{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2020-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2020 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2021-06-09"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2020 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n3 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n4 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n5 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n6 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n7 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n33 \r\n \r\n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n35 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 36 \r\n \r\n5 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n37 \r\n \r\n6 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\n \r\nSCHOOL OPEB FUND \r\n \r\n38 \r\n \r\n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \r\n \r\n39 \r\n \r\n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n40 \r\n \r\n9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n41 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n42 43 45 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional \r\n \r\n procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 9, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nJune 9, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nDeferred Charge on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n9,008,251.28 \r\n \r\n1,791,071.05 2,197,651.07 1,574,878.01 \r\n50,418.41 116,037.56 \r\n29,493.13 531,808.00 27,989,678.38 \r\n \r\n43,289,286.89 \r\n \r\n182,479.11 6,953,959.00 1,476,672.00 \r\n8,613,110.11 \r\n \r\n468,956.45 2,869,576.28 \r\n480,905.81 70,765.07 8,622.94 \r\n25,429,616.00 23,314,376.00 \r\n1,580,204.00 5,840,133.41 \r\n60,063,155.96 \r\n \r\n3,514,868.00 9,154,111.00 \r\n12,668,979.00 \r\n \r\n21,350,269.49 \r\n502,131.82 2,189,430.22 (44,871,569.49) \r\n \r\n$ \r\n \r\n(20,829,737.96) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \r\n \r\n$ \r\n \r\n17,775,729.36 $ 140,715.56 $ 14,429,279.65 $ \r\n \r\n1,859,458.81 1,416,988.82 \r\n290,819.42 1,078,828.49 2,168,332.82 \r\n238,256.44 3,030,835.92 2,255,056.37 \r\n383,941.18 203,235.97 \r\n \r\n- \r\n \r\n436,478.35 \r\n \r\n- \r\n \r\n1,751,259.13 \r\n \r\n- \r\n \r\n347,436.56 \r\n \r\n- \r\n \r\n764,249.53 \r\n \r\n- \r\n \r\n1,155,541.37 \r\n \r\n- \r\n \r\n29,629.97 \r\n \r\n- \r\n \r\n1,138,906.19 \r\n \r\n- \r\n \r\n1,138,416.80 \r\n \r\n- \r\n \r\n50,665.36 \r\n \r\n- \r\n \r\n75,031.69 \r\n \r\n55,845.83 1,618,754.13 \r\n386,942.91 \r\n \r\n13,485.50 \r\n- \r\n \r\n1,730,819.43 \r\n- \r\n \r\n- $ \r\n154,436.25 - \r\n- \r\n \r\n(3,205,734.15) \r\n(1,422,980.46) 334,270.31 56,617.14 (314,578.96) \r\n(1,012,791.45) (208,626.47) \r\n(1,891,929.73) (962,203.32) (333,275.82) (128,204.28) \r\n(55,845.83) 125,550.80 (386,942.91) \r\n \r\nTotal Governmental Activities \r\n \r\n$ \r\n \r\n32,763,026.47 $ 154,201.06 $ 23,047,714.03 $ \r\n \r\n154,436.25 \r\n \r\n(9,406,675.13) \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n10,835,785.19 366,325.83 94,384.38 \r\n2,079,829.83 130,927.94 \r\n1,136,981.00 38,017.59 \r\n503,093.51 \r\n \r\nTotal General Revenues \r\n \r\n15,185,345.27 \r\n \r\nChange in Net Position \r\n \r\n5,778,670.14 \r\n \r\nNet Position - Beginning of Year \r\n \r\n(26,608,408.10) \r\n \r\nNet Position - End of Year \r\n \r\n$ (20,829,737.96) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Due from Other Funds Inventories Prepaid Items \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 6,958,081.74 $ \r\n1,572,845.30 2,197,651.07 1,574,878.01 \r\n50,418.41 - \r\n116,037.56 29,493.13 \r\n \r\n8,200.00 $ \r\n- \r\n \r\n2,041,969.54 $ \r\n218,225.75 - \r\n \r\n9,008,251.28 \r\n1,791,071.05 2,197,651.07 1,574,878.01 \r\n50,418.41 - \r\n116,037.56 29,493.13 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 12,499,405.22 $ \r\n \r\n8,200.00 $ \r\n \r\n2,260,195.29 $ 14,767,800.51 \r\n \r\n$ \r\n \r\n460,756.45 $ \r\n \r\n2,869,576.28 \r\n \r\n480,905.81 \r\n \r\n8,622.94 \r\n \r\n3,819,861.48 \r\n \r\n8,200.00 $ - \r\n8,200.00 \r\n \r\n- $ - \r\n- \r\n \r\n468,956.45 2,869,576.28 \r\n480,905.81 8,622.94 \r\n3,828,061.48 \r\n \r\n539,883.09 \r\n \r\n- \r\n \r\n28,759.47 \r\n \r\n568,642.56 \r\n \r\n145,530.69 386,094.26 \r\n88,179.88 7,519,855.82 \r\n8,139,660.65 \r\n \r\n- \r\n \r\n- \r\n \r\n145,530.69 \r\n \r\n- \r\n \r\n2,231,435.82 \r\n \r\n2,617,530.08 \r\n \r\n- \r\n \r\n- \r\n \r\n88,179.88 \r\n \r\n- \r\n \r\n- \r\n \r\n7,519,855.82 \r\n \r\n- \r\n \r\n2,231,435.82 \r\n \r\n10,371,096.47 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 12,499,405.22 $ \r\n \r\n8,200.00 $ 2,260,195.29 $ 14,767,800.51 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2020 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred charges or credits on debt refundings are applicable to future periods and are therefore not reported in the funds and are amortized over the life of the new debt. \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Compensated absences payable Intergovernmental agreement payable \r\n \r\n$ 10,371,096.47 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n52,063,155.93 \r\n \r\n5,285,754.60 \r\n \r\n4,324,837.92 \r\n \r\n(33,684,070.07) \r\n \r\n28,521,486.38 \r\n \r\n$ (25,429,616.00) (23,314,376.00) \r\n \r\n(48,743,992.00) \r\n \r\n182,479.11 \r\n \r\n$ \r\n \r\n3,439,091.00 \r\n \r\n(7,677,439.00) \r\n \r\n(4,238,348.00) 568,642.56 \r\n \r\n$ \r\n \r\n(2,145,000.00) \r\n \r\n(70,765.07) \r\n \r\n(66,641.41) \r\n \r\n(5,208,696.00) \r\n \r\n(7,491,102.48) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ (20,829,737.96) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 10,869,747.00 $ 126,299.53 \r\n18,320,312.03 5,897,001.89 154,201.06 5,008.90 503,093.51 \r\n35,875,663.92 \r\n \r\n- $ - \r\n- \r\n \r\n359,956.71 $ 2,084,458.24 \r\n33,008.69 - \r\n \r\n11,229,703.71 2,210,757.77 \r\n18,320,312.03 5,897,001.89 154,201.06 38,017.59 503,093.51 \r\n \r\n2,477,423.64 \r\n \r\n38,353,087.56 \r\n \r\n16,717,659.24 \r\n1,911,230.02 1,440,907.30 \r\n302,853.76 1,034,614.10 2,234,227.50 \r\n246,106.09 3,193,649.37 2,344,485.59 \r\n384,105.29 201,984.17 \r\n55,845.83 1,655,681.00 \r\n- \r\n- \r\n31,723,349.26 \r\n4,152,314.66 \r\n \r\n- \r\n8,200.00 \r\n- \r\n8,200.00 \r\n(8,200.00) \r\n \r\n- \r\n190.00 - \r\n1,531,418.00 377,062.89 \r\n1,908,670.89 \r\n568,752.75 \r\n \r\n16,717,659.24 \r\n1,911,230.02 1,440,907.30 \r\n302,853.76 1,034,614.10 2,234,227.50 \r\n246,296.09 3,193,649.37 2,344,485.59 \r\n384,105.29 201,984.17 \r\n55,845.83 1,655,681.00 \r\n8,200.00 \r\n1,531,418.00 377,062.89 \r\n33,640,220.15 \r\n4,712,867.41 \r\n \r\n4,152,314.66 3,987,345.99 \r\n \r\n8,200.00 - \r\n8,200.00 - \r\n \r\n(8,200.00) (8,200.00) 560,552.75 1,670,883.07 \r\n \r\n8,200.00 (8,200.00) \r\n4,712,867.41 5,658,229.06 \r\n \r\n$ 8,139,660.65 $ \r\n \r\n- $ 2,231,435.82 $ 10,371,096.47 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nIntergovernmental agreement payments Amortization of deferred charge on refunding of bonds Bond principal retirements \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n4,712,867.41 \r\n \r\n$ \r\n \r\n578,590.13 \r\n \r\n(1,868,957.45) \r\n \r\n(1,290,367.32) (130,371.75) 66,791.69 \r\n \r\n$ \r\n \r\n1,276,418.00 \r\n \r\n(37,104.36) \r\n \r\n255,000.00 \r\n \r\n1,494,313.64 \r\n \r\n$ \r\n \r\n72,280.00 \r\n \r\n831,436.00 \r\n \r\n903,716.00 \r\n \r\n$ \r\n \r\n27,224.34 \r\n \r\n(5,503.87) \r\n \r\n21,720.47 \r\n \r\n$ \r\n \r\n5,778,670.14 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2020 \r\nASSETS Cash and Cash Equivalents Accounts Receivable \r\nOther \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n51,265.22 \r\n \r\n8,886.32 \r\n \r\n$ \r\n \r\n60,151.54 \r\n \r\n$ \r\n \r\n60,151.54 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\n \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\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. \r\nConsumable Supplies \r\nOn the basic financial statements, consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby supplies are recorded as an asset when purchased, and expenses/expenditures are recorded as the inventory items are used. \r\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\n$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 500,000.00 \r\n \r\nN/A 20 years \r\n7 to 40 years 5 to 15 years Individually Determined \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\n \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\n \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond 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. \r\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. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on August 30, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 20, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Meriwether County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $9,699,083.87 and for school bonds amounted to $359,956.71. \r\nThe tax millage rates levied for the 2019 tax year (calendar year) for the School District were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.185 mills 0.667 mills \r\n \r\n18.852 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,076,278.75 during fiscal year ended June 30, 2020. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $2,079,829.83 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nreceives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, the School District had deposits with a carrying amount of $7,118,832.34, and a bank balance of $7,353,541.63. The bank balances insured by Federal depository insurance were $409,798.64. \r\nAt June 30, 2020, $6,943,742.99 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nrequirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 9,008,251.28 51,265.22 \r\n \r\nTotal cash and cash equivalents \r\n \r\n9,059,516.50 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n1,940,684.16 \r\n \r\nTotal carrying value of deposits - June 30, 2020 \r\n \r\n$ 7,118,832.34 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $1,940,684.16 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report, which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\n$ 531,808.00 $ \r\n \r\n- $ \r\n \r\n- $ 531,808.00 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n51,868,966.68 5,169,997.97 4,324,837.92 \r\n \r\n194,189.25 384,400.88 \r\n- \r\n \r\n268,644.25 \r\n- \r\n \r\n52,063,155.93 5,285,754.60 4,324,837.92 \r\n \r\n24,362,889.62 4,044,536.84 3,545,958.66 \r\n \r\n1,488,728.74 250,671.30 129,557.41 \r\n \r\n138,272.50 \r\n- \r\n \r\n25,851,618.36 4,156,935.64 3,675,516.07 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n29,410,417.45 (1,290,367.32) 130,371.75 27,989,678.38 \r\n \r\nGovernmental Activities Capital Assets - Net $ 29,942,225.45 $ (1,290,367.32) $ 130,371.75 $ 28,521,486.38 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nGeneral Administration \r\n \r\n$ 74,347.61 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n556.57 \r\n \r\nStudent Transportation Services \r\n \r\n177,411.50 \r\n \r\nFood Services \r\n \r\n$ 1,595,116.98 \r\n252,315.68 21,524.79 \r\n \r\n$ 1,868,957.45 \r\n \r\nNOTE 6: INTERFUND TRANSFERS \r\n \r\nINTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2020, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\nDebt Service Fund \r\n \r\nCapital Projects Fund \r\n \r\n$ 8,200.00 \r\n \r\nTransfers are used to move sales tax previously collected by the debt service fund to the capital projects fund for construction projects. \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2019 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2020 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation (G.O.) Bonds Intergovernmental Agreement Compensated Absences(1) \r\n \r\n$ 2,400,000.00 $ \r\n \r\n- $ 255,000.00 $ 2,145,000.00 $ 265,000.00 \r\n \r\n6,485,114.00 \r\n \r\n- \r\n \r\n1,276,418.00 5,208,696.00 1,315,204.00 \r\n \r\n61,137.54 13,215.74 \r\n \r\n7,711.87 \r\n \r\n66,641.41 \r\n \r\n- \r\n \r\n$ 8,946,251.54 $ 13,215.74 $ 1,539,129.87 $ 7,420,337.41 $ 1,580,204.00 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nThe School District's outstanding bond from direct placement related to governmental activities of $2,145,000.00 contains a provision that in an event of default, outstanding amounts become immediately due if the School District is unable to make payment. \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2004 \r\n \r\n3.84% 11/3/2004 \r\n \r\n10/1/2026 $ 5,000,000.00 $ 2,145,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2021 2022 2023 2024 2025 2026 - 2027 \r\n \r\n$ \r\n \r\n265,000.00 $ \r\n \r\n77,280.00 \r\n \r\n280,000.00 \r\n \r\n66,816.00 \r\n \r\n290,000.00 \r\n \r\n55,872.00 \r\n \r\n305,000.00 \r\n \r\n44,448.00 \r\n \r\n320,000.00 \r\n \r\n32,448.00 \r\n \r\n685,000.00 \r\n \r\n26,592.00 \r\n \r\nTotal Principal and Interest $ 2,145,000.00 $ 303,456.00 \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINTERGOVERNMENTAL AGREEMENT \r\n \r\nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District and capital outlay projects of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\n \r\nThe School District entered into a contract with the Meriwether County Public Facilities Authority, dated August 31, 2017, for the issuance of revenue bonds to provide funds to refund $1,370,000.00 of School District General Obligation Debt associated with the Series 2007 bond issue and $1,350,000.00 of Meriwether County Public Facilities Authority Revenue Bonds Series 2013. Under the terms of the contract, the Meriwether County Public Facilities Authority issued $2,835,500.00 in revenue bonds on behalf of the School District. \r\n \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the aforementioned outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \r\n \r\nDebt currently outstanding under this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Refunding Series 2006 Authority Revenue Bonds - Series 2017 \r\n \r\n4.21% 2.75% \r\n \r\n1/4/2006 8/31/2017 \r\n \r\n10/1/2026 $ 4/1/2022 \r\n \r\n8,160,000.00 $ 2,835,500.00 \r\n \r\n3,935,000.00 1,273,696.00 \r\n \r\n$ \r\n \r\n10,995,500.00 $ 5,208,696.00 \r\n \r\nThe following is a schedule of total intergovernmental agreement payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amount on Refunding \r\n \r\n2021 2022 2023 2024 2025 2026 - 2027 \r\n \r\n$ \r\n \r\n1,315,204.00 $ \r\n \r\n968,492.00 \r\n \r\n535,000.00 \r\n \r\n560,000.00 \r\n \r\n585,000.00 \r\n \r\n1,245,000.00 \r\n \r\n190,270.39 $ 146,454.29 111,880.75 \r\n88,831.00 64,728.75 52,940.75 \r\n \r\n37,104.41 34,358.56 26,121.00 26,121.00 26,121.00 32,653.14 \r\n \r\nTotal Principal and Interest $ \r\n \r\n5,208,696.00 $ \r\n \r\n655,105.93 $ \r\n \r\n182,479.11 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 8: RISK MANAGEMENT \r\n \r\nINSURANCE \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \r\n \r\nGeorgia School Boards Association Risk Management Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \r\n \r\nWORKERS' COMPENSATION \r\n \r\nGeorgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2019 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,243.00 \r\n \r\n$ \r\n \r\n4,243.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2020 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,204.00 \r\n \r\n$ \r\n \r\n3,204.00 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \r\n \r\nNonspendable Food Inventory Consumable Supply Inventory Prepaid Assets \r\nRestricted Continuation of Federal Programs Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n91,415.55 \r\n \r\n24,622.01 \r\n \r\n29,493.13 $ \r\n \r\n145,530.69 \r\n \r\n$ \r\n \r\n386,094.26 \r\n \r\n2,231,435.82 \r\n \r\n2,617,530.08 \r\n \r\n88,179.88 7,524,726.94 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 10,375,967.59 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nArrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\n \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a pay-asyou-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $616,237.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\n \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2020, the School District reported a liability of $23,314,376.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.189978%, which was a decrease of 0.002894% from its proportion measured as of June 30, 2018. \r\n \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of ($215,199.00). At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 2,536,361.00 \r\n \r\nChanges of assumptions \r\n \r\n809,663.00 \r\n \r\n3,286,591.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n50,772.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n3,331,159.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n616,237.00 \r\n \r\n- \r\n \r\n$ 1,476,672.00 $ 9,154,111.00 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2021 2022 2023 2024 2025 Thereafter \r\n \r\n$ (1,883,460.00) $ (1,883,460.00) $ (1,885,412.00) $ (1,645,944.00) $ (851,117.00) $ (144,283.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: \r\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00% - 8.75%, including inflation \r\n \r\nLong-term expected rate of return \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nHealthcare cost trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n7.250% \r\n \r\nMedicare Eligible Ultimate trend rate \r\n \r\n5.375% \r\n \r\nPre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \r\n \r\n4.75% 4.75% \r\n \r\nPre-Medicare Eligible Medicare Eligible \r\n \r\n2028 2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018. \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation. \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\nTotal \r\n \r\nTarget allocation \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n100.00% \r\n \r\nLong-Term Expected Real Rate of Return* \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\n*Net of Inflation \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point \r\nlower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\nSchool District's Proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\n$ \r\n \r\n27,099,001.00 $ \r\n \r\n23,314,376.00 $ 20,235,754.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \r\n \r\nSchool District's Proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease \r\n \r\nHealthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\n$ \r\n \r\n19,639,892.00 $ \r\n \r\n23,314,376.00 $ 27,981,250.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\nNOTE 12: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\namount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 20.90% of payroll was required from the School District and 0.24% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,007,662.00 and $34,860.64 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $40,412.00 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose \r\nto receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $91,578.00. \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2020, the School District reported a liability of $25,429,616.00 for its proportionate share of the net pension liability for TRS ($25,242,024.00) and ERS ($187,592.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 25,242,024.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n281,040.00 \r\n \r\nTotal \r\n \r\n$ 25,523,064.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2019. \r\nAt June 30, 2019, the School District's TRS proportion was 0.117390%, which was an increase of 0.000285% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.004546%, which was an increase of 0.000466% from its proportion measured as of June 30, 2018. \r\nAt June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $529,691.00. \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \r\n \r\nFor the year ended June 30, 2020, the School District recognized pension expense of $3,042,826.00 for TRS, $14,859.00 for ERS and $163,350.00 for PSERS and revenue of ($84,906.00) for TRS and $163,350.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDeferred Outflows of Resources \r\n \r\nERS \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 1,422,769.00 $ \r\n \r\n7,484.00 \r\n \r\n$ \r\n \r\n6,247.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n2,422,302.00 \r\n \r\n- \r\n \r\n3,302.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n601,090.00 \r\n \r\n- \r\n \r\n5,839.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n40,125.00 \r\n \r\n2,883,831.00 \r\n \r\n11,140.00 \r\n \r\n16,624.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n3,007,662.00 \r\n \r\n- \r\n \r\n$ 6,892,858.00 $ 3,492,405.00 \r\n \r\n40,412.00 \r\n \r\n- \r\n \r\n$ 61,101.00 $ 22,463.00 \r\n \r\nThe School District contributions subsequent to the measurement date 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, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2021 2022 2023 2024 \r\n \r\n$ 151,834.00 $ (823.00) $ (710,295.00) $ (575.00) $ 172,414.00 $ (1,150.00) $ 778,838.00 $ 774.00 \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\nPost-retirement benefit increases \r\n \r\n2.50% \r\n3.00%  8.75%, average, including inflation \r\n7.25%, net of pension plan investment expense, including inflation 1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\n- 29 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment of return. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\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: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n* Rates shown are net of assumed rate of inflation. \r\n \r\nTRS Target allocation \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n100.00% \r\n \r\nERS/PSERS Target \r\nallocation \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\n- 30 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25% and 6.30%) or 1-percentage-point higher (8.25% and 8.30%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.25%) \r\n \r\nCurrent Discount Rate (7.25%) \r\n \r\n1% Increase (8.25%) \r\n \r\n$ 40,975,193.00 $ \r\n \r\n25,242,024.00 $ 12,303,769.00 \r\n \r\nEmployees' Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.30%) \r\n \r\nCurrent Discount Rate (7.30%) \r\n \r\n1% Increase (8.30%) \r\n \r\n$ \r\n \r\n266,586.00 $ \r\n \r\n187,592.00 $ \r\n \r\n120,251.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/financials. \r\nNOTE 13: SUBSEQUENT EVENTS \r\nIn the subsequent fiscal year, voters authorized the continuation of a one percent sales and use tax for a period of time not to exceed 12 calendar quarters and for the raising of not more that $6,600,000.00 for the purpose of: (a) paying a portion of the principal of and interest on the Series 2004 Bonds, the maximum amount of debt to be paid will not exceed $1,438,640.00; (b) paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $2,646,810.00; and (c) paying for: system-wide technology upgrades; renovations, modifications, additions and improvements to existing school facilities; planning for future facilities; purchase and maintenance of school buses, property maintenance equipment and transportation vehicles; and safety and security equipment in school facilities and on school buses; the maximum amount shall not exceed $2,514,550.00. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of \r\nthe net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.117390% $ 25,242,024.00 $ 0.117105% $ 21,737,196.00 $ 0.134710% $ 25,036,268.00 $ 0.142698% $ 29,440,188.00 $ 0.153393% $ 23,352,561.00 $ 0.155325% $ 19,623,265.00 $ \r\n \r\n281,040.00 245,206.00 367,989.00 785,839.00 \r\n- \r\n \r\n$ 25,523,064.00 $ 21,982,402.00 $ 25,404,257.00 $ 30,226,027.00 $ 23,352,561.00 $ 19,623,265.00 \r\n \r\n$ 14,500,341.65 $ 14,105,581.08 $ 15,702,349.85 $ 16,017,416.29 $ 16,450,395.67 $ 15,845,252.04 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n174.08% 154.10% 159.44% 183.80% 141.96% 123.84% \r\n \r\n78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015(1) 2014(1) 2013(1) 2012(1) 2011(1) \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n$ \r\n \r\n3,007,662.00 $ \r\n \r\n$ \r\n \r\n2,997,242.00 $ \r\n \r\n$ \r\n \r\n2,344,693.90 $ \r\n \r\n$ \r\n \r\n2,208,289.34 $ \r\n \r\n$ \r\n \r\n2,233,622.00 $ \r\n \r\n$ \r\n \r\n2,163,227.03 $ \r\n \r\n$ \r\n \r\n1,945,796.95 $ \r\n \r\n$ \r\n \r\n1,882,222.45 $ \r\n \r\n$ \r\n \r\n1,797,763.93 $ \r\n \r\n$ \r\n \r\n1,762,220.80 $ \r\n \r\n3,007,662.00 $ 2,997,242.00 $ 2,344,693.90 $ 2,208,289.34 $ 2,233,622.00 $ 2,163,227.03 $ 1,945,796.95 $ 1,882,222.45 $ 1,797,763.93 $ 1,762,220.80 $ \r\n \r\n- \r\n \r\n$ 14,393,702.02 \r\n \r\n- \r\n \r\n$ 14,500,341.65 \r\n \r\n- \r\n \r\n$ 14,105,581.08 \r\n \r\n- \r\n \r\n$ 15,702,349.85 \r\n \r\n- \r\n \r\n$ 16,017,416.29 \r\n \r\n- \r\n \r\n$ 16,450,395.67 \r\n \r\n- \r\n \r\n$ 15,845,252.04 \r\n \r\n- \r\n \r\n$ 16,496,252.85 \r\n \r\n- \r\n \r\n$ 17,487,975.97 \r\n \r\n- \r\n \r\n$ 17,142,225.68 \r\n \r\n20.90% 20.67% 16.62% 14.06% 13.94% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n \r\n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \r\n \r\n- 34 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nSchool District's covered payroll \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.004546% $ 0.004080% $ 0.005873% $ 0.005883% $ 0.005837% $ 0.005485% $ \r\n \r\n187,592.00 $ 167,730.00 $ 238,522.00 $ 278,291.00 $ 236,480.00 $ 205,721.00 $ \r\n \r\n114,595.70 108,810.50 144,057.39 136,783.98 137,120.67 127,806.77 \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\n163.70% 154.15% 165.57% 203.45% 172.46% 160.96% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.74% 76.68% 76.33% 72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 2014 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n40,412.00 $ \r\n \r\n$ \r\n \r\n28,397.00 $ \r\n \r\n$ \r\n \r\n26,995.88 $ \r\n \r\n$ \r\n \r\n35,740.61 $ \r\n \r\n$ \r\n \r\n33,813.00 $ \r\n \r\n$ \r\n \r\n30,111.70 $ \r\n \r\n$ \r\n \r\n23,593.13 $ \r\n \r\n40,412.00 $ 28,397.00 $ 26,995.88 $ 35,740.61 $ 33,813.00 $ 30,111.70 $ 23,593.13 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n163,876.17 \r\n \r\n- \r\n \r\n$ \r\n \r\n114,595.70 \r\n \r\n- \r\n \r\n$ \r\n \r\n108,810.50 \r\n \r\n- \r\n \r\n$ \r\n \r\n144,057.39 \r\n \r\n- \r\n \r\n$ \r\n \r\n136,783.98 \r\n \r\n- \r\n \r\n$ \r\n \r\n137,120.67 \r\n \r\n- \r\n \r\n$ \r\n \r\n127,806.77 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n24.66% 24.78% 24.81% 24.81% 24.72% 21.96% 18.46% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n529,691.00 470,197.00 453,356.00 583,945.00 367,572.00 317,505.00 \r\n \r\n$ 529,691.00 $ 470,197.00 $ 453,356.00 $ 583,945.00 $ 367,572.00 $ 317,505.00 \r\n \r\n$ 1,261,238.98 $ 1,217,948.80 $ 1,198,397.56 $ 1,179,741.08 $ 1,187,773.95 $ 1,253,284.68 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n85.02% \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 37 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\nOPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n2020 \r\n \r\n0.189978% $ 23,314,376.00 $ \r\n \r\n- \r\n \r\n2019 \r\n \r\n0.192872% $ 24,513,439.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n0.214524% $ 30,140,536.00 $ \r\n \r\n- \r\n \r\nTotal \r\n$ 23,314,376.00 $ 24,513,439.00 $ 30,140,536.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 13,212,268.33 $ 13,104,873.07 $ 14,307,456.97 \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n176.46% 187.06% 210.66% \r\n \r\n4.63% 2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 38 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n616,237.00 $ \r\n \r\n616,237.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,023,164.00 $ \r\n \r\n1,023,164.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n999,636.00 $ \r\n \r\n999,636.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,118,545.00 $ \r\n \r\n1,118,545.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 13,470,038.35 $ 13,212,268.33 $ 13,104,873.07 $ 14,307,456.97 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n4.57% 7.74% 7.63% 7.82% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 39 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"8\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adop- ted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \r\nEmployees' Retirement System \r\nChanges of benefit terms:  A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. $RQHWLPHSD\\PHQWZDVJUDQWHGWRFHUWDLQUHWLUHHVDQGEHQHILFLDULHVHIIHFWLYH-XO\\ \r\nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases. \r\nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality ZHUHDGMXVWHGWRPRUHFORVHO\\UHIOHFWDFWXDOH[SHULHQFH \r\nOn December 17, 2- 015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019. \r\n \r\n- 40 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"9\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 9,483,304.00 $ 80,400.00 \r\n23,053,229.96 4,773,568.39 28,247.20 3,780.00 213,000.00 \r\n37,635,529.55 \r\n \r\n9,483,304.00 $ 80,400.00 \r\n23,165,083.00 8,612,907.19 28,247.20 3,780.00 496,388.32 \r\n \r\n10,869,747.00 $ 126,299.53 \r\n18,320,312.03 5,897,001.89 154,201.06 5,008.90 503,093.51 \r\n \r\n41,870,109.71 \r\n \r\n35,875,663.92 \r\n \r\n1,386,443.00 45,899.53 \r\n(4,844,770.97) (2,715,905.30) \r\n125,953.86 1,228.90 6,705.19 \r\n(5,994,445.79) \r\n \r\n18,019,555.72 \r\n1,842,945.88 1,291,641.14 \r\n288,120.73 1,184,702.84 2,461,016.02 \r\n266,968.48 2,853,103.23 2,721,502.91 \r\n270,443.41 197,478.49 \r\n1,933,286.59 \r\n33,330,765.44 \r\n4,304,764.11 \r\n3,418,590.04 \r\n51,252.79 \r\n \r\n18,958,998.28 \r\n2,185,744.40 1,689,238.52 \r\n310,901.42 1,201,787.64 2,491,088.02 \r\n296,599.48 3,327,920.20 3,023,494.91 \r\n312,537.53 208,735.49 \r\n1,937,766.59 \r\n35,944,812.48 \r\n5,925,297.23 \r\n3,418,590.04 \r\n755,977.20 \r\n \r\n16,717,659.24 \r\n1,911,230.02 1,440,907.30 \r\n302,853.76 1,034,614.10 2,234,227.50 \r\n246,106.09 3,193,649.37 2,344,485.59 \r\n384,105.29 201,984.17 \r\n55,845.83 1,655,681.00 \r\n31,723,349.26 \r\n4,152,314.66 \r\n3,987,345.99 \r\n- \r\n \r\n2,241,339.04 \r\n274,514.38 248,331.22 \r\n8,047.66 167,173.54 256,860.52 \r\n50,493.39 134,270.83 679,009.32 (71,567.76) \r\n6,751.32 (55,845.83) 282,085.59 \r\n4,221,463.22 \r\n(1,772,982.57) \r\n568,755.95 \r\n(755,977.20) \r\n \r\nFund Balances - Ending \r\n \r\n$ 7,774,606.94 $ \r\n \r\n10,099,864.47 $ \r\n \r\n8,139,660.65 $ \r\n \r\n(1,960,203.82) \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $366,069.64 and $342,387.60, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"10\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program State Administrative Expense for Child Nutrition \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Stabilization Funds Rural Education Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nJustice, U. S. Department of Direct Public Safety Partnership and Community Policing Grants \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n205GA324N1099 $ 205GA324N1099 \r\n \r\n406,546.46 1,093,553.23 \r\n1,500,099.69 \r\n \r\n10.579 10.582 10.560 \r\n \r\n205GA324N8503 205GA324L1603 185GA904N2533 \r\n \r\n15,110.27 56,187.35 \r\n2,517.62 \r\n73,815.24 \r\n1,573,914.93 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A180073 H027A190073 H173A180081 H173A190081 \r\n \r\n84.048 84.425D 84.358 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 \r\n \r\nV048A190010 S425D200012 S358B180010 S358B190010 S424A18001 S424A19001 S367A180001 S367A190001 S010A180010 S010A190010 S287C190010 \r\n \r\n16.71 \r\n \r\n295,946.00 318,361.93 \r\n15,796.00 44,130.42 \r\n674,234.35 \r\n43,216.97 837,552.93 \r\n5,263.00 48,865.52 17,710.31 61,599.79 53,523.00 70,629.54 358,889.31 1,728,863.57 205,272.71 \r\n3,431,386.65 \r\n4,105,621.00 \r\n173,718.93 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,853,254.86 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Meriwether County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 42 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Hygiene Products in Georgia Schools Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Residential Treatment Centers Grant School Safety Grant School Security Grant Teachers Retirement Vocational Education Vocational Supervisors \r\nGovernor's Office of Student Achievement Innovation Fund \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"11\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n739,189.67 \r\n \r\n685,710.00 391,953.00 977,267.00 1,771,115.00 451,256.00 898,431.00 1,476,851.00 1,300,268.00 426,292.00 3,020,988.00 364,946.00 281,789.00 115,739.00 \r\n58,719.00 284,107.00 \r\n85,734.00 54,888.00 \r\n2,266.00 \r\n610,292.00 926,346.00 591,879.00 252,702.00 (221,321.00) \r\n785,577.00 51,148.00 \r\n1,136,981.00 \r\n50,994.00 350.02 \r\n3,154.47 91,152.33 154,436.25 128,281.01 27,689.86 67,209.54 34,860.64 58,443.58 \r\n7,070.00 \r\n33,979.66 \r\n91,578.00 \r\n50,000.00 \r\n$ 18,320,312.03 \r\n- 43 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"12\" \r\n \r\nPROJECT SPLOST III \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n(i) Paying a portion of the principal of and \r\n \r\ninterest on the Series 2004 Bonds, the \r\n \r\nmaximum amount of debt to be paid will not \r\n \r\nexceed $1,744,728.00 as set forth in the \r\n \r\nSchool District Resolution \r\n \r\n$ 1,744,728.00 $ 1,744,728.00 $ 342,264.00 $ \r\n \r\n392,648.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(ii) Paying a portion of the principal of and \r\n \r\ninterest on the Series 2006 Bonds, the \r\n \r\nmaximum amount of debt to be paid will not \r\n \r\nexceed $3,299,108.00 as set forth in the \r\n \r\nSchool District Resolution \r\n \r\n3,299,108.00 \r\n \r\n3,299,108.00 \r\n \r\n650,662.25 \r\n \r\n752,647.00 \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) Paying a portion of the principal of and \r\n \r\ninterest on the Series 2010 Bonds, the \r\n \r\nmaximum amount of debt to be paid will not \r\n \r\nexceed $1,093,990.00 as set forth in the \r\n \r\nSchool District Resolution \r\n \r\n1,093,990.00 \r\n \r\n1,093,990.00 \r\n \r\n375,596.00 \r\n \r\n718,394.00 \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) \u0026 (v) Paying a portion of the principal of and \r\n \r\ninterest on the Series 2007 Bonds and Series \r\n \r\n2013 Bonds, Restricted to Series 2017 Bonds, \r\n \r\nthe maximum amount of debt to be paid will not \r\n \r\nexceed $849,250.00 and $885,399.00, \r\n \r\nrespectively as set forth in the School District \r\n \r\nResolution \r\n \r\n1,734,649.00 \r\n \r\n1,734,649.00 \r\n \r\n539,958.64 \r\n \r\n1,177,774.17 \r\n \r\n- \r\n \r\n- \r\n \r\n(vi) Paying for system-wide technology \r\n \r\nupgrades, and renovations and improvements \r\n \r\nto existing school facilities, the maximum \r\n \r\namount shall not exceed $627,525.00 as set \r\n \r\nforth in the School District Resolution. \r\n \r\n627,525.00 \r\n \r\n627,525.00 \r\n \r\n8,200.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n10/1/2022 10/1/2022 10/1/2022 \r\n10/1/2022 10/1/2022 \r\n \r\n$ 8,500,000.00 $ 8,500,000.00 $ 1,916,680.89 $ 3,041,463.17 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated June 9, 2021. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nJune 9, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Meriwether County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nJune 9, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-6991-13-01 Control Category: \r\nInternal Control Impact: Compliance Impact: Finding Status: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2014-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Finding Status: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2015-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInternal Control Procedures Cash and Cash Equivalents Capital Assets General Ledger Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2015-005 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Cash and Cash Equivalents Investments Expenditures/Liabilities/Disbursements Accounting Controls (Overall) General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2016-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others General Ledger Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2017-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2018-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2018-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2019-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Capital Assets Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2019-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2016-002 Control Category: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls Over Equipment Equipment and Real Property Management Material Weakness Material Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFA 2017-002 Control Category: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls Over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFA 2018-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 17175GA324N1099, 17175GA324N1100 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFA 2019-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 195GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n- 4 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n84.010 84.425D \r\n \r\nTitle I Grants to Local Educational Agencies Education Stabilization Fund \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\n$750,000.00 No \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2019-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2021-01-12"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n33 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n35 \r\n \r\n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\n \r\nSCHOOL OPEB FUND \r\n \r\n36 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n37 \r\n \r\n6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 38 \r\n \r\n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \r\n \r\n39 \r\n \r\n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n40 \r\n \r\n9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n41 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n42 43 45 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III \r\n \r\nAUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\n \r\n The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated January 12, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nJanuary 12, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nInterest Taxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nDeferred Charge on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\nGOVERNMENTAL ACTIVITIES \r\n$ 5,616,272.93 18,037.23 \r\n1,280,023.23 2,071,664.18 \r\n419,845.39 1,814.00 \r\n71,080.79 86,879.59 \r\n5,469.33 531,808.00 29,410,417.45 39,513,312.12 \r\n219,583.47 4,805,797.00 1,056,330.00 6,081,710.47 \r\n237,172.24 2,985,006.93 \r\n188,827.57 97,989.41 \r\n21,904,926.00 24,513,439.00 \r\n1,531,418.00 7,414,833.54 58,873,612.69 \r\n4,963,676.00 8,366,142.00 13,329,818.00 \r\n21,276,694.92 438,974.89 \r\n1,595,284.01 (49,919,361.92) \r\n$ (26,608,408.10) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Item Insurance Proceeds for Loss of Fixed Asset \r\nTotal General Revenues and Special Item \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 16,205,078.09 $ \r\n1,526,860.37 1,164,991.31 \r\n230,668.38 1,189,058.42 2,008,032.67 \r\n240,443.44 2,596,662.56 2,183,652.52 \r\n228,062.98 196,830.39 \r\n58,479.34 1,855,256.09 \r\n446,061.46 \r\n$ 30,130,138.02 $ \r\n \r\n146,347.61 \r\n- \r\n19,247.20 \r\n- \r\n165,594.81 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 12,535,249.70 $ \r\n200,551.12 1,601,914.03 \r\n311,867.00 649,068.81 1,013,517.00 \r\n807,781.75 879,416.81 \r\n13,297.65 68,969.43 \r\n1,933,231.93 \r\n- \r\n$ 20,014,865.23 $ \r\n \r\n- $ \r\n154,440.00 - \r\n- \r\n154,440.00 \r\n \r\n(3,523,480.78) \r\n(1,326,309.25) 436,922.72 81,198.62 (539,989.61) (994,515.67) (240,443.44) \r\n(1,788,880.81) (1,149,795.71) \r\n(214,765.33) (127,860.96) \r\n(58,479.34) 97,223.04 (446,061.46) \r\n(9,795,237.98) \r\n \r\n9,993,208.95 347,256.69 92,889.60 \r\n1,920,369.69 110,149.98 \r\n1,034,249.00 105,920.53 510,761.48 \r\n69,252.29 \r\n14,184,058.21 \r\n4,388,820.23 \r\n(30,997,228.33) \r\n$ (26,608,408.10) \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2019 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nInterest Taxes State Government Federal Government Local Other Inventories Prepaid Items \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,134,257.66 $ 1,482,015.27 $ 5,616,272.93 \r\n \r\n1,086,802.31 2,071,664.18 \r\n419,845.39 1,814.00 \r\n71,080.79 86,879.59 \r\n5,469.33 \r\n \r\n18,037.23 193,220.92 \r\n- \r\n \r\n18,037.23 1,280,023.23 2,071,664.18 \r\n419,845.39 1,814.00 \r\n71,080.79 86,879.59 \r\n5,469.33 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 7,877,813.25 $ 1,693,273.42 $ 9,571,086.67 \r\n \r\n$ \r\n \r\n237,172.24 $ \r\n \r\n2,985,006.93 \r\n \r\n188,827.57 \r\n \r\n3,411,006.74 \r\n \r\n- $ \r\n \r\n237,172.24 \r\n \r\n- \r\n \r\n2,985,006.93 \r\n \r\n- \r\n \r\n188,827.57 \r\n \r\n- \r\n \r\n3,411,006.74 \r\n \r\n479,460.52 \r\n \r\n22,390.35 \r\n \r\n501,850.87 \r\n \r\n86,879.59 387,878.70 \r\n64,497.84 3,448,089.86 \r\n3,987,345.99 \r\n \r\n1,670,883.07 \r\n- \r\n1,670,883.07 \r\n \r\n86,879.59 2,058,761.77 \r\n64,497.84 3,448,089.86 \r\n5,658,229.06 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 7,877,813.25 $ 1,693,273.42 $ 9,571,086.67 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2019 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Land improvements Buildings and improvements Equipment Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred charges or credits on debt refundings are applicable to future periods and are therefore not reported in the funds and are amortized over the life of the new debt. \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Compensated absences payable Intergovernmental Agreement payable \r\n \r\n$ \r\n \r\n5,658,229.06 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,837.92 \r\n \r\n51,868,966.68 \r\n \r\n5,169,997.97 \r\n \r\n(31,953,385.12) \r\n \r\n29,942,225.45 \r\n \r\n$ (21,904,926.00) (24,513,439.00) \r\n \r\n(46,418,365.00) 219,583.47 \r\n \r\n$ \r\n \r\n(157,879.00) \r\n \r\n(7,309,812.00) \r\n \r\n(7,467,691.00) 501,850.87 \r\n \r\n$ \r\n \r\n(2,400,000.00) \r\n \r\n(97,989.41) \r\n \r\n(61,137.54) \r\n \r\n(6,485,114.00) \r\n \r\n(9,044,240.95) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ (26,608,408.10) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nRevenues over Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nInsurance Proceeds Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 10,101,369.14 $ 106,258.61 \r\n16,723,280.44 4,424,993.27 165,594.81 4,131.28 510,761.48 \r\n32,036,389.03 \r\n \r\n349,014.09 $ 1,924,261.06 \r\n101,789.25 - \r\n2,375,064.40 \r\n \r\n10,450,383.23 2,030,519.67 \r\n16,723,280.44 4,424,993.27 165,594.81 105,920.53 510,761.48 \r\n34,411,453.43 \r\n \r\n16,431,219.71 \r\n1,751,958.01 1,335,708.69 \r\n271,493.35 1,155,529.96 2,290,768.97 \r\n259,829.42 2,786,781.47 2,393,847.91 \r\n262,747.45 196,186.54 \r\n58,479.34 1,888,275.95 \r\n133,400.98 3,069.02 \r\n31,219,296.77 \r\n817,092.26 \r\n \r\n- \r\n180.00 - \r\n1,487,993.00 419,384.18 \r\n1,907,557.18 \r\n467,507.22 \r\n \r\n16,431,219.71 \r\n1,751,958.01 1,335,708.69 \r\n271,493.35 1,155,529.96 2,290,768.97 \r\n260,009.42 2,786,781.47 2,393,847.91 \r\n262,747.45 196,186.54 \r\n58,479.34 1,888,275.95 \r\n1,621,393.98 422,453.20 \r\n33,126,853.95 \r\n1,284,599.48 \r\n \r\n69,252.29 - \r\n(31,886.05) \r\n37,366.24 \r\n854,458.50 \r\n3,132,887.49 \r\n \r\n31,886.05 \r\n- \r\n31,886.05 \r\n499,393.27 \r\n1,171,489.80 \r\n \r\n69,252.29 31,886.05 (31,886.05) \r\n69,252.29 \r\n1,353,851.77 \r\n4,304,377.29 \r\n \r\n$ \r\n \r\n3,987,345.99 $ \r\n \r\n1,670,883.07 $ \r\n \r\n5,658,229.06 \r\n \r\nThe notes to the basic financial statement are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nIntergovernmental agreement payments Amortization of deferred outflow on refunding of bonds Bond principal retirements Capital lease payments \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences \r\n \r\n$ \r\n \r\n1,353,851.77 \r\n \r\n$ \r\n \r\n396,906.99 \r\n \r\n(1,952,094.50) \r\n \r\n(1,555,187.51) (17,027.99) \r\n \r\n$ \r\n \r\n1,242,993.00 \r\n \r\n(37,104.36) \r\n \r\n245,000.00 \r\n \r\n133,400.98 \r\n \r\n1,584,289.62 \r\n \r\n$ \r\n \r\n2,333,879.22 \r\n \r\n682,076.00 \r\n \r\n3,015,955.22 \r\n \r\n$ \r\n \r\n10,427.08 \r\n \r\n(3,487.96) \r\n \r\n6,939.12 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n4,388,820.23 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Due From Other Funds \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nMERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 20, 2019 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n48,895.22 \r\n \r\n7,604.38 \r\n \r\n$ \r\n \r\n56,499.60 \r\n \r\n$ \r\n \r\n56,499.60 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial statement. \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The School District included additional information in the long-term liabilities note disclosure. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\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. \r\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities' column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\n$ \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\n5,000.00 5,000.00 5,000.00 5,000.00 500,000.00 \r\n \r\nN/A 20 years \r\n7 to 40 years 5 to 15 years Individually Determined \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond 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. \r\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. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\n \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on August 9, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on December 20, 2018 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2018 tax digest are reported as revenue in the governmental funds for fiscal year 2019. The Meriwether 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, 2019, for maintenance and operations amounted to $9,178,833.87 and for school bonds amounted to $349,014.12. \r\n \r\nThe tax millage rates levied for the 2018 tax year (calendar year) for the School District were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.376 mills 0.673 mills \r\n \r\n19.049 mills \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $829,645.67 during fiscal year ended June 30, 2019. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,920,369.69 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. \r\n \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased to an amount of up to 125% if economic or financial conditions warrant. The program lists the type of eligible collateral. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2019, the School District had deposits with a carrying amount of $4,303,203.74, and a bank balance of $4,615,831.98. The bank balances insured by Federal depository insurance were $417,425.08 and the bank balances included in the State's Secure Deposit Program (SDP) were $4,198,406.90. \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 5,616,272.93 48,895.22 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,665,168.15 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n1,361,964.41 \r\n \r\nTotal carrying value of deposits - June 30, 2019 \r\n \r\n$ 4,303,203.74 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $1,361,964.41 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019, was 39 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2018 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2019 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\n$ \r\n \r\n531,808.00 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n531,808.00 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n51,868,966.68 6,002,106.71 4,324,837.92 \r\n22,932,294.90 4,971,191.98 3,326,819.47 \r\n \r\n396,906.99 - \r\n \r\n1,229,015.73 - \r\n \r\n51,868,966.68 5,169,997.97 4,324,837.92 \r\n \r\n1,430,594.72 302,360.59 219,139.19 \r\n \r\n1,229,015.73 \r\n- \r\n \r\n24,362,889.62 4,044,536.84 3,545,958.66 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n30,965,604.96 \r\n \r\n(1,555,187.51) \r\n \r\n- \r\n \r\n29,410,417.45 \r\n \r\nGovernmental Activities Capital Assets - Net $ 31,497,412.96 $ (1,555,187.51) $ \r\n \r\n- $ 29,942,225.45 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 105,859.64 5,910.66 \r\n167,831.97 \r\n \r\n$ 1,651,730.52 \r\n279,602.27 20,761.71 \r\n \r\n$ 1,952,094.50 \r\n \r\nNOTE 6: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2019, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From General Fund \r\n \r\nDebt Service Fund \r\n \r\n$ 31,886.05 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the debt service fund for payment on general long-term debt. \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nGeneral Obligation (G.O.) Bonds Intergovernmental Agreement Capital Leases Compensated Absences(1) \r\n \r\nBalance July 1, 2018 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2019 \r\n \r\nDue Within One Year \r\n \r\n$ 2,645,000.00 $ \r\n \r\n- $ 245,000.00 $ 2,400,000.00 $ 255,000.00 \r\n \r\n7,728,107.00 \r\n \r\n- \r\n \r\n1,242,993.00 \r\n \r\n6,485,114.00 \r\n \r\n1,276,418.00 \r\n \r\n133,400.98 \r\n \r\n- \r\n \r\n133,400.98 \r\n \r\n- \r\n \r\n- \r\n \r\n57,649.58 16,086.28 \r\n \r\n12,598.32 \r\n \r\n61,137.54 \r\n \r\n- \r\n \r\n$ 10,564,157.56 $ 16,086.28 $ 1,633,992.30 $ 8,946,251.54 $ 1,531,418.00 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nThe School District's outstanding bond from direct placement related to governmental activities of $2,400,000.00 contains a provision that in an event of default, outstanding amounts become immediately due if the School District is unable to make payment. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2004 \r\n \r\n3.84% \r\n \r\n11/3/2004 \r\n \r\n10/1/2026 $ 5,000,000.00 $ 2,400,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2020 2021 2022 2023 2024 2025 - 2027 \r\n \r\n$ \r\n \r\n255,000.00 $ \r\n \r\n87,264.00 \r\n \r\n265,000.00 \r\n \r\n77,280.00 \r\n \r\n280,000.00 \r\n \r\n66,816.00 \r\n \r\n290,000.00 \r\n \r\n55,872.00 \r\n \r\n305,000.00 \r\n \r\n44,448.00 \r\n \r\n1,005,000.00 \r\n \r\n59,040.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n2,400,000.00 $ \r\n \r\n390,720.00 \r\n \r\nINTERGOVERNMENTAL AGREEMENT \r\nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDistrict and capital outlay projects of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\n \r\nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \r\n \r\nThe School District entered into a contract with the Meriwether County Public Facilities Authority, dated August 31, 2017, for the issuance of revenue bonds to provide funds to refund $1,370,000.00 of School District General Obligation Debt associated with the Series 2007 bond issue and $1,350,000.00 of Meriwether County Public Facilities Authority Revenue Bonds Series 2013. Under the terms of the contract, the Meriwether County Public Facilities Authority issued $2,835,500.00 in revenue bonds on behalf of the School District. \r\n \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the aforementioned outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \r\n \r\nDebt currently outstanding under this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government-Refunding Series 2006 General Government - QSCB - Series 2010 Authority Revenue Bonds - Series 2017 \r\n \r\n4.21% 5.29% 2.75% \r\n \r\n1/4/2006 7/20/2010 8/31/2017 \r\n \r\n10/1/2026 $ 4/1/2020 4/1/2022 \r\n \r\n8,160,000.00 $ 1,240,000.00 2,835,500.00 \r\n \r\n4,410,000.00 310,000.00 \r\n1,765,114.00 \r\n \r\n$ \r\n \r\n12,235,500.00 $ 6,485,114.00 \r\n \r\nThe following is a schedule of total intergovernmental agreement payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nIntergovernmental Agreements \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amoung on Refunding \r\n \r\n2020 2021 2022 2023 2024 2025 - 2027 \r\n \r\n$ \r\n \r\n1,276,418.00 $ \r\n \r\n1,315,204.00 \r\n \r\n968,492.00 \r\n \r\n535,000.00 \r\n \r\n560,000.00 \r\n \r\n1,830,000.00 \r\n \r\n289,798.89 $ 190,270.39 146,454.29 111,880.75 \r\n88,831.00 117,669.50 \r\n \r\n37,104.41 37,104.41 34,358.56 26,121.00 26,121.00 58,774.09 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n6,485,114.00 $ \r\n \r\n944,904.82 $ \r\n \r\n219,583.47 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 8: RISK MANAGEMENT \r\n \r\nINSURANCE \r\n \r\nCommercial Insurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\n \r\nWORKERS' COMPENSATION \r\n \r\nGeorgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2018 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 16,192.00 \r\n \r\n$ 16,192.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2019 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,243.00 $ \r\n \r\n4,243.00 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 50,000.00 \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n86,879.59 \r\n \r\n$ \r\n \r\n387,878.70 \r\n \r\n1,670,883.07 \r\n \r\n2,058,761.77 \r\n \r\n64,497.84 3,448,089.86 \r\n \r\nFund Balance, June 30, 2019 \r\n \r\n$ 5,658,229.06 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND Plan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement \r\n \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nArrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,023,164.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \r\n \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2019, the School District reported a liability of $24,513,439.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2017. An expected total OPEB liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2018. At June 30, 2018, the School District's proportion was 0.192872%, which was a decrease of 0.021652% from its proportion measured as of June 30, 2017. \r\n \r\nFor the year ended June 30, 2019, the School District recognized OPEB expense of $341,088.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 557,584.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n4,152,695.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n33,166.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n3,655,863.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n1,023,164.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,056,330.00 $ 8,366,142.00 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2020 2021 2022 2023 2024 2025 \r\n \r\n$ (1,603,190.00) $ (1,603,190.00) $ (1,603,190.00) $ (1,605,171.00) $ (1,363,357.00) $ (554,878.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018: \r\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 9.00%, including inflation \r\n \r\nLong-term expected rate of return \r\nHealthcare cost trend rate \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nPre-Medicare Eligible \r\n \r\n7.50% \r\n \r\nMedicare Eligible \r\n \r\n5.50% \r\n \r\nUltimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n4.75% \r\n \r\nMedicare Eligible \r\n \r\n4.75% \r\n \r\nYear of Ultimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n2028 \r\n \r\nMedicare Eligible \r\n \r\n2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\n \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2017 valuation were based on a review of recent plan experience done concurrently with the June 30, 2017 valuation. \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Mid Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% \r\n12.00% 13.50% \r\n8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\nDiscount Rate: The discount rate has changed since the prior measurement date from 3.58% to 3.87%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.87% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2018. Therefore, the calculated discount rate of 3.87% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.87%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point \r\nlower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \r\n \r\n1% Decrease (2.87%) \r\n \r\nCurrent Discount Rate (3.87%) \r\n \r\n1% Increase (4.87%) \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 28,624,011.00 $ \r\n \r\n24,513,439.00 $ 21,198,694.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 20,608,645.00 $ \r\n \r\n24,513,439.00 $ 29,503,622.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\nNOTE 12: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\namount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2019. The School District's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual School District payroll, of which 20.67% of payroll was required from the School District and 0.23% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,997,242.00 and $32,125.48 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2019 was 24.78% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.66% of annual covered payroll of new and old plan members and 21.66% of GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $28,397.00 for the current fiscal year. \r\n \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $83,919.00. \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2019, the School District reported a liability of $21,904,926.00 for its proportionate share of the net pension liability for TRS ($21,737,196.00) and ERS ($167,730.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public-school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District proportionate share of the net pension liability \r\n \r\n$ 21,737,196.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability with the School District \r\n \r\n245,206.00 \r\n \r\nTotal \r\n \r\n$ 21,982,402.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2018. \r\n \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2018, the School District's TRS proportion was 0.117105%, which was a decrease of 0.017605% from its proportion measured as of June 30, 2017. At June 30, 2018, the School District's ERS proportion was 0.004080%, which was a decrease of 0.001793% from its proportion measured as of June 30, 2017. \r\n \r\nAt June 30, 2019, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $470,197.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2018. \r\n \r\nFor the year ended June 30, 2019, the School District recognized pension expense of $760,230.00 for TRS, ($7,236.00) for ERS and $108,868.00 for PSERS and revenue of $62,457.00 for TRS and $108,868.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 1,439,033.00 $ \r\n \r\n44,801.00 $ \r\n \r\n5,217.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n328,006.00 \r\n \r\n- \r\n \r\n7,902.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n594,337.00 \r\n \r\n- \r\n \r\n3,865.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n4,276,245.00 \r\n \r\n- \r\n \r\n44,428.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,997,242.00 \r\n \r\n- \r\n \r\n28,397.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 4,764,281.00 $ 4,915,383.00 $ \r\n \r\n41,516.00 $ \r\n \r\n48,293.00 \r\n \r\nThe School District contributions subsequent to the measurement date 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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2020 2021 2022 2023 2024 \r\n \r\n$ \r\n \r\n(264,038.00) $ \r\n \r\n$ \r\n \r\n(668,820.00) $ \r\n \r\n$ (1,528,160.00) $ \r\n \r\n$ \r\n \r\n(646,836.00) $ \r\n \r\n$ \r\n \r\n(40,490.00) $ \r\n \r\n(15,195.00) (11,827.00) \r\n(6,425.00) (1,727.00) \r\n- \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\n- 29 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.50%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 30 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50% and 6.30%) or 1-percentage-point higher (8.50% and 8.30%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share \r\n \r\nof the net pension liability \r\n \r\n$ \r\n \r\n36,285,605.00 $ \r\n \r\n21,737,196.00 $ \r\n \r\n9,748,567.00 \r\n \r\nEmployees' Retirement System: \r\n \r\n1% Decrease (6.30%) \r\n \r\nCurrent Discount Rate (7.30%) \r\n \r\n1% Increase (8.30%) \r\n \r\nSchool District's proportionate share \r\n \r\nof the net pension liability \r\n \r\n$ \r\n \r\n238,572.00 $ \r\n \r\n167,730.00 $ \r\n \r\n107,371.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 13: SPECIAL ITEM: \r\nDuring the fiscal year, the School District received insurance proceeds of $69,252.29 for damages that occurred during a severe storm in June 2019. This activity is reported as a Special Item on the Statement of Activities. \r\nNOTE 14: SUBSEQUENT EVENTS \r\nIn December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COIVD-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations. However the impact cannot be reasonably estimated at this time. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n2019 2018 2017 2016 2015 \r\n \r\n0.117105% $ 0.134710% $ 0.142698% $ 0.153393% $ 0.155325% $ \r\n \r\n21,737,196.00 $ 25,036,268.00 $ 29,440,188.00 $ 23,352,561.00 $ 19,623,265.00 $ \r\n \r\n245,206.00 367,989.00 785,839.00 \r\n- \r\n \r\nTotal \r\n$ 21,982,402.00 $ 25,404,257.00 $ 30,226,027.00 $ 23,352,561.00 $ 19,623,265.00 \r\n \r\nSchool District's covered payroll \r\n$ 14,105,581.08 $ 15,702,349.85 $ 16,017,416.29 $ 16,450,395.67 $ 15,845,252.04 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n154.10% 159.44% 183.80% 141.96% 123.84% \r\n \r\n80.27% 79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nSchool District's covered payroll \r\n \r\n0.004080% $ 0.005873% $ 0.005883% $ 0.005837% $ 0.005485% $ \r\n \r\n167,730.00 $ 238,522.00 $ 278,291.00 $ 236,480.00 $ 205,721.00 $ \r\n \r\n108,810.50 144,057.39 136,783.98 137,120.67 127,806.77 \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\n154.15% 165.57% 203.45% 172.46% 160.96% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.68% 76.33% 72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proprotionate share of the net pension liaibility \r\nassociated with the School District \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n470,197.00 $ 453,356.00 $ 583,945.00 $ 367,572.00 $ 317,505.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\n470,197.00 $ 453,356.00 $ 583,945.00 $ 367,572.00 $ 317,505.00 $ \r\n \r\n1,217,948.80 1,198,397.56 1,179,741.08 1,187,773.95 1,253,284.68 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\n0.192872% $ 0.214524% $ \r\n \r\n24,513,439.00 30,140,536.00 \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nTotal \r\n$ 24,513,439.00 $ 30,140,536.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\n$ 13,104,873.07 $ 14,307,456.97 \r\n \r\n187.06% 210.66% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015(1) 2014(1) 2013(1) 2012(1) 2011(1) 2010(1) \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n2,997,242.00 $ \r\n \r\n2,997,242.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,344,693.90 $ \r\n \r\n2,344,693.90 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,208,289.34 $ \r\n \r\n2,208,289.34 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,233,622.00 $ \r\n \r\n2,233,622.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,163,227.03 $ \r\n \r\n2,163,227.03 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,945,796.95 $ \r\n \r\n1,945,796.95 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,882,222.45 $ \r\n \r\n1,882,222.45 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,797,763.93 $ \r\n \r\n1,797,763.93 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,762,220.80 $ \r\n \r\n1,762,220.80 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,789,865.36 $ \r\n \r\n1,789,865.36 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 14,500,341.65 $ 14,105,581.08 $ 15,702,349.85 $ 16,017,416.29 $ 16,450,395.67 $ 15,845,252.04 $ 16,496,252.85 $ 17,487,975.97 $ 17,142,225.68 $ 18,376,441.07 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.67% 16.62% 14.06% 13.94% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% \r\n \r\n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \r\n \r\n- 37 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 2014 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n28,397.00 $ \r\n \r\n28,397.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n26,995.88 $ \r\n \r\n26,995.88 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n35,740.61 $ \r\n \r\n35,740.61 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n33,813.00 $ \r\n \r\n33,813.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n30,111.70 $ \r\n \r\n30,111.70 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n23,593.13 $ \r\n \r\n23,593.13 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n114,595.70 \r\n \r\n$ \r\n \r\n108,810.50 \r\n \r\n$ \r\n \r\n144,057.39 \r\n \r\n$ \r\n \r\n136,783.98 \r\n \r\n$ \r\n \r\n137,120.67 \r\n \r\n$ \r\n \r\n127,806.77 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n24.78% 24.81% 24.81% 24.72% 21.96% 18.46% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 38 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n1,023,164.00 $ \r\n \r\n1,023,164.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n999,636.00 $ \r\n \r\n999,636.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,118,545.00 $ \r\n \r\n1,118,545.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 13,212,268.33 $ 13,104,873.07 $ 14,307,456.97 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n7.74% 7.63% 7.82% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 39 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"8\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: On November 18, 2015, the Bo-ard adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males-). \r\nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nEmployees' Retirement System \r\nChanges of benefit terms: A new benefit tier was added for members joining the System on and after July 1, 2009. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. \r\nChanges of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. 3ULPDU\\DPRQJWKHFKDQJHVZHUHWKHXSGDWHVWRUDWHVRIPRUWDOLW\\UHWLUHPHQWGLVDELOLW\\ZLWKGUDZDODQGVDODU\\LQFUHDVHV \r\nPublic School Employees Retirement System \r\nChanges of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nOn Decem- ber 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scal-e BB (set forward 3 years for males and 2 years for females). \r\nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely UHIOHFWDFWXDOH[SHULHQFH \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: June 30, 2017 valuation: the June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. \r\n \r\n- 40 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"9\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 10,153,077.00 $ 10,487,281.00 $ 10,101,369.14 $ \r\n \r\n114,000.00 \r\n \r\n114,000.00 \r\n \r\n106,258.61 \r\n \r\n21,709,405.06 \r\n \r\n15,891,946.05 \r\n \r\n16,723,280.44 \r\n \r\n4,705,595.33 \r\n \r\n5,247,915.49 \r\n \r\n4,424,993.27 \r\n \r\n35,588.47 \r\n \r\n34,928.94 \r\n \r\n165,594.81 \r\n \r\n30,193.96 \r\n \r\n1,793.96 \r\n \r\n4,131.28 \r\n \r\n131,625.17 \r\n \r\n226,400.00 \r\n \r\n510,761.48 \r\n \r\n36,879,484.99 \r\n \r\n32,004,265.44 \r\n \r\n32,036,389.03 \r\n \r\n(385,911.86) (7,741.39) \r\n831,334.39 (822,922.22) 130,665.87 \r\n2,337.32 284,361.48 \r\n32,123.59 \r\n \r\n16,456,221.83 \r\n1,908,239.14 1,446,642.07 \r\n331,190.48 1,084,380.57 2,315,854.70 \r\n281,938.15 2,752,961.62 2,814,147.24 \r\n330,967.06 134,261.14 \r\n2,000,000.00 \r\n- \r\n31,856,804.00 \r\n5,022,680.99 \r\n \r\n16,889,816.25 \r\n1,908,581.50 1,577,895.75 \r\n327,577.81 1,073,246.23 2,257,663.62 \r\n257,678.88 2,712,694.81 2,563,053.10 \r\n325,510.63 111,206.42 \r\n1,999,340.44 \r\n- \r\n32,004,265.44 \r\n- \r\n \r\n16,431,219.71 \r\n1,751,958.01 1,335,708.69 \r\n271,493.35 1,155,529.96 2,290,768.97 \r\n259,829.42 2,786,781.47 2,393,847.91 \r\n262,747.45 196,186.54 \r\n58,479.34 1,888,275.95 \r\n136,470.00 \r\n31,219,296.77 \r\n817,092.26 \r\n \r\n458,596.54 \r\n156,623.49 242,187.06 \r\n56,084.46 (82,283.73) (33,105.35) \r\n(2,150.54) (74,086.66) 169,205.19 62,763.18 (84,980.12) (58,479.34) 111,064.49 (136,470.00) \r\n784,968.67 \r\n817,092.26 \r\n \r\n5,022,680.99 433,695.75 - \r\n \r\n(200,221.98) 2,767,204.47 \r\n \r\n69,252.29 (31,886.05) 37,366.24 854,458.50 3,132,887.49 \r\n- \r\n \r\n69,252.29 (31,886.05) 37,366.24 854,458.50 3,333,109.47 (2,767,204.47) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n5,456,376.74 $ \r\n \r\n2,566,982.49 $ \r\n \r\n3,987,345.99 $ \r\n \r\n1,420,363.50 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $364,008.98 and $367,864.88, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"10\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Warehouse Storage and Delivery Grant Reimbursement Fresh Fruit and Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States English Language Acquisition State Grants Rural Education Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n195GA324N1099 $ 195GA324N1099 \r\n \r\n474,979.34 1,268,310.46 \r\n1,743,289.80 \r\n \r\n10.560 10.582 \r\n \r\n185GA904N2533 195GA324L1603 \r\n \r\n1,612.25 73,316.65 \r\n74,928.90 \r\n1,818,218.70 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A170073 H027A180073 H173A170081 H173A180081 \r\n \r\n84.048 84.048 84.365 84.358 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 \r\n \r\nV048A170010 V048A180010 S365A180010 S365B170010 S365B180010 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 \r\n \r\n102,152.00 543,428.00 \r\n9,940.00 45,918.10 \r\n701,438.10 \r\n2,142.00 42,675.46 \r\n166.08 4,788.75 46,124.49 6,464.00 99,518.76 88,911.00 82,847.97 153,266.02 1,347,306.45 \r\n1,874,210.98 \r\n2,575,649.08 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 4,393,867.78 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Meriwether County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee noted to the basic financial statements. \r\n \r\n- 42 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations State Health Benefit Plan Employer Holiday Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Bus Purchase - State Allotment Food Services Math and Science Supplements Preschool Disability Services Residential Treatment Centers Grant Teachers Retirement Vocational Education Vocational Supervisors \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nSCHEDULE \"11\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n710,782.11 \r\n \r\n416,266.00 405,905.00 677,207.00 1,663,255.00 530,665.00 590,364.00 198,845.00 1,379,528.00 1,130,785.00 372,746.00 3,124,949.00 395,246.00 355,927.00 \r\n95,886.00 45,749.00 264,400.00 76,852.00 52,328.00 \r\n2,088.00 \r\n461,157.00 861,071.00 606,127.00 (154,035.00) \r\n808,898.00 55,081.00 \r\n1,034,249.00 \r\n154,440.00 49,860.00 9,885.89 80,286.00 77,143.00 32,125.48 16,149.96 7,150.00 \r\n83,919.00 \r\n50,000.00 \r\n$ 16,723,280.44 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"12\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nSPLOST III \r\n \r\n(i) Paying a portion of the principal of and interest on the \r\n \r\nSeries 2004 Bonds, the maximum amount of debt to be \r\n \r\npaid will not exceed $1,744,728.00 as set forth in the \r\n \r\nSchool District Resolution \r\n \r\n$ 1,744,728.00 $ 1,744,728.00 $ 341,864.00 $ 50,784.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(ii) Paying a portion of the principal of and interest on the \r\n \r\nSeries 2006 Bonds, the maximum amount of debt to be \r\n \r\npaid will not exceed $3,299,108.00 as set forth in the \r\n \r\nSchool District Resolution \r\n \r\n3,299,108.00 3,299,108.00 \r\n \r\n650,238.75 \r\n \r\n102,408.25 \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) Paying a portion of the principal of and interest on the \r\n \r\nSeries 2010 Bonds, the maximum amount of debt to be \r\n \r\npaid will not exceed $1,093,990.00 as set forth in the \r\n \r\nSchool District Resolution \r\n \r\n1,093,990.00 1,093,990.00 \r\n \r\n375,596.00 \r\n \r\n342,798.00 \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) and (v) Paying a portion of the principal of and interest \r\n \r\non the Series 2007 Bonds and Series 2013 Bonds, \r\n \r\nRestructed to Series 2017 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $849,250.00 and \r\n \r\n$885,399.00, respectively as set forth in the School \r\n \r\nDistrict Resolution \r\n \r\n1,734,649.00 1,734,649.00 \r\n \r\n539,678.44 \r\n \r\n638,095.73 \r\n \r\n- \r\n \r\n- \r\n \r\n(vi) Paying for system-wide technology upgrades, and \r\n \r\nrenovations and improvements to existing school \r\n \r\nfacilities, the maximum amount shall not exceed \r\n \r\n$627,525.00 as set forth in the School District \r\n \r\nResolution. \r\n \r\n627,525.00 \r\n \r\n627,525.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n10/1/2022 10/1/2022 10/1/2022 \r\n10/1/2022 \r\n10/1/2022 \r\n \r\n$ 8,500,000.00 $ 8,500,000.00 $ 1,907,377.19 $ 1,134,085.98 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated January 12, 2021. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs as items FS 2019-001 and FS 2019-002, that we consider to be significant deficiencies. \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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. \r\nSchool District Response to Findings \r\nThe School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nJanuary 12, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Meriwether County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. \r\nOther Matters \r\nThe results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA 2019-001. Our opinion on each major federal program is not modified with respect to this matter. \r\nThe School District's response to the noncompliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies 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 a certain deficiency in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as item FA 2019-001, that we consider to be a significant deficiency. \r\n \r\n The School District's response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nJanuary 12, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-6991-13-01 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2014-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2015-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures Cash and Cash Equivalents Capital Assets General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the general ledger process. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-005 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Cash and Cash Equivalents Investments Expenditures/Liabilities/Disbursements Accounting Controls (Overall) General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the revenues/receivables/receipts, expenditures/liabilities/disbursements, employee compensation, and general ledger processes. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others General Ledger Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2017-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the revenues/receivables/receipts, expenditures/liabilities/disbursements, employee compensation, and general ledger processes. \r\n \r\nFS 2017-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2018-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the revenues/receivables/receipts, expenditures/liabilities/disbursements, and employee compensation processes. \r\n \r\nFS 2018-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2016-002 Control Category: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls Over Equipment Equipment and Real Property Management Material Weakness Material Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2017-002 Control Category: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls Over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented purchasing and approval procedures to adequately manage equipment and real property. \r\n \r\nFA 2018-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 17175GA324N1099, 17175GA324N1100 None Identified \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented purchasing and approval procedures to adequately manage equipment and real property. \r\n \r\n- 5 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; General Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiencies identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low risk auditee? \r\n \r\n$750,000.00 No \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2019-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Capital Assets Significant Deficiency None FS 2018-001, FS 2017-001, FS 2016-001, FS 2015-003, FS 2015-004, FS 2014-003, FS-6991-13-03 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls at the Central Office. \r\n \r\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. \r\n \r\nCondition: Accounting Controls (Overall) \r\n The School District did not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial application. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions including privileged access rights. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining the custody of assets. We noted there was no documentation of periodic review of user access rights for the financial accounting system and the school food service point of sale system. \r\n The School District did not have a Business Continuity/Disaster Recovery Plan in place for the year under audit. \r\n The School District did not have Information Technology policies and procedures, including a risk assessment related to Information Technology Risks for the year under review. \r\n \r\nCash and Cash Equivalents  The School District did not have adequate internal controls in place to ensure that the bank reconciliation process was separate from the record keeping function. \r\n \r\nCapital Assets  Twenty six items totaling $1,104,623.00 recorded as capital asset disposals in current year should have been recognized as capital asset disposals in prior years. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that these issues were a result of management's failure to ensure that internal controls were established, implemented, and functioning. \r\n \r\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. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nII \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\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. Management should ensure that proper separation of duties exists. In the case when management determines that separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2019-002 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None FS 2018-002, FS 2017-002, FS 2016-002, FS 2015-005, FS 2014001, FS-6991-13-01 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\nCondition: Cash and Cash Equivalents \r\n The key accounting functions of journal entry preparation and bank reconciliation were not adequately separated. \r\n \r\nRevenue/Receivables/Receipts  The key accounting functions of receipt preparation, recordkeeping and bank reconciliation were not adequately separated. \r\n \r\nFunds Held for Others  Five principal accounts had deficit fund balances totaling $10,791.75.  Several principal accounts were misclassified as agency, totaling $12,761.03.  There were no policies or procedures governing agency agreements. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. \r\n \r\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. \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nRecommendation: The School District should establish control procedures to ensure that the key accounting functions of receipt preparation, check preparation, bank reconciliation and record keeping are separated. In addition, the School District should implement procedures to ensure that receipts are adequately documented and recorded in the financial records. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2019-001 \r\n \r\nImprove Controls over Equipment \r\n \r\nCompliance Requirement: Equipment and Real Property Management \r\n \r\nInternal Control Impact: \r\n \r\nSignificant Deficiency \r\n \r\nCompliance Impact: \r\n \r\nNonmaterial Noncompliance \r\n \r\nFederal Awarding Agency: U.S. Department of Agriculture \r\n \r\nPass-Through Entity: \r\n \r\nGeorgia Department of Education \r\n \r\nCFDA Number and Title: \r\n \r\n10.553 and 10.555 Child Nutrition Cluster \r\n \r\nFederal Award Number: \r\n \r\n195GA324N1099 \r\n \r\nQuestioned Costs: \r\n \r\nNone Identified \r\n \r\nRepeat of Prior Year Findings: FA 2018-001, FA 2017-002, FA 2016-002 \r\n \r\nDescription: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster. \r\n \r\nCriteria: 2 CFR 200.313(d)(1) states, \"Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. \r\n \r\nCondition: The following deficiency was noted when reviewing the Child Nutrition Cluster equipment listing: \r\n \r\n Property records did not include the following required components for 86 equipment items: (1) The source of funding for the property (including the FAIN), (2) who holds title, (3) the acquisition date, (4) cost of the property, and (5) use and condition of the property. \r\n \r\nCause: In discussing this deficiency with the School District, they stated these issues were a result of turnover at the School District. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2019 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Effect or Potential Effect: Failure to maintain a complete and accurate equipment listing exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of Federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment Views of Responsible Officials: We concur with this finding. \r\n- 5 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n Every Student Matters, Every Moment Counts \r\nDr. Robert A. Griffin, Superintendent ____________________________________________________________________________________________________________ Bradley Smith, Chairman | Willie A. Hinton, Jr., Vice Chair | Leon Coverson | Bob M. Patterson | Rebecca \"Kay\" King \r\n \r\nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \r\n \r\nFS 2019-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Capital Assets Significant Deficiency None \r\n \r\nThe accounting procedures of the School District were insufficient to provide adequate internal controls at the Central Office. \r\n \r\nCorrective Action Plans: \r\n \r\nThe School District hired a Chief Financial Officer to oversee the accounting procedures \r\n \r\nand ensure that internal controls are in place. Meaningful steps have been taken to strengthen internal controls. The \r\n \r\nSchool District continues to review current accounting procedures and controls and implement procedures to continue \r\n \r\nto strengthen internal controls. \r\n \r\nEstimated Completion Date: Completed \r\n \r\nContact Person: Tomecka Woody, Chief Financial Officer Telephone: (706) 441-0601 E-mail: Tomecka.woody@mcssga.org \r\n \r\nFS 2019-002 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Student Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nThe accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCorrective Action Plans: \r\n \r\nThe School District hired a Chief Financial Officer to oversee the accounting procedures \r\n \r\nand ensure that internal controls are in place. Meaningful steps have been taken to strengthen internal controls. In \r\n \r\naddition, the School District implemented procedures to conduct quarterly audits of school records to ensure \r\n \r\naccounting functions are met for the School Activity Accounts. \r\n \r\nEstimated Completion Date: Completed \r\n \r\nContact Person: Tomecka Woody, Chief Financial Officer Telephone: (706) 441-0601 E-mail: Tomecka.woody@mcssga.org \r\n \r\n2100 Gaston Street, P.O. Box 70 | Greenville, GA 30222 | Phone 706.441.0601 | Fax 706.672.1618 | www.mcssga.org \r\nThe Meriwether County School District does not discriminate on the basis of race, color, religion, national origin, age, disability, or sex in its employment practices, student programs and dealings with the public. It is the policy of the Board of Education to comply fully with the requirements of Title VI, Title IX, Section 504 of the Rehabilitation Act of 1973, the Americans With Disabilities Act and all accompanying regulations. \r\n \r\n Every Student Matters, Every Moment Counts \r\nDr. Robert A. Griffin, Superintendent ____________________________________________________________________________________________________________ Bradley Smith, Chairman | Willie A. Hinton, Jr., Vice Chair | Leon Coverson | Bob M. Patterson | Rebecca \"Kay\" King \r\n \r\nCORRECTIVE ACTION PLANS  FEDERAL AWARD FINDINGS \r\n \r\nFA 2019-001 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nImprove Controls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance \r\n \r\nThe policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster. \r\n \r\nCorrective Action Plans: \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting \r\n \r\nprocedures and ensure that the internal controls are in place. In addition, the School District has implemented \r\n \r\npurchasing and approval procedures to adequately manage equipment and real property \r\n \r\nEstimated Completion Date: Completed \r\n \r\nContact Person: Tomecka Woody, Chief Financial Officer Telephone: (706) 441-0601 E-mail: Tomecka.woody@mcssga.org \r\n \r\nTomecka Woody \r\n \r\nDate: November 4, 2020 \r\n \r\nSigned: Tomecka Woody, CFO \r\n \r\n2100 Gaston Street, P.O. Box 70 | Greenville, GA 30222 | Phone 706.441.0601 | Fax 706.672.1618 | www.mcssga.org \r\nThe Meriwether County School District does not discriminate on the basis of race, color, religion, national origin, age, disability, or sex in its employment practices, student programs and dealings with the public. It is the policy of the Board of Education to comply fully with the requirements of Title VI, Title IX, Section 504 of the Rehabilitation Act of 1973, the Americans With Disabilities Act and all accompanying regulations. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2018-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2020-11-30"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\n1 2 \r\n3 4 5 6 7 8 \r\n33 34 35 36 37 38 39 40 41 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n42 43 45 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2018, the Meriwether County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended by GASB Statement No. 85, Omnibus 2017. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated November 30, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nNovember 30, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nDeferred Charge on Debt Refunding Related to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \r\nTotal Net Position \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,387,216.04 \r\n \r\n1,206,212.77 2,173,306.39 \r\n445,536.39 4,027.78 \r\n82,697.83 531,808.00 30,965,604.96 \r\n \r\n39,796,410.16 \r\n \r\n256,687.83 3,860,445.78 1,008,451.00 \r\n5,125,584.61 \r\n \r\n229,319.37 2,929,599.26 \r\n160,882.42 108,416.49 155,940.00 25,274,790.00 30,140,536.00 \r\n1,621,393.98 8,942,763.58 \r\n69,563,641.10 \r\n \r\n2,982,340.00 3,373,242.00 \r\n6,355,582.00 \r\n \r\n21,247,592.81 \r\n394,396.34 1,087,221.06 (53,726,438.54) \r\n \r\n$ \r\n \r\n(30,997,228.33) \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\nTotal Governmental Activities \r\n \r\n$ \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\nTotal General Revenues \r\n \r\nChange in Net Position \r\n \r\nNet Position - Beginning of Year (Restated) \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n17,529,180.39 $ \r\n1,838,866.81 1,468,910.49 \r\n302,145.04 925,936.71 2,125,435.68 322,085.82 2,576,636.19 2,565,371.50 301,086.37 209,294.58 \r\n181,116.42 2,051,428.38 \r\n453,770.29 \r\n32,851,264.67 $ \r\n \r\n14,000.00 $ \r\n- \r\n177,903.08 21,685.80 - \r\n213,588.88 $ \r\n \r\n14,866,672.71 $ \r\n168,897.14 1,194,775.73 \r\n307,173.00 534,556.16 925,232.00 \r\n718,558.75 923,519.90 \r\n6,776.14 75,600.65 \r\n2,018,076.71 \r\n- \r\n21,739,838.89 $ \r\n \r\n(2,648,507.68) \r\n(1,669,969.67) (274,134.76) 5,027.96 (391,380.55) \r\n(1,200,203.68) (322,085.82) \r\n(1,858,077.44) (1,641,851.60) \r\n(294,310.23) (133,693.93) \r\n(3,213.34) (11,665.87) (453,770.29) \r\n(10,897,836.90) \r\n \r\n9,676,430.62 334,864.66 84,779.39 \r\n1,840,818.77 117,941.14 \r\n1,135,893.00 104,822.06 345,641.14 \r\n13,641,190.78 \r\n2,743,353.88 \r\n(33,740,582.21) \r\n \r\nNet Position - End of Year \r\n \r\n$ (30,997,228.33) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2018 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Taxes State Government Federal Government Other \r\nInventories \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,380,302.83 $ 1,017,488.43 2,173,306.39 445,536.39 4,027.78 82,697.83 \r\n \r\n1,006,913.21 $ 188,724.34 - \r\n \r\n4,387,216.04 1,206,212.77 2,173,306.39 \r\n445,536.39 4,027.78 \r\n82,697.83 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 7,103,359.65 $ 1,195,637.55 $ 8,298,997.20 \r\n \r\n$ 229,319.37 $ 2,929,599.26 160,882.42 155,940.00 \r\n3,475,741.05 \r\n \r\n- $ \r\n \r\n229,319.37 \r\n \r\n- \r\n \r\n2,929,599.26 \r\n \r\n- \r\n \r\n160,882.42 \r\n \r\n- \r\n \r\n155,940.00 \r\n \r\n- \r\n \r\n3,475,741.05 \r\n \r\n494,731.11 \r\n \r\n24,147.75 \r\n \r\n518,878.86 \r\n \r\n82,697.83 337,786.11 \r\n68,353.74 2,644,049.81 \r\n3,132,887.49 \r\n \r\n1,171,489.80 \r\n- \r\n1,171,489.80 \r\n \r\n82,697.83 1,509,275.91 \r\n68,353.74 2,644,049.81 \r\n4,304,377.29 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 7,103,359.65 $ 1,195,637.55 $ 8,298,997.20 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2018 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\n \r\n$ \r\n \r\n4,304,377.29 \r\n \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\n \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Accumulated Depreciation \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,837.92 \r\n \r\n51,868,966.68 \r\n \r\n6,002,106.71 \r\n \r\n(31,230,306.35) \r\n \r\n31,497,412.96 \r\n \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\n \r\nNet pension liability Net OPEB liability \r\n \r\n$ (25,274,790.00) (30,140,536.00) \r\n \r\n(55,415,326.00) \r\n \r\nDeferred charges or credits on debt refundings are applicable to future periods and are therefore not reported in the funds and are amortized over the life of the new debt. \r\n \r\n256,687.83 \r\n \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\n \r\nRelated to pensions Related to OPEB \r\n \r\n$ \r\n \r\n878,105.78 \r\n \r\n(2,364,791.00) \r\n \r\n(1,486,685.22) \r\n \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\n \r\n518,878.86 \r\n \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\n \r\nBonds payable Accrued interest payable Capital leases payable Compensated absences payable Intergovernmental agreement payable \r\n \r\n$ (2,645,000.00) (108,416.49) (133,400.98) (57,649.58) \r\n(7,728,107.00) \r\n \r\n(10,672,574.05) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ (30,997,228.33) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nRevenues over Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Refunding Bonds Payment to Bond Refunding Escrow Agent \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 10,035,770.47 $ 114,288.29 \r\n17,674,166.49 5,119,020.72 213,588.88 34,656.86 345,641.14 \r\n33,537,132.85 \r\n \r\n346,699.45 $ 1,844,471.62 \r\n70,165.20 - \r\n2,261,336.27 \r\n \r\n10,382,469.92 1,958,759.91 \r\n17,674,166.49 5,119,020.72 213,588.88 104,822.06 345,641.14 \r\n35,798,469.12 \r\n \r\n16,005,633.61 \r\n1,850,326.71 1,483,298.10 \r\n302,670.22 923,726.82 2,112,929.81 257,067.28 2,511,138.38 2,401,082.85 301,735.94 209,112.98 181,116.42 2,021,708.59 \r\n- \r\n30,561,547.71 \r\n2,975,585.14 \r\n \r\n- \r\n65,837.37 - \r\n1,572,393.00 431,352.00 \r\n2,069,582.37 \r\n191,753.90 \r\n \r\n16,005,633.61 \r\n1,850,326.71 1,483,298.10 \r\n302,670.22 923,726.82 2,112,929.81 322,904.65 2,511,138.38 2,401,082.85 301,735.94 209,112.98 181,116.42 2,021,708.59 \r\n1,572,393.00 431,352.00 \r\n32,631,130.08 \r\n3,167,339.04 \r\n \r\n- \r\n- \r\n2,975,585.14 \r\n157,302.35 \r\n \r\n2,835,500.00 (3,145,340.63) \r\n(309,840.63) \r\n(118,086.73) \r\n1,289,576.53 \r\n \r\n2,835,500.00 (3,145,340.63) \r\n(309,840.63) \r\n2,857,498.41 \r\n1,446,878.88 \r\n \r\n$ \r\n \r\n3,132,887.49 $ \r\n \r\n1,171,489.80 $ \r\n \r\n4,304,377.29 \r\n \r\nThe notes to the basic financial statement are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2018 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nRefunding bonds issued Amortization of deferred charge on refunding of bonds Bond principal retirements Capital lease payments Intergovernmental agreement payments Payments to bond refunding agent \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences \r\n \r\n$ \r\n \r\n2,857,498.41 \r\n \r\n$ \r\n \r\n99,797.76 \r\n \r\n(1,902,959.28) \r\n \r\n(1,803,161.52) \r\n \r\n(286,395.25) \r\n \r\n$ (2,835,500.00) (35,273.80) 235,000.00 130,402.52 \r\n1,337,393.00 3,145,340.63 \r\n \r\n1,977,362.35 \r\n \r\n$ \r\n \r\n538,099.83 \r\n \r\n(558,777.00) \r\n \r\n(20,677.17) \r\n \r\n$ \r\n \r\n12,855.51 \r\n \r\n5,871.55 \r\n \r\n18,727.06 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n2,743,353.