464 $ \n \n2,651,488 \n \n5,221,474 \n \n1,173,686 \n \n1,085,105 \n \n1,029,289 \n \n98,991,899 \n \n101,264,701 \n \n7,556,187 \n \n7,484,392 \n \n$ 115,506,129 $ 113,603,556 \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, 2009, the School District had $49.4 million in total debt outstanding which consisted of $34.65 million in bond debt, $6.1 million in capital lease debt, $7.6 million in compensated absences debt, and $995,820 in unamortized bond premium. Table 5 summarizes the School District's debt as compared to the prior fiscal year. During the fiscal year ended June 30, 2009, the citizens of Floyd County passed an Educational Local Option Sales Tax (ELOST) for a period of five years for the purpose of construction and renovation, technology and transportation. Additionally, the School District sold $25.0 million in General Obligation Bonds to fund a portion of these capital projects with the debt to be paid back with the proceeds of this special purpose local option sales tax which continued as of April 1, 2009. \n \nTable 5 Debt at June 30 \n \nGovernmental Activities \n \nFY 2009 \n \nFY 2008 \n \nBonds Payable Unamortized Bond Premium Capita I Leases Compensated Absences \n \n$ \n \n34,650,000 \n \n$ \n \n17,540,000 \n \n995,820 \n \n268,575 \n \n6,129,813 \n \n6,638,731 \n \n7,593,364 \n \n7,271,055 \n \nTotal \n \n$ \n \n49,368,997 \n \n$ \n \n31,718,361 \n \nAdditional information about the School District's debt can be found in the Notes to the Basic Financial Statements. \n \nix \n \n FLOYD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 \nFACTORS BEARING ON THE 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 The School District is financially stable. The School District's current operating millage is 18.588 which produces approximately $1,707,610 per mill net of fees. The School District's enrollment remained stable this school year as compared to past 3 years with an average of 100 students per year over the last three years. The School District plans to construct a new replacement Model High School and other classroom additions in the next year to reduce portable classrooms at various schools. The School District plans to fund additional capital outlays with the one percent local sales tax revenue, general obligation bonds and state capital outlay grants. \n The School District will continue to face challenges from the nationwide economic downturn resulting in the state funding decreases. From fiscal year 2003 through fiscal year 2009, the QBE formula adjustments (austerity cuts) have totaled just slightly over $14.0 million. For fiscal year 2010 alone, the Amended QBE Formula Adjustment is projected to be $10,474,000 with $4,877,747 to be replaced by state fiscal stabilization funds from the American Recovery and Reinvestment Act (ARRA) funded by the Federal government. To meet these funding reductions, the School District will reduce its expenditures thoughtfully to avoid reducing services that directly impact student achievement, and with the use of Stimulus funding, save or create jobs that will positively impact student achievement. The School District will also continue to be impacted by the remedial actions required for under performing schools under the No Child Left Behind Act. In the midst of these challenges, the School District remains confident in the ability to maximize resources to provide the best possible educational experience for all of our students. \nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \nThis 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. Chris Toles, Executive Director of Financial Services, Floyd County School District, 600 Riverside Parkway, NE, Rome, GA. You may also email your questions to Mr. Toles at ctoles@floyd boe. net. \nX \n \n FLOYD COUNTY BOARD OF EDUCATION \n \n FLOYD COUNTY BOARD OF EDUCATION STATMENT OF NET ASSETS JUNE 30, 2009 \nASSETS Cash and Cash Equivalents Investments Accounts Receivable \nTaxes State Government Federal Government Local Government Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Depreciation) \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Claims Incurred but Not Reported (IBNR) Retainages Payable Long-Term Debt \nDue within one Year Due in more than one Year \nTotal Liabilities \nNET ASSETS Invested in Capital Assets - Net of Related Debt Restricted for: \nContinuation of Federal Programs Debt Services Capital Projects Unrestricted (Deficit) \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. - 1- \n \nEXHIBIT \"A\" \nGOVERNMENTAL ACTIVITIES \n$ 38,028,329.48 12,698,809.14 \n1,893,334.22 7,362,697.99 \n761,835.69 12,048.26 \n136,857.46 223,354.05 7,872,937.60 107,633,191.00 \n \n$ \n \n42,693.86 \n \n15,043,237.96 \n \n353,374.00 \n \n71,984.60 \n \n9,037,157.54 40,331,839.08 \n \n$ 64,880,287.04 \n \n$ 98,114,085.86 450,228.98 \n10,461,228.51 3,007,539.68 -289,975.18 \n$ 111,743,107.85 \n$ 176,623,394.89 \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2009 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance And Operation Of Plant Student Transportation Service Support Services - Central Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Community Services Operations Interest On Short-Term And Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Other Taxes Railroad Equipment Sales Tax Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Real Estate Transfer Tax Intangible Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Gain or Loss of Sale and Disposals of Assets \nTotal General Revenues \nChange in Net Assets \nNet Assets Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ 72,740,427.71 $ \n \n90,034.50 \n \n3,230,252.89 1,877,418.65 2,225,644.75 2,031,693.97 8,586,560.88 \n652,486.41 8,596,083.18 5,260,073.88 \n839,862.93 605,278.97 \n \n619,917.07 13,175.22 \n \n15,302.18 5,702,234.09 \n289,489.83 434,232.99 \n \n1,934,751.44 265,641.33 \n \n$ \n \n$ \n \nThe notes to the basic financial statements are an integral part of this statement. 2- \n \n EXHIBIT \"B\" \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET ASSETS \n \n$ 45,842,454.79 $ 2,403,327.90 $ -24,404,610.52 \n \n692,247.94 763,673.55 1,341,627.26 580,895.92 4,093,291.63 \n90,464.80 4,200,743.32 \n812,243.94 108,006.54 165,730.04 \n \n17,044.11 6,253.05 \n295,270.00 \n \n-1,918,087 .88 -1,113,745.10 \n-866,973.38 -1,444,545.00 -4,493,269.25 \n-562,021.61 -4,395,339.86 -4,139,384.72 \n-731,856.39 A39,548.93 \n \n3,554,816.63 3,649.63 \n \n128,645.89 \n \n-15,302.18 -84,020.13 -20,198.87 A34,232.99 \n \n$ 62,249,845.99 $ 2,850,540.95 $ -45,063,136.81 \n \n$ 31,678,699.67 36,359.21 \n \n8,264,019.60 1,611,090.35 \n65,654.89 385,907.38 7,148,941.00 373,646.97 2,582,690.38 \n82,228.44 \n \n$ 52,229,237.89 \n \n$ \n \n7,166,101.08 \n \n104,577,006.77 \n \n$ 111,743,107.85 \n \n-3- \n \n FLOYD COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2009 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Inventories \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 13,616,821.86 $ 24.411,507.62 \n \n$ \n \n271,753.03 \n \n1,965,827.60 $ 10,461,228.51 \n \n594,572.55 7,135,167.60 \n761,835.69 12,048.26 \n136,857.46 \n \n1,298,761.67 227,530.39 \n \n38,028,329.48 12,698,809.14 \n1,893,334.22 7,362,697.99 \n761,835.69 12,048.26 \n136,857.46 \n \nTotal Assets \n \n$ 22,529,056.45 $ 27,903,627.28 $ 10.461,228.51 $ \n \n60,893,912.24 \n \n======= \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nReserved for: Continuation of Federal Programs Debt Service Capital Projects \nunreserved Designated for Capital Outlay Designated for Student Activities Designated for Self-Insurance Designated for Severance Pay Undesignated Reported in: General Fund Capital Projects \nTotal Fund Balances \n \n$ \n \n8,279.63 $ \n \n34,414.23 \n \n$ \n \n15,043,237.96 \n \n71,984.60 \n \n128,228.94 \n \n269,640.84 \n \n$ 15,179,746.53 $ 376,039.67 \n \n$ \n \n$ \n \n450,228.98 \n \n$ \n \n$ 10,461,228.51 \n \n$ 27,391,129.72 \n \n800,000.00 1,519,224.51 \n127,013.15 750,000.00 \n \n3,702,843.28 \n \n136,457.89 \n \n$ 7,349,309.92 $ 27,527,587.61 $ 10,461,228.51 $ \n \n42,693.86 15,043,237.96 \n71,984.60 397,869.78 \n15,555,786.20 \n450,228.98 10,461,228.51 27,391,129.72 \n800,000.00 1,519,224.51 \n127,013.15 750,000.00 \n3,702,843.28 136,457.89 \n45,338,126.04 \n \nTotal Liabilities and Fund Balances $ 22,529,056.45 $ 27,903,627.28 \n \nThe notes to the basic financial statements are an integral part of this statement. -4- \n \n FLOYD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2009 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Land Improvements Buildings Construction in Progress Machinery and Equipment Accumulated Depreciation \nTotal Capital Assets \nBond Issuance Costs are recognized when incurred in the Governmental Fund Statements, but are amortized over the life of the Bond Issue in the District-wide Statements. \nSome of the School District's tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. \nProperty Taxes Sales Taxes \nTotal Tax Revenues \nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \nGeneral Obligation Bonds Payable Unamortized Bond Premiums Capital Leases Payable Compensated Absences Payable Claims and Judgments \nTotal Long-Term Liabilities \n \n$ 45,338,126.04 \n \n$ \n \n2,651,464.00 \n \n3,951,744.00 \n \n125,145,199.00 \n \n5,221,473.60 \n \n16,733,965.00 \n \n-38,197,717.00 \n \n115,506,128.60 \n \n223,354.05 \n \n$ \n \n128,228.94 \n \n269,640.84 \n \n397,869.78 \n \n$ -34,650,000.00 -995,819.4 7 \n-6,129,813.31 -7 ,593,363.84 \n-353,374.00 \n \n-49,722,370.62 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 111,743,107.85 \n \nThe notes to the basic financial statements are an integral part of this statement. -5- \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \nCapital Outlay Debt Services \nPrincipal Dues and Fees Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Long-Term Capital Related Debt Premiums on Bonds Sold Sale of Equipment Transfers In Transfers Out \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 31,607,854.62 \n \n$ 31,607,854.62 \n \n451,562.27 $ 1,341,449.51 $ 8,264,019.60 \n \n10,057,031.38 \n \n60,473,018.90 \n \n2,555,270.95 \n \n63,028,289.85 \n \n9,221,038.09 \n \n9,221,038.09 \n \n2,923,519.56 \n \n2,923,519.56 \n \n154,082.12 \n \n58,374.11 \n \n161,190.74 \n \n373,646.97 \n \n2,577,690.38 \n \n5,000.00 \n \n2,582,690.38 \n \n$ 107,408,765.94 $ 3,960,094.57 $ 8,425,210.34 $ 119,794,070.85 \n \n$ 69,959,060.63 $ \n \n130,924.07 \n \n$ 70,089,984.70 \n \n3,239,223.97 1,901,408.89 2,199,861.58 2,007,421.50 8,592,727.02 \n626,804.97 8,291,043.74 4,345,069.69 \n785,777.17 582,700.99 \n15,302.18 289,489.83 5,516,713.96 \n \n12,175.00 \n638,126.90 288,694.97 \n49,295.00 \n4,383,084.52 \n \n3,239,223.97 1,901,408.89 2,199,861.58 2,019,596.50 8,592,727.02 \n626,804.97 8,929,170.64 4,633,764.66 \n835,072.17 582,700.99 \n15,302.18 289,489.83 5,516,713.96 4,383,084.52 \n \n508,917.69 $ 248,171.17 333,198.87 \n \n7,890,000.00 437,623.50 \n \n8,398,917.69 248,171.17 770,822.37 \n \n$ 108,352,606.12 $ 6,592,588.19 $ 8,327,623.50 $ 123,272,817.81 \n \n$ \n \n-943,840.18 $ -2,632,493.62 $ \n \n97,586.84 $ -3,478,746.96 \n \n$ 25,000,000.00 \n \n1,063,833.85 \n \n$ \n \n82,252.44 \n \n930,000.00 \n \n-930,000.00 \n \n$ 25,000,000.00 1,063,833.85 82,252.44 930,000.00 -930,000.00 \n \n$ \n \n-847,747.56 $ 26,993,833.85 \n \n$ 26,146,086.29 \n \n$ -1,791,587.74 $ 24,361,340.23 $ \n \n97,586.84 $ 22,667,339.33 \n \n9,140,897.66 \n \n3,166,247.38 10,363,641.67 \n \n22,670,786.71 \n \nFund Balances - Ending The notes to the basic financial statements are an integral part of this statement. \n-6- \n \n$ 45,338,126.04 \n \n FLOYD 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, 2009 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \n \n$ 22,667,339.33 \n \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \n \nCapital Outlay Depreciation Expense \nTotal Capital Assets \n \n$ 5,960,247.60 -4,057,651.00 \n \nTax revenues are not deferred in the Statement of Activities based on availability as they are in the Governmental Funds. \n \nProperty Taxes Sales Taxes \n \n$ \n \n107,204.26 \n \n269,640.84 \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 assets differs from the change in fund balances by the carrying value of the capital