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 20, 2018 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n41,103.82 \r\n \r\n$ \r\n \r\n41,103.82 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The debt service fund accounts for and reports financial resources that are restricted, \r\ncommitted, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. The adoption of this statement has a significant impact on the School District's financial statements. As noted in the Restatement of Net Position note disclosure, the School District restated beginning net position for the cumulative effect of this accounting change. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 81, Irrevocable Split-Interest Agreements. This statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This statement requires that a government recognize revenue when the resources become applicable to the reporting period. The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 85, Omnibus 2017. The objective of this statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources--resources other than the proceeds of refunding debt--are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\n \r\nFood Inventories \r\n \r\nOn the 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. \r\nCAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\n$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 500,000.00 \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nN/A 20 years \r\n7 to 40 years 5 to 15 years Individually Determined \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond 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. \r\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. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\n \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\n \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on September 26, 2017 (levy date) based on property values as of January 1, 2017. Taxes were due on December 20, 2017 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2017 tax digest are reported as revenue in the governmental funds for fiscal year 2018. The Meriwether 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, 2018, for maintenance and operations amounted to $9,145,995.18 and for school bonds amounted to $346,699.45. \r\n \r\nThe tax millage rates levied for the 2017 tax year (calendar year) for the School District were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.608 mills 0.681 mills \r\n \r\n19.289 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $804,995.90 during fiscal year ended June 30, 2018. \r\n \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,840,818.77 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased to an amount of up to 125% if economic or financial conditions warrant. The program lists the type of eligible collateral. The OST approves authorized custodians. \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2018, the School District had deposits with a carrying amount of $3,504,688.50, and a bank balance of $3,680,197.55. The bank balances insured by Federal depository insurance were $370,377.67 and the bank balances included in the State's Secure Deposit Program (SDP) were $3,309,819.88. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 4,387,216.04 41,103.82 \r\n \r\nTotal cash and cash equivalents \r\n \r\n4,428,319.86 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n923,631.36 \r\n \r\nTotal carrying value of deposits - June 30, 2018 \r\n \r\n$ 3,504,688.50 \r\n \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\n \r\nThe School District reported cash equivalents of $923,631.36 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \r\n \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2017 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2018 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\n$ 531,808.00 $ \r\n \r\n- $ \r\n \r\n- $ 531,808.00 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n51,822,279.68 5,948,995.95 4,324,837.92 \r\n \r\n46,687.00 53,110.76 \r\n- \r\n \r\n21,372,481.34 4,844,288.15 3,110,577.58 \r\n \r\n1,559,813.56 126,903.83 216,241.89 \r\n \r\n- \r\n \r\n51,868,966.68 \r\n \r\n- \r\n \r\n6,002,106.71 \r\n \r\n- \r\n \r\n4,324,837.92 \r\n \r\n- \r\n \r\n22,932,294.90 \r\n \r\n- \r\n \r\n4,971,191.98 \r\n \r\n- \r\n \r\n3,326,819.47 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n32,768,766.48 (1,803,161.52) \r\n \r\n- \r\n \r\n30,965,604.96 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 33,300,574.48 $ (1,803,161.52) $ \r\n \r\n- $ 31,497,412.96 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nGeneral Administration \r\n \r\n$ \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n20,300.70 30,823.08 \r\n6,505.75 204,628.72 \r\n \r\n$ 1,619,505.28 \r\n262,258.25 21,195.75 \r\n \r\n$ 1,902,959.28 \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: SHORT-TERM DEBT \r\n \r\nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $ \r\n \r\n- $ 2,000,000.00 $ 2,000,000.00 $ \r\n \r\n- \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2017 \r\n \r\nAdditions \r\n \r\nGovernmental Activities Deductions \r\n \r\nBalance June 30, 2018 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation (G.O.) Bonds $ Intergovernmental Agreement Capital Leases Compensated Absences (1) \r\n \r\n4,250,000.00 $ 7,955,000.00 \r\n263,803.50 63,521.13 \r\n \r\n- $ 2,835,500.00 \r\n15,018.75 \r\n \r\n1,605,000.00 $ 3,062,393.00 \r\n130,402.52 20,890.30 \r\n \r\n2,645,000.00 $ 7,728,107.00 \r\n133,400.98 57,649.58 \r\n \r\n245,000.00 1,242,993.00 \r\n133,400.98 - \r\n \r\n$ 12,532,324.63 $ 2,850,518.75 $ 4,818,685.82 $ 10,564,157.56 $ 1,621,393.98 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2004 \r\n \r\n3.84% 11/3/2004 \r\n \r\n10/1/2026 $ 5,000,000.00 $ 2,645,000.00 \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2019 2020 2021 2022 2023 2024 - 2028 \r\n \r\n$ \r\n \r\n245,000.00 $ \r\n \r\n96,864.00 \r\n \r\n255,000.00 \r\n \r\n87,264.00 \r\n \r\n265,000.00 \r\n \r\n77,280.00 \r\n \r\n280,000.00 \r\n \r\n66,816.00 \r\n \r\n290,000.00 \r\n \r\n55,872.00 \r\n \r\n1,310,000.00 \r\n \r\n103,488.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n2,645,000.00 $ \r\n \r\n487,584.00 \r\n \r\nINTERGOVERNMENTAL AGREEMENT \r\n \r\nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District and capital outlay projects of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\n \r\nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \r\n \r\nThe School District entered into a contract with the Meriwether County Public Facilities Authority, dated August 31, 2017, for the issuance of revenue bonds to provide funds to refund $1,370,000.00 of School District General Obligation Debt associated with the Series 2007 bond issue and $1,725,000.00 of Meriwether County Public Facilities Authority Revenue Bonds Series 2013. Under the terms of the contract, the Meriwether County Public Facilities Authority issued $2,835,500.00 in revenue bonds on behalf of the School District. \r\n \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the aforementioned outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \r\n \r\nDebt currently outstanding under this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government-Refunding Series 2006 General Government QSCB-Series 2010 Authority Revenue Bonds-Series 2017 \r\n \r\n4.21% 5.29% 2.75% \r\n \r\n1/4/2006 7/20/2010 8/31/2017 \r\n \r\n10/1/2026 $ 4/1/2020 4/1/2022 \r\n \r\n8,160,000.00 1,240,000.00 2,835,500.00 \r\n \r\n$ 4,865,000.00 620,000.00 \r\n2,243,107.00 \r\n \r\n$ 12,235,500.00 $ 7,728,107.00 \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following is a schedule of total intergovernmental agreement payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nIntergovernmental Agreements \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amount on Refunding \r\n \r\n2019 2020 2021 2022 2023 2024 - 2027 \r\n \r\n$ \r\n \r\n1,242,993.00 $ \r\n \r\n1,276,418.00 \r\n \r\n1,315,204.00 \r\n \r\n968,492.00 \r\n \r\n535,000.00 \r\n \r\n2,390,000.00 \r\n \r\n322,520.19 $ 289,798.89 190,270.39 146,454.29 111,880.75 206,500.50 \r\n \r\n37,104.41 37,104.41 37,104.41 34,358.56 26,121.00 84,895.04 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n7,728,107.00 $ \r\n \r\n1,267,425.01 \r\n \r\n256,687.83 \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired buses under the provisions of a long-term lease agreement classified as a capital lease for accounting purposes because it provides for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through the capital lease and is reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ \r\n \r\n651,200.00 \r\n \r\n217,066.67 \r\n \r\n$ \r\n \r\n434,133.33 \r\n \r\nCapital lease currently outstanding is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nSchool Buses Lease \r\n \r\n2.30% \r\n \r\n2/10/2015 \r\n \r\n3/25/2019 $ 651,200.00 $ 133,400.98 \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2019 \r\n \r\n$ \r\n \r\n133,400.98 $ \r\n \r\n3,069.02 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 8: RISK MANAGEMENT INSURANCE Commercial Insurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. 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. \r\nWORKERS' COMPENSATION \r\n \r\nGeorgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2017 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,130.00 \r\n \r\n$ \r\n \r\n9,130.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2018 $ \r\n \r\n- \r\n \r\n$ 16,192.00 \r\n \r\n$ \r\n \r\n16,192.00 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n82,697.83 \r\n \r\n$ \r\n \r\n337,786.11 \r\n \r\n1,171,489.80 \r\n \r\n1,509,275.91 \r\n \r\n68,353.74 2,644,049.81 \r\n \r\nFund Balance, June 30, 2018 \r\n \r\n$ \r\n \r\n4,304,377.29 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 11: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $999,636.00 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2018, the School District reported a liability of $30,140,536.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2017. At June 30, 2017, the School District's proportion was 0.214524%, which was a decrease of 0.008583% from its proportion measured as of June 30, 2016. \r\n \r\nFor the year ended June 30, 2018, the School District recognized OPEB expense of $1,558,413.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nChanges of assumptions \r\n \r\n$ \r\n \r\n- $ 2,295,124.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n8,815.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n1,078,118.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n999,636.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,008,451.00 $ 3,373,242.00 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSchool District contributions subsequent to the measurement date of $999,636.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2019 2020 2021 2022 2023 2024 \r\n \r\n$ (604,496.00) $ (604,496.00) $ (604,496.00) $ (604,496.00) $ (606,699.00) $ (339,744.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017: \r\n \r\nOPEB: Inflation Salary increases ERS JRS LRS TRS PSERS Long-term expected rate of return Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \r\n \r\n2.75% \r\n3.25% - 7.00%, including inflation 4.50%, including inflation None 3.25 -- 9.00%, including inflation N/A 3.88%, compounded annually, net of investment expense, and including inflation \r\n7.75% 5.75% \r\n5.00% 5.00% 2022 \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 \r\nwith projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\nAdditionally, there was a change of assumptions that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58%. \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset Class \r\n \r\nTarget Allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nLocal Government Investment Pool \r\n \r\n100.00% \r\n \r\n1.13% \r\n \r\n*Rate shown is net of the 2.75% assumed rate of inflation. \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDiscount rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\nNet OPEB Liability \r\n \r\n$ 35,786,487.00 $ \r\n \r\n30,140,536.00 $ 25,684,736.00 \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB \r\nliability, as well as what the District's proportionate share of the net OPEB liability would be if it were \r\ncalculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point \r\nhigher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nNet OPEB Liability \r\n \r\n$ 24,983,071.00 $ \r\n \r\n30,140,536.00 $ 36,855,547.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\n \r\nNOTE 12: RETIREMENT PLANS \r\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\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 \r\n \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nservice and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. The School District's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.62% of payroll was required from the School District and 0.19% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,344,693.90 and $26,323.32 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2018 was 24.81% of annual covered payroll for old and new plan members and 21.81% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.69% of annual covered payroll for old and new plan members and 21.69% for GSEPS members, plus a 0.12% adjustment for \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nthe HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $26,995.88 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\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. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $82,778.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2018, the School District reported a liability of $25,274,790.00 for its proportionate share of the net pension liability for TRS ($25,036,268.00) and ERS ($238,522.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 25,036,268.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n367,989.00 \r\n \r\nTotal \r\n \r\n$ 25,404,257.00 \r\n \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2017. \r\n \r\nAt June 30, 2017, the School District's TRS proportion was 0.134710%, which was a decrease of 0.007988% from its proportion measured as of June 30, 2016. At June 30, 2017, the School District's ERS proportion was 0.005873%, which was a decrease of 0.000010% from its proportion measured as of June 30, 2016. \r\n \r\nAt June 30, 2018, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $453,356.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017. \r\n \r\nFor the year ended June 30, 2018, the School District recognized pension expense of $1,905,001.00 for TRS, $27,839.00 for ERS and $91,369.00 for PSERS and revenue of $100,277.00 for TRS and $91,369.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 936,511.00 $ \r\n \r\n94,484.00 \r\n \r\n$ 2,614.00 $ \r\n \r\n2.00 \r\n \r\nChanges of assumptions \r\n \r\n548,826.00 \r\n \r\n- \r\n \r\n543.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n172,291.00 \r\n \r\n- \r\n \r\n594.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n2,714,710.00 \r\n \r\n262.00 \r\n \r\n259.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,344,693.90 \r\n \r\n- \r\n \r\n26,995.88 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 3,830,030.90 $ 2,981,485.00 \r\n \r\n$ 30,414.88 $ \r\n \r\n855.00 \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District contributions subsequent to the measurement date of $2,344,693.90 for TRS and $26,995.88 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ (1,100,097.00) $ \r\n \r\n$ 541,927.00 $ \r\n \r\n$ \r\n \r\n52,770.00 $ \r\n \r\n$ (978,828.00) $ \r\n \r\n$ \r\n \r\n(11,920.00) $ \r\n \r\n(2,700.00) 9,349.00 2,678.00 (6,763.00) \r\n- \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25%  9.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future \r\nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \r\nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \r\nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \r\nwas used for death after disability retirement. There is a margin for future mortality improvement in \r\nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \r\n \r\n- 29 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nactual number of deaths that occurred during the study period for service retirements and \r\nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n100.00% \r\n \r\nERS/PSERS Target \r\nallocation \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\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 \r\n \r\n- 30 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nbenefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, 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: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 41,087,454.00 $ \r\n \r\n25,036,268.00 $ 11,813,699.00 \r\n \r\nEmployees' Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ \r\n \r\n336,662.00 $ \r\n \r\n238,522.00 $ \r\n \r\n154,806.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 13: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2018, the School District made prior period adjustments due to the adoption of GASB Statement No. 75, as described in \"New Accounting Pronouncements\", which require the restatement of the June 30, 2017, net position in Governmental Activities. The result is a decrease in net position at July 1, 2017 of $31,946,550.00 This change is in accordance with generally accepted accounting procedures. \r\n \r\nNet Position, July 1, 2017 as previously reported \r\n \r\n$ (1,794,032.21) \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \r\n \r\n(33,065,095.00) \r\n \r\nDeferred Outflows - School District's Contributions made during fiscal year 2017 \r\n \r\n1,118,545.00 \r\n \r\nNet Position, July 1, 2017, as restated \r\n \r\n$ (33,740,582.21) \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of \r\nthe net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the \r\nSchool District \r\n \r\nTotal \r\n \r\n0.134710% $ 25,036,268.00 $ 0.142698% $ 29,440,188.00 $ 0.153393% $ 23,352,561.00 $ 0.155325% $ 19,623,265.00 $ \r\n \r\n367,989.00 785,839.00 \r\n- \r\n \r\n$ 25,404,257.00 $ 30,226,027.00 $ 23,352,561.00 $ 19,623,265.00 \r\n \r\nSchool District's covered payroll \r\n$ 15,702,349.85 $ 16,017,416.29 $ 16,450,395.67 $ 15,845,252.04 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n159.44% 183.80% 141.96% 123.84% \r\n \r\n79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nSchool District's covered payroll \r\n \r\n2018 2017 2016 2015 \r\n \r\n0.005873% $ 0.005883% $ 0.005837% $ 0.005485% $ \r\n \r\n238,522.00 278,291.00 236,480.00 205,721.00 \r\n \r\n$ 144,057.39 $ 136,783.98 $ 137,120.67 $ 127,806.77 \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\n165.57% 203.45% 172.46% 160.96% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.33% 72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n453,356.00 $ 453,356.00 $ 1,198,397.56 583,945.00 $ 583,945.00 $ 1,179,741.08 367,572.00 $ 367,572.00 $ 1,187,773.95 317,505.00 $ 317,505.00 $ 1,253,284.68 \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended 2018 \r\n \r\nSchool District's proportion of the net \r\nOPEB liability \r\n \r\nSchool District's proportionate share \r\nof the net OPEB liability \r\n \r\n0.214524% $ 30,140,536.00 \r\n \r\nState of Georgia's proportionate share of the \r\nnet OPEB liability associated with the School \r\nDistrict \r\n \r\n$ \r\n \r\n- \r\n \r\nTotal $ 30,140,536.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\n$ 14,307,456.97 \r\n \r\n210.66% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n2018 2017 2016 2015(1) 2014(1) 2013(1) 2012(1) 2011(1) 2010(1) \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n2,344,693.90 $ \r\n \r\n$ \r\n \r\n2,208,289.34 $ \r\n \r\n$ \r\n \r\n2,233,622.00 $ \r\n \r\n$ \r\n \r\n2,163,227.03 $ \r\n \r\n$ \r\n \r\n1,945,796.95 $ \r\n \r\n$ \r\n \r\n1,882,222.45 $ \r\n \r\n$ \r\n \r\n1,797,763.93 $ \r\n \r\n$ \r\n \r\n1,762,220.80 $ \r\n \r\n$ \r\n \r\n1,789,865.36 $ \r\n \r\n2,344,693.90 $ 2,208,289.34 $ 2,233,622.00 $ 2,163,227.03 $ 1,945,796.95 $ 1,882,222.45 $ 1,797,763.93 $ 1,762,220.80 $ 1,789,865.36 $ \r\n \r\n- \r\n \r\n$ 14,105,581.08 \r\n \r\n- \r\n \r\n$ 15,702,349.85 \r\n \r\n- \r\n \r\n$ 16,017,416.29 \r\n \r\n- \r\n \r\n$ 16,450,395.67 \r\n \r\n- \r\n \r\n$ 15,845,252.04 \r\n \r\n- \r\n \r\n$ 16,496,252.85 \r\n \r\n- \r\n \r\n$ 17,487,975.97 \r\n \r\n- \r\n \r\n$ 17,142,225.68 \r\n \r\n- \r\n \r\n$ 18,376,441.07 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n16.62% 14.06% 13.94% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% \r\n \r\n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 37 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2018 \r\n \r\n$ \r\n \r\n26,995.88 $ \r\n \r\n26,995.88 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n35,740.61 $ \r\n \r\n35,740.61 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n33,813.00 $ \r\n \r\n33,813.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n30,111.70 $ \r\n \r\n30,111.70 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n23,593.13 $ \r\n \r\n23,593.13 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 108,810.50 $ 144,057.39 $ 136,783.98 $ 137,120.67 $ 127,806.77 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n24.81% 24.81% 24.72% 21.96% 18.46% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 38 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2018 \r\n \r\n$ \r\n \r\n999,636.00 $ \r\n \r\n999,636.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n1,118,545.00 $ \r\n \r\n1,118,545.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 13,104,873.07 $ 14,307,456.97 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n7.63% 7.82% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 39 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"8\" \r\n \r\nTeachers Retirement System \r\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. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nEmployees' Retirement System \r\nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \r\nPublic School Employees Retirement System \r\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. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nSchool OPEB Fund \r\nChanges of benefit terms: In June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \r\nChanges in assumptions: In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. Additionally, there were changes to the discount rate and an increase in the investment rate of return due to a longer-term investment strategy. \r\nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \r\nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \r\n \r\n- 40 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"9\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service \r\nTotal Expenditures \r\nExcess of Revenues over Expenditures \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n9,374,812.00 $ \r\n \r\n9,374,812.00 $ \r\n \r\n10,035,770.47 $ \r\n \r\n68,000.00 \r\n \r\n68,000.00 \r\n \r\n114,288.29 \r\n \r\n17,627,233.00 \r\n \r\n17,638,936.00 \r\n \r\n17,674,166.49 \r\n \r\n4,876,722.00 \r\n \r\n5,186,732.00 \r\n \r\n5,119,020.72 \r\n \r\n38,300.00 \r\n \r\n38,300.00 \r\n \r\n213,588.88 \r\n \r\n800.00 \r\n \r\n800.00 \r\n \r\n34,656.86 \r\n \r\n95,000.00 \r\n \r\n95,000.00 \r\n \r\n345,641.14 \r\n \r\n32,080,867.00 \r\n \r\n32,402,580.00 \r\n \r\n33,537,132.85 \r\n \r\n660,958.47 46,288.29 35,230.49 (67,711.28) \r\n175,288.88 33,856.86 \r\n250,641.14 \r\n1,134,552.85 \r\n \r\n17,270,630.37 \r\n1,922,702.48 1,383,088.40 \r\n185,349.28 1,087,912.10 1,802,935.36 \r\n526,324.68 2,267,731.22 2,535,545.20 \r\n280,306.01 132,511.85 \r\n1,999,999.97 \r\n11,607.95 \r\n31,406,644.87 \r\n674,222.13 \r\n(2,349,389.68) \r\n \r\n17,456,424.37 \r\n1,938,599.48 1,510,691.40 \r\n185,349.28 1,082,331.10 1,802,935.36 \r\n526,324.68 2,267,731.22 2,531,545.20 \r\n282,306.01 132,511.85 \r\n1,999,999.97 \r\n11,607.95 \r\n31,728,357.87 \r\n674,222.13 \r\n433,695.75 \r\n \r\n16,005,633.61 \r\n1,850,326.71 1,483,298.10 \r\n302,670.22 923,726.82 2,112,929.81 257,067.28 2,511,138.38 2,401,082.85 301,735.94 209,112.98 181,116.42 2,021,708.59 \r\n- \r\n30,561,547.71 \r\n2,975,585.14 \r\n157,302.35 \r\n \r\n1,450,790.76 \r\n88,272.77 27,393.30 (117,320.94) 158,604.28 (309,994.45) 269,257.40 (243,407.16) 130,462.35 (19,429.93) (76,601.13) (181,116.42) (21,708.62) 11,607.95 \r\n1,166,810.16 \r\n2,301,363.01 \r\n(276,393.40) \r\n \r\n$ \r\n \r\n(1,675,167.55) $ \r\n \r\n1,107,917.88 $ \r\n \r\n3,132,887.49 $ \r\n \r\n2,024,969.61 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $452,793.44 and $463,796.83, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"10\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States English Language Acquisition State Grants Rural Education Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grant Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n18185GA324N1099 $ 18185GA324N1100 \r\n \r\n507,831.68 1,353,044.16 \r\n1,860,875.84 \r\n \r\n10.582 \r\n \r\n185GA324L1603 \r\n \r\n72,276.82 1,933,152.66 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A160073 H027A170073 H173A160081 H173A170081 \r\n \r\n84.048 84.048 84.365 84.358 84.424A 84.367 84.367 84.010 84.010 \r\n \r\nV048A160010 V048A170010 S365A170010 S358B170010 S424A170011 S367A160001 S367A170001 S010A160010 S010A170010 \r\n \r\n40,738.00 722,025.98 \r\n11,517.00 48,509.32 \r\n822,790.30 \r\n2,276.00 40,904.19 \r\n345.65 44,193.40 32,980.29 130,558.30 44,911.01 369,694.14 1,658,717.87 \r\n2,324,580.85 \r\n3,147,371.15 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,080,523.81 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Meriwether County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2018. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee noted to the basic financial statements. \r\n \r\n- 42 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services Residential Treatment Centers Grant Rule 10 Special Education State Grant Teachers Retirement Vocational Education \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"11\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n781,937.24 \r\n \r\n912,540.00 137,821.00 1,927,671.00 426,445.00 1,074,932.00 232,984.00 1,669,470.00 1,505,397.00 480,906.00 2,984,962.00 341,643.00 \r\n2,713.00 123,297.00 \r\n28,703.00 307,173.00 \r\n92,941.00 52,173.00 \r\n2,105.00 \r\n518,434.00 925,232.00 663,748.00 243,290.00 (241,144.00) \r\n838,999.00 53,274.00 \r\n1,135,893.00 \r\n49,466.00 15,488.52 110,502.00 45,596.00 32,644.98 26,323.32 25,736.00 \r\n82,778.00 \r\n62,092.43 \r\n$ 17,674,166.49 \r\n \r\n- 43 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"12\" \r\n \r\nPROJECT SPLOST II \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\n(i) Paying a portion of the principal of and interest \r\n \r\non the Series 2004 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $1,680,200.00 \r\n \r\nas set forth in the School District Resolution; \r\n \r\n$ \r\n \r\n1,680,200.00 $ \r\n \r\n(ii) Paying a portion of the principal of and interest on the Series 2005 Bonds Restructured to Series 2013, the maximum amount of debt to be paid will not exceed $5,415,652.25 as set forth in the School District Resolution; \r\n \r\n5,415,652.25 \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n1,710,520.00 $ \r\n \r\n290,296.00 $ 1,420,224.00 $ \r\n \r\n1,710,520.00 $ \r\n \r\n- \r\n \r\n5,415,652.25 \r\n \r\n- \r\n \r\n4,009,001.45 \r\n \r\n4,009,001.45 \r\n \r\n- \r\n \r\n(iii) Paying a portion of the principal of and interest \r\n \r\non the Series 2006 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $3,261,255.25 \r\n \r\nas set forth in the School District Resolution; \r\n \r\n3,261,255.25 \r\n \r\n3,344,044.50 \r\n \r\n546,565.00 \r\n \r\n2,797,479.50 \r\n \r\n3,344,044.50 \r\n \r\n- \r\n \r\n(iv) Paying a portion of the principal of and interest on the Series 2007 Bonds, the maximum amount of debt to be paid will not exceed $836,425.00 as set forth in the School District Resolution; \r\n \r\n836,425.00 \r\n \r\n836,425.00 \r\n \r\n- \r\n \r\n836,425.00 \r\n \r\n836,425.00 \r\n \r\n- \r\n \r\n(v) Paying a portion of the principal of and interest \r\n \r\non the Series 2010 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $310,000.00 as \r\n \r\nset forth in the School District Resolution; \r\n \r\n310,000.00 \r\n \r\n312,164.67 \r\n \r\n2,164.67 \r\n \r\n310,000.00 \r\n \r\n312,164.67 \r\n \r\n- \r\n \r\n(vi) Paying for system-wide technology upgrades, \r\n \r\nand renovations and improvements to existing \r\n \r\nschool facilities, the amount of debt to be paid will \r\n \r\nnot exceed $306,157.50 as set forth in the School \r\n \r\nDistrict Resolution. \r\n \r\n306,157.50 \r\n \r\n306,157.50 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n11,809,690.00 \r\n \r\n11,924,963.92 \r\n \r\n839,025.67 \r\n \r\n9,373,129.95 \r\n \r\n10,212,155.62 \r\n \r\n- \r\n \r\nSPLOST III \r\n \r\n(i) Paying a portion of the principal of and interest \r\n \r\non the Series 2004 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $1,744,728.00 \r\n \r\nas set forth in the School District Resolution; \r\n \r\n1,744,728.00 \r\n \r\n1,744,728.00 \r\n \r\n50,784.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(ii) Paying a portion of the principal of and interest \r\n \r\non the Series 2006 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $3,299,108.00 \r\n \r\nas set forth in the School District Resolution; \r\n \r\n3,299,108.00 \r\n \r\n3,299,108.00 \r\n \r\n102,408.25 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) Paying a portion of the principal of and interest \r\n \r\non the Series 2010 Bonds, the maximum amount \r\n \r\nof debt to be paid will not exceed $1,093,990.00 \r\n \r\nas set forth in the School District Resolution; \r\n \r\n1,093,990.00 \r\n \r\n1,093,990.00 \r\n \r\n342,798.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) and (v) Paying a portion of the principal of and \r\n \r\ninterest on the Series 2007 Bonds and Series 2013 \r\n \r\nBonds, Restricted to Series 2017 Bonds, the \r\n \r\nmaximum amount of debt to be paid will not exceed \r\n \r\n$849,250.00 and $885,399.00, respectively as \r\n \r\nset forth in the School District Resolution; \r\n \r\n1,734,649.00 \r\n \r\n1,734,649.00 \r\n \r\n638,095.73 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(vi) Paying for system-wide technology upgrades, \r\n \r\nand renovations and improvements to existing \r\n \r\nschool facilities, the maximum amount shall not \r\n \r\nexceed $627,525.00 as set forth in the School \r\n \r\nDistrict Resolution. \r\n \r\n627,525.00 \r\n \r\n627,525.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n8,500,000.00 \r\n \r\n8,500,000.00 \r\n \r\n1,134,085.98 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nComplete Complete Complete Complete Complete Complete \r\n10/1/2022 10/1/2022 10/1/2022 \r\n10/1/2022 10/1/2022 \r\n \r\n$ 20,309,690.00 $ 20,424,963.92 $ 1,973,111.65 $ 9,373,129.95 $ 10,212,155.62 $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated November 30, 2020. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\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 have not been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be a material weakness and a significant deficiency. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2018-001 to be a material weakness. \r\n \r\n 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 2018-002 to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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. \r\nSchool District's Response to Findings \r\nThe School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nNovember 30, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Meriwether County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. \r\nOther Matters \r\nThe results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with the Uniform Guidance and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA 2018-001. Our opinion on each major federal program is not modified with respect to this matter. \r\nThe School District's response to the noncompliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies 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 a certain deficiency in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as item FA 2018-001, that we consider to be a significant deficiency. \r\n \r\n The School District's response to the internal control over compliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nNovember 30, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-6991-13-01 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS-6991-13-02 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS-6991-13-03 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2014-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-002 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2014-003 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\nFS 2014-005 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\nFS 2015-001 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\nFS 2015-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\nPreviously Reported Corrective Action Implemented \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance \r\nPreviously Reported Corrective Action Implemented \r\nInternal Control Procedures Cash and Cash Equivalents Capital Assets General Ledger Significant Deficiency None \r\nPartially Resolved \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the general ledger process. \r\n \r\nFS 2015-004 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2015-005 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Cash and Cash Equivalents Investments Expenditures/Liabilities/Disbursements Accounting Controls (Overall) General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the employee compensation and general ledger processes. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others General Ledger Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2016-004 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nBudget Deficit, Deficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2017-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. The School District has implemented corrective actions to resolve the deficiencies in the employee compensation and general ledger processes. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school account manual to ensure adequate controls over school activity accounts. In addition, the School District has implemented monitoring procedures to conduct quarterly audits of school records. The School District has implemented corrective actions to resolve the all processes except for revenues, expenditures and funds held for others. \r\n \r\nFS 2017-003 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS 2017-004 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nBudget Deficit, Deficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls Procedures over the Expenditure Process Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified U.S. Department of Education Georgia Department of Education Title I Grants to Local Educational Agencies (CFDA 84.010) S010A150010 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2016-002 Control Category: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls Over Equipment Equipment and Real Property Management Material Weakness Material Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented purchasing and approval procedures to adequately manage equipment and real property. \r\n \r\nFA 2017-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls over the Expenditure Process Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education Title I Grants to Local Educational Agencies (CFDA 84.010) S010A150010 None Identified \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFA 2017-002 Control Category: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nControls Over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 17175GA324N1099, 17175GA324N1100 None Identified \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented purchasing and approval procedures to adequately manage equipment and real property. \r\n \r\n- 6 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; General Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nYes \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low risk auditee? \r\n \r\n$750,000.00 No \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2018-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Capital Assets Material Weakness None FS 2017-001, FS 2016-001, FS 2015-003, FS 2015-004, FS 2014003, FS-6991-13-03 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls at the Central Office. \r\n \r\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. \r\n \r\nCondition: Accounting Controls (Overall) \r\n The School District did not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial application. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions including privileged access rights. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining the custody of assets. We noted there was no documentation of periodic review of user access rights for the financial accounting system and the school food service point of sale system. \r\n The School District did not have a Business Continuity/Disaster Recovery Policy in place for the year under audit. \r\n The School District did not have Information Technology policies and procedures including a risk assessment related to Information Technology Risks for the year under review. \r\n \r\nCash and Cash Equivalents  The School District did not have adequate internal controls in place to ensure that the bank reconciliation process was separate from the record keeping function.  Five out of fifteen bank reconciliations were not performed, documented or reviewed. The total cash not reconciled was insignificant to the financial statements. \r\n \r\nRevenue/Receivables/Receipts  The School District could not provide a detailed listing of accounts receivable. \r\n \r\nExpenditures/Liabilities/Disbursements  The School District could not provide a detailed listing of accounts payable or payroll withholdings payable. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCapital Assets  A listing by asset was not able to be provided to support the current year depreciation expense or the allocation of depreciation by function.  Two assets totaling $54,046.00 identified as not being properly capitalized in fiscal year 2015 were still not properly capitalized and added to the fiscal year 2018 capital asset listing.  In addition, three assets totaling $47,398.75 identified as not being properly capitalized in fiscal year 2016 were still not properly capitalized and added to the fiscal year 2018 capital asset listing. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that these issues were a result of management's failure to ensure that internal controls were established, implemented, and functioning. \r\n \r\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. \r\n \r\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. Management should ensure that proper separation of duties exists. In the case when management determines that separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2018-002 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None FS 2017-002, FS 2016-002, FS 2015-005, FS 2014-001, FS-699113-01 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCondition: Cash and Cash Equivalents \r\n The key accounting functions of journal entry preparation and bank reconciliation were not adequately separated. \r\nRevenue/Receivables/Receipts  The key accounting functions of receipt preparation, recordkeeping and bank reconciliation were not adequately separated. \r\nFunds Held for Others  One agency fund had deficit fund balance totaling $128.94.  Nine principal accounts had deficit fund balance totaling $15,023.00.  Several principal accounts were misclassified as agency, totaling $8,773.37.  There were no policies or procedures governing agency agreements. \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. \r\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. \r\nRecommendation: The School District should establish control procedures to ensure that the key accounting functions of receipt preparation, check preparation, bank reconciliation and record keeping are separated. In addition, the School District should implement procedures to ensure that receipts are adequately documented and recorded in the financial records. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \r\nViews of Responsible Officials: We concur with this finding. \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2018-001 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: Repeat of Prior Year Finding: \r\n \r\nImprove Controls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education 10.553 and 10.555 Child Nutrition Cluster 18185GA324N1099, 18185GA324N1100 None Identified FA 2017-002, FA 2016-002 \r\n \r\nDescription: The policies and procedures of the School District were insufficient to provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster. \r\n \r\nCriteria: 2 CFR 200.313(d)(1) states, \"Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. \r\n \r\nCondition: The following deficiencies were noted when reviewing the Child Nutrition Cluster equipment listing: \r\n \r\n While the School District maintained individual property identification cards for equipment items, they did not maintain a complete equipment listing for the Child Nutrition Cluster. \r\n Property records did not include one or more of the following required components for 89 equipment items: (1) The source of funding for the property (including the FAIN), (2) who holds title, (3) the acquisition date, (4) cost of the property, and (5) use and condition of the property. \r\n \r\nCause: In discussing this deficiency with the School District, they stated these issues were a result of turnover at the School District. \r\n \r\nEffect or Potential Effect: Failure to maintain a complete and accurate equipment listing exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. \r\n \r\nRecommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Views of Responsible Officials: We concur with this finding. \r\n- 6 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n Every Student Matters, Every Moment Counts \r\nDr. Robert A. Griffin, Superintendent \r\n____________________________________________________________________________________________________________ \r\nBradley Smith, Chairman | Willie A. Hinton, Jr., Vice Chair | Leon Coverson | Bob M. Patterson | Rebecca \"Kay\" King \r\n \r\nMERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2018 \r\n \r\nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \r\n \r\nFS 2018-001 \r\n \r\nInternal Controls at the Central Office \r\n \r\nControl Categories: \r\n \r\nAccounting Controls (Overall) \r\n \r\nCash and Cash Equivalents \r\n \r\nRevenues/Receivables/Receipts \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nCapital Assets \r\n \r\nInternal Control Impact: \r\n \r\nMaterial Weakness \r\n \r\nCompliance Impact: \r\n \r\nNone \r\n \r\nThe accounting procedures of the School District were insufficient to provide adequate internal controls at the Central Office. \r\n \r\nCorrective Action Plans: The School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that the internal controls are in place. In addition, the School District will continue to review the current accounting procedures and controls and implement procedures to help strengthen the internal controls. \r\n \r\nEstimated Completion Date: Completed \r\n \r\nContact Person: Tomecka Woody, Chief Financial Officer Telephone: (706) 441-0601 E-mail: Tomecka.woody@mcssga.org \r\n \r\n2100 Gaston Street, P.O. Box 70 | Greenville, GA 30222 | Phone 706.441.0601 | Fax 706.672.1618 | www.mcssga.org \r\nThe Meriwether County School District does not discriminate on the basis of race, color, religion, national origin, age, disability, or sex in its employment practices, student programs and dealings with the public. It is the policy of the Board of Education to comply fully with the requirements of Title VI, Title IX, Section 504 of the Rehabilitation Act of 1973, the Americans With Disabilities Act and all accompanying regulations. \r\n \r\n   "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2017-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2017 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2019-12-19"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2017 June 30 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2017-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n3 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n4 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n5 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n6 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n7 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n8 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n31 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n32 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n33 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 35 \r\n \r\n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n36 \r\n \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n37 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS  \r\nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n38 39 41 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n GREG S. GRIFFIN \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 19, 2019 \r\n \r\nHonorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2017, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures, GASB Statement No. 80, Blending Requirements for Certain Component Units, and GASB Statement No. 82, Pension Issues. Our opinions are not modified with respect to these matters. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages 31 through 37 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated December 19, 2019 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Deferred Charge on Debt Refunding Related to Defined Benefit Pension Plans \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n1,523,027.82 \r\n \r\n1,326,401.95 2,013,819.03 \r\n498,979.50 127,123.54 \r\n3,620.90 125,358.61 531,808.00 32,768,766.48 \r\n \r\n38,918,905.83 \r\n \r\n241,621.00 7,205,036.95 \r\n7,446,657.95 \r\n \r\n177,308.00 3,027,987.94 \r\n160,882.42 121,272.00 29,718,479.00 \r\n2,080,402.52 10,451,922.11 \r\n45,738,253.99 \r\n \r\n2,421,342.00 \r\n \r\n21,073,391.98 \r\n399,797.46 1,204,287.07 (24,471,508.72) \r\n \r\n$ \r\n \r\n(1,794,032.21) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 19,526,743.83 $ \r\n1,584,819.26 1,307,497.19 \r\n263,701.84 943,479.08 1,815,907.37 390,089.35 2,201,399.61 2,441,518.93 218,734.48 168,324.45 \r\n282,538.30 2,043,811.16 \r\n522,565.25 \r\n$ 33,711,130.10 $ \r\n \r\n17,380.00 $ \r\n- \r\n137,856.74 28,744.09 - \r\n183,980.83 $ \r\n \r\n15,142,994.19 $ \r\n120,762.73 1,027,973.57 \r\n291,930.00 536,069.30 889,257.00 \r\n742,465.09 1,121,520.40 \r\n8,415.50 14,492.46 \r\n2,066,992.01 \r\n- \r\n21,962,872.25 \r\n \r\n(4,366,369.64) \r\n(1,464,056.53) (279,523.62) 28,228.16 (407,409.78) (926,650.37) (390,089.35) \r\n(1,458,934.52) (1,319,998.53) \r\n(210,318.98) (153,831.99) \r\n(144,681.56) 51,924.94 \r\n(522,565.25) \r\n(11,564,277.02) \r\n \r\n9,459,299.19 334,777.72 69,561.14 \r\n1,612,079.22 102,302.54 36,668.00 5,569.61 566,864.97 \r\n12,187,122.39 \r\n622,845.37 \r\n(2,416,877.58) \r\n \r\n$ \r\n \r\n(1,794,032.21) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2017 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 374,138.72 $ 1,148,889.10 $ 1,523,027.82 \r\n \r\n1,149,731.98 2,013,819.03 \r\n498,979.50 127,123.54 \r\n3,620.90 125,358.61 \r\n \r\n176,669.97 - \r\n \r\n1,326,401.95 2,013,819.03 \r\n498,979.50 127,123.54 \r\n3,620.90 125,358.61 \r\n \r\n$ 4,292,772.28 $ 1,325,559.07 $ 5,618,331.35 \r\n \r\n$ 177,308.00 $ 3,027,987.94 160,882.42 \r\n3,366,178.36 \r\n \r\n- $ 177,308.00 \r\n \r\n- \r\n \r\n3,027,987.94 \r\n \r\n- \r\n \r\n160,882.42 \r\n \r\n- \r\n \r\n3,366,178.36 \r\n \r\n769,291.57 \r\n \r\n35,982.54 \r\n \r\n805,274.11 \r\n \r\n125,358.61 330,156.41 (298,212.67) \r\n157,302.35 \r\n \r\n1,289,576.53 \r\n- \r\n1,289,576.53 \r\n \r\n125,358.61 1,619,732.94 \r\n(298,212.67) \r\n1,446,878.88 \r\n \r\n$ 4,292,772.28 $ 1,325,559.07 $ 5,618,331.35 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2017 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Land improvements Buildings and improvements Equipment Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability \r\nDeferred charges on debt refundings are applicable to future periods and are therefore not reported in the funds and are amortized over the life of the new debt. \r\nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Intergovernmental agreement payable Compensated absences payable Capital leases payable \r\n \r\n$ \r\n \r\n1,446,878.88 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,837.92 \r\n \r\n51,822,279.68 \r\n \r\n5,948,995.95 \r\n \r\n(29,327,347.07) \r\n \r\n33,300,574.48 \r\n \r\n(29,718,479.00) 241,621.00 \r\n4,783,694.95 805,274.11 \r\n \r\n$ (4,250,000.00) (121,272.00) \r\n(7,955,000.00) (63,521.13) \r\n(263,803.50) \r\n \r\n(12,653,596.63) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n(1,794,032.21) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 9,655,863.41 $ 98,688.08 \r\n16,270,404.78 5,535,951.28 183,980.83 1,500.20 566,864.97 \r\n32,313,253.55 \r\n \r\n341,491.01 $ 1,615,693.68 \r\n4,069.41 - \r\n1,961,254.10 \r\n \r\n9,997,354.42 1,714,381.76 16,270,404.78 5,535,951.28 \r\n183,980.83 5,569.61 \r\n566,864.97 \r\n34,274,507.65 \r\n \r\n17,662,863.49 \r\n1,575,889.58 1,299,103.27 \r\n260,028.32 908,698.83 1,920,472.40 388,639.09 2,119,456.03 2,329,815.01 213,313.58 167,949.06 282,538.30 1,992,055.43 \r\n32,798.00 \r\n31,153,620.39 \r\n1,159,633.16 \r\n \r\n- \r\n190.00 - \r\n1,905,000.00 475,002.50 \r\n2,380,192.50 \r\n(418,938.40) \r\n \r\n17,662,863.49 \r\n1,575,889.58 1,299,103.27 \r\n260,028.32 908,698.83 1,920,472.40 388,829.09 2,119,456.03 2,329,815.01 213,313.58 167,949.06 282,538.30 1,992,055.43 \r\n1,905,000.00 507,800.50 \r\n33,533,812.89 \r\n740,694.76 \r\n \r\n(302,000.00) \r\n(302,000.00) \r\n857,633.16 \r\n(700,330.81) \r\n \r\n302,000.00 - \r\n302,000.00 \r\n(116,938.40) \r\n1,406,514.93 \r\n \r\n302,000.00 (302,000.00) \r\n- \r\n740,694.76 \r\n706,184.12 \r\n \r\n$ \r\n \r\n157,302.35 $ \r\n \r\n1,289,576.53 $ \r\n \r\n1,446,878.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2017 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nIntergovernmental agreement payments Amortization of deferred gain on refunding of bonds Bond principal retirements Capital lease payments \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. \r\nPension expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nCompensated absences Accrued interest \r\n \r\n$ \r\n \r\n740,694.76 \r\n \r\n$ \r\n \r\n320,584.39 \r\n \r\n(2,052,355.00) \r\n \r\n(1,731,770.61) \r\n \r\n(133,716.37) \r\n \r\n$ 1,570,000.00 (26,121.00) 335,000.00 127,470.69 \r\n \r\n2,006,349.69 \r\n \r\n(268,397.05) \r\n \r\n$ \r\n \r\n(1,671.30) \r\n \r\n11,356.25 \r\n \r\n9,684.95 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n622,845.37 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2017 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n56,241.42 \r\n \r\n$ \r\n \r\n56,241.42 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted 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. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures. This statement requires governments that enter into tax abatement agreements to disclose the following information; (1) brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to abate taxes, as part of a tax abatement agreement. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67, and No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINVENTORIES \r\n \r\nFood Inventories \r\n \r\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. \r\n \r\nCAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value of the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\n$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 500,000.00 \r\n \r\nN/A 20 years \r\n7 to 40 years 5 to 15 years Individually determined \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond 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. \r\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. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nfund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on August 23, 2016 (levy date) based on property values as of January 1, 2016. Taxes were due on December 20, 2016 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2016 tax digest are reported as revenue in the governmental funds for fiscal year 2017. The Meriwether 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, 2017, for maintenance and operations amounted to $8,941,238.37 and for school bonds amounted to $341,491.01. \r\nThe tax millage rates levied for the 2016 tax year (calendar year) for the School District were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.575 mills 0.680 mills \r\n \r\n19.255 mills \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $645,063.90 during fiscal year ended June 30, 2017. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,615,693.68 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nis prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2017, the School District had deposits with a carrying amount of $703,963.17, and a bank \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nbalance of $845,139.80. The bank balances insured by Federal depository insurance were $515,929.45 and the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $329,210.35. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nStatement of Net Position Cash and cash equivalents \r\nStatement of Fiduciary Net Position Cash and cash equivalents \r\n \r\n$ \r\n \r\n1,523,027.82 \r\n \r\n56,241.42 \r\n \r\nTotal cash and cash equivalents \r\n \r\n1,579,269.24 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n875,306.07 \r\n \r\nTotal carrying value of deposits - June 30, 2017 \r\n \r\n$ \r\n \r\n703,963.17 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $875,306.07 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2017, was 56 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\nBalances July 1, 2016 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2017 \r\n \r\n$ 531,808.00 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n531,808.00 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n51,822,279.68 5,628,411.56 4,324,837.92 \r\n \r\n320,584.39 \r\n- \r\n \r\n- \r\n \r\n51,822,279.68 \r\n \r\n- \r\n \r\n5,948,995.95 \r\n \r\n- \r\n \r\n4,324,837.92 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n19,927,456.94 4,453,199.45 2,894,335.68 \r\n \r\n1,445,024.40 391,088.70 216,241.90 \r\n \r\n- \r\n \r\n21,372,481.34 \r\n \r\n- \r\n \r\n4,844,288.15 \r\n \r\n- \r\n \r\n3,110,577.58 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n34,500,537.09 \r\n \r\n(1,731,770.61) \r\n \r\n- \r\n \r\n32,768,766.48 \r\n \r\nGovernmental Activity Capital Assets - Net $ 35,032,345.09 $ (1,731,770.61) $ \r\n \r\n- \r\n \r\n$ 33,300,574.48 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Adminstration School Administration Maitenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 1,655,789.72 \r\n \r\n$ \r\n \r\n21,576.14 \r\n \r\n25,685.90 \r\n \r\n25,159.02 \r\n \r\n305,248.02 \r\n \r\n377,669.08 18,896.20 \r\n \r\n$ 2,052,355.00 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2017, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From General Fund \r\n \r\nDebt Service Fund \r\n \r\n$ 302,000.00 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the debt service fund to pay principal and interest on debt. \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: SHORT-TERM DEBT \r\nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes \r\n \r\n$ \r\n \r\n1,000,000.00 $ \r\n \r\n2,500,000.00 $ \r\n \r\n3,500,000.00 $ \r\n \r\n- \r\n \r\nNOTE 8: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nGeneral Obligation Bonds Intergovernmental Agreement Capital Leases Compensated Absenses (1) \r\n \r\nBalance July 1, 2016 \r\n \r\nAdditions \r\n \r\nGovernmental Activities Deductions \r\n \r\nBalance June 30, 2017 \r\n \r\nDue Within One Year \r\n \r\n$ 4,585,000.00 $ \r\n \r\n- $ \r\n \r\n335,000.00 $ 4,250,000.00 $ 350,000.00 \r\n \r\n9,525,000.00 \r\n \r\n- \r\n \r\n1,570,000.00 \r\n \r\n7,955,000.00 \r\n \r\n1,600,000.00 \r\n \r\n391,274.19 \r\n \r\n- \r\n \r\n127,470.69 \r\n \r\n263,803.50 \r\n \r\n130,402.52 \r\n \r\n61,849.83 \r\n \r\n1,671.30 \r\n \r\n- \r\n \r\n63,521.13 \r\n \r\n- \r\n \r\n$ 14,563,124.02 $ 1,671.30 $ 2,032,470.69 $ 12,532,324.63 $ 2,080,402.52 \r\n \r\n(1) The portion of compensated absenses due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2004 General Government - Series 2007 \r\n \r\n3.84% 3.70% - 4.10% \r\n \r\n11/3/2014 5/9/2007 \r\n \r\n10/1/2026 $ 5,000,000.00 $ 2,880,000.00 \r\n \r\n10/1/2026 \r\n \r\n2,200,000.00 \r\n \r\n1,370,000.00 \r\n \r\n$ 7,200,000.00 $ 4,250,000.00 \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2018 2019 2020 2021 2022 2023-2027 \r\n \r\n$ \r\n \r\n350,000.00 $ \r\n \r\n365,000.00 \r\n \r\n380,000.00 \r\n \r\n395,000.00 \r\n \r\n410,000.00 \r\n \r\n2,350,000.00 \r\n \r\n159,103.75 145,274.00 130,774.00 115,690.00 100,026.00 238,215.00 \r\n \r\nTotal Principal and Interest $ 4,250,000.00 $ 889,082.75 \r\n \r\nINTERGOVERNMENTAL AGREEMENT \r\n \r\nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District and capital outlay projects of the School District. Under the terms of the contract, the Meriwether County Public Facilities Authority (Authority) issued $8,810,000.00 less issuance costs of $229,391.00 in bonds on behalf of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\n \r\nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \r\n \r\nAdditionally, on September 19, 2013, the Meriwether County Public Facilities Authority, issued $4,200,000.00 of Revenue bonds on behalf of the School District to refund $3,885,000.00 of School District General Obligation Debt associated with the Series 2005 bond issue. \r\n \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the aforementioned outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. As part of the intergovernmental agreement, the School District transferred all rights, claims, and title to Greenville High School to the Meriwether County Public Facilities Authority. At the conclusion of the intergovernmental agreement the School District has the option to repurchase Greenville High School at the bargain purchase price of $10.00. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contracts. \r\n \r\nDebt currently outstanding under this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Refunding - Series 2006 General Government - QSCB - Series 2010 Authority Revenue Bonds - Series 2013 \r\n \r\n4.21% 5.29% 1.77% \r\n \r\n1/4/2006 7/20/2010 9/19/2013 \r\n \r\n10/1/2026 $ 4/1/2020 \r\n10/1/2018 \r\n \r\n8,160,000.00 $ 5,300,000.00 \r\n \r\n1,240,000.00 \r\n \r\n930,000.00 \r\n \r\n4,200,000.00 \r\n \r\n1,725,000.00 \r\n \r\n$ 13,600,000.00 $ 7,955,000.00 \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following is a schedule of total intergovernmental agreement payments: \r\n \r\nIntergovernmental Agreements \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amount on Refunding \r\n \r\n2018 2019 2020 2021 2022 2023-2027 \r\n \r\n$ \r\n \r\n1,600,000.00 $ \r\n \r\n1,635,000.00 \r\n \r\n785,000.00 \r\n \r\n495,000.00 \r\n \r\n515,000.00 \r\n \r\n2,925,000.00 \r\n \r\n302,535.00 $ 268,534.25 241,258.25 155,243.75 133,983.25 318,381.25 \r\n \r\n26,121.00 26,121.00 26,121.00 26,121.00 26,121.00 111,016.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n7,955,000.00 $ \r\n \r\n1,419,935.75 $ \r\n \r\n241,621.00 \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired buses under the provisions of a long-term lease agreement classified as a capital lease for accounting purposes because it provides for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through the capital lease and is reflected in the capital asset note at fiscal year-end: \r\nGovernmental Funds \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n651,200.00 151,946.64 \r\n \r\n$ \r\n \r\n499,253.36 \r\n \r\nCapital lease currently outstanding is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nSchool Buses Lease \r\n \r\n2.30% \r\n \r\nIssue Date 2/10/2015 \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\n3/25/2019 $ \r\n \r\n651,200.00 $ \r\n \r\nAmount Outstanding \r\n263,803.50 \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFor the Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2018 2019 \r\n \r\n$ 130,402.52 $ 133,400.98 \r\n \r\n6,067.48 3,069.02 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 263,803.50 $ \r\n \r\n9,136.50 \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\nNOTE 9: RISK MANAGEMENT \r\n \r\nINSURANCE \r\n \r\nCommercial Insurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\n \r\nThe School District has elected to self-insure for losses related to risk for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \r\n \r\nWORKERS' COMPENSATION \r\n \r\nGeorgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2016 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,893.00 \r\n \r\n$ 3,893.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2017 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,130.00 \r\n \r\n$ 9,130.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSURETY BOND \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2017: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Debt Service \r\nUnassigned \r\n \r\n$ 330,156.41 1,289,576.53 \r\n \r\n$ 125,358.61 \r\n1,619,732.94 (298,212.67) \r\n \r\nFund Balance, June 30, 2017 \r\n \r\n$ 1,446,878.88 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 12: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\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. \r\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 \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nelection, 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. \r\n \r\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. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2017: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2016  June 30, 2017 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2016  December 31, 2016 $746.20 per member per month \r\n \r\nJanuary 1, 2017  June 30, 2017 $846.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2017 2016 2015 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n3,954,163.90 \r\n \r\n$ \r\n \r\n3,820,466.20 \r\n \r\n$ \r\n \r\n3,713,538.76 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2017. The School District's contractually required contribution rate for the year ended June 30, 2017 was 14.27% of annual School District payroll, of which 14.06% of payroll was required from the School District and 0.21% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,208,289.34 and $31,253.81 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nP lan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2017 was 24.69% 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 $35,740.61 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $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. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $77,165.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2017, the School District reported a liability of $29,718,479.00 for its proportionate share of the net pension liability for TRS ($29,440,188.00) and ERS ($278,291.00). \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\nState of Georgia proportionate share of the net pension liability associated with the School District \r\n \r\n$ 29,440,188.00 785,839.00 \r\n \r\nTotal \r\n \r\n$ 30,226,027.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2016. \r\nAt June 30, 2016, the School District's TRS proportion was 0.142698%, which was a decrease of 0.010695% from its proportion measured as of June 30, 2015. At June 30, 2016, the School District's ERS proportion was 0.005883%, which was an increase of 0.000046% from its proportion measured as of June 30, 2015. \r\nAt June 30, 2017, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $583,945.00. \r\nThe PSERS net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2016. \r\nFor the year ended June 30, 2017, the School District recognized pension expense of $2,681,275.00 for TRS, $37,025.00 for ERS and $95,730.00 for PSERS and revenue of $205,873.00 for TRS and $95,730.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2017, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience Change of assumptions \r\n \r\n$ 438,579.00 $ 145,582.00 $ \r\n \r\n- $ \r\n \r\n763,049.00 \r\n \r\n- \r\n \r\n2,357.00 \r\n \r\n643.00 - \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n3,724,305.00 \r\n \r\n- \r\n \r\n28,294.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n2,275,117.00 \r\n \r\n4,423.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n2,208,289.34 \r\n \r\n- \r\n \r\n35,740.61 \r\n \r\n$ 7,134,222.34 $ 2,420,699.00 $ 70,814.61 $ \r\n \r\n643.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $2,208,289.34 for TRS and $35,740.61 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2018 2019 2020 2021 2022 \r\n \r\n$ (104,011.00) $ $ (104,013.00) $ $ 1,625,967.00 $ $ 1,098,526.00 $ $ (11,235.00) $ \r\n \r\n7,125.00 2,596.00 15,255.00 9,455.00 \r\n- \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' \r\n \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nprojection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected \r\n \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nrate 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: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks international emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\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. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, 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: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 45,824,017.00 $ \r\n \r\n29,440,188.00 $ 15,950,807.00 \r\n \r\nEmployee's Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 377,135.00 $ \r\n \r\n278,291.00 $ 194,055.00 \r\n \r\nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 14: DEFICIT FUND BALANCE OF INDIVIDUAL FUNDS \r\n \r\nThe fund reporting a deficit fund balance at the fiscal year end, is as follows: \r\n \r\nFund Type/Fund Name \r\n \r\nDeficit Balance \r\n \r\nGeneral Fund \r\n \r\n$ 298,212.67 \r\n \r\nThe Board intends to resolve the deficit in the general fund by more closely monitoring expenditures in subsequent periods. \r\nNOTE 15: SUBSEQUENT EVENTS \r\nBond Refinance \r\nSubsequent to fiscal year end, the School District issued revenue refunding bonds on August 15, 2017 in the amount of $2,385,000.00. The purpose of the funds was (a) to refund all of the (1) outstanding principal amounts of the $2,200,000.00 in the original aggregate principal amount Meriwether County School District General Obligation Bonds, Series 2007 (the \"Series 2007 Bonds\"), and (2) $4,200,000.00 in original aggregate principal amount Meriwether County Public Facilities Authority Revenue Bonds , Series 2013 (the \"Series 2013 Bonds\", and, together with the Series 2007 Bonds, the \"Refunded Bonds\") and (b) pay off all expenses incident to accomplishing the foregoing. \r\nTax Anticipation Note \r\nSubsequent to fiscal year end, the School District issued a total of $4,000,000.00 on a short-term Tax Anticipation Note from the local bank for cash flow purposes. The School District made 3 draws totaling $2,000,000.00 on this note on July 17, 2017, August 29, 2017, and October 5, 2017, respectively. The note was repaid by the School District on December 29, 2017 with interest of $15,500.83. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\n0.142698% $ 29,440,188.00 $ 0.153393% $ 23,352,561.00 $ 0.155325% $ 19,623,265.00 $ \r\n \r\n785,839.00 - \r\n \r\n$ 30,226,027.00 $ 23,352,561.00 $ 19,623,265.00 \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\n$ 16,017,416.29 $ 16,450,395.67 $ 15,845,252.04 \r\n \r\n183.80% 141.96% 123.84% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 31 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nSchool District's covered payroll \r\n \r\n0.005883% $ 0.005837% $ 0.005485% $ \r\n \r\n278,291.00 $ 236,480.00 $ 205,721.00 $ \r\n \r\n136,783.98 137,120.67 127,806.77 \r\n \r\nSchool District's proportionate share of the net pension liability as a \r\npercentage of covered payroll \r\n203.45% 172.46% 160.96% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total net pension liability \r\n72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 32 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\n0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n583,945.00 $ 583,945.00 $ 1,179,741.08 367,572.00 $ 367,572.00 $ 1,187,773.95 317,505.00 $ 317,505.00 $ 1,253,284.68 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n2017 \r\n \r\n$ \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2015 (1) $ \r\n \r\n2014 (1) $ \r\n \r\n2013 (1) $ \r\n \r\n2012 (1) $ \r\n \r\n2011 (1) $ \r\n \r\n2010 (1) $ \r\n \r\n2,208,289.34 \r\n \r\n$ \r\n \r\n2,233,622.00 \r\n \r\n$ \r\n \r\n2,163,227.03 \r\n \r\n$ \r\n \r\n1,945,796.95 \r\n \r\n$ \r\n \r\n1,882,222.45 \r\n \r\n$ \r\n \r\n1,797,763.93 \r\n \r\n$ \r\n \r\n1,762,220.80 \r\n \r\n$ \r\n \r\n1,789,865.36 \r\n \r\n$ \r\n \r\n2,208,289.34 \r\n \r\n$ \r\n \r\n2,233,622.00 \r\n \r\n$ \r\n \r\n2,163,227.03 \r\n \r\n$ \r\n \r\n1,945,796.95 \r\n \r\n$ \r\n \r\n1,882,222.45 \r\n \r\n$ \r\n \r\n1,797,763.93 \r\n \r\n$ \r\n \r\n1,762,220.80 \r\n \r\n$ \r\n \r\n1,789,865.36 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 15,702,349.85 \r\n \r\n- \r\n \r\n$ 16,017,416.29 \r\n \r\n- \r\n \r\n$ 16,450,395.67 \r\n \r\n- \r\n \r\n$ 15,845,252.04 \r\n \r\n- \r\n \r\n$ 16,496,252.85 \r\n \r\n- \r\n \r\n$ 17,487,975.97 \r\n \r\n- \r\n \r\n$ 17,142,225.68 \r\n \r\n- \r\n \r\n$ 18,376,441.07 \r\n \r\n14.06% 13.94% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% \r\n \r\n(1) For years ended 2015 and earlier, the contractually required contribution amount includes the amounts paid by the Georgia Department of Education on behalf of the School District. \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2017 \r\n \r\n$ \r\n \r\n35,740.61 $ \r\n \r\n35,740.61 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n33,813.00 $ \r\n \r\n33,813.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n30,111.70 $ \r\n \r\n30,111.70 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n23,593.13 $ \r\n \r\n23,593.13 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n$ \r\n \r\n144,057.39 \r\n \r\n$ \r\n \r\n136,783.98 \r\n \r\n$ \r\n \r\n137,120.67 \r\n \r\n$ \r\n \r\n127,806.77 \r\n \r\n24.81% 24.72% 21.96% 18.46% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the -Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nEmployees' Retirement System \r\nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn-December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\n \r\n- 36 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGET FINAL (1) (2) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n8,755,000.00 $ \r\n \r\n9,655,863.41 $ \r\n \r\n900,863.41 \r\n \r\n55,000.00 \r\n \r\n98,688.08 \r\n \r\n43,688.08 \r\n \r\n16,015,568.00 \r\n \r\n16,270,404.78 \r\n \r\n254,836.78 \r\n \r\n5,189,111.00 \r\n \r\n5,535,951.28 \r\n \r\n346,840.28 \r\n \r\n56,500.00 \r\n \r\n183,980.83 \r\n \r\n127,480.83 \r\n \r\n550.00 \r\n \r\n1,500.20 \r\n \r\n950.20 \r\n \r\n219,700.00 \r\n \r\n566,864.97 \r\n \r\n347,164.97 \r\n \r\n30,291,429.00 \r\n \r\n32,313,253.55 \r\n \r\n2,021,824.55 \r\n \r\n17,838,114.50 \r\n1,453,137.61 1,540,539.24 \r\n267,605.63 994,506.88 1,930,428.20 503,686.92 2,234,069.79 1,918,196.74 235,848.05 148,301.54 \r\n2,000,000.00 \r\n88,251.90 \r\n31,152,687.00 \r\n(861,258.00) \r\n- \r\n(861,258.00) \r\n(1,359,816.87) \r\n \r\n17,662,863.49 \r\n1,575,889.58 1,299,103.27 \r\n260,028.32 908,698.83 1,920,472.40 388,639.09 2,119,456.03 2,329,815.01 213,313.58 167,949.06 282,538.30 1,992,055.43 \r\n32,798.00 \r\n31,153,620.39 \r\n1,159,633.16 \r\n(302,000.00) \r\n857,633.16 \r\n(700,330.81) \r\n \r\n175,251.01 \r\n(122,751.97) 241,435.97 \r\n7,577.31 85,808.05 \r\n9,955.80 115,047.83 114,613.76 (411,618.27) \r\n22,534.47 (19,647.52) (282,538.30) \r\n7,944.57 55,453.90 \r\n(933.39) \r\n2,020,891.16 \r\n(302,000.00) \r\n1,718,891.16 \r\n659,486.06 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n(2,221,074.87) $ \r\n \r\n157,302.35 $ \r\n \r\n2,378,377.22 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) 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 $479,234.48 and $473,153.99, respectively. \r\n(2) The School District did not submit an Original Budget. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Improving Teacher Quality State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n17175GA324N1099 $ 17175GA324N1100 \r\n \r\n517,461.30 1,367,981.61 \r\n1,885,442.91 \r\n \r\n10.579 10.582 \r\n \r\n16165GA350N8103 175GA324L1903 \r\n \r\n9,599.00 19,082.48 \r\n28,681.48 \r\n1,914,124.39 \r\n \r\n84.027 84.173 84.173 \r\n \r\nH027A160073 H173A150081 H173A160081 \r\n \r\n84.048 84.367 84.367 84.010 84.010 \r\n \r\nV048A150010 S367A150001 S367A160001 S010A150010 S010A160010 \r\n \r\n798,941.68 883.00 \r\n47,566.16 \r\n847,390.84 \r\n49,369.48 195,302.65 114,368.41 420,014.22 1,429,069.16 \r\n2,208,123.92 \r\n3,055,514.76 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n4,969,639.15 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Meriwether County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2017. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2017 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Residential Treatment Centers Grant Rule 10 Special Education State Grant Teacher of the Year Teachers Retirement Vocational Education \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"9\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n723,089.47 \r\n \r\n803,146.00 176,565.00 1,882,406.00 447,916.00 848,838.00 284,116.00 1,448,069.00 1,497,913.00 515,519.00 3,199,093.00 356,945.00 \r\n82,926.00 106,584.00 \r\n23,538.00 291,930.00 \r\n86,952.00 51,954.00 \r\n2,027.00 \r\n472,909.00 889,257.00 655,902.00 255,834.00 (341,071.00) \r\n829,704.00 53,047.00 36,668.00 \r\n53,368.00 17,414.71 74,517.70 154,400.00 74,647.00 42,475.13 \r\n507.25 31,253.81 32,280.99 \r\n77,165.00 \r\n30,598.72 \r\n$ 16,270,404.78 \r\n \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nSPLOST II \r\n \r\n(i) Paying a portion of the principal of and interest on the Series 2004 Bonds, the maximum amount of debt to be paid will not exceed $1,680,200.00 as set forth in the School District Resolution. \r\n \r\n$ 1,680,200.00 $ 1,680,200.00 $ 339,912.00 $ 1,080,312.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(ii) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2005 Bonds Restructured to Series 2013, \r\n \r\nthe maximum amount of debt to be paid will not exceed \r\n \r\n$5,415,652.25 as set forth in the School District Resolution. \r\n \r\n5,415,652.25 \r\n \r\n5,415,652.25 \r\n \r\n877,966.50 \r\n \r\n3,131,034.95 \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(iii) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2006 Bonds, the maximum amount of debt \r\n \r\nto be paid will not exceed $3,261,255.25 as set forth \r\n \r\nin the School District Resolution. \r\n \r\n3,261,255.25 \r\n \r\n3,261,255.25 \r\n \r\n651,971.00 \r\n \r\n2,145,508.50 \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(iv) Paying a portion of the principal of and interest on the Series 2007 Bonds, the maximum amount of debt to be paid will not exceed $836,425.00 as set forth in the School District Resolution. \r\n \r\n836,425.00 \r\n \r\n836,425.00 \r\n \r\n167,355.00 \r\n \r\n669,070.00 \r\n \r\n836,425.00 \r\n \r\n- \r\n \r\nComplete \r\n \r\n(v) Paying a portion of the principal of and interest on the Series 2010 Bonds, the maximum amount of debt to be paid will not exceed $310,000.00 as set forth in the School District Resolution. \r\n \r\n310,000.00 \r\n \r\n310,000.00 \r\n \r\n47,616.00 \r\n \r\n262,384.00 \r\n \r\n310,000.00 \r\n \r\n- \r\n \r\nComplete \r\n \r\n(vi) Paying for system-wide technology upgrades, and \r\n \r\nrenovations and improvements to existing school \r\n \r\nfacilities, the amount of debt to be paid will not \r\n \r\nexceed $306,157.50 as set forth in the School District \r\n \r\nResolution. \r\n \r\n306,157.50 \r\n \r\n306,157.50 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n$ 11,809,690.00 $ 11,809,690.00 $ 2,084,820.50 $ 7,288,309.45 $ 1,146,425.00 $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 19, 2019 \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \r\nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated December 19, 2019. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2017-001 to be a material weakness. \r\n \r\n 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 deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2017-002, FS 2017-003, and FS 2017-004 to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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. \r\nSchool District's Response to Findings \r\nThe School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 19, 2019 \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Meriwether County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. \r\nOther Matters \r\nThe results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying Schedule of Findings and Questioned Costs as items FA 2017-001 and FA 2017-002. Our opinion on each major federal program is not modified with respect to these matters. \r\nThe School District's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying Schedule of Findings and Questioned Costs as items FA 2017-001 and FA 2017-002, that we consider to be significant deficiencies. \r\n \r\n The School District's response to the internal control over compliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-6991-13-01 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nMeriwether County Board of Education has established and implemented policies and procedures to ensure compliance over school activity accounts. \r\n \r\nFS-6991-13-02 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal entries \r\nare in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2- Annual Financial Reporting of the Financial Management for Georgia \r\nLocal Units of Administration. Additionally, financial statements will be prepared in accordance with \r\ngenerally accepted accounting principles. \r\n \r\nFS-6991-13-03 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\nFS 2014-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Finding Status: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\nPartially Resolved \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. \r\n \r\nFS 2014-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal entries \r\nare in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2- Annual Financial Reporting of the Financial Management for Georgia \r\nLocal Units of Administration. Additionally, financial statements will be prepared in accordance with \r\ngenerally accepted accounting principles. \r\n \r\nFS 2014-003 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\nFS 2014-005 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board adopts a balanced budget yearly. Financial reduction measures have been taken for fiscal year 2018 to help ensure that expenditures do not exceed available resources. \r\n \r\nFS 2015-001 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal entries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. Additionally, financial statements will be prepared in accordance with generally accepted accounting principles. \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nFinancial reduction measures have been taken for fiscal year 2018 to help ensure that expenditures do not exceed available resources. \r\n \r\nFS 2015-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures Cash and Cash Equivalents Capital Assets General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that there are adequate internal controls over cash and cash equivalents, capital assets, and general ledger. \r\n \r\nFS 2015-004 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\nFS 2015-005 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Cash and Cash Equivalents Investments Expenditures/Liabilities/Disbursements Accounting Controls (Overall) General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. \r\n \r\nFS 2016-002 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others General Ledger Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented procedures to conduct quarterly audits of school records to ensure accounting functions are met for School Activity Accounts. \r\n \r\nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District will review the current accounting procedures and controls and will implement procedures to help strengthen the internal controls. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-004 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nBudget Deficit, Deficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that budgeting preparations are performed adequately. The School District has made several cuts in spending and payroll to better align revenue with expenses and eliminate the general fund deficit. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls Procedures over the Expenditure Process Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified U.S. Department of Education Georgia Department of Education Title I Grants to Local Educational Agencies (CFDA 84.010) S010A150010 None Identified \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented purchasing and approval procedures to ensure that expenditures are reviewed appropriately for allowability. These new procedures have been successfully implemented for the Child Nutrition Cluster, however there has not yet been a significant impact for Title I Grants to Local Education Agencies. \r\n \r\nFA 2016-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nImprove Controls Over Equipment Equipment and Real Property Management Material Weakness Material Noncompliance \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFederal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nU.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe School District has hired a new Chief Financial Officer to oversee the accounting procedures and ensure that internal controls are in place. In addition, the School District has implemented purchasing and approval procedures to adequately manage equipment and real property. \r\n \r\n- 6 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issue: Governmental Activities; General Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nYes \r\n \r\n Significant deficiencies identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiencies identified? \r\n \r\nYes \r\n \r\nType of auditor's report issued on compliance for major programs: Unmodified for all major programs \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n84.010 84.027, 84.173 \r\n \r\nTitle I Grants to Local Educational Agencies Special Education Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\n$750,000.00 No \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None FS 2016-001, FS 2015-003, FS 2015-004, FS 2014-003, FS 6991-13-03 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls at the Central Office. \r\n \r\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. \r\n \r\nCondition: Accounting Controls (Overall) \r\n The School District did not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial application. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining the custody of assets. We noted there was no documentation of periodic review of user access rights for the financial accounting system, the student information system and the school food service point of sale system. Inadequate password parameters were also noted for the financial application, as well as the school food service point of sale system. \r\n The School District did not have a Disaster Recovery Policy in place for the year under audit.  The School District did not complete a risk assessment related to Information Technology Risks \r\nfor the year under review. \r\n \r\nCash and Cash Equivalents  The School District did not have adequate internal controls in place to ensure that the bank reconciliation process was separate from the record keeping function.  Six bank reconciliations were either not performed, not documented or not reviewed.  The School District did not have adequate procedures in place to monitor the cash by bank and fund activity. \r\n \r\nRevenue/Receivables/Receipts  Federal programs are not properly maintained by the School District. There does not appear to be adequate oversight over the grants resulting in significant variances when compared to the amounts paid by the grantor agencies.  The School District could not provide a detailed listing of accounts receivable. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nExpenditures/Liabilities/Disbursements  Our examination twenty-seven expenditures revealed the following deficiencies: o One expenditure in the amount of $6,399.99 was not capitalized. o One expenditure in the amount of $19,600.00 was not recorded as a prepaid asset.  The School District could not provide a detailed listing of accounts payable or payroll withholdings payable.  A long-term liability for a new capital lease was not recorded in the amount of $111,643.65. \r\nEmployee Compensation  Our review of twelve employees' salaries revealed the following deficiencies: o Technology related salaries totaling $94,650.85 could not be traced to an approved pay scale or other supporting documentation. o The School District did not have adequate procedures in place to ensure that salaries and benefits payable were properly reviewed and approved. \r\nGeneral Ledger  A review of internal control procedures revealed the School District did not ensure journal entries were properly documented and approved in a timely manner.  Our review of twenty-five journal entries revealed the following deficiencies: o Two journal entries did not have any indication of proper approval. o Twenty-two journal entries did not have a date of approval. o Three journal entries were not adequately documented.  As a result of the inadequate oversight over the federal programs, the School District reported a deficit fund balance of $39,745.54 in the Title I fund, $2,896.98 in the Special Education fund, and $10,675.00 in the Title II fund. \r\nCapital Assets  There was no physical inventory performed during the fiscal year under review.  A listing by asset was not able to be provided to support the current year depreciation expense or the allocation of depreciation by function.  Two assets totaling $54,046.00 identified as not being properly capitalized in fiscal year 2015 were still not properly capitalized and added to the fiscal year 2017 capital asset listing.  In addition, three assets totaling $47,398.75 identified as not being properly capitalized in fiscal year 2016 were still not properly capitalized and added to the fiscal year 2017 capital asset listing. \r\nCause: In discussing these deficiencies with the School District, they stated that these issues were a result of management's failure to ensure that internal controls were established, implemented, and functioning. \r\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 financial position and results of operations. \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\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. Management should ensure that proper separation of duties exists. In the case when management determines that separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2017-002 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Funds Held for Others Significant Deficiency None FS 2016-002, FS 2015-005, FS 2014-001, FS-6991-13-01 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\nCondition: Cash and Cash Equivalents \r\n The key accounting functions of journal entry preparation and bank reconciliation were not adequately separated. \r\n Four of eight bank reconciliations did not contain sufficient evidence to support that the reconciliations were performed and reviewed in a timely manner. \r\n Bank reconciliations were not performed for one scholarship account, which the School District holds in a custodial capacity. \r\n \r\nRevenue/Receivables/Receipts  The key accounting functions of receipt preparation, recordkeeping and bank reconciliation were not adequately separated.  Our examination of fifteen receipts revealed that fourteen receipts did not have any supporting documentation.  Five receipts were not deposited in a timely manner. \r\n \r\nFunds Held for Others  Two agency funds had deficit fund balances totaling $1,658.45. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEffect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to errors or fraud and not be detected in a timely manner. \r\n \r\nRecommendation: The School District should establish control procedures to ensure that the key accounting functions of receipt preparation, check preparation, bank reconciliation and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. In addition, the School District should implement procedures to ensure that receipts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2017-003 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Significant Deficiency None FS 2016-003, FS 2015-001, FS 2014-002, FS-6991-13-02 \r\n \r\nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. \r\n \r\nCriteria: Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\nGASB Statement No. 34, Basic Financial Statements  Management's Discussion and Analysis- for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental fund balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\nChapter II 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCondition: \r\n \r\n Deferred inflows and deferred outflows were not recorded correctly on the government wide statements. An adjustment to the financial statements was proposed by the auditors and accepted by the School District totaling $529,136.00. \r\n \r\n Net position on the government-wide statements was misclassified by $55,717.56 between restricted and unrestricted. This balance represents fuel inventories that the School District was unable to document. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n \r\n Other audit adjustments and reclassifications were proposed by the auditors and accepted by the client to properly present the School District's financial statements, note disclosures, and supplemental information. \r\nCause: In discussing the deficiency with the School District, it appears the errors occurred due to oversights during the financial statement review process. \r\n \r\nEffect or Potential Effect: Significant misstatements and misclassifications were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. \r\n \r\nRecommendation: The School District should strengthen their internal controls and preparation and review procedures over financial reporting to ensure that the financial statements, including disclosures and schedules, presented for audit are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of GAAP, the applicable GASB pronouncements, and knowledge of the School District's activities and operations. The School District should consider implementing the use of a review checklist to assist in the review process over the financial statements. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2017-004 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nBudget Deficit, Deficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance FS 2016-004, FS 2015-002, FS 2014-005 \r\n \r\nDescription: At June 30, 2017, the School District reported a deficit unassigned fund balance in the general fund. In addition, the School District did not adopt a balanced general fund budget for fiscal year 2017. Furthermore, the School District failed to comply with the Official Code of Georgia Annotated 20-2-67(b) as result of their deficit fund balance at June 30, 2016. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCriteria: Chapter II - 8 Governmental Fund Deficits of the Financial Management for Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \r\nChapter IV - 2, Preparing Operating Budgets of the Financial Management for Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of the unassigned fund balance from previous years must be used to fund the shortfall. In the event there is insufficient unassigned fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unassigned fund balance.\" \r\nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Georgia Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \r\nThe School District is required to comply with the Official Code of Georgia Annotated 20-2-67(b) which states: \"The superintendent shall report submit to the Department of Education a response to the findings and a corrective action plan as defined by rules and regulations adopted by the State Board of Education designed to correct the financial irregularities or budget deficits for the school or school system. From the time such irregularity or budget deficit is discovered until the time it is eliminated, the local school superintendent shall present to each member of the local board of education for his or her review and written acknowledgment a monthly report containing all anticipated expenditures by budget function for such school or school system during the current month. The report shall be presented to local board members on or before the tenth business day of each month. Each monthly report shall be signed by each member of that local school board and recorded and retained in the minutes of the meeting of the local board of education.\" \r\nCondition: The School District reported a deficit unassigned fund balance of $298,212.67 in the general fund. In addition, the School District's final budget for the general fund was not balanced. Total anticipated revenues and beginning fund balance did not exceed or equal total estimated expenditures. Furthermore, the School District did not comply with the monthly reporting requirements as set forth in the Official Code of Georgia Annotated 20-2-67(b). \r\nCause: In discussing this deficiency with the School District, management indicated that the economic downturn depleted their fund balance. In addition, they did not use effective budgeting techniques to ensure the budget is properly balanced. The School District was also unaware of the reporting requirements of the Official Code of Georgia Annotated 20-2-67(b). \r\n- 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nEffect or Potential Effect: The unassigned fund balance of the general fund was not sufficient to meet the fund's obligations at June 30, 2017. Ineffective budgeting techniques in the final budget resulted in a budget deficit of $2,221,074.87 and noncompliance with Chapter IV  2 of the Financial Management for Georgia Local Units of Administration. This also resulted in the School District's noncompliance with the financial reporting requirements of the Official Code of Georgia Annotated 20-2-67(b). \r\nRecommendation: The School District should establish policies and procedures to enforce the successful implementation of their deficit reduction plan to ensure that expenditures do not exceed availability of resources so that in future periods the School District does not report a deficit fund balance. In addition, appropriate procedures should be implemented to ensure that the adopted budget for each budgeted fund is balanced as required. The School District should also establish procedures to ensure that the financial reporting requirements of the Official Code of Georgia Annotated 20-2-67(b) are being met. \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2017-001 Compliance Requirement: \r\nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: Repeat of Prior Year Finding: \r\n \r\nControls over the Expenditure Process Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Education Georgia Department of Education Title I Grants to Local Education Agencies (CFDA 84.010) S010A160010 None Identified FA 2016-001 \r\n \r\nDescription: A review of expenditures charged to the Title I Grants to Education Agencies program revealed that internal control procedures were not in place to ensure that expenditures were reviewed appropriately for allowability. \r\n \r\nCriteria: 2 CFR 200.403 states in part that \"costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles... (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-Federal entity... (g) Be adequately documented...\" \r\n \r\nIn addition, 2 CFR 200.303 states in part that \"the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonFederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award... (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards...\" \r\n \r\n- 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nCondition: A random sample of 14 Title I Grants to Local Education Agencies program expenditure voucher packages was selected for testing using a non-statistical sampling approach. These items were reviewed to determine if expenditures were reviewed and approved appropriately. It was noted that four expenditures were not properly approved. \r\n \r\nCause: In discussing this deficiency with the School District, they stated these issues were a result of turnover within the Central Office. \r\n \r\nEffect or Potential Effect: Failure to ensure that expenditures are reviewed appropriately could result in the expenditure of Federal funds for unauthorized purposes and the return of grant funds associated with these unallowable expenditures. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. \r\n \r\nRecommendation: Management should evaluate and improve the School District's policies and procedures for reviewing Federal programs expenditures to ensure that these funds are expended for allowable purposes. In addition, management should develop and implement a monitoring process to ensure that these procedures are operating appropriately. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFA 2017-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: Repeat of Prior Year Finding: \r\n \r\nControls over Equipment Equipment and Real Property Management Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 17175GA324N1099, 17175GA324N1100 None Identified FA 2016-002 \r\n \r\nDescription: The policies and procedures of the School District did not provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster. \r\n \r\nCriteria: 2 CFR 200.313(d)(1) states, \"Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.\" In addition, 2 CFR 200.313(d)(2) states, \"A physical inventory of the property must be taken, and the results reconciled with the property records at least once every two years.\" \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Condition: While the School District maintained individual property identification cards for equipment items, they did not maintain a complete equipment listing for the Child Nutrition Cluster. Property records did not include the following required components for thirty-three equipment items: \r\n1) Source of funding for the property (including the Federal award identification number), 2) who holds title, 3) percentage of the Federal participation in the cost (for twenty-three equipment items), 4) use and condition of the property and 5) any ultimate disposition data including date of disposal and sales price of the property. In addition, a physical inventory of equipment was not performed in the last two years. Cause: In discussing this deficiency with the School District, they stated these issues were a result of turnover at the School District. Effect or Potential Effect: Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. Recommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a physical inventory of equipment is performed at least once every two years. Views of Responsible Officials: We concur with this finding. \r\n- 10 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n    "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2016-belec-p-btext","title":"Meriwether County Board of Education, Greenville, 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":["2019-08-02"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, 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-bm5-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES RETIREMENT SYSTEM OF GEORGIA 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\n1 2 \r\n3 4 5 6 7 9 \r\n31 32 33 34 35 36 37 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n38 39 41 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 2, 2019 \r\n \r\nHonorable Brian P. Kemp, Governor of Georgia Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education (School District), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District, as of June 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2016, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and No. 68, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages 31 through 37 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. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, consisting of Schedules 8 through 10, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated August 2, 2019, on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2016 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Deferred Charge on Debt Refunding Related to Defined Benefit Pension Plans \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Short-Term Debt Interest Payable Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n1,606,928.48 \r\n \r\n1,628,788.21 1,999,573.63 \r\n662,489.36 109,578.35 \r\n68,933.38 120,744.82 531,808.00 34,500,537.09 \r\n \r\n41,229,381.32 \r\n \r\n267,742.00 2,282,218.00 \r\n2,549,960.00 \r\n \r\n356,880.03 3,034,099.18 \r\n160,882.42 1,000,000.00 \r\n132,628.25 23,589,041.00 \r\n2,032,470.69 12,530,653.33 \r\n42,836,654.90 \r\n \r\n3,359,564.00 \r\n \r\n20,798,812.90 \r\n333,209.03 1,316,582.51 (24,865,482.02) \r\n \r\n$ \r\n \r\n(2,416,877.58) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2016 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 19,388,490.48 $ \r\n940,277.06 1,017,222.04 \r\n328,389.74 994,569.65 1,833,722.19 397,569.83 2,100,603.07 2,265,028.25 185,041.98 210,198.30 \r\n1,769,601.47 541,585.30 \r\n \r\n10,357.00 $ \r\n- \r\n30,481.16 - \r\n \r\n14,261,565.35 $ \r\n53,801.00 227,537.35 303,466.00 501,791.40 834,424.00 \r\n532.98 698,116.67 821,545.96 \r\n- \r\n1,871,746.24 - \r\n \r\n(5,116,568.13) \r\n(886,476.06) (789,684.69) \r\n(24,923.74) (492,778.25) (999,298.19) (397,036.85) (1,402,486.40) (1,443,482.29) (185,041.98) (210,198.30) \r\n132,625.93 (541,585.30) \r\n \r\nTotal Governmental Activities \r\n \r\n$ 31,972,299.36 $ \r\n \r\n40,838.16 $ 19,574,526.95 \r\n \r\n(12,356,934.25) \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n9,240,456.05 333,093.04 67,386.54 \r\n1,560,948.26 105,559.91 670,850.00 2,725.10 416,809.36 \r\n \r\nTotal General Revenues \r\n \r\n12,397,828.26 \r\n \r\nChange in Net Position \r\n \r\n40,894.01 \r\n \r\nNet Position - Beginning of Year \r\n \r\n(2,457,771.59) \r\n \r\nNet Position - End of Year \r\n \r\n$ (2,416,877.58) \r\n \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2016 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 357,049.36 $ 1,249,879.12 $ 1,606,928.48 \r\n \r\n1,429,456.57 1,999,573.63 \r\n662,489.36 109,578.35 \r\n68,933.38 120,744.82 \r\n \r\n199,331.64 - \r\n \r\n1,628,788.21 1,999,573.63 \r\n662,489.36 109,578.35 \r\n68,933.38 120,744.82 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Short Term Debt Salaries and Benefits Payable Payroll Withholdings Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\n \r\n$ 4,747,825.47 $ 1,449,210.76 $ 6,197,036.23 \r\n \r\n$ 356,880.03 $ 1,000,000.00 3,034,099.18 160,882.42 \r\n4,551,861.63 \r\n \r\n- $ \r\n \r\n356,880.03 \r\n \r\n- \r\n \r\n1,000,000.00 \r\n \r\n- \r\n \r\n3,034,099.18 \r\n \r\n- \r\n \r\n160,882.42 \r\n \r\n- \r\n \r\n4,551,861.63 \r\n \r\n896,294.65 \r\n \r\n42,695.83 \r\n \r\n938,990.48 \r\n \r\n120,744.82 268,181.77 (1,089,257.40) \r\n(700,330.81) \r\n \r\n1,406,514.93 \r\n- \r\n1,406,514.93 \r\n \r\n120,744.82 1,674,696.70 (1,089,257.40) \r\n706,184.12 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 4,747,825.47 $ 1,449,210.76 $ 6,197,036.23 \r\n \r\nThe notes to the financial statements are an integral part of this statement. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2016 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Land improvements Buildings and improvements Equipment Accumulated depreciation \r\nSome liabilities, including net pension obligations, are not due and payable in the current period, and, therefore, are not reported in the funds. \r\nNet pension liability \r\nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\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. \r\nBonds payable Accrued interest Intergovernmental agreement payable Deferred amount on refunding Compensated absences payable Capital leases payable \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n706,184.12 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,837.92 \r\n \r\n51,822,279.68 \r\n \r\n6,424,700.56 \r\n \r\n(28,071,281.07) \r\n \r\n35,032,345.09 \r\n \r\n(23,589,041.00) (1,077,346.00) 938,990.48 \r\n \r\n$ (4,585,000.00) (132,628.25) \r\n(9,525,000.00) 267,742.00 (61,849.83) (391,274.19) \r\n \r\n(14,428,010.27) \r\n \r\n$ (2,416,877.58) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 9,270,618.74 $ 105,559.91 \r\n16,343,454.86 4,041,008.04 40,838.16 708.13 416,809.36 \r\n30,218,997.20 \r\n \r\n336,281.73 $ 1,560,948.26 \r\n2,016.97 - \r\n \r\n9,606,900.47 1,666,508.17 16,343,454.86 4,041,008.04 \r\n40,838.16 2,725.10 \r\n416,809.36 \r\n \r\n1,899,246.96 \r\n \r\n32,118,244.16 \r\n \r\n18,492,637.57 \r\n981,264.11 1,043,422.79 \r\n339,826.57 997,502.58 1,923,675.89 381,733.66 2,121,154.27 2,110,892.04 188,888.91 211,341.97 1,785,335.61 \r\n85,866.41 65,596.00 \r\n30,729,138.38 \r\n(510,141.18) \r\n(190,189.63) \r\n \r\n- \r\n20.27 - \r\n1,465,133.59 486,981.60 \r\n1,952,135.46 \r\n(52,888.50) \r\n1,459,403.43 \r\n \r\n18,492,637.57 \r\n981,264.11 1,043,422.79 \r\n339,826.57 997,502.58 1,923,675.89 381,753.93 2,121,154.27 2,110,892.04 188,888.91 211,341.97 1,785,335.61 \r\n1,551,000.00 552,577.60 \r\n32,681,273.84 \r\n(563,029.68) \r\n1,269,213.80 \r\n \r\n$ \r\n \r\n(700,330.81) $ \r\n \r\n1,406,514.93 $ \r\n \r\n706,184.12 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2016 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\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. \r\nDepreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nIntergovernmental agreement payments Amortization of deferred gain on refunding of bonds Bond principal retirements Capital lease payments \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. \r\nPension expense \r\nFederal grants that were not available to pay prior year expenditures and were deferred in the funds \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nCompensated absences Accrued interest \r\n \r\n$ (563,029.68) \r\n(2,089,605.02) 34,035.16 \r\n \r\n$ 1,231,000.00 (26,121.00) 320,000.00 124,604.78 \r\n \r\n1,649,483.78 \r\n \r\n1,011,514.27 (21,620.68) \r\n \r\n$ \r\n \r\n9,123.88 \r\n \r\n10,992.30 \r\n \r\n20,116.18 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n40,894.01 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2016 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n59,955.26 \r\n \r\n$ \r\n \r\n59,955.26 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net positon often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, 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. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. The provisions of this statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement. \r\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 No. 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. \r\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. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINVENTORIES Food Inventories \r\n \r\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. \r\nCAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\n$ 5,000.00 \r\n \r\nN/A \r\n \r\n$ 5,000.00 \r\n \r\n20 years \r\n \r\n$ 5,000.00 \r\n \r\n7 to 40 years \r\n \r\n$ 5,000.00 \r\n \r\n5 to 15 years \r\n \r\n$ 500,000.00 Individually determined \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nCOMPENSATED ABSENCES \r\n \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\n \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nnot exceed 10 days. Upon terminating employment, the School District pays all unused and unforfeited vacation benefits to employees. Accordingly, vacation benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond 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. \r\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. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\n \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on September 8, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on December 20, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The Meriwether 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 $8,598,582.78 and for school bonds amounted to $336,281.73. \r\n \r\nThe tax millage rates levied for the 2015 tax year (calendar year) for the School District were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.575 mills 0.680 mills \r\n \r\n19.255 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $604,649.42 during fiscal year ended June 30, 2016. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,560,948.26 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2016, School District had deposits with a carrying amount of $523,839.17, and a bank balance of $1,266,658.47. The bank balances insured by Federal depository insurance were $383,825.90 and the bank balances collateralized with securities held by the pledging financial institution or by the pledging financial institution's trust department or agent in the School District's name were $262,208.19. \r\n \r\nAt June 30, 2016, $620,624.38 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ 620,624.38 - \r\n- \r\n \r\nTotal \r\n \r\n$ 620,624.38 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $1,143,044.57 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2015 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2016 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\n$ \r\n \r\n531,808.00 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n531,808.00 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n51,822,279.68 6,424,700.56 4,324,837.92 \r\n \r\n- \r\n \r\n- \r\n \r\n51,822,279.68 \r\n \r\n- \r\n \r\n796,289.00 \r\n \r\n5,628,411.56 \r\n \r\n- \r\n \r\n- \r\n \r\n4,324,837.92 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n18,481,757.78 4,821,824.48 2,678,093.79 \r\n \r\n1,445,699.16 427,663.97 216,241.89 \r\n \r\n796,289.00 \r\n- \r\n \r\n19,927,456.94 4,453,199.45 2,894,335.68 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n36,590,142.11 \r\n \r\n(2,089,605.02) \r\n \r\n- \r\n \r\n34,500,537.09 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 37,121,950.11 $ (2,089,605.02) $ \r\n \r\n- $ 35,032,345.09 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n23,537.34 \r\n \r\n26,854.76 \r\n \r\n342,753.05 \r\n \r\n$ 1,678,485.58 \r\n393,145.15 17,974.29 \r\n \r\n$ 2,089,605.02 \r\n \r\nNOTE 6: SHORT-TERM DEBT \r\n \r\nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $ \r\n \r\n- $ 4,500,000.00 $ 3,500,000.00 $ 1,000,000.00 \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nGeneral Obligation Bonds Intergovernmental Agreement Capital Leases Compensated Absences(1) \r\n \r\nBalance July 1, 2015 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2016 \r\n \r\nDue Within One Year \r\n \r\n$ 4,905,000.00 $ 10,756,000.00 515,878.97 70,973.71 \r\n \r\n- $ 320,000.00 $ 4,585,000.00 $ 335,000.00 \r\n \r\n- \r\n \r\n1,231,000.00 \r\n \r\n9,525,000.00 1,570,000.00 \r\n \r\n- \r\n \r\n124,604.78 \r\n \r\n391,274.19 \r\n \r\n127,470.69 \r\n \r\n- \r\n \r\n9,123.88 \r\n \r\n61,849.83 \r\n \r\n- \r\n \r\n$ 16,247,852.68 $ \r\n \r\n- $ 1,684,728.66 $ 14,563,124.02 $ 2,032,470.69 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date Amount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2004 General Government - Series 2007 \r\n \r\n3.84% 3.70% - 4.10% \r\n \r\n11/3/2014 5/9/2007 \r\n \r\n10/1/2026 $ 5,000,000.00 $ 3,105,000.00 \r\n \r\n10/1/2026 2,200,000.00 \r\n \r\n1,480,000.00 \r\n \r\n$ 7,200,000.00 $ 4,585,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2017 2018 2019 2020 2021 2022 - 2026 2027 \r\n \r\n$ \r\n \r\n335,000.00 $ \r\n \r\n350,000.00 \r\n \r\n365,000.00 \r\n \r\n380,000.00 \r\n \r\n395,000.00 \r\n \r\n2,250,000.00 \r\n \r\n510,000.00 \r\n \r\n172,267.00 159,103.75 145,274.00 130,774.00 115,690.00 328,241.00 \r\n10,000.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n4,585,000.00 $ \r\n \r\n1,061,349.75 \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINTERGOVERNMENTAL AGREEMENT \r\nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District and capital outlay projects of the School District. Under the terms of the contract, the Meriwether County Public Facilities Authority (Authority) issued $8,810,000.00 less issuance costs of $229,391.00 in bonds on behalf of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\n \r\nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \r\n \r\nAdditionally, on September 19, 2013, the Meriwether County Public Facilities Authority, issued $4,200,000.00 of Revenue bonds on behalf of the School District to refund $3,885,000.00 of School District General Obligation Debt associated with the Series 2005 bond issue. \r\n \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the aforementioned outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. As part of the intergovernmental agreement, the School District transferred all rights, claims, and title to Greenville High School to the Meriwether County Public Facilities Authority. At the conclusion of the intergovernmental agreement the School District has the option to repurchase Greenville High School at the bargain purchase price of $10.00. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contracts. \r\n \r\nDebt currently outstanding under this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nGeneral Government - Refunding - Series 2006 General Government - QSCB - Series 2010 Authority Revenue Bonds - Series 2013 \r\n \r\n4.21% 5.29% 1.77% \r\n \r\n1/4/2006 7/20/2010 9/19/2013 \r\n \r\n10/1/2026 $ 4/1/2020 \r\n10/1/2018 \r\n \r\n8,160,000.00 $ 1,240,000.00 4,200,000.00 \r\n \r\n$ \r\n \r\n13,600,000.00 $ \r\n \r\nAmount Outstanding \r\n5,720,000.00 1,240,000.00 2,565,000.00 \r\n9,525,000.00 \r\n \r\nThe following is a schedule of total intergovernmental agreement payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2017 \r\n \r\n$ \r\n \r\n2018 \r\n \r\n2019 \r\n \r\n2020 \r\n \r\n2021 \r\n \r\n2022 - 2026 \r\n \r\n2027 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\nIntergovernmental Agreements \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amount on Refunding \r\n \r\n1,570,000.00 $ 1,600,000.00 1,635,000.00 \r\n785,000.00 495,000.00 2,805,000.00 635,000.00 \r\n \r\n335,533.50 $ 302,535.00 268,534.25 241,258.25 155,243.75 438,997.75 \r\n13,366.75 \r\n \r\n26,121.00 26,121.00 26,121.00 26,121.00 26,121.00 130,605.00 \r\n6,532.00 \r\n \r\n9,525,000.00 $ \r\n \r\n1,755,469.25 $ \r\n \r\n267,742.00 \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired buses under the provisions of a long-term lease agreement classified as a capital lease for accounting purposes because it provides for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through the capital lease and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Funds \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n651,200.00 86,826.67 \r\n \r\n$ \r\n \r\n564,373.33 \r\n \r\nCapital lease currently outstanding is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nSchool Buses Lease \r\n \r\n2.30% \r\n \r\n2/10/2015 \r\n \r\n3/25/2019 $ \r\n \r\n651,200.00 $ \r\n \r\n391,274.19 \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2017 2018 2019 \r\n \r\n$ \r\n \r\n127,470.69 $ \r\n \r\n130,402.52 \r\n \r\n133,400.98 \r\n \r\n8,999.31 6,067.48 3,069.02 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n391,274.19 $ \r\n \r\n18,135.81 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 8: RISK MANAGEMENT INSURANCE Commercial Insurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as describe 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. \r\n \r\nThe School District has elected to self-insure for losses related to risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years. \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2015 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,588.00 $ \r\n \r\n5,588.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2016 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,893.00 $ \r\n \r\n3,893.00 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \r\nFUND BALANCES \r\n \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ 120,744.82 \r\n \r\nRestricted \r\n \r\nContinuation of Federal Programs $ 268,181.77 \r\n \r\nDebt Service \r\n \r\n1,406,514.93 \r\n \r\n1,674,696.70 \r\n \r\nUnassigned \r\n \r\n(1,089,257.40) \r\n \r\nFund Balance, June 30, 2016 \r\n \r\n$ 706,184.12 \r\n \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 10: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\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. \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\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. \r\n \r\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. \r\n \r\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: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2015  June 30, 2016 $945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2015  June 30, 2016 $746.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2016 2015 2014 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n3,820,466.20 \r\n \r\n$ \r\n \r\n3,713,538.76 \r\n \r\n$ \r\n \r\n3,716,446.45 \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 12: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 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. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. 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 13.94% of payroll was required from the School District and .33% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,223,622.00 and $60,593.27 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the 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 $33,813.00 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers' Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $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. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $78,792.00. \r\n \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2016, the School District reported a liability of $23,589,041.00 for its proportionate share of the net pension liability for TRS ($23,352,561.00) and ERS ($236,480.00). \r\n \r\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. \r\n \r\nAt June 30, 2015, the School District's TRS proportion was 0.153393%, which was a decrease of 0.001932% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.005837%, which was an increase of 0.000352% from its proportion measured as of June 30, 2014. \r\n \r\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 $367,572.00. \r\n \r\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. \r\n \r\nFor the year ended June 30, 2016, the School District recognized pension expense of $1,193,910.00 for TRS, $27,164.00 for ERS and $21,920.00 for PSERS and revenue of $21,920.00 for PSERS. The revenue is support provided by the State of Georgia. \r\n \r\nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 205,398.00 $ \r\n \r\n- \r\n \r\n$ 1,889.00 \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n1,969,813.00 \r\n \r\n- \r\n \r\n17,062.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n1,165,402.00 \r\n \r\n14,783.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,233,622.00 \r\n \r\n- \r\n \r\n33,813.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,233,622.00 $ 3,340,613.00 $ 48,596.00 $ 18,951.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $2,233,622.00 for TRS and $33,813.00 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. \r\n \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOther amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2017 2018 2019 2020 2021 \r\n \r\n$ (1,291,478.00) $ 2,633.00 \r\n \r\n$ (1,291,478.00) $ (4,950.00) \r\n \r\n$ (1,291,480.00) $ (7,605.00) \r\n \r\n$ 556,262.00 $ 5,754.00 \r\n \r\n$ (22,439.00) $ \r\n \r\n- \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\n3.75%  7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\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. \r\n \r\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, 2009  June 30, 2014. \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\n5.45%  9.25%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\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. \r\n \r\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. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\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. \r\n \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\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. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \r\nTotal \r\n \r\nTarget allocation \r\n30.00% 39.70% \r\n3.70% 1.60% 18.90% 6.10% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \r\n \r\n* Rates shown are net of the 3.00% assumed rate of inflation \r\n \r\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. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, 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: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 40,129,611.00 $ \r\n \r\n23,352,561.00 $ 9,524,280.00 \r\n \r\nEmployees' Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 335,219.00 $ \r\n \r\n236,480.00 $ 152,301.00 \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\nNOTE 13: DEFICIT FUND BALANCE OF INDIVIUDAL FUNDS \r\n \r\nThe fund reporting a deficit fund balance at the fiscal year end, is as follows: \r\n \r\nFund Type/Fund Name \r\n \r\nDeficit Balance \r\n \r\nGeneral Fund \r\n \r\n$ \r\n \r\n(700,330.81) \r\n \r\nThe Board intends to resolve the deficit in the general fund by more closely monitoring expenditures in subsequent periods. \r\nNOTE 14: SUBSEQUENT EVENTS \r\nTax Anticipation Note On June 21, 2016, the School District issued a total of $4,500,000.00 on a short-term Tax Anticipation Note from the local bank for cash flow purposes. The School District made 5 draws totaling $3,500,000.00 on this note on June 30, 2016, July 28, 2016, September 14, 2016, September 29, 2016, and November 7, 2016. The note was repaid by the School District on December 30, 2016 with interest of $21,911.11. \r\n \r\nBond Refinance Subsequent to fiscal year end, the School District issued revenue refunding bonds on August 15, 2017 in the amount of $2,385,000.00. The purpose of the funds was (a) to refund all of the (1) outstanding principal amounts of the $2,200,000.00 in original aggregate principal amount Meriwether County School District General Obligation Bonds, Series 2007 (the \"Series 2007 Bonds), and (2) $4,200,000.00 in original aggregate principal amount Meriwether County Public Facilities Authority Revenue Bonds, Series 2013 (the \"Series 2013 Bonds\", and, together with the Series 2007 Bonds, the \"Refunded Bonds\") and (b) pay off all expenses incident to accomplishing the foregoing. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the \r\nSchool District \r\n \r\n2016 2015 \r\n \r\n0.153393% $ 23,352,561.00 $ 0.155325% $ 19,623,265.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\nTotal \r\n23,352,561.00 19,623,265.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\nemployee payroll \r\n \r\n$ 16,450,395.67 $ 15,845,252.04 \r\n \r\n141.96% 123.84% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 31 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\n2016 2015 \r\n \r\n0.005837% $ 0.005485% $ \r\n \r\n236,480.00 $ 205,721.00 $ \r\n \r\n137,120.67 127,806.77 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n172.46% 160.96% \r\n \r\n76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 32 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\n2016 2015 \r\n \r\n0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n367,572.00 $ 317,505.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered-employee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n367,572.00 $ 1,187,773.95 317,505.00 $ 1,253,284.68 \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2,233,622.00 $ \r\n \r\n2,233,622.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2,163,227.03 $ \r\n \r\n2,163,227.03 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n1,945,796.95 $ \r\n \r\n1,945,796.95 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 16,017,416.29 $ 16,450,395.67 $ 15,845,252.04 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n13.94% 13.15% 12.28% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2016 \r\n \r\n$ \r\n \r\n33,813.00 $ \r\n \r\n33,813.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n30,111.70 $ \r\n \r\n30,111.70 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n23,593.13 $ \r\n \r\n23,593.13 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 136,783.98 $ 137,120.67 $ 127,806.77 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n24.72% 21.96% 18.46% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\n \r\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. \r\n \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\n \r\nJune 30, 2013 Entry age Level percentage of payroll, closed 30 years Five-year smoothed market 3.00% 3.75  7.00%, including inflation 7.50%, net of pension plan investment \r\nexpense, including inflation \r\n \r\nEmployees' Retirement System \r\n \r\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. \r\n \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% 5.45% - 9.25% 7.50%, net of pension plan investment \r\nexpense, including inflation \r\n \r\nPublic School Employees Retirement System \r\n \r\nChanges of assumptions: The last experience investigation was prepared for the five-year period ending June 30, 2009, and based on the results of the investigation various assumptions and methods were revised and adopted by the board on December 16, 2010. The next experience investigation will be prepared for the period July 1, 2009 through June 30, 2014. \r\n \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\nCost-of living adjustments \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% N/A 7.50%, net of pension plan investment \r\nexpense, including inflation 1.50% semi-annually \r\n \r\n- 36 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation \r\nDebt Service \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n9,039,764.00 $ 9,039,764.00 $ \r\n \r\n70,000.00 \r\n \r\n70,000.00 \r\n \r\n16,189,352.00 \r\n \r\n16,189,352.00 \r\n \r\n4,636,462.00 \r\n \r\n4,636,462.00 \r\n \r\n592,000.00 \r\n \r\n592,000.00 \r\n \r\n750.00 \r\n \r\n750.00 \r\n \r\n225,500.00 \r\n \r\n225,500.00 \r\n \r\n30,753,828.00 \r\n \r\n30,753,828.00 \r\n \r\n9,270,618.74 $ 105,559.91 \r\n16,343,454.86 4,041,008.04 40,838.16 708.13 416,809.36 \r\n \r\n230,854.74 35,559.91 \r\n154,102.86 (595,453.96) (551,161.84) \r\n(41.87) 191,309.36 \r\n \r\n30,218,997.20 \r\n \r\n(534,830.80) \r\n \r\n17,834,544.00 \r\n1,057,181.00 1,004,133.00 \r\n307,501.00 787,823.00 1,890,284.00 204,557.00 2,203,119.00 2,772,229.00 202,428.00 183,433.00 2,241,000.00 \r\n65,596.00 \r\n30,753,828.00 \r\n- \r\n73,383.19 \r\n- \r\n \r\n17,834,544.00 \r\n1,057,181.00 1,004,133.00 \r\n307,501.00 849,948.00 1,890,284.00 204,557.00 2,203,119.00 2,772,229.00 140,303.00 183,433.00 2,241,000.00 \r\n65,596.00 \r\n30,753,828.00 \r\n- \r\n(43,178.87) \r\n(44,975.38) \r\n \r\n18,492,637.57 \r\n981,264.11 1,043,422.79 \r\n339,826.57 997,502.58 1,923,675.89 381,733.66 2,121,154.27 2,110,892.04 188,888.91 211,341.97 1,785,335.61 151,462.41 \r\n30,729,138.38 \r\n(510,141.18) \r\n(190,189.63) \r\n- \r\n \r\n(658,093.57) \r\n75,916.89 (39,289.79) (32,325.57) (147,554.58) (33,391.89) (177,176.66) 81,964.73 661,336.96 (48,585.91) (27,908.97) 455,664.39 (85,866.41) \r\n24,689.62 \r\n(510,141.18) \r\n(147,010.76) \r\n44,975.38 \r\n \r\n$ \r\n \r\n73,383.19 $ \r\n \r\n(88,154.25) $ \r\n \r\n(700,330.81) $ (612,176.56) \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n16165GA324N1099 $ 16165GA324N1099 \r\n \r\n461,986.48 1,191,417.97 \r\n \r\n1,653,404.45 \r\n \r\n10.582 \r\n \r\n16145GA324L1603 \r\n \r\n20,569.00 1,673,973.45 \r\n \r\n84.027 84.173 \r\n \r\nH027A150073 H173A150081 \r\n \r\n84.395 84.048 84.367 84.010 \r\n \r\nS412A130039 V048A150010 S367A150001 S010A150010 \r\n \r\n877,219.62 57,757.17 \r\n934,976.79 \r\n87,500.63 30,690.31 205,051.29 1,575,631.25 1,898,873.48 2,833,850.27 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 4,507,823.72 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Meriwether County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments , or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Residential Treatment Centers Grant Rule 10 Special Education State Grant Teachers Retirement Vocational Education \r\nOffice of the State Treasurer Public School Employees Retirement \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"9\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n690,884.18 \r\n \r\n950,727.00 163,072.00 1,969,071.00 385,154.00 768,625.00 325,475.00 1,647,085.00 1,647,049.00 311,226.00 3,213,690.00 348,315.00 \r\n36,155.00 127,169.00 \r\n(3,759.00) 303,466.00 \r\n90,869.00 53,523.00 \r\n1,796.00 \r\n480,711.00 834,424.00 691,519.00 (39,642.00) (634,760.00) \r\n811,909.00 53,801.00 \r\n670,850.00 \r\n51,550.00 37,982.78 68,818.63 47,995.00 90,000.00 60,593.27 \r\n9,319.00 \r\n78,792.00 \r\n \r\n$ \r\n \r\n16,343,454.86 \r\n \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nSPLOST II \r\n \r\n(i) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2004 Bonds, the maximum amount of debt \r\n \r\nto be paid will not exceed $1,680,200.00 as set forth \r\n \r\nin the School District Resolution. \r\n \r\n$ \r\n \r\n1,680,200.00 $ \r\n \r\n1,680,200.00 $ \r\n \r\n338,360.00 $ \r\n \r\n741,952.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(ii) Paying a portion of the principal of and interest on the Series 2005 Bonds Restructured to Series 2013, the maximum amount of debt to be paid will not exceed \r\n \r\n$5,415,652.25 as set forth in the School District \r\n \r\n5,415,652.25 \r\n \r\n4,879,267.70 \r\n \r\n878,710.60 \r\n \r\n2,252,324.35 \r\n \r\n- \r\n \r\nResolution. \r\n \r\n(iii) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2006 Bonds, the maximum amount of debt \r\n \r\nto be paid will not exceed $3,261,255.25 as set forth \r\n \r\nin the School District Resolution. \r\n \r\n3,261,255.25 \r\n \r\n3,261,255.25 \r\n \r\n654,337.25 \r\n \r\n1,491,171.25 \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(iv) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2007 Bonds, the maximum amount of debt \r\n \r\nto be paid will not exceed $836,425.00 as set forth \r\n \r\nin the School District Resolution. \r\n \r\n836,425.00 \r\n \r\n836,425.00 \r\n \r\n166,493.75 \r\n \r\n502,576.25 \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(v) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2010 Bonds, the maximum amount of debt \r\n \r\nto be paid will not exceed $310,000.00 as set forth \r\n \r\nin the School District Resolution. \r\n \r\n310,000.00 \r\n \r\n310,000.00 \r\n \r\n65,596.00 \r\n \r\n196,788.00 \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n(vi) Paying for system-wide technology upgrades, and \r\n \r\nrenovations and improvements to existing school \r\n \r\nfacilities, the amount of debt to be paid will not \r\n \r\nexceed $306,157.50 as set forth in the School District \r\n \r\nResolution. \r\n \r\n306,157.50 \r\n \r\n306,157.50 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n10/1/2017 \r\n \r\n$ 11,809,690.00 $ 11,273,305.45 $ 2,103,497.60 $ 5,184,811.85 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 2, 2019 \r\n \r\nHonorable Brian P. Kemp, Governor of Georgia Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\nGOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT \r\nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Meriwether County Board of Education (School District) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements and have issued our report thereon dated August 2, 2019. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or \r\n \r\n combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2016-001 and FS 2016-002 to be material weaknesses. \r\nA significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2016-003 and FS 2016-004 to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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. \r\nSchool District's Response to Findings \r\nThe School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 2, 2019 \r\n \r\nHonorable Brian P. Kemp, Governor of Georgia Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nREPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nINDEPENDENT AUDITOR'S REPORT \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited Meriwether County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\n \r\n We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\nBasis for Qualified Opinion on Child Nutrition Cluster (CFDA 10.553, 10.555) \r\nAs described in the accompanying Schedule of Findings and Questioned Costs, the School District did not comply with requirements regarding Child Nutrition Cluster (CFDA 10.553, 10.555) as described in item FA 2016-002 for Equipment and Real Property Management. Compliance with such requirements is necessary, in our opinion, for the School District to comply with requirements applicable to that program. \r\nQualified Opinion on Child Nutrition Cluster (CFDA 10.553, 10.555) \r\nIn our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Child Nutrition Cluster (CFDA 10.553, 10.555) for the year ended June 30, 2016. \r\nUnmodified Opinion on the Other Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its other major federal program identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs for the year ended June 30, 2016. \r\nOther Matters \r\nThe School District's response to the noncompliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we identified certain deficiencies in internal control over compliance that we consider to be a material weakness and a significant deficiency. \r\n \r\n A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item FA 2016-002 to be a material weakness. \r\nA significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item FA 2016-001 to be a significant deficiency. \r\nThe School District's response to the internal control over compliance findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-6991-13-01 Control Category: \r\nInternal Control Impact: Compliance Impact: Finding Status: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has established and implemented policies and procedures to ensure compliance over school activity accounts. This was implemented in fiscal year 2017. \r\n \r\nFS-6991-13-02 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal entries \r\nare in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2- Annual Financial Reporting of the Financial Management for Georgia \r\nLocal Units of Administration. Additionally, financial statements will be prepared in accordance with \r\ngenerally accepted accounting principles. \r\n \r\nFS-6991-13-03 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Accounting Controls (Overall) Expenditures/Liabilities/Disbursements Revenues/Receivables/Receipts General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. \r\n \r\nFS 2014-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal \r\nentries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2- Annual Financial Reporting of the \r\nFinancial Management for Georgia Local Units of Administration. Additionally, financial \r\nstatements will be prepared in accordance with generally accepted accounting principles. \r\n \r\nFS 2014-003 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\nFS 2014-005 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board adopts a balanced budget yearly. Financial reduction measures have been taken for fiscal year 2018 to help ensure that expenditures do not exceed available resources. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-001 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal \r\nentries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2 Annual Financial Reporting of the \r\nFinancial Management for Georgia Local Units of Administration. Additionally, financial \r\nstatements will be prepared in accordance with generally accepted accounting principles. \r\n \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nFinancial reduction measures have been taken for fiscal year 2018 to help ensure that expenditures do not exceed available resources. \r\n \r\nFS 2015-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures Cash and Cash Equivalents Capital Assets General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board will implement procedures to ensure that there are adequate internal controls over cash and cash equivalents, capital assets, and general ledger. \r\n \r\nFS 2015-004 Control Category: Internal Control Impact: Compliance Impact: \r\nFinding Status: \r\n \r\nInadequate Controls Over Employee Compensation Employee Compensation Significant Deficiency None \r\nUnresolved \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-005 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls Over School Activity Accounts Cash and Cash Equivalents Investments Expenditures/Liabilities/Disbursements Accounting Controls (Overall) General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n- 4 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issue: Governmental Activities; General Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weaknesses identified? \r\n \r\nYes \r\n \r\n Significant deficiencies identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs: \r\n \r\n Material weakness identified? \r\n \r\nYes \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nType of auditor's report issued on compliance for major programs: Unmodified for all major programs except for Child Nutrition Cluster (CFDA 10.553, 10.555), which was qualified. \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n10.553, 10.555 84.010 \r\n \r\nName of Federal Program or Cluster \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Employee Compensation General Ledger Capital Assets Material Weakness None FS 2015-003, FS 2015-004, FS 2014-003, FS-6991-13-03 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls at the Central Office. \r\n \r\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. \r\n \r\nCondition: Accounting Controls (Overall) \r\n The School District did not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial application. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations and maintaining the custody of assets. We noted there was no documentation of periodic review of user access rights for the financial accounting system, the student information system and the school food service point of sale system. Inadequate password parameters were also noted for the financial application, as well as the school food service point of sale system. \r\n The School District did not have a Disaster Recovery Policy in place for the year under audit.  The School District did not complete a risk assessment related to Information Technology Risks \r\nfor the year under review. \r\n \r\nCash and Cash Equivalents  The School District did not have adequate internal controls in place to ensure that the bank reconciliation process was separate from the record keeping function.  Nine bank reconciliations were either not performed, not documented or not reviewed.  Timely bank reconciliation approvals were not performed for three of the bank reconciliations that were reviewed.  The School District did not have adequate procedures in place to monitor the cash by bank and fund activity.  One bank account was noted under the School District's federal employer identification number that does not belong to the School District. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCapital Assets  There was no physical inventory performed during the fiscal year under review. The School District was unable to provide a date for when the last physical inventory was performed.  The School District did not properly report the disposition of sixteen assets totaling $796,289.00.  A listing by asset was not able to be provided to support the current year depreciation expense or the allocation of depreciation by function.  Two assets totaling $54,046.00 identified as not being properly capitalized in fiscal year 2015 were still not properly capitalized and added to the fiscal year 2016 capital asset listing. \r\nRevenue/Receivables/Receipts  Federal programs are not properly maintained by the School District. There does not appear to be adequate oversight over the grants resulting in significant variances when compared to the amounts paid by the grantor agencies.  The School District could not provide a detailed listing of account receivable. \r\nExpenditures/Liabilities/Disbursements  Our examination thirty-one expenditures revealed the following deficiencies: o Two invoices were not included in the voucher package. o Thirteen expenditures did not show evidence of proper approval prior to purchase. o Two expenditures did not have evidence to support goods were received from the vendor prior to payment. o Two expenditures totaling $47,398.75 were not properly capitalized. o Five expenditures totaling $76,509.00 were not properly recorded as prepaid assets.  The School District could not provide a detailed listing of accounts payable.  A review of internal control procedures revealed the School District did not ensure debt service payments were properly approved prior to payment. \r\nEmployee Compensation  Our review of twelve employees' salaries revealed the following deficiencies: o Overpayments totaling $8,989.26 were noted for three employees due to salaries not being calculated correctly, and furlough days not being deducted as approved by the Board. o Technology related salaries totaling $196,689.49 could not be traced to an approved pay scale or supporting documentation. o The School District did not have adequate procedures in place to ensure that salaries and benefits payable were properly reviewed and approved. \r\nGeneral Ledger  A review of internal control procedures revealed the School District did not ensure journal entries were properly documented and approved.  Our review of thirty-four journal entries revealed the following deficiencies: o Fifteen journal entries did not have proper approval. o Twenty-seven journal entries were not adequately documented. Twenty of these journal entries were undocumented journal entries that were made to the School District's cash account. o Six journal entries did not have evidence of the preparer. \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n As a result of the inadequate oversight over the federal programs, the School District reported a deficit fund balance of $422,333.06 in the Title I fund and $188,495.16 in the Special Education Fund. \r\nCause: In discussing this deficiency with the School District, they stated that these issues were a result of management's failure to ensure that internal controls were established, implemented, and functioning. \r\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 financial position and results of operations. \r\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. Management should ensure that proper separation of duties exists. In the case when management determines that separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2016-002 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over School Activity Accounts Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others General Ledger Material Weakness None FS 2015-005, FS 2014-001, FS-6991-13-01 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCondition: Cash and Cash Equivalents \r\n The key accounting functions of journal entry preparation and bank reconciliation were not adequately separated. \r\n Bank reconciliations did not contain sufficient evidence to support that the reconciliations were performed and reviewed in a timely manner. \r\n Bank reconciliations were not performed for one scholarship account, which the School District holds in a custodial capacity. \r\nRevenue/Receivables/Receipts  The key accounting functions of receipt preparation, record keeping and bank reconciliation were not adequately separated.  Our examination of twelve receipts revealed eight receipts did not have any supporting documentation. \r\nExpenditures/Liabilities/Disbursements  The key accounting functions of check preparation, record keeping and bank reconciliation were not adequately separated.  Our examination of twelve expenditures revealed the following discrepancies: o Eleven purchase orders were signed but not dated by the principal. o One expenditure had no supporting documentation. o Five expenditures did not contain sufficient evidence of the proper level of approval being obtained prior to the purchase order being executed. \r\nFunds Held for Others  Six agency funds had deficit fund balances totaling $6,709.50. \r\nGeneral Ledger  The School District did not record the current year financial activity related to the school activity accounts. As a result, the current year revenues and the current year expenditures for the governmental funds were understated by $466,521.11 and $472,012.95, respectively. Agency fund activity was understated by $6,248.12. \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. \r\nEffect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to errors or fraud and not be detected in a timely manner. \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nRecommendation: The School District should establish control procedures to ensure that the key accounting functions of receipt preparation, check preparation, bank reconciliation and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. In addition, the School District should implement procedures to ensure that receipts are adequately documented and recorded in the financial records. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Significant Deficiency None FS 2015-001, FS 2014-002, FS-6991-13-02 \r\n \r\nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. \r\n \r\nCriteria: Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\nGASB Statement No. 34, Basic Financial Statements  Management's Discussion and Analysis- for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental fund balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\nChapter II 2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition:  Deferred inflows and deferred outflows were not booked correctly on the government wide statements. A misclassification in the amount of $264,568.00 was noted between deferred inflows and deferred outflows related to defined benefit pension plans. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\n Net position on the government-wide statements was misclassified by $55,717.56 between restricted and unrestricted. This balance represents fuel inventories that the School District was unable to document. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n Fund balance on the governmental fund statements was misclassified by $78,768.48 between assigned and unassigned. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n Current year activity for the agency funds was not booked on the financial statements. An adjustment to the financial statements in the amount of $6,248.12 was proposed by the auditors and accepted by the School District. \r\n Numerous errors were noted with the cash note reported by the School District, including carrying amount, bank balance, FDIC insured balances, and collateral balances. Adjustments to the notes to the financial statements were proposed by the auditors and accepted by the School District. \r\n Other immaterial audit adjustments and reclassifications were proposed by the auditors and accepted by the client to properly present the School District's financial statements, note disclosures, and supplemental information. \r\n \r\nCause: In discussing the deficiency with the School District, it appears the errors occurred due to oversights during the financial statement preparation and review process. \r\n \r\nEffect or Potential Effect: Significant misstatements and misclassifications were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. \r\n \r\nRecommendation: The School District should strengthen their internal controls and preparation and review procedures over financial reporting to ensure that the financial statements, including disclosures and schedules, presented for audit are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of GAAP, the applicable GASB pronouncements, and knowledge of the School District's activities and operations. The School District should consider implementing the use of a review checklist to assist in the review process over the financial statements. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2016-004 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nBudget Deficit, Deficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance FS 2015-002, FS 2014-005 \r\n \r\nDescription: At June 30, 2016, the School District reported a deficit unassigned fund balance in the general fund. In addition, the School District did not adopt a balanced general fund budget for fiscal year 2016. Furthermore, the School District failed to comply with the Official Code of Georgia Annotated 20-2-67 as result of their deficit fund balance at June 30, 2015. \r\n- 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCriteria: Chapter II - 8 Governmental Fund Deficits of the Financial Management for Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \r\nChapter IV - 2, Preparing Operating Budgets of the Financial Management for Georgia Local Units of Administration states in part: \"The budget must be balanced for all budgeted funds. Total anticipated revenues should equal total estimated expenditures. In the event anticipated revenues are insufficient to fund anticipated essential expenditures, a portion of the unassigned fund balance from previous years must be used to fund the shortfall. In the event there is insufficient unassigned fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unassigned fund balance.\" \r\nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Georgia Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \r\nThe School District is required to comply with the Official Code of Georgia Annotated 20-2-67(b) which states: \"The superintendent shall submit to the Department of Education a response to the findings and a corrective action plan as defined by rules and regulations adopted by the State Board of Education designed to correct the financial irregularities or budget deficits for the school or school system. From the time such irregularity or budget deficit is discovered until the time it is eliminated, the local school superintendent shall present to each member of the local board of education for his or her review and written acknowledgment a monthly report containing all anticipated expenditures by budget function for such school or school system during the current month. The report shall be presented to local board members on or before the tenth business day of each month. Each monthly report shall be signed by each member of that local school board and recorded and retained in the minutes of the meeting of the local board of education.\" \r\nCondition: The School District reported a deficit unassigned fund balance of $700,330.81 in the general fund. In addition, the School District's final budget for the general fund was not balanced. Total anticipated revenues and beginning fund balance did not exceed or equal total estimated expenditures. Furthermore, the School District did not comply with the monthly reporting requirements as set forth in the Official Code of Georgia Annotated 20-2-67. \r\nCause: In discussing this deficiency with the School District, management indicated that the economic downturn depleted their fund balance. In addition, they did not use effective budgeting techniques to ensure the budget is properly balanced. The School District was also unaware of the reporting requirements of the Official Code of Georgia Annotated 20-2-67. \r\n- 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEffect or Potential Effect: The unassigned fund balance of the general fund was not sufficient to meet the fund's obligations at June 30, 2016. Ineffective budgeting techniques in the final budget resulted in a budget deficit of $88,154,25 and noncompliance with Chapter IV  2 of the Financial Management for Georgia Local Units of Administration. This also resulted in the School District's noncompliance with the financial reporting requirements of the Official Code of Georgia Annotated 20-2-67. \r\n \r\nRecommendation: The School District should establish policies and procedures to enforce the successful implementation of their deficit reduction plan to ensure that expenditures do not exceed availability of resources so that in future periods the School District does not report a deficit fund balance. In addition, appropriate procedures should be implemented to ensure that the adopted budget for each budgeted funds is balanced as required. The School District should also establish policies and procedures to ensure that the financial reporting requirements of the Official Code of Georgia Annotated 20-2-67 are being met. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFA 2016-001 Compliance Requirement: \r\nInternal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls Procedures over the Expenditure Process Activities Allowed or Unallowed Allowable Costs/Cost Principles Significant Deficiency Nonmaterial Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nFederal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nU.S. Department of Education Georgia Department of Education Title I Grants to Local Educational Agencies (CFDA 84.010) S010A150010 None Identified \r\n \r\nDescription: A review of expenditures charged to the Child Nutrition Cluster and the Title I Grants to Education Agencies program revealed that internal control procedures were not in place to ensure that expenditures were reviewed appropriately for allowability. \r\n \r\nCriteria: 2 CFR 200.403 states in part that \"costs must meet the following general criteria in order to be allowable under Federal awards: (a) Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles... (c) Be consistent with policies and procedures that apply uniformly to both federally financed and other activities of the non-Federal entity... (g) Be adequately documented...\" \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nIn addition, 2 CFR 200.303 states in part that \"the non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonFederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award... (c) Evaluate and monitor the non-Federal entity's compliance with statutes, regulations and the terms and conditions of Federal awards...\" \r\n \r\nCondition: A random sample of 25 Child Nutrition Cluster and 31 Title I Grants to Local Education Agencies program expenditure voucher packages was selected for testing using a non-statistical sampling approach. These items were reviewed to determine if expenditures were reviewed and approved appropriately. The following deficiencies were noted: \r\n It was noted that 18 Child Nutrition Cluster expenditures were not properly approved.  it was noted that 10 Title I Grants to Local Educational Agencies program expenditures were \r\nnot properly approved. \r\n \r\nCause: In discussing this deficiency with the School District, they stated these issues were a result of turnover within the Central Office. \r\n \r\nEffect or Potential Effect: Failure to ensure that expenditures are reviewed appropriately could result in the expenditure of Federal funds for unauthorized purposes and the return of grant funds associated with these unallowable expenditures. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. \r\n \r\nRecommendation: Management should evaluate and improve the School District's policies and procedures for reviewing Federal programs expenditures to ensure that these funds are expended for allowable purposes. In addition, management should develop and implement a monitoring process to ensure that these procedures are operating appropriately. \r\n \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFA 2016-002 Compliance Requirement: Internal Control Impact: Compliance Impact: Federal Awarding Agency: Pass-Through Entity: CFDA Number and Title: Federal Award Number: Questioned Costs: \r\n \r\nImprove Controls over Equipment Equipment and Real Property Management Material Weakness Material Noncompliance U.S. Department of Agriculture Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) 16165GA324N1099 None Identified \r\n \r\nDescription: The policies and procedures of the School District did not provide adequate internal controls over equipment and real property management as it relates to the Child Nutrition Cluster. \r\n \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nCriteria: 2 CFR 200.313(d)(1) states, \"Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property.\" In addition, 2 CFR 200.313(d)(2) states, \"A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.\" \r\nCondition: The School District did not maintain an equipment listing for the Child Nutrition Cluster. In addition, a physical inventory of equipment was not performed in the last two years. Cause: In discussing this deficiency with the School District, they indicated that the Child Nutrition staff had not effectively implemented federal regulations as they pertain to equipment and real property management. \r\nEffect or Potential Effect: Failure to maintain a complete and accurate equipment listing and reconcile results of the physical inventory performed to the property records exposes the School District to unnecessary risk of error and misuse of equipment and/or Federal funds. Additionally, the School District is not in compliance with the Uniform Guidance and Georgia Department of Education guidance. \r\nRecommendation: The School District should develop and maintain an equipment listing that reflects all required information, including a description, an identifying number, the source of funding, the title holder, the acquisition date, the cost, the percentage of federal participation in the project costs, the location, the use and condition, and any ultimate disposal data for each piece of equipment. In addition, management should implement controls to ensure that a physical inventory of equipment is performed at least once every two years. \r\nViews of Responsible Officials: We concur with this finding. \r\n- 11 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS \r\n \r\n     "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2015-belec-p-btext","title":"Meriwether County Board of Education, Greenville, 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":["2018-02-27"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, 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-bm5-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n3 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n4 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n5 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n6 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n7 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n31 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n32 \r\n \r\n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 36 \r\n \r\n5 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n37 \r\n \r\n6 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\n38 \r\n \r\nGENERAL FUND \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\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 \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n39 40 41 43 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 27, 2018 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education, as of and for the year ended June 30, 2015, and the related notes to the financial statements (Exhibits A through H), which collectively comprise the Board's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether 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. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2015, the Meriwether County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions  an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB Statement No. 68. The School District restated beginning Net Position for the cumulative effect of these accounting changes. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages 31 through 37 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Meriwether 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. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 27, 2018, on our consideration of the Meriwether County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Meriwether County Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2015 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nDeferred Charge on Refunding of Debt Related to Defined Benefit Pension Plans \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year Net Pension Liability \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n2,416,455.13 \r\n \r\n1,577,644.96 1,883,801.20 \r\n495,511.39 67,267.15 90,239.42 \r\n150,791.37 14,364.40 \r\n531,808.00 36,590,142.11 \r\n \r\n43,818,025.13 \r\n \r\n293,863.00 2,206,478.73 \r\n2,500,341.73 \r\n \r\n438,941.62 3,354,546.56 \r\n706,797.04 143,620.55 \r\n1,675,604.78 14,572,247.90 19,828,986.00 \r\n40,720,744.45 \r\n \r\n8,055,394.00 \r\n \r\n21,238,934.14 \r\n191,188.84 1,361,667.40 -25,249,561.97 \r\n \r\n$ \r\n \r\n-2,457,771.59 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2015 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 19,779,023.09 $ 215,401.34 $ 13,736,264.11 $ -5,827,357.64 \r\n \r\n1,122,246.98 916,743.94 298,906.28 800,953.30 \r\n1,875,687.97 193,940.66 \r\n2,269,733.86 2,577,641.86 \r\n132,811.00 184,136.63 \r\n \r\n188,592.41 626,469.12 317,859.43 624,473.09 848,801.35 \r\n685.41 729,828.43 854,013.39 \r\n270.40 93,483.19 \r\n \r\n-933,654.57 -290,274.82 \r\n18,953.15 -176,480.21 -1,026,886.62 -193,255.25 -1,539,905.43 -1,723,628.47 -132,540.60 \r\n-90,653.44 \r\n \r\n288,814.66 1,837,213.20 \r\n611,165.65 \r\n \r\n156,942.25 33,238.52 \r\n \r\n1,957,244.96 \r\n \r\n-131,872.41 153,270.28 -611,165.65 \r\n \r\nTotal Governmental Activities \r\n \r\n$ 32,889,019.08 $ 405,582.11 $ 19,977,985.29 \r\n \r\n-12,505,451.68 \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n9,470,460.00 344,465.64 66,295.88 \r\n1,626,901.86 94,991.22 \r\n956,031.00 2,140.45 \r\n411,212.83 \r\n \r\nTotal General Revenues \r\n \r\n12,972,498.88 \r\n \r\nChange in Net Position \r\n \r\n467,047.20 \r\n \r\nNet Position - Beginning of Year, Restated \r\n \r\n-2,924,818.79 \r\n \r\nNet Position - End of Year \r\n \r\n$ -2,457,771.59 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUND JUNE 30, 2015 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Prepaid Items \r\n \r\nGENERAL FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,110,395.73 $ 1,306,059.40 $ 2,416,455.13 \r\n \r\n1,378,416.41 1,883,801.20 \r\n495,511.39 67,267.15 90,239.42 \r\n150,791.37 14,364.40 \r\n \r\n199,228.55 \r\n \r\n1,577,644.96 1,883,801.20 \r\n495,511.39 67,267.15 90,239.42 \r\n150,791.37 14,364.40 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Federal Grants Unavailable Revenue - Property Taxes \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned (Deficit) \r\nTotal Fund Balances \r\n \r\n$ 5,190,787.07 $ 1,505,287.95 $ 6,696,075.02 \r\n \r\n$ \r\n \r\n438,941.62 \r\n \r\n3,354,546.56 \r\n \r\n706,797.04 \r\n \r\n4,500,285.22 \r\n \r\n$ \r\n \r\n438,941.62 \r\n \r\n3,354,546.56 \r\n \r\n706,797.04 \r\n \r\n4,500,285.22 \r\n \r\n21,620.68 859,070.80 $ \r\n880,691.48 \r\n \r\n45,884.52 45,884.52 \r\n \r\n21,620.68 904,955.32 \r\n926,576.00 \r\n \r\n165,155.77 96,115.03 \r\n-451,460.43 \r\n-190,189.63 \r\n \r\n1,459,403.43 1,459,403.43 \r\n \r\n165,155.77 1,555,518.46 \r\n-451,460.43 \r\n1,269,213.80 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 5,190,787.07 $ 1,505,287.95 $ 6,696,075.02 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2015 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand Land Improvements Buildings and Improvements Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nSome liabilities, including net pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet Pension Liability \r\nDeferred Outflows and Inflows of Resources related to pensions are applicable to future periods and, therefore, are not reported in the governmental funds. \r\nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \r\nProperty Taxes \r\nGeorgia Department of Education grants that are not available to pay current period expenditures are deferred in the funds. \r\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: \r\nBonds Payable Accrued Interest Payable Capital Leases Payable Compensated Absences Payable Deferred Amount on Refunding Intergovernmental Contract \r\nTotal Long-Term Liabilities \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 1,269,213.80 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,837.92 \r\n \r\n51,822,279.68 \r\n \r\n6,424,700.56 \r\n \r\n-25,981,676.05 \r\n \r\n37,121,950.11 \r\n \r\n-19,828,986.00 -5,848,915.27 \r\n \r\n904,955.32 21,620.68 \r\n \r\n$ -4,905,000.00 -143,620.55 -515,878.97 -70,973.71 293,863.00 \r\n-10,756,000.00 \r\n \r\n-16,097,610.23 \r\n \r\n$ -2,457,771.59 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE \r\nGOVERNMENTAL FUNDS JUNE 30, 2015 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nCapital Leases \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDEBT \r\nSERVICE FUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n9,391,952.85 $ \r\n \r\n94,991.22 \r\n \r\n16,290,905.38 \r\n \r\n5,029,850.72 \r\n \r\n405,582.11 \r\n \r\n941.62 \r\n \r\n411,212.83 \r\n \r\n31,625,436.73 \r\n \r\n346,725.62 $ 1,626,901.86 \r\n1,198.83 1,974,826.31 \r\n \r\n9,738,678.47 1,721,893.08 16,290,905.38 5,029,850.72 \r\n405,582.11 2,140.45 \r\n411,212.83 \r\n33,600,263.04 \r\n \r\n19,064,050.23 \r\n1,165,579.24 939,264.62 310,816.26 793,787.01 \r\n1,969,369.40 203,072.34 \r\n2,272,345.07 2,958,160.93 \r\n136,817.08 185,327.63 288,814.66 1,903,309.52 \r\n135,321.03 65,596.00 \r\n32,391,631.02 \r\n-766,194.29 \r\n651,200.00 \r\n-114,994.29 \r\n-75,195.34 \r\n \r\n1,499,000.00 530,011.10 \r\n2,029,011.10 \r\n-54,184.79 \r\n \r\n19,064,050.23 \r\n1,165,579.24 939,264.62 310,816.26 793,787.01 \r\n1,969,369.40 203,072.34 \r\n2,272,345.07 2,958,160.93 \r\n136,817.08 185,327.63 288,814.66 1,903,309.52 \r\n1,634,321.03 595,607.10 \r\n34,420,642.12 \r\n-820,379.08 \r\n \r\n-54,184.79 1,513,588.22 \r\n \r\n651,200.00 -169,179.08 1,438,392.88 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n-190,189.63 $ \r\n \r\n1,459,403.43 $ \r\n \r\n1,269,213.80 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2015 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nFederal Revenue reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nBond issuance costs, deferred gains on refunding bonds and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Position and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Deferred Loss on Refunding of Bonds \r\nSome of the Capital Assets acquired this year were financed with capital leases. In Governmental Funds, a capital lease arrangement is considered a source of financing, but in the Statement of Net Position, the lease obligation is reported as a Long-Term Liability. \r\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: \r\nBond Principal Retirements Capital Lease Payments Intergovernmental Contract Repayments \r\nTotal Long-Term Debt Repayments \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. The net of these adjustments are: \r\nAccrued Interest Compensated Absences Pension Expense \r\nTotal Additional Expenditures \r\n \r\n$ -169,179.08 \r\n \r\n$ \r\n \r\n715,884.32 \r\n \r\n-1,936,741.35 \r\n \r\n-1,220,857.03 \r\n \r\n-5,800.00 \r\n \r\n142,543.05 \r\n \r\n-332,583.81 \r\n \r\n-26,121.00 -651,200.00 \r\n \r\n$ \r\n \r\n305,000.00 \r\n \r\n135,321.03 \r\n \r\n1,194,000.00 \r\n \r\n1,634,321.03 \r\n \r\n$ \r\n \r\n10,562.45 \r\n \r\n-6,701.14 \r\n \r\n1,092,062.73 \r\n \r\n1,095,924.04 \r\n \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n467,047.20 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nMERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2015 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n51,911.86 \r\n \r\n10,304.01 \r\n \r\n$ \r\n \r\n62,215.87 \r\n \r\n$ \r\n \r\n62,215.87 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether 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. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Meriwether County Board of Education. \r\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. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities.   Direct expenses are those that are specifically associated with a program or function and, \r\ntherefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs.   Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\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. \r\nThe School District reports the following major governmental funds:   General Fund is the School District's primary operating fund. It accounts and reports for all \r\nfinancial resources not accounted for and reported in another fund.   Debt Service Fund accounts for and reports financial resources including Education Special \r\nPurpose Option Sales Tax (ESPLOST) that are restricted, committed or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest.  The School District reports the following fiduciary fund type:   Agency funds account for assets held by the School District as an agent for various funds, clubs, governments or individuals.  \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nBASIS OF ACCOUNTING \r\n The 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.  The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.  Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within 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, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources.  The School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, 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.  \r\nRESTATEMENT OF PRIOR YEAR NET POSITION \r\n For 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 $26,769,964.00. This change is in accordance with generally accepted accounting procedures. \r\n \r\nNet Position, July 1, 2014, as previously reported \r\nPrior Period adjustment - Implementation of GASB No. 68: Net Pension Liability (measurement date) \r\nTRS ERS Deferred Outflows - School District's contribution made during fiscal year 2014 TRS ERS \r\n \r\nNet Position, July 1, 2014, as restated \r\n \r\n \r\n \r\n \r\n \r\n- 10 - \r\n \r\n$ 23,845,145.21 \r\n \r\n$ $-28,493,861.00 -244,816.00 \r\n \r\n-28,738,677.00 \r\n \r\n$ 1,945,914.00 22,799.00 \r\n \r\n1,968,713.00 \r\n \r\n$ -2,924,818.79 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\n In 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.  In 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.  In 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. \r\nCASH AND CASH EQUIVALENTS \r\n Composition 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.  \r\nINVESTMENTS \r\n Composition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:  \r\n(1) Obligations issued by the State of Georgia or by other states,  \r\n(2) Obligations issued by the United States government,  \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\n(4) Obligations of any corporation of the United States government,  \r\n(5) Prime banker's acceptances,  \r\n(6) The local government investment pool (Georgia Fund 1) administered by the State of \r\nGeorgia, Office of State Treasurer,  \r\n(7) Repurchase agreements, and  \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit \r\nrisks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks.  \r\nRECEIVABLES \r\n Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables \r\ndisclosed from information available. Receivables are recorded when either the asset or revenue \r\nrecognition criteria has been met. Receivables recorded on the basic financial statements do not \r\ninclude any amounts which would necessitate the need for an allowance for uncollectible receivables.  \r\nPROPERTY TAXES \r\n The Meriwether County Board of Commissioners adopted the property tax levy for the 2014 tax digest \r\nyear (calendar year) on September 9, 2014 (levy date) based on property values as of January 1, 2014. \r\nTaxes were due on December 20, 2014 (lien date). Taxes collected within the current fiscal year or \r\nwithin 60 days after year-end on the 2014 tax digest are reported as revenue in the governmental \r\nfunds for fiscal year 2015. The Meriwether County Tax Commissioner bills and collects the property \r\ntaxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits \r\nthe balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, \r\nduring the fiscal year ended June 30, 2015, for maintenance and operations amounted to \r\n$8,838,232.25 and for school bonds amounted to $346,725.62.  Tax millage rates levied for the 2014 tax year (calendar year) for the Meriwether County Board of \r\nEducation were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.551 mills 0.679 mills \r\n \r\n19.230 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $487,424.72 \r\nduring the fiscal year ended June 30, 2015.  \r\nSALES TAXES \r\n Education Special Purpose Local Option Sales Tax, at the fund reporting level, during the year \r\namounted to $1,626,901.86 and is to be used for capital outlay for educational purposes or debt \r\nservice. This sales tax was authorized by local referendum and the sales tax must be re-authorized at \r\nleast every five years.  \r\n \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINVENTORIES \r\n \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation \r\nof meals are reported at their Federally assigned value and purchased foods inventories are reported \r\n \r\nat 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 \r\n \r\nexpenses/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 \r\n \r\nused.  \r\nPREPAID ITEMS \r\n Payments made to vendors for services that will benefit periods subsequent to June 30, 2015 are \r\n \r\nrecorded as prepaid items.  \r\nCAPITAL ASSETS \r\n Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund \r\nfinancial statements at the time of purchase (including ancillary charges). On the District-wide financial \r\nstatements, all purchased capital assets are valued at cost where historical records are available and \r\n \r\nat 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 \r\n \r\ndate 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 \r\n \r\nnot 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 \r\n \r\nin circumstances affecting a capital asset that may indicate impairment were known to the School \r\nDistrict.  Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide \r\nstatements are as follows: \r\n \r\nCapitalization \r\n \r\nEstimated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ 500,000.00 \r\n \r\nN/A 20 years 7 to 40 years 5 to 15 years Individually Determined \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over \r\nestimated useful lives, with the exception of intangible assets which are amortized.  Amortization of intangible assets such as water, timber, and mineral rights, easements, patents, \r\ntrademarks, copyrights and internally generated software is computed using the straight-line method \r\nover the estimated useful lives of the assets, generally 10 to 20 years.  \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n In addition to assets, the statement of net position and/or the balance sheet will report a separate \r\nsection for deferred outflows of resources. This separate financial statement element represents a \r\nconsumption of resources that applies to a future period(s) and therefore will not be recognized as an \r\noutflow of resources (expense/expenditure) until then. Under the full accrual method of accounting, \r\nthe School District has reported deferred outflow of resources related to a defined benefit pension \r\n \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nplan, as discussed in Note 15 - Retirement Plans. Additionally, the School District has reported the deferred charge on refunded debt resulting from the difference in the carrying value of the refunded debt and its reacquisition price is deferred and amortized over the shorter of the life of the refunded or refunding debt.  In 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 15 - Retirement Plans. This item is reported only in the District-wide Statement of Net Position. Additionally, the School District has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reporting only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and grants and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available.  \r\nCOMPENSATED ABSENCES \r\n Members of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements.  Vacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days.  \r\nGENERAL OBLIGATION BONDS \r\n The 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.  In 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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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.  \r\nPENSIONS \r\n For purposes of measuring the Net Pension Liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the 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 aforementioned retirement systems 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 15  Retirement Plans.  \r\n \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNET POSITION \r\n The School District's net position in the District-wide Statements are classified as follows:  Net Investment in Capital Assets - This represents the School District's total investment in capital \r\n \r\nassets, net of outstanding debt obligations related to those capital assets. To the extent debt has been \r\n \r\nincurred but not yet expended for capital assets, such amounts are not included as a component of \r\nnet investment in capital assets.  Restricted Net Position - This represents resources for which the School District is legally or \r\ncontractually obligated to spend resources for continuation of Federal programs and debt service in \r\n \r\naccordance with restrictions imposed by external third parties.  Unrestricted Net Position - Unrestricted net position is the amount of the assets, deferred outflows of \r\n \r\nresources, liabilities and deferred inflows of resources that are not included in the determination of \r\n \r\nNet Investment of Capital Assets and Restricted Net Position. Included in the net deficit reported is \r\n \r\nthe School District's Net Pension Liability of $19,828,986.00 which is required for financial reporting.  \r\nFUND BALANCES \r\n The School District's fund balances are classified as follows:  Nonspendable  Amounts that cannot be spent either because they are in a nonspendable form or \r\n \r\nbecause they are legally or contractually required to be maintained intact.  Restricted  Constraints placed on the use of resources are either (1) externally imposed conditions \r\n \r\nby creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by \r\n \r\nlaw through constitutional provisions or enabling legislation.  Committed  Amounts that can be used only for specific purposes pursuant to constraints imposed by \r\n \r\nformal action of the Board of Education. The Board of Education is the School District's highest level \r\n \r\nof decision-making authority, and the formal action that is required to be taken to establish, modify, \r\n \r\nor rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance \r\n \r\nalso should incorporate contractual obligations to the extent that existing resources in the fund have \r\n \r\nbeen specifically committed for use in satisfying those contractual requirements.  Assigned  Amounts that are constrained by the School District's intent to be used for specific \r\n \r\npurposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board \r\n \r\nof Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign \r\n \r\namounts to be used for specific purposes.  Unassigned  The residual classification for the General Fund. This classification represents fund \r\nbalances that has not been assigned to other funds and that has not been restricted, committed, or \r\n \r\nassigned to specific purposes within the General Fund.  Fund Balances of the Governmental Funds at June 30, 2015 are as follows:  \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ \r\n \r\n150,791.37 \r\n \r\nPrepaid Assets \r\n \r\n14,364.40 $ \r\n \r\n165,155.77 \r\n \r\nRestricted \r\n \r\nContinuation of Federal Programs \r\n \r\n$ \r\n \r\n96,115.03 \r\n \r\nDebt Service \r\n \r\n1,459,403.43 \r\n \r\n1,555,518.46 \r\n \r\nUnassigned \r\n \r\n-451,460.43 \r\n \r\nFund Balance, June 30, 2014 \r\n \r\n$ \r\n \r\n1,269,213.80 \r\n \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned \r\n \r\nfund balance in the general fund at fiscal year-end in compliance with Official code of Georgia \r\n \r\nAnnotated Section 20-2-167(a) 5. If the unassigned fund balance at fiscal year-end falls below the \r\n \r\ngoal, the School District shall develop a restoration plan to achieve and maintain the minimum fund \r\n \r\nbalance.  When multiple categories of fund balance are available for expenditure, the School District will start \r\n \r\nwith the most restricted category and spend those funds first before moving down to the next category \r\n \r\nwith available funds. \r\n \r\nDEFICIT FUND BALANCES \r\n The fund reporting a deficit fund balance at June 30, 2015, is as follows:  \r\n \r\nFund Type/Fund Name \r\n \r\nDeficit Balance \r\n \r\nGovernmental Funds General Fund Unassigned \r\n \r\n$ -451,460.43 \r\n \r\nThe Board intends to resolve the deficit in the General Fund by more closely monitoring expenditures in subsequent periods. \r\nUSE OF ESTIMATES \r\n The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.  \r\nNOTE 3: BUDGETARY DATA \r\n The budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America.  The budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of 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.  See Schedule 6  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review.  \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\n \r\n \r\nCOLLATERALIZATION OF DEPOSITS \r\n Official Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on \r\n \r\ndeposit at any time in any depository for a time longer than ten days a sum of money which has not \r\n \r\nbeen secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face \r\n \r\nvalue of such surety bond and the market value of securities pledged shall be equal to not less \r\n \r\nthan 110 percent of the public funds being secured after the deduction of the amount of deposit \r\n \r\ninsurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the \r\n \r\nmarket value of the securities pledged to secure a pool of public funds shall be not less than 110 \r\n \r\npercent of the daily pool balance.  