assets sold or disposed of. \n \nProceeds received from General Obligation Bonds Sold are reported as liabilities in the Statement of Activities, whereas in the Governmental Funds these proceeds are reported as Other Financing Sources. \n \nProceeds of General Obligation Bonds Premiums on Bonds Sold \n \n$ -25,000,000.00 -1,063,833.85 \n \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \n \nPayment of Capital Lease Debt Redemption of Bond Principal \nTotal Debt Repayment \n \n$ \n \n508,917.69 \n \n7,890,000.00 \n \nSome items in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the Governmental Funds. These activities consist of: \n \nIncrease in Workers Compensation Claims (Incurred but not reported) Unamortized Bond Issuance Costs Amortization of Bond Premiums Increase in Compensated Absences \n \n$ \n \n-353,37 4.00 \n \n223,354.05 \n \n336,589.38 \n \n-322,309.22 \n \n1,902,596.60 376,845.10 -24.00 \n-26,063,833.85 8,398,917.69 \n-115,739.79 \n \nChange in Net Assets of Governmental Activities(Exhibit B) \n \n$ 7,166,101.08 \n \nThe notes to the basic financial statements are an integral part of this statement. -7- \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \nFIDUCIARY FUNDS JUNE 30, 2009 \nASSETS Cash and Cash Equivalents \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \nAGENCY FUNDS $ 205,223.53 \n$ 205,223.53 \n \nThe notes to the basic financial statements are an integral part of this statement. -9- \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT H 11 11 \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nREPORTING ENTITY \nThe Floyd County Board of Education was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nBLENDED COMPONENT UNIT - FLOYD COUNTY SCHOOLS COLLEGE AND CAREER ACADEMY, INC. \nThe Floyd County Schools College and Career Academy, Inc. (Charter School) is responsible to provide a seamless blend of academics with career and technical education and skills to better serve the Floyd County community. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been reported in the general fund. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Floyd County Board of Education. \nDistrict-wide Statements: \nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \n \n- 10 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nFund Financial Statements: \nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \n District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds, and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \n Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \nThe School District reports the following fiduciary fund type: \n Agency funds account for assets held by the School District as an agent for various funds, governments, or individuals. \nBASIS OF ACCOUNTING \nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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 are recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. 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 long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \n- 11 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits \nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n1. Obligations issued by the State of Georgia or by other states, \n2. Obligations issued by the United States government, \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n4. Obligations of any corporation of the United States government, \n5. Prime banker's acceptances, \n6. The Georgia Fund 1 administered by the State of Georgia, Office of Treasury and Fiscal Services, \n7. Repurchase agreements, and \n8. Obligations of other political subdivisions of the State of Georgia. \nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \n- 12 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nPROPERTY TAXES \nThe Floyd County Board of Commissioners fixed the property tax levy for the 2008 tax digest year (calendar year) on July 29, 2008 (levy date). Taxes were due on November 17, 2008 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2008 tax digest are reported as revenue in the governmental funds for fiscal year 2009. The Floyd 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, 2009, for maintenance and operations amounted to $31,571,495.41. \nThe tax millage rate levied for the 2008 tax year (calendar year) for the Floyd County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n18.588 mills \n \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $9,605,469.11 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \nINVENTORIES \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \nCAPITAL ASSETS \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \n- 13 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nLand Land Improvements Buildings and Improvements Equipment \n \nCapitalization \n \nPolicy \n \nAll \n \n$ \n \n5,000.00 \n \n$ \n \n5,000.00 \n \n$ \n \n5,000.00 \n \nEstimated Useful Life \nN/A 20 to 80 years 10 to 80 years 3 to 20 years \n \nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \n \nCOMPENSATED ABSENCES \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. \n \nEmployees of the Floyd County Board of Education shall receive severance pay based upon: (1) years of service and (2) amount of accumulated sick leave at the time of retirement or voluntary termination of employment. The amount of severance pay due shall be calculated according to a set of formulas, definitions, and regulations approved by the Board. Severance pay will be paid only once in an employee's tenure with the school system. All payments are based on the total number of years of service as a full-time employee for a full day. Partial days will be computed only as a portion of a day (i.e..5 must be paired with another .5 to equal a full day). The amount will be paid from local funds. Activity for the preceding three years is as follows: \n \nBeginning of Year Liability \n \nIncrease \n \nDecrease \n \nEnd of Year Liabililty \n \n2007 2008 2009 \n \n$ \n \n61281,873.00 $ \n \n2,8831959.07 $ \n \n2,375,731.11 $ 6,790,100.96 \n \n$ \n \n61790,100.96 $ \n \n21832,936.29 $ \n \n2,3511982.63 $ 7,271,054.62 \n \n$ \n \n7,271,054.62 $ \n \n2197 4,284.68 $ \n \n2,6511975.46 $ 7,593,363.84 \n \nGENERAL OBLIGATION BONDS \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method for the 2009 General Obligation bonds. \nIn the District-wide and fund financial statements, the School District recognizes prior year's bond issuance costs during the fiscal year bonds are issued. In the fund financial statements, premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, issuance costs should be deferred and amortized over the life of the bonds using the straight-line method. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \n- 14 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT H 11 11 \n \nNET ASSETS \nThe School District's net assets in the District-wide Statements are classified as follows: \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \nRestricted net assets These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \nNOTE 3: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (0.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or \nmunicipalities of the State of Georgia, \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \n- 15 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2009, the bank balances were $42,627,171.18. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Uncollateralized, \n \nCategory 2 Cash collateralized with securities held by the pledging financial institution, \n \nor \n \nCategory 3 - Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \nThe School District's deposits by custodial credit risk category at June 30, 2009, are as follows: \n \nCustodial Credit \n \nRisk Category \n \nBank Balance \n \n1 \n \n$ \n \n0.00 \n \n2 \n \n24,346,074.57 \n \n3 \n \n0.00 \n \nTotal \n \n$ 24 346 074.57 \n \nCATEGORIZATION OF INVESTMENTS \n \nThe School District's investments as of June 30, 2009, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \n \nInvestment Type \n \nFair Value \n \nInvestment Maturity Less Than 1 Year \n \nDebt Securities U.S. Treasuries Repurchase Agreements \n \n$ 1,947,501.94 10,479,554.17 \n \n$ 1,947,501.94 10,479,554.17 \n \n$ 12,427,056.11 \n \n$ 12,427,056.11 \n \nInvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \n \n2,166.33 \n \nTotal Investments \n \n$ 12,429,222.44 \n \n- 16 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nThe Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at \nhttp://www.audits.state.ga.us/internet/searchRpts.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2009, was 41 days. \n \nInterest Rate Risk \nInterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \n \nCustodial Credit Risk \nCustodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \n \nAt June 30, 2009, $11,261,831.41 of the School District's applicable investments were (1) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the name of the School District and (2) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \n \nCredit Quality Risk \nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \n \nThe investments subject to credit quality risk are reflected below: \n \nRated Debt Investments \n \nFair Value \n \nQuality Ratings AAA \n \nDebt Securities Repurchase Agreements \n \n$ 10,479,554.17 \n \n$ 10,479,554.17 \n \nConcentration of Credit Risk \nConcentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Implicitly Guaranteed U. S. Agency Repurchase Agreement and U. S. Treasuries. These investments are 84% and 16% respectively, of the School District's total investments. \n \n- 17 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nNOTE 4: NON-MONETARY TRANSACTIONS \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNOTE 5: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities \n \nCapital Assets, Not Being Depreciated: \n \nLand and Land Improvements \n \n$ \n \nConstruction Work In Progress \n \nTotal Capital Assets, \n \nNot Being Depreciated \n \n$ \n \nBalance July 1, 2008 \n \nAdditions \n \nReductions \n \nBalance June 30, 2009 \n \n2,651,488.00 \n \n$ \n \n24.00 $ \n \n1,173,686.00 $ 4,489,842.60 442,055.00 \n \n2,651,464.00 5,221,473.60 \n \n3,825,174.00 $ 4,489,842.60 $ 442,079.00 $ 7,872,937.60 \n \nCapital Assets, Being Depreciated: Building and Improvements Equipment Land Improvements \n \n$ 124,735,873.00 $ 441,564.00 $ 32,238.00 $ 125,145,199.00 \n \n16,403,728.00 1,322,906.00 992,669.00 \n \n16,733,965.00 \n \n3,803,754.00 \n \n147,990.00 \n \n3,951,744.00 \n \nLess: Accumulated Depreciation: Building and Improvements Equipment Land Improvements \n \n23,471,172.00 8,919,336.00 2,774,465.00 \n \n2,714,366.00 1,251,111.00 \n92,174.00 \n \n32,238.00 992,669.00 \n \n26,153,300.00 9,177,778.00 2,866,639.00 \n \nTotal Capital Assets, Being Depreciated, Net \n \n$ 109,778,382.00 $ -2,145,191.00 $ \n \n0.00 $ 107,633,191.00 \n \nGovernmental Activity Capital Assets, Net $ 113,603,556.00 $ 2,344,651.60 $ 442,079.00 $ 115,506,128.60 \n \nCapital assets being acquired under capital leases as of June 30, 2009, are as follows: \n \nBuildings and Improvements Less: Accumulated Depreciation \n \nGovernmental Funds \n$ 3,048,396.00 1,109,996.00 \n$ 1,938,400.00 \n \n- 18 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction Support Services \nEducational Media Services General Administration Student Transportation Services Food Services \n \n$ \n \n$ \n \n27,091.00 \n \n9,939.00 \n \n708,603.00 \n \n$ \n \n3,107,540.00 \n745,633.00 204,478.00 4,057,651.00 \n \nNOTE 6: RESTRICTED ASSETS \nSpecial Purpose Local Option Sales Tax (SPLOST) proceeds and General obligation Bond proceeds are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2009, were as follows: \n \nRestricted Cash and Cash Equivalents: Capital Acquisitions \nRestricted Investments: Debt Services Capital Acquisitions \n \nDistrict-wide Capital Projects \n \nSPLOST \n \nBond Proceeds \n \nDebt Service Funds \n \n$ \n \n41,431.91 $ 24,461,148.21 \n \n$ \n \n1,965,827.60 \n \n$ 10,461,228.51 \n \nNOTE 7: INTERFUND TRANSFERS \n \nlnterfund transfers for the year ended June 30, 2009, consisted of the following: \n \nTransfer to \n \nTransfers From General Fund \n \nDistrict-wide Capital Projects \n \n$ \n \n930,000.00 \n \nTransfers are used to move other local revenues collected by the General Fund to the District-wide Capital Projects Fund to fund local capital projects. \nNOTE 8: RISK MANAGEMENT \nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and acts of God. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \n \n- 19 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nThe School District has established a limited risk management program for workers compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \n \nChanges in the workers compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaims and Changes in Estimates \n \nClaims Paid \n \nEnd of Year Liability \n \n2008 $ 2009 $ \n \n583,585.05 $ 401,964.89 $ \n \n602,070.63 $ 493,230.05 $ \n \n783,690.79 $ 541,820.94 $ \n \n401,964.89 353,374.00 \n \nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \n2008 $ 2009 $ \n \nBeginning of Year Liability \n0.00 $ 0.00 $ \n \nClaims and Changes in Estimates \n7,684.00 $ 17,531.00 $ \n \nClaims Paid \n7,684.00 $ 17,531.00 $ \n \nEnd of Year Liability \n0.00 0.00 \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \nSuperintendent Blanket Employee \n \nAmount \n$ 100,000.00 $ 100,000.00 \n \nNOTE 9: POLLUTION REMEDIATION OBLIGATIONS \nThe School District is the owner of Model High School located at Rome, Georgia, and is responsible for asbestos removal. \nThe School District has recorded an increase to construction in progress related to this pollution remediation in the amount of $172,679.60, on the Statement of Net Assets. The actual cost is based on the amount of payments made on a contract signed in the amount of $850,000.00 for the removal of the asbestos contamination detected and is to be considered a cost of the new high school to be built. The remaining amount to be paid on the contract of $677,320.40 is included in Note 12: Significant Commitments. Pollution remediation liability activity in fiscal year 2009 was as follows: \n \n- 20 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT H 11 11 \n \nBeginning Balance July 1, 2008 \n \nAdditions \n \nReductions \n \nEnding Balance June 30, 2009 \n \nCurrent Portion \n \nPolution Remediation $ \n \n0.00 $ 172,679.60 $ 172,679.60 $ \n \n=\"\"\"\"\"\"=== \n \nNOTE 10: LONG-TERM DEBT \n \n0.00 $ \n \n0.00 \n \n\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"= \n \nCAPITAL LEASES \n \nThe Floyd County Board of Education entered into a lease agreement for construction and energy management systems. This lease agreement qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. \n \nCOMPENSATED ABSENCES \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \n \nPurpose \nGeneral Government - Series 2003 General Government - Series QZAB 2004 General Government- Series 2004 Genera I Government - Series 2009 \n \nInterest Rates \n2.49% $ 0.00% 2.00% - 4.50% 3.00% - 4.00% \n$ \n \nAmount \n1,000,000.00 2,000,000.00 6,650,000.00 25,000,000.00 \n34,650,000.00 \n \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2009, were as follows: \n \nBalance July 1, 2008 \n \nAdditions \n \nDeductions \n \nBalance June 30, 2009 \n \nDue Within One Year \n \nG.0. Bonds \n \n$ \n \nCapital Leases \n \nCompensated Absences \n \nBond Premiums Amortized \n \n17,540,000.00 $ 6,638,731.00 7,271,054.62 268,575.00 \n \n25,000,000.00 $ \n2,974,284.68 1,063,833.85 \n \n7,890,000.00 $ 508,917.69 \n2,651,975.46 336,589.38 \n \n34,650,000.00 $ 7,650,000.00 \n \n6,129,813.31 \n \n536,021.77 \n \n7,593,363.84 \n \n600,000.00 \n \n995,819.47 \n \n251,135.77 \n \n$ \n \n$ \n \n$ \n \n$ \n \nAt June 30, 2009, payments due by fiscal year which includes principal and interest for these items are as follows: \n \n- 21 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nYear Ending June 30: \n2010 2011 2012 2013 2014 2015-2019 \nTotal Principal and Interest \nYear Ending June 30: \n2010 2011 2012 2013 2014 2015-2018 \nTotal Principal and Interest \n \nCapital Leases \n \nPrincipal \n \nInterest \n \n$ \n \n536,021.77 $ \n \n564,568.90 \n \n594,636.38 \n \n626,305.18 \n \n659,660.57 \n \n3,148,620.51 \n \n306,094.79 277,547.66 247,480.18 215,811.38 182,455.99 360,199.07 \n \n$ \n \n6,129,813.31 $ \n \n1,589,589.07 \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nUnamortized Bond \nPremium \n \n$ \n \n7,650,000.00 $ \n \n3,000,000.00 \n \n4,000,000.00 \n \n5,000,000.00 \n \n6,000,000.00 \n \n9,000,000.00 \n \n$ 34,650,000.00 $ \n \n716,416.53 $ 759,350.00 654,350.00 506,850.00 322,325.00 112,650.00 \n3,071,941.53 $ \n \n251,135.77 212,766.77 212,766.77 212,766.77 106,383.39 \n995,819.47 \n \nNOTE 11: ON-BEHALF PAYMENTS The School District has recognized revenues and costs in the amount of $905,081.80 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $829,466.29 \nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $31,633.51 \nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $43,982.00 \n- 22 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nNOTE 12: SIGNIFICANT COMMITMENTS \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2009: \n \nProject \n \nUnearned Executed Contracts \n \nModel High School \n \n$22,116,839.78 \n \nThe amount described in this note is not reflected in the basic financial statements. \nNOTE 13: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the granter agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 14: POSTEMPLOYMENT BENEFITS \nGEORGIA RETIREE HEALTH BENEFIT FUND \nPlan Description. The School District contributes to the Georgia Retiree Health Benefit Fund (GRHBF), a cost-sharing multiple-employer defined benefit postemployment healthcare plan administered by the Department of Community Health. The GRHBF is a cost-sharing multipleemployer defined benefit postemployment healthcare plan that covers retired employees of the State including all departments, agencies and local school systems. GRHBF provides health insurance benefits to eligible retirees and their qualified beneficiaries through the health insurance plan for State employees. Pursuant to Title 45, Chapter 18 of the Official Code of Georgia Annotated, the authority to establish and amend the benefit provisions of the employees' health insurance plan (including benefits to retirees) is assigned to the Board of Community Health (Board). The Department of Community Health issues a publicly available financial report that includes financial statements and required supplementary information for GRHBF. That report may be obtained from the Department of Community Health at 2 Peachtree Street, Atlanta, Georgia 30303. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately twenty-five percent (25%) of the cost of health insurance coverage. \nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rate is established to fund both the active and retired employee health insurance plans based on projected \"pay-as-you-go\" financing requirements. The combined rates for the active and retiree plans for the fiscal year ended June 30, 2009, were as follows: \n \n- 23 - \n \n FLOYD COUN1Y BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT H 11 11 \n \nCertified employees \nJuly 2008 - July 2009 February 2009 March 2009 - May 2009 June 2009 \n \n18.534% of state-based salaries for August - February coverage 8.579% of state-based salaries for March coverage 3.688% of state-based salaries for April - June coverage 0.000% of state-based salaries for July coverage \n \nNon-Certificated Employees \n \n$162.72 per month \n \nNo additional contribution was required by the Board for fiscal year 2009 nor contributed to GRHBF to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other postemployment benefits and are subject to appropriation. \n \nThe School District's contributions to the health insurance plans for the years ended June 30, 2008, and June 30, 2009, were $7,110,999.26, and $9,570,121.25, respectively, which equaled the required contribution. \n \nNOTE 15: RETIREMENT PLANS \n \nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \n \n- 24 - \n \n FLOYD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2009 \n \nEXHIBIT \"H\" \n \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2009, were 5% of annual salary. The member contribution rate will increase to 5.25% effective July 1, 2009, and to 5.53% effective July 1, 2010. Employer contributions required for fiscal year 2009 were 9.28% of annual salary as required by the June 30, 2006, actuarial valuation. The employer contribution rate will increase to 9.74% effective July 1, 2009, and to 10.28% effective July 1, 2010. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n2009 2008 2007 \n \nPercentage Contributed \n100% 100% 100% \n \nRequired Contribution \n \n$ \n \n6,002,396.51 \n \n$ \n \n5,699,815.91 \n \n$ \n \n5,266,884.59 \n \n- 25 - \n \n (This page left intentionally blank) \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Service Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nOther Financing Sources Other Financing Uses \nTotal Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Adjustments \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL \n \nFINAL \n \nACTUAL AMOUNTS \n \n$ 31,909,417.00 $ 31,814,417.00 $ \n \n95,000.00 \n \n65,759,548.14 \n \n65,759,548.14 \n \n7,956,330.00 \n \n8,363,205.84 \n \n2,182,600.00 \n \n2,182,600.00 \n \n618,000.00 \n \n618,000.00 \n \n3,250,000.00 \n \n3,250,000.00 \n \n31,607,854.62 451,562.27 \n60,473,018.90 9,221,038.09 2,923,519.56 154,082.12 2,577,690.38 \n \n$ 111,675,895.14 $ 112,082,770.98 $ 107,408,765.94 \n \n$ 74,702,697.36 $ 74,911,358.80 $ \n \n2,456,521.52 2,206,729.82 2,236,740.00 2,054,035.11 7,737,788.43 \n736,740.00 8,591,033.90 4,873,423.00 \n717,067.00 219,696.00 5,862,200.00 \n \n2,500,021.52 2,279,602.24 2,236,279.95 2,078,157.11 7,750,049.75 \n716,740.00 8,579,760.85 4,887,423.00 \n803,136.00 231,200.93 5,859,017.83 \n \n25,034.00 \n \n25,034.00 \n \n$ 112,419,706.14 $ 112,857,781.98 $ \n \n$ \n \n-743,811.00 $ \n \n-775,011.00 $ \n \n69,959,060.63 \n3,239,223.97 1,901,408.89 2,199,861.58 2,007,421.50 8,592,727.02 \n626,804.97 8,291,043.74 4,345,069.69 \n785,777.17 582,700.99 5,516,713.96 \n15,302.18 289,489.83 \n108,352,606.12 \n-943,840.18 \n \n$ \n \n15,000.00 $ \n \n15,000.00 $ \n \n-1,330,000.00 \n \n-1,330,000.00 \n \n$ -1,315,000.00 $ -1,315,000.00 $ \n \n$ -2,058,811.00 $ -2,090,011.00 $ \n \n9,088,928.89 \n \n9,088,928.89 \n \n253,524.54 \n \n256,237.05 \n \n82,252.44 -930,000.00 -847,747.56 -1,791,587.74 9,140,897.66 \n \nFund Balances Ending \n \n$ \n \n7,283,642.43 $ \n \n7,255,154.94 $ \n \n7,349,309.92 \n \n======= \n \nNotes to the Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting, which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n-27- \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds \nTotal U.S. Department of Agriculture \nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nState Fiscal Stabilization Fund Cluster Pass-Through From Georgia Department of Education ARRA Education State Grants \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Twenty-First Century Community Learning Centers Pass-Through From Florida State University Comprehensive School Reform Demonstration \nTotal U. S. Department of Education \n \nCFDA \nNUMBER \n \nPASS \nTHROUGH ENTITY ID NUMBER \n \nEXPENDITURES \nIN PERIOD \n \n10.553 10.555 \n \nN/A \n \n(2) \n \nN/A \n \n$ \n \n5,163,076.87 (1) \n \n$ 5,163,076.87 \n \n10.665 \n \nN/A \n \n(3) \n \n$ 5,163,076.87 \n \n84.027 84.173 \n \nN/A \n \n$ 2,013,292.33 \n \nN/A \n \n88,872.65 \n \n$ 2,102,164.98 \n \n* 84.394 \n \nN/A \n \n1,254,771.00 \n \n* 84.010 \n \nN/A \n \n1,922,225.15 \n \n84.048 84.196 84.365 \n* 84.367 \n84.287 \n84.332 \n \nN/A \n \n118,644.00 \n \nN/A \n \n36,579.89 \n \nN/A \n \n61,951.09 \n \nN/A \n \n399,416.82 \n \nN/A \n \n11,087.76 \n \nN/A \n \n24,582.08 \n \n$ 5,931,422.77 \n \nTotal Federal Financial Assistance N/A = Not Available \n \n$ 11,094,499.64 \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2009 \nNotes to the Schedule of Expenditures of Federal Awards \n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $262,546.28. \n(2) Expenditures for the funds earned on the School Breakfast Program ($767,468.85) were not maintained separately and are included in the 2009 National School Lunch Program. \n(3) Funds earned on this program in the amount of $5,376.50, do not require reporting of expenditures. \nMajor Programs are identified by an asterisk(*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Floyd County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSCHEDULE \"2\" \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS \nBright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades- Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student- Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Charter Schools Health Insurance High School Graduation Coach Middle School Graduation Coach National Teacher Certification Preschool Handicapped Program Teachers' Retirement Virtual Schools Grant \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 1,785,283.45 \n \n$ 1,785,283.45 \n \n3,395,456.00 310,843.00 \n7,761,274.00 718,811.00 \n3,733,459.00 371,337.00 \n5,519,931.00 5,040,852.00 1,860,445.00 10,065,101.00 3,241,592.00 \n389,986.00 458,464.00 356,341.00 1,128,423.00 327,007.00 222,468.00 \n1,547,300.00 2,539,114.00 2,603,961.00 \n1,358,851.00 295,270.00 180,325.00 33,898.00 45,629.00 \n7,148,941.00 247,112.00 239,773.00 \n-4,276,138.00 \n5,000.00 829,466.29 165,650.00 165,650.00 \n97,159.65 430,427.00 \n31,633.51 1,625.00 \n \n3,395,456.00 310,843.00 \n7,761,274.00 718,811.00 \n3,733,459.00 371,337.00 \n5,519,931.00 5,040,852.00 1,860,445.00 10,065,101.00 3,241,592.00 \n389,986.00 458,464.00 356,341.00 1,128,423.00 327,007.00 222,468.00 \n1,547,300.00 2,539,114.00 2,603,961.00 \n1,358,851.00 295,270.00 180,325.00 33,898.00 45,629.00 \n7,148,941.00 247,112.00 239,773.00 \n-4,276,138.00 \n5,000.00 829,466.29 165,650.00 165,650.00 \n97,159.65 430,427.00 \n31,633.51 1,625.00 \n \n-30- \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"3\" \n \nAGENCY/FUNDING \nGRANTS \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nNatural Resources, Georgia Department of Arrowhead Grant \nOffice of Treasury and Fiscal Services Public School Employees Retirement \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ 2,555,270.95 $ 2,555,270.95 \n \n$ \n \n51,316.00 \n \n51,316.00 \n \n43,982.00 \n \n43,982.00 \n \nSee notes to the basic financial statements. \n \n-31- \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"4\" \n \nffi.QJ.EI \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nPROJECT STATUS \n \nConstruct, replace, add to, renovate, repair, modify, \n \nimprove and equip existing school buildings and other \n \nbuildings and facilities useful or desirable in \n \nconnection therewith, including Alto Park Elementary, \n \nArmuchee Elementary, Armuchee Middle School, \n \nArmuchee High, Cave Spring Elementary, Coosa \n \nMiddle, Coosa High, Floyd County Education Center, \n \nFloyd County Technical High School, Garden Lakes \n \nElementary, Glenwood Elementary, Johnson \n \nElementary, McHenry Elementary, Midway Elementary, \n \nModel Elementary, Model Middle, Model High, \n \nPepperell High, Pepperell Middle, Pepperell Primary, \n \nPepperell Elementary, and the central office, acquire \n \nsystem-wide technology improvements, acquire school \n \nbuses, acquire the necessary property therefor, both \n \nreal and personal, and to pay or reimburse the \n \nexpenses of the Floyd County School District necessary \n \nto accomplish the foregoing, and providing funds for \n \nthe retirement of previously incurred general obligation \n \nindebtedness evidenced by the Floyd County School \n \nDistrict General Obligation School Bonds, Series \n \n1999. \n \n$ \n \n48,750,000.00 $ \n \n55,957,479.38 $ 1,860,086.38 $ 54,097,393.00 \n \nCompleted \n \nConstruct, replace, add to, renovate, repair, modify, improve and equip existing school buildings and other buildings and facilities useful or desirable in connection therewith, including Alto Park Elementary, Armuchee Elementary, Armuchee Middle School, Armuchee High, Cave Spring Elementary, Coosa Middle, Coosa High, Floyd County Education Center, Floyd County Technical High School, Garden Lakes Elementary, Glenwood Elementary, Johnson Elementary, McHenry Elementary, Midway Elementary, Model Elementary, Model Middle, Model High, Pepperell High, Pepperell Middle, Pepperell Primary, Pepperell Elementary, and the central office, acquire system-wide technology improvements, acquire school buses, acquire the necessary property therefor, both real and personal, and to pay or reimburse the expenses of the Floyd County School District necessary to accomplish the foregoing. \n \n45,000,000.00 \n \n45,000,000.00 \n \n1,760,728.41 \n \nOngoing \n \n$ 93,750,000.00 $ 100,957,479.38 $ 3,620,814.79 $ 54,097,393.00 \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \n(3) The voters of Floyd County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. \n \n-32- \n \n FLOYD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2009 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \nDirect Instructional Programs \n \nKindergarten Program \n \n$ \n \nKindergarten Program-Early Intervention Program \n \nPrimary Grades (1-3) Program \n \nPrimary Grades-Early Intervention (13) Program \n \nUpper Elementary Grades (4-5) Program \n \nUpper Elem Grades-Early Intervention (4-5) \n \nProgram \n \nMiddle School (6-8) Program \n \nHigh School General Education (9-12) Program \n \nVocational Laboratory (9-12) Program \n \nStudents with Disabilities \n \nCategory I \n \nCategory 111 \n \nCategory IV \n \nGifted Student - Category VI \n \nRemedial Education Program \n \nAlternative Education Program \n \nEnglish Speakers of Other Languages (ESOL) \n \n3,930,579.00 $ 397,086.00 \n9,030,800.00 888,042.00 \n4,336,953.00 \n \n3,742,967.39 $ 126,142.52 \n11,350,055.81 779,410.88 \n5,060,941.92 \n \n416,911.00 6,463,485.00 5,915,647.00 2,184,513.00 11,647,703.00 \n3,786,458.00 468,415.00 538,182.00 414,005.00 \n \n431,982.77 9,152,330.33 9,982,330.64 1,572,343.75 \n147,801.86 9,693,786.86 \n439,446.48 1,709,741.24 \n476,951.22 263,449.87 \n \n54,578.68 $ 303,507.43 114,095.81 \n \n3,797,546.07 126,142.52 \n11,653,563.24 779,410.88 \n5,175,037.73 \n \n337,019.82 417,448.93 262,683.35 \n \n431,982.77 9,489,350.15 10,399,779.57 1,835,027.10 \n \n119,548.70 169,131.16 \n38,080.09 \n \n147,801.86 9,813,335.56 \n608,577.64 1,747,821.33 \n \n476,951.22 263,449.87 \n \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \n \n$ 50,418,779.00 $ 54,929,683.54 $ 1,816,093.97 $ 56,745,777.51 \n \nMedia Center Program Staff and Professional Development \n \n1,317,204.00 260,018.00 \n \n1,941,536.02 27,188.31 \n \n136,429.43 113,137.18 \n \n2,077,965.45 140,325.49 \n \nTOTAL QBE FORMULA FUNDS \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n-33- \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJune 18, 2010 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nLadies and Gentlemen: \nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Floyd County Board of Education as of and for the year ended June 30, 2009, which collectively comprise Floyd County Board of Education's basic financial statements and have issued our report thereon dated June 18, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the \nstandards applicable to financial audits contained in Government Auditing Standards, issued by the \nComptroller General of the United States. \nInternal Control Over Financial Reporting \nIn planning and performing our audit, we considered Floyd County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Floyd County Board of Education's internal control over financial reporting. \nA control deficiencyexists when the design or operation of a control does not allow management or \nemployees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Floyd County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Floyd County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Floyd County Board of Education's internal control. \n \n2009YB-10 \n \n A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Floyd County Board of Education's internal control. \nOur consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Floyd County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nWe noted a certain matter that we have reported to management of Floyd County Board of Education in a separate letter dated June 18, 2010. \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \nResp?~ed,uJ, 4)~ \n \nRWH:as 2009YB-10 \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \n Russell W. Hinton \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nJune 18, 2010 \n \nHonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Floyd County Board of Education \nREPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 \nLadies and Gentlemen: \nCompliance \nWe have audited the compliance of Floyd County Board of Education with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2009. Floyd County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Floyd County Board of Education's management. Our responsibility is to express an opinion on Floyd County Board of Education's compliance based on our audit. \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Floyd County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Floyd County Board of Education's compliance with those requirements. \n \n2009SA-10 \n \n In our opinion, the Floyd County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2009. \n \nInternal Control Over Compliance \n \nThe management of Floyd County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Floyd County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance, 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 Floyd County Board of Education's internal control over compliance. \n \nA control deficiency in an entity's internal control over compliance 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 noncompliance with a type of compliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. \n \nA material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. \n \nOur consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \n \nThis report is intended solely for the information and use of management, members of the Floyd County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \n \nRespectfully submitted, \n \n \n \n?~ tu. c:ld...::b: \n \nRussell W. Hinton, CPA, CGFM State Auditor \n \nRWH:as 2009SA-10 \n \n SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \n FLOYD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2009 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n SECTION IV FINDINGS AND QUESTIONED COSTS \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2009 \nSUMMARY OF AUDITOR'S RESULTS \n1. Type of Report Issued on the Financial Statements The auditor's opinion on the Floyd County Board of Education's financial statements was unqualified. \n2. Significant Deficiencies in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Floyd County Board of Education did not disclose any significant deficiencies related to the financial statements. \n3. Noncompliance Material to the Financial Statements The audit of the Floyd County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. \n4. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Floyd County Board of Education did not disclose any significant deficiencies in internal control over major programs. \n5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Floyd County Board of Education's report on compliance with requirements applicable to major programs was unqualified. \n6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Floyd County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. \n7. Major Programs Federal awards audited as major programs are as follows: 84.010 Title I Grants to Local Educational Agencies 84.367 Improving Teacher Quality State Grants 84.394 ARRA - Education State Grants \n8. Type A11 11 Program Dollar Threshold The dollar threshold for type \"A\" programs was $332,996.28. \n9. Low Risk Auditee The Floyd County Board of Education qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133. \n- 1- \n \n FLOYD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2009 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n-2 - \n \n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":8,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":8}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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