Acceptable security for deposits consists of any one of or any combination of the following:  \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business \r\n \r\n (2) \r\n (3) \r\n \r\nwithin the State of Georgia, Insurance on accounts provided by the Federal Deposit Insurance Corporation, Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United \r\n \r\nStates or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or \r\nmunicipalities of the State of Georgia,  \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the \r\nstatute that created the authority authorized the use of the bonds for this purpose,  \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the \r\nState of Georgia, and  \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary \r\ncorporation of the United States government, which are fully guaranteed by the United States \r\ngovernment both as to principal and interest or debt obligations issued by or securities \r\nguaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal \r\nIntermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the \r\nFederal Home Loan Mortgage Association, and the Federal National Mortgage Association.  \r\nCATEGORIZATION OF DEPOSITS \r\n Custodial credit risk is the risk that in the event of a bank failure, the School District's deposits may \r\nnot be returned to it. The School District does not have a deposit policy for custodial credit risk. At \r\nJune 30, 2015, the School District had deposits with a carrying amount of $2,478,671.00, which \r\nincludes $10,304.01 in Certificates of Deposit that are reported as Investments, and a bank balance \r\nof $2,552,133.06. The bank balances insured by Federal depository insurance were $651,870.86, \r\nand the bank balances collateralized with securities held by the pledging institution or by the pledging \r\nfinancial institution's trust department or agent in the School District's name were $948,351.50.  The amounts exposed to custodial credit risk are classified into three categories as follows:  \r\nCategory 1 - Uncollateralized, \r\nCategory 2 - Cash collateralized with securities held by the pledging financial institution, \r\nor \r\nCategory 3 - Cash collateralized with securities held by the pledging financial institution's \r\ntrust department or agent but not in the School District's name.  \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's deposits by custodial credit risk category at June 30, 2015, are as follows:  \r\n \r\nCustodial Credit \r\n \r\nRisk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n951,910.70 \r\n \r\nTotal \r\n \r\n$ 951,910.70 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\n The School District reported cash equivalents of $951,910.70 in Georgia Fund 1, a local government \r\ninvestment pool, which is included in the cash balances above. Georgia Fund 1 is not registered \r\nwith the SEC as an investment company and does not operate in a manner consistent with the SEC's \r\nRule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share \r\nprice, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by \r\nStandard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The \r\nweighted average maturity for Georgia Fund 1 on June 30, 2015, was 56 days.  Georgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to \r\nbe categorized since the School District did not own any specific identifiable securities in the pool. The \r\ninvestment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does \r\nnot provide for investment in derivatives or similar investments. Additional information on the Georgia \r\nFund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be \r\nobtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html.  \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\n The School District receives food commodities from the United States Department of Agriculture \r\n(USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally \r\nassigned value. See Note 2  Inventories.  \r\nNOTE 6: CAPITAL ASSETS \r\n The following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated \r\nLand \r\n \r\nBalances July 1, 2014 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2015 \r\n \r\n$ \r\n \r\n531,808.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n531,808.00 \r\n \r\nCapital Assets Being Depreciated Building and Building Improvements Equipment Land Improvements \r\n \r\n51,828,079.68 5,717,805.24 4,324,837.92 \r\n \r\n715,884.32 \r\n \r\n5,800.00 8,989.00 \r\n \r\n51,822,279.68 6,424,700.56 4,324,837.92 \r\n \r\nLess Accumulated Depreciation for: Building and Building Improvements Equipment Land Improvements \r\n \r\n17,154,834.36 4,437,237.45 2,461,851.89 \r\n \r\n1,326,923.42 393,576.03 216,241.90 \r\n \r\n8,989.00 \r\n \r\n18,481,757.78 4,821,824.48 2,678,093.79 \r\n \r\nTotal Capital Assets Being Depreciated, Net 37,816,799.14 (1,220,857.03) \r\n \r\n5,800.00 \r\n \r\n36,590,142.11 \r\n \r\nGovernmental Activity Capital Assets - Net $ 38,348,607.14 $ (1,220,857.03) $ 5,800.00 $ 37,121,950.11 \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapital assets being acquired under an intergovernmental agreement as of June 30, 2015, are as \r\n \r\nfollows:  \r\n \r\nIntergovernmental Agreement: \r\n \r\nBuildings and Improvements \r\n \r\n$ 8,648,096.00 \r\n \r\nLand \r\n \r\n90,010.00 \r\n \r\nLess: Accumulated Depreciation \r\n \r\n3,356,572.56 \r\n \r\n$ 5,381,533.44 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2015, are as follows: \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\nGovernmental Funds \r\n \r\n$ \r\n \r\n651,200.00 \r\n \r\n-21,706.64 \r\n \r\n$ \r\n \r\n629,493.36 \r\n \r\nCurrent year depreciation expense by function is as follows:  \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nGeneral Administration \r\n \r\n$ \r\n \r\n27,413.25 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n26,854.77 \r\n \r\nStudent Transportation Services \r\n \r\n306,962.21 \r\n \r\nFood Services \r\n \r\n1,561,111.52 \r\n361,230.23 14,399.60 \r\n \r\n$ \r\n \r\n1,936,741.35 \r\n \r\nNOTE 7: RISK MANAGEMENT \r\n The 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.  The School District has obtained commercial insurance for risk of loss associated with motor vehicles. 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. \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, job related illness or injuries to employees and acts of God. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. 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.  The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and the related liability is reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.  \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2014 $ 2015 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n12,930.00 $ 5,588.00 $ \r\n \r\n12,930.00 $ 5,588.00 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation \r\n \r\nFund, a public entity risk pool organized on July 1, 1992, to develop, implement and administer a \r\n \r\nprogram of workers' compensation self-insurance for its member organizations. The School District \r\n \r\npays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess \r\n \r\ninsurance coverage is provided through an agreement by the Fund with the Safety National Casualty \r\n \r\nCorporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand \r\n \r\nloss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided \r\n \r\nby Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund \r\n \r\nin excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550 thousand \r\n \r\nper occurrence retention, the Fund also retains an additional $150 thousand per year corridor \r\n \r\nretention.  The School District has purchased a surety bond to provide additional insurance coverage as follows:  \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 8: SHORT-TERM DEBT \r\n The School District issues tax anticipation notes in advance of property tax collections, depositing the \r\n \r\nproceeds in its General Fund. This short-term debt is to provide cash for operations until property tax \r\n \r\ncollections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of \r\n \r\nthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross \r\n \r\nincome from taxes collected in the preceding year and requires all short-term debt to be repaid no \r\n \r\nlater than December 31 of the calendar year in which the debt was incurred.  Short-term debt activity for the fiscal year is as follows:  \r\n \r\nBeginning \r\n \r\nEnding \r\n \r\nBalance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nBalance \r\n \r\nTax Anticipation Notes \r\n \r\n$ \r\n \r\n0.00 $ 3,000,000.00 $ 3,000,000.00 $ \r\n \r\n0.00 \r\n \r\n \r\nNOTE 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES \r\n The Meriwether County Board of Education entered into an agreement dated February 10, 2015, with Santander Bank for the Lease-Purchase of 8 buses. Under the terms of the agreement, the School District will make annual payments through March 25, 2019. 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.  \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCOMPENSATED ABSENCES \r\n Compensated absences represent obligations of the School District relating to employees' rights to \r\n \r\nreceive compensation for future absences based upon service already rendered. This obligation \r\n \r\nrelates only to vesting accumulating leave in which payment is probable and can be reasonably \r\n \r\nestimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School \r\n \r\nDistrict uses the vesting method to compute compensated absences.  \r\n \r\nINTERGOVERNMENTAL CONTRACT \r\n The Meriwether County Board of Education entered into a contract with the Meriwether County Public \r\n \r\nFacilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for \r\n \r\nthe financing of the construction and renovation of various school facilities owned by the School \r\n \r\nDistrict and capital outlay projects of the School District. Under the terms of the contract, the \r\n \r\nMeriwether County Public Facilities Authority (Authority) issued $8,810,000.00 less issuance costs of \r\n \r\n$229,391.00 in bonds on behalf of the School District. On January 4, 2006, the Authority issued \r\n \r\nrefunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a \r\n \r\nportion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026.  On July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance \r\n \r\ncosts of $49,500.00) on behalf of the School District.  Additionally, on September 19, 2013, the Meriwether County Public Facilities Authority, issued \r\n \r\n$4,200,000.00 of Revenue bonds on behalf of the School District to refund $3,885,000.00 of School \r\n \r\nDistrict General Obligation Debt associated with the Series 2005 bond issue.  The School District has contractually agreed to make semi-annual payments to the Authority sufficient \r\n \r\nto retire principal and interest on the aforementioned outstanding bonds. The obligation of the School \r\n \r\nDistrict is absolute and unconditional so long as any of the bonds remain outstanding. As part of the \r\n \r\nintergovernmental agreement, the School District transferred all rights, claims, and title to Greenville \r\n \r\nHigh School to the Meriwether County Public Facilities Authority. At the conclusion of the \r\n \r\nintergovernmental agreement the School District has the option to repurchase Greenville High School \r\n \r\nat the bargain purchase price of $10.00. Under the contract, the School District will exercise its power \r\n \r\nof taxation to the extent necessary to pay the amounts required to be paid by the contracts.  The debt at June 30, 2015, associated with these agreements is as follows:  \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Refunding - Series 2006 General Government QSCB - Series 2010 Authority Revenue Bonds - Series 2013 Working Group \r\n \r\n4.21% $ 6,125,000.00 \r\n \r\n5.29% \r\n \r\n1,240,000.00 \r\n \r\n1.77% \r\n \r\n3,391,000.00 \r\n \r\n$ 10,756,000.00 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n General Obligation Bonds currently outstanding are as follows:  \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2004 General Government - Series 2007 \r\n \r\n3.84% $ 3,320,000.00 \r\n \r\n3.70% - 4.10% \r\n \r\n1,585,000.00 \r\n \r\n$ 4,905,000.00 \r\n \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2015, were as follows: \r\n \r\nBalance July 1, 2014 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nDeductions \r\n \r\nBalance June 30, 2015 \r\n \r\nDue Within One Year \r\n \r\nIntergovernmental Agreement G.O. Bonds Capital Leases Compensated Absences (1) \r\n \r\n$ 11,950,000.00 \r\n \r\n$ 1,194,000.00 $ 10,756,000.00 $ 1,231,000.00 \r\n \r\n5,210,000.00 \r\n \r\n305,000.00 \r\n \r\n4,905,000.00 \r\n \r\n320,000.00 \r\n \r\n0.00 $ 651,200.00 \r\n \r\n135,321.03 \r\n \r\n515,878.97 \r\n \r\n124,604.78 \r\n \r\n64,272.57 \r\n \r\n6,701.14 \r\n \r\n70,973.71 \r\n \r\n$ 17,224,272.57 $ 657,901.14 $ 1,634,321.03 $ 16,247,852.68 $ 1,675,604.78 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2015, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2016 2017 2018 2019 2020 2021 - 2025 2026 - 2028 \r\n \r\n$ 124,604.78 $ 127,470.69 130,402.52 133,400.98 \r\n \r\n11,865.22 $ 320,000.00 $ \r\n \r\n8,999.31 \r\n \r\n335,000.00 \r\n \r\n6,067.48 \r\n \r\n350,000.00 \r\n \r\n3,069.02 \r\n \r\n365,000.00 \r\n \r\n380,000.00 \r\n \r\n2,155,000.00 \r\n \r\n1,000,000.00 \r\n \r\n184,853.75 172,267.00 159,103.75 145,274.00 130,774.00 414,321.50 \r\n39,609.50 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 515,878.97 $ 30,001.03 $ 4,905,000.00 $ 1,246,203.50 \r\n \r\n \r\n \r\nIntergovernmental Agreements \r\n \r\nDeferred Amount \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\non Refunding \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2016 2017 2018 2019 2020 2021 - 2025 2026 - 2028 \r\n \r\n$ 1,231,000.00 $ 1,570,000.00 1,600,000.00 1,635,000.00 785,000.00 2,690,000.00 1,245,000.00 \r\n \r\n367,643.85 $ 335,533.50 302,535.00 268,534.25 241,258.25 554,667.50 \r\n52,940.75 \r\n \r\n26,121.00 26,121.00 26,121.00 26,121.00 26,121.00 130,605.00 32,653.00 \r\n \r\nTotal Principal and Interest $ 10,756,000.00 $ 2,123,113.10 $ \r\n \r\n293,863.00 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\n The School District has recognized revenues and costs in the amount of $81,729.00 for retirement \r\ncontributions paid on the School District's behalf by the following State Agencies.  \r\nOffice of the State Treasurer \r\nPaid to the Public School Employees Retirement System \r\nFor Public School Employees Retirement (PSERS) Employer's Cost \r\nIn the amount of $81,729.00  Funds paid on behalf of the School District are reported in governmental funds. See Note  15 \r\nRetirement Plans for the State support related to the Net Pension Liability.  \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\n Amounts received or receivable principally from the Federal government are subject to audit and \r\nreview by grantor agencies. This could result in requests for reimbursement to the grantor agency for \r\nany costs which are disallowed under grant terms. The School District believes that such \r\ndisallowances, if any, will be immaterial to its overall financial position.  The School District is a defendant in various legal proceedings pertaining to matters incidental to the \r\nperformance of routine School District operations. The ultimate disposition of these proceedings is not \r\npresently determinable, but is not believed to be material to the basic financial statements.  \r\nNOTE 12: RELATED PARTY TRANSACTIONS \r\n The School District purchased various office supplies (binders, labels, note pads, toner, file folders, \r\ntape) from Once Source totaling $317.60 during fiscal year 2015. The owner of One Source is a Board \r\nmember.  \r\nNOTE 13: SUBSEQUENT EVENTS \r\n Subsequent to fiscal year-end, the School District issued a total of $4,000,000.00 on a short-term Tax \r\nAnticipation Note from the local bank for cash flow purposes. The School District made 4 draws totaling \r\n$3,500,000.00 on this note on July 16, 2015, August 13, 2015, September 1, 2015, and \r\nOctober 9, 2015, respectively. The note was repaid by the School District on December 30, 2015 with \r\ninterest of $22,312.21. \r\n \r\nSubsequent to fiscal year-end, the School District also issued a total of $4,500,000.00 on a shortterm Tax Anticipation Note from the local bank for cash flow purposes. The School District made 5 draws totaling $3,500,000.00 on this note on June 30, 2016, July 28, 2016, September 14, 2016, and September 29, 2016, and November 7, 2016, respectively. The note was repaid by the School District on December 30, 2016 with interest of $21,911.11.  \r\nNOTE 14: POST-EMPLOYMENT BENEFITS \r\n \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\n \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB \r\n \r\nFund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that \r\n \r\ncovers eligible former employees of public school systems, libraries and regional educational service \r\n \r\nagencies. The School OPEB Fund provides health insurance benefits to eligible former employees and \r\n \r\ntheir qualified beneficiaries through the State Employees Health Benefit Plan administered by the \r\n \r\nDepartment of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the \r\n \r\nauthority to establish and amend the benefit provisions of the group health plans, including benefits \r\n \r\nfor retirees, to the Board of Community Health (Board). The Department of Community Health, which \r\n \r\nincludes the School OPEB Fund, issues a separate stand-alone financial audit report and a copy can \r\n \r\nbe obtained from the Georgia Department of Audits and Accounts. \r\n \r\n \r\n \r\n \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are \r\n \r\nestablished by the Board in accordance with the current Appropriations Act and may be amended by \r\n \r\nthe Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan \r\n \r\nelection, dependent coverage, and Medicare eligibility and election. For members with fewer than five \r\n \r\nyears of service as of January 1, 2012, contributions also vary based on years of service. On average, \r\n \r\nmembers with five years or more of service as of January 1, 2012 pay approximately 25% of the cost \r\n \r\nof the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, \r\n \r\nfor members with fewer than five years of service as of January 1, 2012, the State provides a premium \r\n \r\nsubsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater \r\n \r\nthan the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy \r\n \r\nfor eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to \r\n \r\ndependents of active employees minus 20%). No subsidy is available to Medicare eligible members \r\n \r\nnot enrolled in a Medicare Advantage Option. The Board of Community Health sets all member \r\n \r\npremiums by resolution and in accordance with the law and applicable revenue and expense \r\n \r\nprojections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution \r\n \r\nand does not constitute a contract or promise of any amount of subsidy.  Participating employers are statutorily required to contribute in accordance with the employer \r\n \r\ncontribution rates established by the Board. The contribution rates are established to fund all benefits \r\n \r\ndue under the health insurance plans for both active and retired employees based on projected \"pay- \r\n \r\nas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual \r\n \r\nrequired contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is \r\n \r\nprojected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding \r\n \r\nexcess) over a period not to exceed thirty years.  The combined active and retiree contribution rates established by the Board for employers \r\n \r\nparticipating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2015:  For certificated teachers, librarians and regional educational service agencies and certain other \r\n \r\neligible participants: \r\n \r\n \r\n \r\nJuly 1, 2014  June 30, 2015 \r\n \r\n$945.00 per member per month \r\n \r\n \r\n \r\nFor non-certificated school personnel: \r\n \r\n \r\n \r\nJuly 1, 2014  June 30, 2015 \r\n \r\n$596.20 per member per month \r\n \r\n \r\n \r\nNo additional contribution was required by the Board for fiscal year 2015 nor contributed to the \r\n \r\nSchool OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined \r\n \r\nannually by the Board in accordance with the School plan for other post-employment benefits and are \r\n \r\nsubject to appropriation.  The School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows:  \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ 3,713,538.76 $ 3,716,446.45 $ 3,306,982.40 \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 15: RETIREMENT PLANS \r\n Meriwether County Board of Education participates in various retirement plans administered by the State of Georgia, as further explained below.  \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the 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 multipleemployer 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.  Benefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2015. The school district's contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual school district payroll.  Employer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2,163,227.03 \r\n \r\n$ \r\n \r\n1,945,796.95 \r\n \r\n$ \r\n \r\n1,882,222.45 \r\n \r\nEMPLOYEES RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\n \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\n \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\n \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\n \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to \r\n \r\n$4,200, plus 6% of annual compensation in excess of $4,200. Under the old plan, the state pays \r\n \r\nmember contributions in excess of 1.25% of annual compensation. Under the old plan, these state \r\n \r\ncontributions are included in the members' accounts for refund purposes and are used in the \r\n \r\ncomputation of the members' earnable compensation for the purpose of computing retirement \r\n \r\nbenefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. \r\n \r\nThe School District's contractually required contribution rate, actuarially determined annually, for the \r\n \r\nyear ended June 30, 2015 was 21.96% of annual covered payroll for old and new plan members \r\n \r\nand 18.87% for GSEPS members. Contributions are expected to finance the costs of benefits earned \r\n \r\nby employees during the year, with an additional amount to finance any unfunded accrued liability.  Employer contributions for the current fiscal year and the preceding two fiscal years are as follows:  \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n30,111.70 \r\n \r\n$ \r\n \r\n23,593.13 \r\n \r\n$ \r\n \r\n25,072.36 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\n Plan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the 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.  Benefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\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.  Contributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.  Individuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees.  Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions  At June 30, 2015, the School District reported a liability of $19,828,986.00 for its proportionate share of the Net Pension Liability for TRS ($19,623,265.00) and ERS ($205,721.00).  The 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 \r\nexpected 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.  At June 30, 2014, the School District's TRS proportion was 0.155325%, which was a decrease of 0.008199% from its proportion measured as of June 30, 2013. At June 30, 2014, the School District's ERS proportion was 0.005485%, which was an increase of 0.000440% from its proportion measured as of June 30, 2013.  At 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 PSERS Net Pension Liability associated with the School District is $ 317,505.00.  The PSERS Net Pension Liability was measured as of June 30, 2014. The total pension liability used \r\nto 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.  For the year ended June 30, 2015, the School District recognized pension expense of $1,080,502.00 for TRS, $20,774.00 for ERS and $27,573.00 for PSERS, and revenue of $27,573.00 for PSERS. The revenue is support provided by the State of Georgia.  \r\n \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2015, the School District reported deferred outflows of resources and deferred inflows of \r\n \r\nresources related to pension from the following sources:  \r\n \r\nTRS \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nResources \r\n \r\nResources \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n$ 6,841,086.00 \r\n \r\n$ 50,210.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n1,164,098.00 $ 13,140.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n$ 2,163,227.03 \r\n \r\n30,111.70 \r\n \r\nTotal \r\n \r\n$ 2,163,227.03 $ 8,005,184.00 $ 43,251.70 $ 50,210.00 \r\n \r\nMeriwether County Board of Education contributions subsequent to the measurement date of \r\n \r\nJune 30, 2014 for TRS and ERS are reported as deferred outflows of resources and will be recognized \r\n \r\nas a reduction of the Net Pension Liability in the year ended June 30, 2016. Other amounts reported \r\n \r\nas deferred outflows of resources and deferred inflows of resources related to pensions will be \r\n \r\nrecognized in pension expense as follows:  \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2016 2017 2018 2019 2020 \r\n \r\n$ -1,974,839.00 $ -4,340.00 $ -1,974,839.00 $ -7,625.00 $ -1,974,839.00 $ -12,553.00 $ -1,974,840.00 $ -12,552.00 $ -105,827.00 $ \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial \r\n \r\nvaluation as of June 30, 2013, using the following actuarial assumptions, applied to all periods \r\n \r\nincluded in the measurement:  \r\nTeachers Retirement System:  \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\n3.75  7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back \r\ntwo years for males and set back three years for females.  The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an \r\nactuarial experience study for the period July 1, 2004  June 30, 2009.  \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nEmployees' Retirement System: \r\n \r\n \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\n5.45  9.25%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service \r\n \r\nretirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled \r\n \r\nMortality Table set back eleven years for males for the period after disability retirement.  The actuarial assumptions used in the June 30, 2013 valuation were based on the results of an \r\n \r\nactuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\n \r\n \r\nPublic School Employees' Retirement System: \r\n \r\n \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\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. \r\n \r\nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an \r\n \r\nactuarial experience study for the period July 1, 2004  June 30, 2009.  The long-term expected rate of return on TRS, ERS and PSERS pension plan investments was \r\n \r\ndetermined using a log-normal distribution analysis in which best-estimate ranges of expected future \r\n \r\nreal rates of return (expected returns, net of pension plan investment expense and inflation) are \r\n \r\ndeveloped for each major asset class. These ranges are combined to produce the long-term expected \r\n \r\nrate of return by weighting the expected future real rates of return by the target asset allocation \r\n \r\npercentage and by adding expected inflation. The target asset allocation and best estimates of \r\n \r\narithmetic real rates of return for each major asset class are summarized in the following table:  \r\nLong-term \r\n \r\nTarget \r\n \r\nexpected real \r\n \r\nAsset class \r\n \r\nallocation \r\n \r\nrate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \r\n \r\n30.00% 39.70% \r\n3.70% 1.60% 18.90% 6.10% \r\n \r\n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 3.00% assumed rate of inflation \r\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 \r\n \r\n- 29 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPSERS pension plan's fiduciary net position was projected to be available to make all projected future \r\n \r\nbenefit payments of current plan members. Therefore, the long-term expected rate of return on \r\n \r\npension plan investments was applied to all periods of projected benefit payments to determine the \r\n \r\ntotal pension liability.  Sensitivity of the Meriwether County Board of Education's proportionate share of the Net Pension \r\n \r\nLiability to changes in the discount rate: The following presents the School District's proportionate \r\n \r\nshare of the Net Pension Liability calculated using the discount rate of 7.50%, as well as what the \r\n \r\nSchool District's proportionate share of the Net Pension Liability would be if it were calculated using a \r\n \r\ndiscount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the \r\n \r\ncurrent rate:  \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease \r\n \r\nCurrent Discount Rate \r\n \r\n1% Increase \r\n \r\n(6.50%) \r\n \r\n(7.50%) \r\n \r\n(8.50%) \r\n \r\nSchool District's proportionate share of the Net \r\n \r\nPension Liability \r\n \r\n$ 36,163,045.00 $ \r\n \r\n19,623,265.00 $ 6,003,100.00 \r\n \r\nEmployees' Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the Net \r\n \r\nPension Liability \r\n \r\n$ \r\n \r\n299,983.00 $ \r\n \r\n205,721.00 $ \r\n \r\n125,483.00 \r\n \r\n \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net \r\n \r\nposition is available in the separately issued TRS, ERS and PSERS financial report which is publically \r\n \r\navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 30 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30, 2015 \r\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 \r\nas a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability \r\n \r\nSCHEDULE \"1\" \r\n2015 0.155325% $ 19,623,265.00 $ 15,845,252.04 \r\n123.84% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. - 31 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"2\" \r\n \r\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 \r\nas a percentage of its covered employee payroll Plan fiduciary net position as a percentage of the total pension liability \r\n \r\n2015 \r\n \r\n0.005485% \r\n \r\n$ \r\n \r\n205,721.00 \r\n \r\n$ \r\n \r\n127,806.77 \r\n \r\n160.96% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. - 32 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\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 \r\n \r\n2015 \r\n \r\n2014 \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2,163,227.03 $ \r\n \r\n1,945,796.95 $ \r\n \r\n1,882,222.45 \r\n \r\n2,163,227.03 \r\n \r\n1,945,796.95 \r\n \r\n1,882,222.45 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ 16,450,395.67 $ 15,845,252.04 $ 16,496,252.85 \r\n \r\n13.15% \r\n \r\n12.28% \r\n \r\n11.41% \r\n \r\nThis schedule is intended to show information for 10 years. The School District is only able to display six years of information. Additional years will be displayed as they become available. \r\n- 34 - \r\n \r\n SCHEDULE \"3\" \r\n \r\n2012 \r\n \r\n2011 \r\n \r\n2010 \r\n \r\n$ \r\n \r\n1,797,763.93 $ \r\n \r\n1,762,220.80 $ \r\n \r\n1,789,865.36 \r\n \r\n1,797,763.93 \r\n \r\n1,762,220.80 \r\n \r\n1,789,865.36 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ 17,487,975.97 $ 17,142,225.68 $ 18,376,441.07 \r\n \r\n10.28% \r\n \r\n10.28% \r\n \r\n9.74% \r\n \r\n- 35 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\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 \r\n \r\n2015 \r\n \r\n2014 \r\n \r\n$ \r\n \r\n30,111.70 $ \r\n \r\n23,593.13 \r\n \r\n30,111.70 \r\n \r\n23,593.13 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n137,120.67 $ \r\n \r\n127,806.77 \r\n \r\n21.96% \r\n \r\n18.46% \r\n \r\nThis schedule is intended to show information for 10 years. The School District is only able to display two years of information. Additional years will be displayed as they become available. \r\n- 36 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"5\" \r\n \r\nTeachers' Retirement System \r\nChanges of assumptions : In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\n \r\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: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\nEmployees' Retirement System \r\n \r\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 \r\nexpense, including inflation \r\n \r\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. \r\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: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases \r\nInvestment rate of return \r\n \r\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 \r\nexpense, including inflation \r\n \r\n- 37 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET TO ACTUAL \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"6\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOther Sources \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n9,978,357.00 $ \r\n \r\n9,978,357.00 $ \r\n \r\n76,000.00 \r\n \r\n76,000.00 \r\n \r\n15,951,872.00 \r\n \r\n15,951,872.00 \r\n \r\n4,767,948.00 \r\n \r\n4,767,873.00 \r\n \r\n108,000.00 \r\n \r\n108,000.00 \r\n \r\n1,000.00 \r\n \r\n1,000.00 \r\n \r\n886,500.00 \r\n \r\n886,500.00 \r\n \r\n31,769,677.00 \r\n \r\n31,769,602.00 \r\n \r\n9,391,952.85 $ 94,991.22 \r\n16,290,905.38 5,029,850.72 405,582.11 941.62 411,212.83 \r\n31,625,436.73 \r\n \r\n-586,404.15 18,991.22 \r\n339,033.38 261,977.72 297,582.11 \r\n-58.38 -475,287.17 \r\n-144,165.27 \r\n \r\n19,037,004.00 \r\n1,082,356.00 990,158.00 355,610.00 921,246.00 \r\n1,964,300.00 196,233.00 \r\n2,164,801.00 2,387,465.00 \r\n214,539.00 193,369.00 \r\n2,197,000.00 \r\n65,596.00 \r\n31,769,677.00 \r\n0.00 \r\n \r\n18,933,332.00 \r\n1,203,811.00 1,012,873.00 \r\n316,500.00 746,407.00 1,983,500.00 207,000.00 2,248,000.00 2,445,800.00 214,788.00 194,995.00 \r\n2,197,000.00 \r\n65,596.00 \r\n31,769,602.00 \r\n0.00 \r\n \r\n0.00 126,563.36 \r\n \r\n0.00 126,563.36 \r\n \r\n19,064,050.23 \r\n1,165,579.24 939,264.62 310,816.26 793,787.01 \r\n1,969,369.40 203,072.34 \r\n2,272,345.07 2,958,160.93 \r\n136,817.08 185,327.63 288,814.66 1,903,309.52 \r\n135,321.03 65,596.00 \r\n32,391,631.02 \r\n-766,194.29 \r\n651,200.00 \r\n-114,994.29 \r\n-75,195.34 \r\n \r\n-130,718.23 \r\n38,231.76 73,608.38 \r\n5,683.74 -47,380.01 14,130.60 \r\n3,927.66 -24,345.07 -512,360.93 77,970.92 \r\n9,667.37 -288,814.66 293,690.48 \r\n-135,321.03 0.00 \r\n-622,029.02 \r\n-766,194.29 \r\n651,200.00 \r\n-114,994.29 \r\n-201,758.70 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n126,563.36 $ \r\n \r\n126,563.36 $ \r\n \r\n-190,189.63 $ \r\n \r\n-316,752.99 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The principal accounts had actual revenues of $518,958.58 and actual expenditures of $504,900.33. \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"7\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of School Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n(2) 1,786,241.02 (1) \r\n1,786,241.02 \r\n \r\n10.579 \r\n \r\nN/A \r\n \r\n10.582 \r\n \r\nN/A \r\n \r\n35,004.31 19,839.51 \r\n54,843.82 \r\n1,841,084.84 \r\n \r\n84.388 \r\n \r\nN/A \r\n \r\n163,037.90 \r\n \r\n* 84.027 \r\n \r\nN/A \r\n \r\n* 84.173 \r\n \r\nN/A \r\n \r\n84.395 \r\n \r\nN/A \r\n \r\n84.048 \r\n \r\nN/A \r\n \r\n84.365 \r\n \r\nN/A \r\n \r\n84.367 \r\n \r\nN/A \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n840,058.00 58,511.00 \r\n898,569.00 \r\n58,058.15 31,322.12 \r\n774.75 177,973.19 1,489,276.77 \r\n1,757,404.98 \r\n2,819,011.88 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n4,660,096.72 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $129,361.73. \r\n \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($476,231.45) were not maintained separately and are included in the 2015 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2015 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Residential Treatment Centers Grant Rule 10 Special Education State Grant Teacher of the Year Vocational Education \r\nOffice of State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 40 - \r\n \r\nSCHEDULE \"8\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n747,575.98 \r\n \r\n1,048,146.00 104,228.00 \r\n2,205,284.00 346,646.00 882,645.00 210,257.00 \r\n1,742,116.00 1,701,473.00 \r\n408,176.00 2,998,919.00 \r\n128,566.00 32,404.00 \r\n132,823.00 314,562.00 \r\n96,371.00 53,851.00 \r\n1,991.00 \r\n465,787.00 839,996.00 713,649.00 207,249.00 -1,331,937.00 \r\n821,551.00 55,360.00 \r\n956,031.00 \r\n52,366.00 16,463.44 44,921.00 63,533.00 90,000.00 \r\n1,014.25 12,159.00 \r\n81,729.00 \r\n \r\n44,999.71 \r\n \r\n$ \r\n \r\n16,290,905.38 \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nJUNE 30, 2015 \r\n \r\nSCHEDULE \"9\" \r\n \r\nPROJECT \r\nSPLOST II \r\n(iii) Paying a portion of the principal of and interest on the Series 2004 Bonds, the maximum amount of debt to be paid will not exceed $1,680,200.00 as set forth in the School District Resolution. \r\n(iv) Paying a portion of the principal of and interest on the Series 2005 Bonds, the maximum amount of debt to be paid will not exceed $5,415,652.25 as set forth in the School District Resolution. \r\n(v) Paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $3,261,255.25 as set forth in the School District Resolution. \r\n(iv) Paying a portion of the principal of and interest on the Series 2007 Bonds, the maximum amount of debt to be paid will not exceed $836,425.00 as set forth in the School District Resolution. \r\n(v) Paying a portion of the principal of and interest on the Series 2010 Bonds, the maximum amount of debt to be paid will not exceed $310,000.00 as set forth in the School District Resolution. \r\n(vi) Paying for system-wide technology upgrades, and renovations and improvements to existing school facilities, the amount of debt to be paid will not exceed $306,157.50 as set forth in the School District Resolution. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 1,680,200.00 $ 1,680,200.00 $ 336,424.00 $ \r\n \r\n405,528.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n6/30/2017 \r\n \r\n5,415,652.25 \r\n \r\n5,415,652.25 \r\n \r\n876,180.35 \r\n \r\n1,376,144.00 \r\n \r\n10/1/2018 \r\n \r\n3,261,255.25 \r\n \r\n3,261,255.25 \r\n \r\n650,966.75 \r\n \r\n840,204.50 \r\n \r\n6/30/2017 \r\n \r\n836,425.00 \r\n \r\n836,425.00 \r\n \r\n165,440.00 \r\n \r\n337,136.25 \r\n \r\n6/30/2017 \r\n \r\n310,000.00 \r\n \r\n310,000.00 \r\n \r\n65,596.00 \r\n \r\n131,192.00 \r\n \r\n6/30/2017 \r\n \r\n306,157.50 \r\n \r\n306,157.50 \r\n \r\n6/30/2017 \r\n \r\nTotal SPLOST II \r\n \r\n$ 11,809,690.00 $ 11,809,690.00 $ 2,094,607.10 $ 3,090,204.75 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAMS YEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"10\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,227,236.00 $ 1,729,576.21 $ \r\n \r\n33,326.73 $ 1,762,902.94 \r\n \r\n122,531.00 \r\n \r\n86,126.05 \r\n \r\n86,126.05 \r\n \r\n2,571,429.00 \r\n \r\n2,564,605.14 \r\n \r\n21,819.71 \r\n \r\n2,586,424.85 \r\n \r\n408,768.00 \r\n \r\n193,128.78 \r\n \r\n193,128.78 \r\n \r\n1,041,447.00 \r\n \r\n1,305,719.13 \r\n \r\n5,547.10 \r\n \r\n1,311,266.23 \r\n \r\n254,054.00 2,063,614.00 1,979,606.00 \r\n478,381.00 3,486,736.00 \r\n134,554.00 42,023.00 \r\n154,664.00 \r\n \r\n75,983.32 2,215,242.64 2,804,190.21 \r\n359,075.17 \r\n778,412.32 511,062.53 2,059,717.56 202,144.26 \r\n74,221.84 \r\n129,288.28 \r\n \r\n10,553.97 159,196.60 \r\n35,481.43 \r\n402.38 \r\n1,950.37 7,140.17 \r\n \r\n75,983.32 2,225,796.61 2,963,386.81 \r\n394,556.60 \r\n778,412.32 511,062.53 2,060,119.94 202,144.26 \r\n74,221.84 1,950.37 \r\n136,428.45 \r\n \r\n13,965,043.00 \r\n \r\n15,088,493.44 \r\n \r\n275,418.46 \r\n \r\n15,363,911.90 \r\n \r\n368,626.00 63,233.00 \r\n \r\n279,552.85 137,580.91 \r\n \r\n14,927.41 \r\n \r\n294,480.26 137,580.91 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 14,396,902.00 $ 15,505,627.20 $ 290,345.87 $ 15,795,973.07 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 27, 2018 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Meriwether County Board of Education as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise Meriwether County Board of Education's basic financial statements and have issued our report thereon dated February 27, 2018. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Meriwether 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 Meriwether County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Meriwether County Board of Education's internal control. \r\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 that we consider to be a material weakness and significant deficiencies. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2015-001 to be a material weakness. \r\n \r\n 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 deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2015-002, FS 2015-003, FS 2015-004, and FS 2015-005, to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Meriwether 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. \r\nWe noted certain matters that we have reported to management of Meriwether County Board of Education in a separate letter dated February 27, 2018. \r\nMeriwether County Board of Education's Response to Findings \r\nMeriwether County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Meriwether 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. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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. \r\nRespectfully, \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 27, 2018 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited Meriwether 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. Meriwether 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. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of Meriwether 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 Meriwether County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Meriwether County Board of Education's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the Meriwether 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. \r\nReport on Internal Control over Compliance \r\nManagement of Meriwether 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 Meriwether 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 Meriwether County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-6991-13-01 FS-6991-13-02 FS-6991-13-03 FS-6991-13-04 FS 2014-001 FS 2014-002 FS 2014-003 FS 2014-004 FS 2014-005 \r\n \r\nUnresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nSCHOOL ACTIVITY ACCOUNTS Inadequate Controls over School Activity Accounts Finding Control Number: FS-6991-13-01 \r\n \r\nMeriwether County Board of Education has established and implemented policies and procedures to ensure compliance over school activity accounts. This was implemented in fiscal year 2017. \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-6991-13-02 \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal \r\nentries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2- Annual Financial Reporting of the \r\nFinancial Management for Georgia Local Units of Administration. Additionally, financial \r\nstatements will be prepared in accordance with generally accepted accounting principles. \r\n \r\nEMPLOYEE COMPENSATION Inadequate Controls over Employee Compensation Finding Control Number: FS-6991-13-03 \r\n \r\nMeriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n \r\nSCHOOL ACTIVITY ACCOUNTS Inadequate Controls over School Activity Accounts Finding Control Number: FS 2014-001 \r\n \r\nManagement has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS 2014-002 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS The Board will implement procedures to ensure that all required activity in the form of journal entries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II  2- Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. Additionally, financial statements will be prepared in accordance with generally accepted accounting principles. EMPLOYEE COMPENSATION Inadequate Controls over Employee Compensation Finding Control Number: FS 2014-003 Meriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. DEFICIT FUND BALANCE Budget Preparation/Execution Finding Control Number: FS 2014-005 The Board adopts a balanced budget yearly. Financial reduction measures have been taken for fiscal year 2018 to help ensure that expenditures do not exceed available resources. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 2 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nYes \r\n \r\n Significant deficiencies identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.027, 84.173 \r\n \r\nChild Nutrition Cluster Special Education Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls over Financial Reporting Process Financial Reporting Material Weakness None FS 2014-002, FS-6991-13-02, FS-6991-12-01 \r\n \r\nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process \r\n \r\nCriteria: \r\nManagement is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\n \r\nGASB Statement No. 34, Basic Financial Statements - Management's Discussion and Analysis - for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the Statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\n \r\nChapter II - 2 - Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition: The following errors and omissions were noted in the School District's financial statements presented for audit: \r\n \r\n A material audit adjustment totaling $12,563.59 was proposed and accepted by the School District to correctly present cash and cash equivalents and funds held for others in the agency fund on the fiduciary funds statements. \r\n An audit adjustment totaling $651,200.00 was proposed and accepted by the School District to correctly present the School District's lease expenditures in the general fund on the governmental fund financial statements. An audit adjustment totaling $515,873.97 was proposed and accepted by the School District to correctly present lease expenditures on the government-wide financial statements. \r\n Significant adjustments were made to properly present the Notes to the Basic Financial Statements. \r\n Numerous other immaterial audit adjustments and reclassifications were proposed and accepted by the School District to properly present the School District's financial statements, note disclosures and supplemental information. \r\n \r\nCause: In discussing the deficiency with the School District, it appears the errors occurred due to oversights during the financial statement review process. \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nEffect or Potential Effect: Material and significant misstatements were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. \r\nRecommendation: The School District should strengthen their internal controls and preparation and review procedures over financial reporting to ensure that the financial statements, including disclosures, presented for audit are complete and accurate. These procedures should be performed by a properly trained individual(s) possessing a thorough understanding of GAAP, the applicable GASB pronouncements and knowledge of the School District's activities and operations. The School District should also consider implementing the use of a review checklist to assist in the review process over the financial statements. \r\nViews from Responsible Officials and Corrective Action: The School District will implement procedures to ensure that all required activity in the form of journal entries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter II - 2 - Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. Additionally, financial statements will be prepared in accordance with generally accepted accounting principles. \r\n \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nDeficit Fund Balance Budget Preparation/Execution Significant Deficiency Nonmaterial Noncompliance FS 2014-005 \r\n \r\nDescription: The School District reported a deficit unassigned fund balance in the general fund at June 30, 2015. \r\n \r\nCriteria: Chapter II  8 - Governmental Fund Deficits of the Financial Management for the Georgia Local Units of Administration states in part: \"The seriousness of the fund balance deficits cannot be overstated. The Georgia Department of Education requires those LUAs with deficit governmental fund balances to meet certain reporting requirements\". \r\n \r\nThe Georgia Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated 20-2-67(a) which states: \"When an audit by the Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Georgia Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \r\n \r\nCondition: The School District reported a deficit unassigned fund balance of $451,460.43 in the general fund at June 30, 2015. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCause: In discussing this deficiency with the School District, management indicated that the economic downturn depleted their fund balance. \r\nEffect or Potential Effect: The unassigned fund balance of the general fund was not sufficient to meet the fund's obligations at June 30, 2015. \r\nRecommendation: The School District should establish policies and procedures to ensure that expenditures do not exceed availability of resources, so that in future periods the School District does not report a deficit fund balance. \r\nViews from Responsible Officials and Corrective Action: The School District adopts a balanced budget yearly. Financial reduction measures have been taken for fiscal year 2018 to help ensure that expenditures do not exceed available resources. \r\n \r\nFS 2015-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures Cash and Cash Equivalents Capital Assets General Ledger Significant Deficiency None \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over several control categories. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance transactions are properly documented and approved in accordance with State law, procedures established by the Georgia Department of Education, and the School District's policies and procedures. \r\n \r\nCondition: Cash and Cash Equivalents: \r\n A separation of duties issue in the cash maintenance process was noted. Finance personnel had the ability to complete bank reconciliations, record and process revenue, and record journal entries. \r\n Bank reconciliations did not contain sufficient evidence to determine that they were prepared and reviewed in a timely manner. \r\n Bank reconciliations were not completed on a monthly basis for some of the School District accounts. \r\n Undocumented journal entries were made throughout the fiscal year in order to force cash to reconcile. \r\n The School District did not have adequate procedures in place to monitor cash by bank and fund report. \r\n Two bank accounts were noted under the Board's federal employer identification number that do not belong to the School District. \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCapital Assets:  The physical inventory performed did not contain evidence to support when the inventory was performed. In addition, not all capital asset were located in the inventory process as the asset listing utilized in the physical inventory was not complete.  A listing by asset was not able to be provided to support the current year depreciation expense or the allocation of depreciation expense by function.  The School District did not have procedures in place at year-end to ensure that all acquired capital assets were appropriately reported. \r\n The School District did not perform an impairment calculation for the former Greenville Middle School building \r\nGeneral Ledger: A review of journal entries revealed the following: \r\n No evidence of supervisory review or approval was available for any journal entries tested.  Eleven out 35 journal entries reviewed did not have supporting documentation on file. \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a result of management's failure to ensure that internal controls were established, implemented and functioning. \r\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 financial position and results of operations. \r\nRecommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above controls categories to strengthen the internal controls over the accounting function. \r\nViews from Responsible Officials and Corrective Action: The School District will implement procedures to ensure that all required activity in the form of journal entries are in the financial statements and have supporting backup and appropriate approvals. In addition, the School District is reviewing the overall accounting controls and designing and strengthening the controls as applicable. \r\n \r\nFS 2015-004 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls over Employee Compensation Process Employee Compensation Significant Deficiency None FS 2014-003, FS-6991-13-03 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over employee compensation. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance employees are paid according to the certificate level included on approved contracts or approved salary schedules and documentation is maintained to support the salary payments. \r\nCondition: Based on a review of employees' payroll records the following deficiencies were noted: \r\n The School District did not have adequate procedures in place to ensure employee compensation expenditures were properly documented, calculated and approved prior to disbursement. \r\n The School District did not have Board approved salary schedule for numerous positions.  One employee's salary could not be traced to an approved pay scale or supporting \r\ndocumentation.  Nine of the 13 employees selected in a sample were paid supplements totaling \r\n$10,043.33, which were not approved by the Board.  Fifteen of the 29 employees identified as individually significant items received additional \r\ncompensation totaling $87,676.05, which was not approved by the Board.  One employee was noted as being in violation of the overtime pay eligibility established \r\nunder the Fair Labor Standards Act. \r\nCause: In discussing these deficiencies with the School District, they indicated that formal procedures had not been implemented to ensure salary amounts were supported by adequate documentation. \r\nEffect or Potential Effect: The failure to maintain adequate internal controls over employee compensation increases the risk that misstatements could occur in the financial statements due to error or fraud. \r\nRecommendation: The School District should implement policies and procedures to ensure normal business procedures are followed for all salaries, which includes ensuring salaries are paid according to approved salary schedules and adequate documentation is maintained to support the salary payments. \r\nViews from Responsible Officials and Corrective Action: Meriwether County Board of Education has implemented policies and procedures to ensure that salaries and salary schedules have been documented and approved by the Board. This has been implemented beginning fiscal year 2018. \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-005 Control Category: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nAccounting Controls over School Activity Cash and Cash Equivalents Investments Expenditures/Liabilities/Disbursements Accounting Controls (Overall) General Ledger Significant Deficiency None FS 2014-001, FS-6991-13-01 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\nOfficial Code of Georgia Annotated (O.C.G.A.) 20-2-962 requires the principal of each public school to make a quarterly report to the local board of education immediately upon the end of each quarter of the fiscal year, and include all receipts and expenditures of the past quarter. \r\n \r\nCondition: Cash and Cash Equivalents \r\n Bank reconciliations did not contain sufficient evidence to support that the reconciliations were performed and reviewed in a timely manner. \r\n The bank reconciliation function was not separated from record keeping, revenue receipting function, and voucher payment function. \r\n Bank reconciliations were not performed for one scholarship account, which the School District holds in a custodial capacity \r\n \r\nInvestments  The School District did not have controls in place to ensure that investments were properly recorded on the financial statements. \r\n \r\nExpenditures/Liabilities/Disbursements  Internal controls were not in place throughout for school activity account expenditures. Eleven of the sampled twelve vouchers did not contain sufficient evidence of the proper level of approval being obtained prior to the purchase order being executed. \r\n \r\nAccounting Controls (Overall)  Documentation to support that all school activity accounts were reported on at least a quarterly basis could not be provided.  The School District did not have proper internal controls in place to verify the system generated year-end entry to record the school activity account transactions was accurate and complete. \r\n \r\nGeneral Ledger  Agency Funds reported deficit balances of $1,658.45 for two clubs. Governmental funds were used to cover these deficits. \r\n- 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Cause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. Effect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to error or fraud. Recommendation: The School District should revise and implement internal controls to ensure proper separation of duties is established, accounting processes are adequately monitored, school activity accounts are properly classified, and agency fund accounts are properly documented. Views from Responsible Officials and Corrective Action: Management has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 8 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2014-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2014 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2016-04-05"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, 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-bm5-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH NOTES TO THE BASIS FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\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 \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n1 2 3 4 5 6 7 8 \r\n29 30 31 32 33 \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 5, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether County Board of Education, as of and for the year ended June 30, 2014, and the related notes to the financial statements (Exhibits A through H), which collectively comprise the Board's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Meriwether 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. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2014 the Meriwether 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. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 29, 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. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Meriwether 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. \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated April 5, 2016, on our consideration of the Meriwether 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 Meriwether County Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:er 2014ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2014 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nDeferred Charge on Refunding of Debt \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\nGOVERNMENTAL ACTIVITIES \r\n$ 1,264,136.69 918,413.50 \r\n1,604,492.55 1,749,221.83 \r\n583,704.36 905.74 \r\n76,777.98 118,391.36 157,346.65 531,808.00 37,816,799.14 44,821,997.80 \r\n319,984.00 \r\n626,059.27 3,292,321.75 \r\n154,183.00 1,499,000.00 15,725,272.57 21,296,836.59 \r\n21,508,591.13 121,672.70 \r\n1,359,405.22 855,476.16 \r\n$ 23,845,145.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2014 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year (Restated) \r\n \r\n$ 19,910,247.36 $ 28,546.86 $ 12,586,839.02 $ -7,294,861.48 \r\n \r\n1,046,116.59 1,703,637.27 \r\n360,203.43 985,668.58 1,992,111.83 476,375.36 2,438,804.15 2,453,492.82 \r\n44,882.64 227,374.71 \r\n \r\n223,915.21 1,530,173.04 \r\n369,582.00 593,267.14 962,955.00 \r\n2,398.24 894,158.85 908,804.36 \r\n2,169.69 123,401.49 \r\n \r\n-822,201.38 -173,464.23 \r\n9,378.57 -392,401.44 -1,029,156.83 -473,977.12 -1,544,645.30 -1,544,688.46 \r\n-42,712.95 -103,973.22 \r\n \r\n334,701.27 1,941,883.27 \r\n644,036.37 \r\n \r\n114,917.56 51,389.87 \r\n \r\n1,836,365.31 \r\n \r\n-219,783.71 -54,128.09 \r\n-644,036.37 \r\n \r\n$ 34,559,535.65 $ 194,854.29 $ 20,034,029.35 \r\n \r\n-14,330,652.01 \r\n \r\n8,547,877.87 301,581.59 60,676.16 \r\n1,609,373.42 75,805.21 \r\n600,175.00 2,894.76 \r\n784,222.15 \r\n11,982,606.16 \r\n-2,348,045.85 \r\n26,193,191.06 \r\n \r\nNet Position - End of Year \r\n \r\n$ 23,845,145.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n ASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Prepaid Items \r\nTotal Assets \r\n \r\nMERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2014 \r\n \r\nEXHIBIT \"C\" \r\n \r\nGENERAL FUND \r\n \r\nDISTRICT-WIDE CAPITAL PROJECTS FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 786,619.19 $ \r\n1,401,536.95 1,749,221.83 \r\n583,704.36 905.74 \r\n4,200.10 118,391.36 157,346.65 \r\n \r\n37,153.88 $ 72,577.88 \r\n \r\n440,363.62 $ 1,264,136.69 \r\n \r\n918,413.50 \r\n \r\n918,413.50 \r\n \r\n202,955.60 \r\n \r\n1,604,492.55 1,749,221.83 \r\n583,704.36 905.74 \r\n76,777.98 118,391.36 157,346.65 \r\n \r\n$ 4,801,926.18 $ 109,731.76 $ 1,561,732.72 $ 6,473,390.66 \r\n \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Federal Grants Unavailable Revenue - Property Taxes \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned (Deficit) \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources and Fund Balances \r\n \r\n$ 516,327.51 $ 3,292,321.75 \r\n \r\n109,731.76 \r\n \r\n3,808,649.26 \r\n \r\n109,731.76 \r\n \r\n$ 626,059.27 3,292,321.75 \r\n3,918,381.02 \r\n \r\n354,204.49 714,267.77 \r\n1,068,472.26 \r\n \r\n$ \r\n \r\n48,144.50 \r\n \r\n354,204.49 762,412.27 \r\n \r\n48,144.50 \r\n \r\n1,116,616.76 \r\n \r\n275,738.01 54,284.58 \r\n-405,217.93 \r\n-75,195.34 \r\n \r\n0.00 0.00 \r\n \r\n1,513,588.22 1,513,588.22 \r\n \r\n275,738.01 1,567,872.80 \r\n-405,217.93 \r\n1,438,392.88 \r\n \r\n$ 4,801,926.18 $ 109,731.76 $ 1,561,732.72 $ 6,473,390.66 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nProperty Taxes \r\nGeorgia Department of Education grants that are not available to pay current period expenditures are deferred in the funds. \r\nLong-Term Liabilities and Deferred Outflows of Resources, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. At year-end, these consist of: \r\nBonds Payable Intergovernmental Contract Deferred Amount on Refunding Accrued Interest Compensated Absences Payable \r\nTotal Long-Term Liabilities \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 1,438,392.88 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,837.92 \r\n \r\n51,828,079.68 \r\n \r\n5,717,805.24 \r\n \r\n-24,053,923.70 \r\n \r\n38,348,607.14 \r\n \r\n762,412.27 354,204.49 \r\n \r\n$ -5,210,000.00 -11,950,000.00 319,984.00 -154,183.00 -64,272.57 \r\n \r\n-17,058,471.57 \r\n \r\n$ 23,845,145.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds Derived from Intergovernmental Contract Insurance Proceeds Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICT-WIDE CAPITAL PROJECTS FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 9,098,723.17 $ 75,805.21 \r\n14,827,115.97 5,452,883.89 194,854.29 2,066.29 605,780.88 \r\n30,257,229.70 \r\n \r\n0.00 $ 0.00 \r\n \r\n351,916.43 $ 1,609,373.42 \r\n828.47 1,962,118.32 \r\n \r\n9,450,639.60 1,685,178.63 14,827,115.97 5,452,883.89 \r\n194,854.29 2,894.76 \r\n605,780.88 \r\n32,219,348.02 \r\n \r\n18,204,371.45 \r\n1,028,107.86 1,703,637.27 \r\n360,203.43 962,831.02 1,991,676.83 181,464.63 2,116,877.41 2,148,351.00 \r\n43,776.25 227,374.71 334,701.27 1,936,329.60 \r\n65,596.00 \r\n31,305,298.73 \r\n-1,048,069.03 \r\n \r\n2,836.80 196,371.91 \r\n199,208.71 -199,208.71 \r\n \r\n299,499.36 \r\n4,550,000.00 593,371.25 \r\n5,442,870.61 -3,480,752.29 \r\n \r\n18,207,208.25 \r\n1,028,107.86 1,703,637.27 \r\n360,203.43 962,831.02 1,991,676.83 480,963.99 2,313,249.32 2,148,351.00 \r\n43,776.25 227,374.71 334,701.27 1,936,329.60 \r\n4,550,000.00 658,967.25 \r\n36,947,378.05 \r\n-4,728,030.03 \r\n \r\n-20,767.44 -20,767.44 -1,068,836.47 993,641.13 \r\n \r\n178,441.27 20,767.44 \r\n199,208.71 0.00 0.00 \r\n \r\n4,200,000.00 \r\n4,200,000.00 719,247.71 794,340.51 \r\n \r\n4,200,000.00 178,441.27 20,767.44 -20,767.44 \r\n4,378,441.27 \r\n-349,588.76 \r\n1,787,981.64 \r\n \r\n$ \r\n \r\n-75,195.34 $ \r\n \r\n0.00 $ \r\n \r\n1,513,588.22 $ \r\n \r\n1,438,392.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2014 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nFederal Revenue reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nProceeds Received from the Intergovernmental Contract are reported as Liabilities in the Statement of Activities. Whereas in the Governmental Funds these proceeds are reported as Other Financing Sources. \r\nProceeds from Intergovernmental Contract \r\nBond issuance costs, deferred gains on refunding bonds and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Position and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Deferred Gain on Refunding of Bonds \r\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: \r\nBond Principal Retirements Intergovernmental Contract Repayments \r\nTotal Long-Term Debt Repayments \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nNet Decrease in Accrued Interest Decrease in Compensated Absences \r\nTotal Additional Expenditures \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -349,588.76 \r\n \r\n$ \r\n \r\n15,100.32 \r\n \r\n-2,123,877.67 \r\n \r\n-2,108,777.35 \r\n \r\n-79,676.13 \r\n \r\n354,203.49 \r\n \r\n-540,503.98 \r\n \r\n-4,200,000.00 \r\n \r\n-26,121.00 \r\n \r\n$ 4,180,000.00 370,000.00 \r\n \r\n4,550,000.00 \r\n \r\n$ \r\n \r\n41,051.88 \r\n \r\n11,366.00 \r\n \r\n52,417.88 \r\n \r\n$ -2,348,045.85 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2014 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n34,873.02 \r\n \r\n13,091.01 \r\n \r\n$ \r\n \r\n47,964.03 \r\n \r\n$ \r\n \r\n47,964.03 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether 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. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Meriwether County Board of Education. \r\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. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\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. The School District had no funds reported as nonmajor funds. \r\n \r\n- 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District reports the following major governmental funds: \r\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. \r\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. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general longterm principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, clubs, governments, or individuals. \r\nBASIS OF ACCOUNTING \r\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. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\n \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\nRESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2014, the School District made a prior period adjustment 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 $144,263.32. This change is in accordance with generally accepted accounting principles. \r\n \r\nThe adjustments to Net Position at July 1, 2013 are summarized as follows: \r\n \r\nNet Position, July 1, 2013, as previously reported $ \r\n \r\n26,337,454.38 \r\n \r\nReclassification of Bond Issuance Costs \r\n \r\n-144,263.32 \r\n \r\nNet Position, July 1, 2013, as restated \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\n \r\n$ \r\n \r\n26,193,191.06 \r\n \r\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 deferred 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. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \r\n \r\nFUTURE ACCOUNTING PRONOUNCEMENTS \r\n \r\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 Teachers' Retirement System of Georgia (TRS), the School District's liability for the unfunded portion of the pension plan administered through TRS is estimated to be $19.6 million at June 30, 2015. \r\n \r\nCASH AND CASH EQUIVALENTS \r\n \r\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. \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINVESTMENTS \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\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. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nPROPERTY TAXES \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on August 27, 2013 (levy date) based on property values as of January 1, 2013. Taxes were due on December 20, 2013 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2013 tax digest are reported as revenue in the governmental funds for fiscal year 2014. The Meriwether 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 $8,621,699.63 and for school bonds amounted to $351,916.43. \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nTax millage rates levied for the 2013 tax year (calendar year) for the Meriwether County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n18.489 mills 0.677 mills \r\n \r\n19.166 mills \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $416,347.38 during fiscal year ended June 30, 2014 \r\n \r\nSALES TAXES \r\n \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,609,373.42 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\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. \r\n \r\nPREPAID ITEMS \r\n \r\nPayments made to vendors for services that will benefit periods subsequent to June 30, 2014, are recorded as prepaid items. \r\n \r\nCAPITAL ASSETS \r\n \r\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 fiscal year 2014, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \r\n \r\nstatements are as follows: \r\n \r\nCapitalization \r\n \r\nEstimated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\n$ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 500,000.00 \r\n \r\nN/A 20 years 7 to 40 years 5 to 15 years individually determined \r\n \r\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. \r\n \r\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. \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\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 has only one item that qualifies for reporting in this category. The deferred charge on refunded debt resulting from the difference in the carrying value of the refunded debt and its reacquisition price is deferred and amortized over the shorter of the life of the refunded or refunding debt. \r\n \r\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 (revenue) in the period in which the amounts become available. \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. \r\n \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGENERAL OBLIGATION BONDS \r\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. \r\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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \r\nNET POSITION \r\nThe School District's net position in the District-wide Statements is classified as follows: \r\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. \r\nRestricted Net Position - This represents resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs and debt service in accordance with restrictions imposed by external third parties. \r\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. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\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. \r\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. \r\n \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\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. \r\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. \r\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. \r\nFund Balances of the Governmental Funds at June 30, 2014, are as follows: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Continuation of State Programs Debt Service \r\n \r\n$ \r\n \r\n118,391.36 \r\n \r\n157,346.65 $ \r\n \r\n$ \r\n \r\n37,921.07 \r\n \r\n16,363.51 \r\n \r\n1,513,588.22 \r\n \r\n275,738.01 1,567,872.80 \r\n \r\nUnassigned \r\n \r\n-405,217.93 \r\n \r\nFund Balance, June 30, 2014 \r\n \r\n$ \r\n \r\n1,438,392.88 \r\n \r\nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end in compliance with Official Code of Georgia Annotated Section 20-2-167(a) 5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\n \r\nDEFICIT FUND BALANCES \r\n \r\nThe fund reporting a deficit fund balance at June 30, 2014, is as follows: \r\n \r\nFund Type/Fund Name \r\n \r\nDeficit Balance \r\n \r\nGovernmental Funds General Fund Unassigned \r\n \r\n$ -405,217.93 \r\n \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe Board intends to resolve the deficit in the General Fund by more closely monitoring expenditures in subsequent periods. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the the Title III Consortium Program, Fresh Fruits and Vegetable Program, and District Fuel Fund Program, were prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of 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. \r\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 fiscal year 2014. \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\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. \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2014, the School District had deposits with a carrying amount of $1,312,100.72, which includes $13,091.01 in Certificates of Deposit that are reported as Investments, and a bank balance of $1,558,245.74. The bank balances insured by Federal depository insurance were $693,637.07. \r\n \r\nThe amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's deposits by custodial credit risk category at June 30, 2014, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n864,608.67 \r\n \r\nTotal \r\n \r\n$ 864,608.67 \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2014, the carrying value of the School District's total investments was $931,504.51, which is materially the same as fair value. This includes $13,091.01 invested in Certificates of Deposit, which are collateralized in the same manner as other cash deposits. The remaining investment of $918,413.50 consisted entirely of funds invested in the Georgia Fund 1, (local government investment pool), administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity for Georgia Fund 1 on June 30, 2014, was 62 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\nBalances July 1, 2013 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2014 \r\n \r\n$ \r\n \r\n531,808.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n531,808.00 \r\n \r\nCapital Assets, Being Depreciated: Land Improvements Building and Building Improvements Equipment \r\n \r\n4,324,836.92 51,828,079.68 \r\n5,827,752.25 \r\n \r\n1.00 15,099.00 \r\n \r\n125,046.01 \r\n \r\n4,324,837.92 51,828,079.68 \r\n5,717,805.24 \r\n \r\nLess: Accumulated Depreciation: Land Improvements Building and Building Improvements Equipment \r\n \r\n2,245,609.98 15,697,820.04 \r\n4,031,984.89 \r\n \r\n216,241.91 1,484,876.90 \r\n422,758.86 \r\n \r\n27,862.58 17,506.30 \r\n \r\n2,461,851.89 17,154,834.36 \r\n4,437,237.45 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n40,005,253.94 \r\n \r\n-2,108,777.67 \r\n \r\n79,677.13 \r\n \r\n37,816,799.14 \r\n \r\nGovernmental Activity Capital Assets - Net $ 40,537,061.94 $ \r\n \r\n-2,108,777.67 $ \r\n \r\n79,677.13 $ 38,348,607.14 \r\n \r\nCapital Assets being acquired under an intergovernmental agreement as of June 30, 2014 are as follows: \r\n \r\nIntergovernmental Agreement: Land Improvements Buildings and Improvements \r\nLess: Accumulated Depreciation: \r\n \r\n$ \r\n \r\n90,010.00 \r\n \r\n8,648,096.00 \r\n \r\n3,140,370.15 \r\n \r\n$ 5,597,735.85 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n$ \r\n \r\n27,811.81 \r\n \r\n435.00 \r\n \r\n36,639.21 \r\n \r\n306,366.71 \r\n \r\n$ \r\n \r\n1,737,471.24 \r\n371,252.73 15,153.70 \r\n2,123,877.67 \r\n \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2014, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\n$ 20,767.44 \r\n \r\nThe transfer of $20,767.44 from the General Fund to the Capital Projects Fund was made to provide supplemental funding for various expenditures. \r\n \r\nNOTE 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with motor vehicles. 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. \r\n \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and the related liability is reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as \r\n \r\nfollows: \r\n \r\nClaims and \r\n \r\nBeginning of Year \r\n \r\nChanges in \r\n \r\nClaims \r\n \r\nEnd of Year \r\n \r\nLiability \r\n \r\nEstimates \r\n \r\nPaid \r\n \r\nLiability \r\n \r\n2013 $ 2014 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n36,769.79 $ 12,930.00 $ \r\n \r\n36,769.79 $ 12,930.00 $ \r\n \r\n0.00 0.00 \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. In addition to the $550,000 per occurrence retention, the Fund also retains an additional $150,000 per year corridor retention. \r\n \r\nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered Superintendent \r\n \r\nAmount \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: SHORT-TERM DEBT \r\n \r\nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $ \r\n \r\n0.00 $ 2,000,000.00 $ 2,000,000.00 $ \r\n \r\n0.00 \r\n \r\nNOTE 10: LONG-TERM LIABILITIES \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINTERGOVERNMENTAL CONTRACT \r\nThe Meriwether County Board Of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District and capital outlay projects of the School District. Under the terms of the contract, the Meriwether County Public Facilities Authority (Authority) issued $8,810,000.00 less issuance costs of $229,391.00 in bonds on behalf of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \r\nAdditionally, on September 19, 2013, the Meriwether County Public Facilities Authority, issued $4,200,000.00 of Revenue bonds on behalf on the School District to refund $3,885,000.00 of School District General Obligation Debt associated with the Series 2005 bond issue. \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the aforementioned outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. As part of the intergovernmental agreement, the School District transferred all rights, claims, and title to Greenville High School to the Meriwether County Public Facilities Authority. At the conclusion of the intergovernmental agreement the School District has the option to repurchase Greenville High School at the bargain purchase price of $10.00. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contracts. \r\nThe debt at June 30, 2014, associated with these agreements is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Refunding - Series 2006 General Government QSCB - Series 2010 Authority Revenue Bonds - Series 2013 Working Group \r\n \r\n4.21% 5.29% 1.77% \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\n$ 6,510,000.00 1,240,000.00 4,200,000.00 \r\n$ 11,950,000.00 \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2004 General Government - Series 2007 \r\n \r\n3.84% 3.70% - 4.10% \r\n \r\n$ 3,525,000.00 1,685,000.00 \r\n \r\n$ 5,210,000.00 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2014, were as follows: \r\n \r\nBalance July 1, 2013 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2014 \r\n \r\nDue Within One Year \r\n \r\nIntergovernmental Agreements $ Less: Deferred Amounts \r\nOn Refunding (2) \r\n \r\n8,120,000.00 $ 0.00 \r\n \r\n4,200,000.00 $ \r\n \r\n370,000.00 $ 11,950,000.00 $ 1,194,000.00 0.00 \r\n \r\nTotal Intergovernmental Agreement \r\n \r\n8,120,000.00 \r\n \r\n4,200,000.00 \r\n \r\n370,000.00 11,950,000.00 \r\n \r\n1,194,000.00 \r\n \r\nG. O. Bonds Compensated Absences (1) \r\n \r\n9,390,000.00 75,638.57 \r\n \r\n4,180,000.00 11,366.00 \r\n \r\n5,210,000.00 64,272.57 \r\n \r\n305,000.00 \r\n \r\n$ 17,585,638.57 $ 4,200,000.00 $ 4,561,366.00 $ 17,224,272.57 $ 1,499,000.00 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n(2) Deferred amounts on refunding were reclassified as Deferred Outflows of Resources with the adoption of GASB No. 65, as described in Note 2. \r\n \r\nAt June 30, 2014, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2015 2016 2017 2018 2019 2020 - 2024 2025 - 2029 \r\n \r\n$ \r\n \r\n305,000.00 $ \r\n \r\n320,000.00 \r\n \r\n335,000.00 \r\n \r\n350,000.00 \r\n \r\n365,000.00 \r\n \r\n2,065,000.00 \r\n \r\n1,470,000.00 \r\n \r\n196,864.00 184,853.75 172,267.00 159,103.75 145,274.00 496,657.50 \r\n88,047.50 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n5,210,000.00 $ \r\n \r\n1,443,067.50 \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFiscal Year Ended June 30: \r\n \r\nIntergovernmental Agreements \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amount on Refunding \r\n \r\n2015 2016 2017 2018 2019 2020 - 2024 2025 - 2029 \r\n \r\n$ \r\n \r\n1,194,000.00 $ \r\n \r\n1,231,000.00 \r\n \r\n1,260,000.00 \r\n \r\n1,290,000.00 \r\n \r\n1,325,000.00 \r\n \r\n3,820,000.00 \r\n \r\n1,830,000.00 \r\n \r\n398,743.10 $ 367,643.85 335,533.50 302,535.00 268,534.25 731,197.00 117,669.50 \r\n \r\n26,121.00 26,121.00 26,121.00 26,121.00 26,121.00 130,605.00 58,774.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 11,950,000.00 $ \r\n \r\n2,521,856.20 $ \r\n \r\n319,984.00 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $1,332,411.00 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,250,064.00 \r\n \r\nOffice of State Treasurer Paid to the Public School Employees' Retirement System \r\nFor Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $82,347.00 \r\n \r\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. \r\n \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 13: SUBSEQUENT EVENTS \r\nSubsequent to fiscal year end, the School District borrowed a total of $3,000,000.00 on a short-term Tax Anticipation Note from the local bank for cash flow purposes. The School District made 3 draws of $1,000,000.00 each on this note on July 15, 2014, September 5, 2014, and October 9, 2014, respectively. The note was repaid by the School District on December 31, 2014 with interest of 17,728.94. \r\nNOTE: 14: POST-EMPLOYMENT BENEFITS \r\nGeorgia School Personnel Post-employment Health Benefit Fund \r\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 standalone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\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 \r\nMedicare 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. \r\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. \r\n \r\n- 25 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\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: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2013 - June 30, 2014 For non-certificated school personnel: \r\nJuly 1, 2013 - June 30, 2014 \r\n \r\n$945.00 per member per month $596.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\nNOTE 15: RETIREMENT PLANS \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n3,716,446.45 \r\n \r\n$ \r\n \r\n3,306,982.40 \r\n \r\n$ \r\n \r\n3,152,346.39 \r\n \r\nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\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 standalone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\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. \r\n \r\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. \r\n \r\n- 26 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\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. \r\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% 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. \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n1,945,796.95 \r\n \r\n$ \r\n \r\n1,882,222.45 \r\n \r\n$ \r\n \r\n1,797,763.93 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\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. \r\n \r\n- 27 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nTransfers Out \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 9,097,227.00 $ 9,447,164.00 $ 9,098,723.17 $ \r\n \r\n71,000.00 \r\n \r\n71,000.00 \r\n \r\n75,805.21 \r\n \r\n14,935,364.00 \r\n \r\n14,935,364.00 \r\n \r\n14,827,115.97 \r\n \r\n6,172,235.00 \r\n \r\n6,746,943.00 \r\n \r\n5,452,883.89 \r\n \r\n112,000.00 \r\n \r\n116,000.00 \r\n \r\n194,854.29 \r\n \r\n2,200.00 \r\n \r\n2,200.00 \r\n \r\n2,066.29 \r\n \r\n933,596.00 \r\n \r\n933,596.00 \r\n \r\n605,780.88 \r\n \r\n-348,440.83 4,805.21 \r\n-108,248.03 -1,294,059.11 \r\n78,854.29 -133.71 \r\n-327,815.12 \r\n \r\n31,323,622.00 \r\n \r\n32,252,267.00 \r\n \r\n30,257,229.70 \r\n \r\n-1,995,037.30 \r\n \r\n18,595,617.00 \r\n878,323.00 1,394,093.00 \r\n363,866.00 1,092,410.00 1,964,500.00 \r\n201,380.00 2,107,200.00 2,338,642.00 \r\n42,000.00 141,495.00 \r\n2,138,500.00 \r\n65,596.00 \r\n31,323,622.00 \r\n0.00 \r\n \r\n19,018,554.00 \r\n1,081,772.00 1,963,185.00 \r\n362,364.00 955,078.00 1,995,071.00 181,894.00 2,099,414.00 2,100,949.00 \r\n49,000.00 240,890.00 \r\n2,138,500.00 \r\n65,596.00 \r\n32,252,267.00 \r\n0.00 \r\n \r\n18,204,371.45 \r\n1,028,107.86 1,703,637.27 \r\n360,203.43 962,831.02 1,991,676.83 181,464.63 2,116,877.41 2,148,351.00 \r\n43,776.25 227,374.71 334,701.27 1,936,329.60 \r\n65,596.00 \r\n31,305,298.73 \r\n-1,048,069.03 \r\n \r\n814,182.55 \r\n53,664.14 259,547.73 \r\n2,160.57 -7,753.02 3,394.17 \r\n429.37 -17,463.41 -47,402.00 \r\n5,223.75 13,515.29 -334,701.27 202,170.40 \r\n0.00 \r\n946,968.27 \r\n-1,048,069.03 \r\n \r\n0.00 1,058,708.96 \r\n \r\n0.00 938,873.74 \r\n \r\n-20,767.44 -1,068,836.47 \r\n993,641.13 \r\n \r\n-20,767.44 -1,068,836.47 \r\n54,767.39 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,058,708.96 $ \r\n \r\n938,873.74 $ \r\n \r\n-75,195.34 $ -1,014,069.08 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\nOriginal and Final Budget amounts do not include the budgeted revenues or expenditures of several programs administered by the School District. \r\n \r\nThe actual revenues and expenditures of these programs were as follows: \r\n \r\nRevenues \r\n \r\nExpenditures \r\n \r\nTitle III Consortium Fresh Fruits and Vegetables District Fuel Fund \r\n \r\n$ \r\n \r\n904.75 $ \r\n \r\n821.47 \r\n \r\n41,562.45 \r\n \r\n41,589.52 \r\n \r\n2,965.15 \r\n \r\n2,801.49 \r\n \r\n$ \r\n \r\n45,432.35 $ \r\n \r\n45,212.48 \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of School Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants School Improvement Grants \r\nTotal School Improvement Grant Cluster \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grant Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Title I Grants to Local Educational Agencies Pass-Through From Southwest Georgia Regional Educational Service Agency English Language Acquisition Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 1,874,733.16 (1) \r\n \r\n1,874,733.16 \r\n \r\n10.582 \r\n \r\nN/A \r\n \r\n41,589.52 \r\n \r\n1,916,322.68 \r\n \r\n84.388 \r\n \r\nN/A \r\n \r\n1,010,464.43 \r\n \r\n84.377 \r\n \r\nN/A \r\n \r\n144,241.20 \r\n \r\n1,154,705.63 \r\n \r\n84.027 \r\n \r\nN/A \r\n \r\n84.173 \r\n \r\nN/A \r\n \r\n842,069.00 58,673.00 \r\n900,742.00 \r\n \r\n84.395 \r\n \r\nN/A \r\n \r\n401,115.06 \r\n \r\n84.048 \r\n \r\nN/A \r\n \r\n20,205.81 \r\n \r\n84.367 \r\n \r\nN/A \r\n \r\n198,982.18 \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n1,346,690.28 \r\n \r\n84.365 \r\n \r\nN/A \r\n \r\n821.47 \r\n \r\n1,967,814.80 \r\n \r\n4,023,262.43 \r\n \r\nTotal Expenditures of Federal Awards \r\nN/A = Not Available \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $152,387.15. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($461,467.88) were not maintained separately and are included in the 2014 National School Lunch Program. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Meriwether County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\nSee notes to the basic financial statements. \r\n \r\n$ 5,939,585.11 \r\n \r\n- 30 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program 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 Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Amended Formula Adjustment Other State Programs Move on When Ready Grant Preschool Handicapped Program Residential Treatment Centers Grant Rule 10 Special Education State Grant Vocational Education \r\nOffice of the State Treasurer Public School Employees' Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $1,250,064.00 are included as part of the Quality Basic Education revenue. \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n694,495.81 \r\n \r\n1,019,530.00 101,993.00 \r\n2,121,728.00 309,867.00 917,868.00 224,866.00 \r\n1,860,924.00 \r\n1,590,178.00 388,877.00 \r\n2,803,932.00 23,772.00 52,303.00 \r\n121,350.00 310,027.00 \r\n95,253.00 62,899.00 \r\n441,281.00 808,768.00 729,845.00 \r\n814,162.00 58,100.00 13,367.00 \r\n228,620.00 600,175.00 \r\n51,814.00 -1,982,116.00 \r\n100.00 82,734.00 44,821.34 90,000.00 18,250.00 \r\n82,347.00 \r\n44,984.82 \r\n$ 14,827,115.97 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nSPLOST II \r\n \r\n(iii) Paying a portion of the principal of and interest on \r\n \r\nthe Series 2004 Bonds, the maximum amount of debt \r\n \r\nto be paid will not exceed $1,680,200.00 as set forth \r\n \r\nin the School District Resolution \r\n \r\n$ \r\n \r\n(iv) Paying a portion of the principal of and interest on the Series 2005 Bonds, the maximum amount of debt to be paid will not exceed $5,415,652.25 as set forth in the School District Resolution \r\n \r\n(v) Paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $3,261,255.25 as set forth in the School District Resolution \r\n \r\n(iv) Paying a portion of the principal of and interest on the Series 2007 Bonds, the maximum amount of debt to be paid will not exceed $836,425.00 as set forth in the School District Resolution \r\n \r\n(v) Paying a portion of the principal of and interest on the Series 2010 Bonds, the maximum amount of debt to be paid will not exceed $310,000.00 as set forth in the School District Resolution \r\n(vi) Paying for system-wide technology upgrades, and renovations and improvements to existing school facilities, the amount of debt to be paid will not exceed $306,157.50 as set forth in the School District Resolution. \r\n \r\n1,680,200.00 $ 5,415,652.25 3,261,255.25 \r\n836,425.00 310,000.00 306,157.50 \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n1,680,200.00 $ 334,104.00 $ \r\n \r\n71,424.00 \r\n \r\n5,415,652.25 \r\n \r\n103,167.75 \r\n \r\n1,272,976.25 \r\n \r\n3,261,255.25 \r\n \r\n651,859.50 \r\n \r\n188,345.00 \r\n \r\n836,425.00 \r\n \r\n169,240.00 \r\n \r\n167,896.25 \r\n \r\n310,000.00 \r\n \r\n65,596.00 \r\n \r\n65,596.00 \r\n \r\n306,157.50 \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n6/30/2017 10/1/2018 6/30/2017 6/30/2017 \r\n6/30/2017 \r\n6/30/2017 \r\n \r\nTotal SPLOST II \r\n \r\n$ 11,809,690.00 $ 11,809,690.00 $ 1,323,967.25 $ 1,766,237.50 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 32 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\nTOTAL QBE FORMULA FUNDS \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,223,175.00 $ 1,718,795.33 $ \r\n \r\n125,204.00 2,496,263.00 \r\n425,505.00 1,088,556.00 \r\n302,284.00 2,206,853.00 1,893,514.00 \r\n480,605.00 3,304,340.00 \r\n33,776.00 67,382.00 148,811.00 \r\n \r\n143,857.93 1,968,818.02 \r\n226,509.90 1,290,399.53 \r\n127,290.16 2,312,259.69 2,568,615.12 \r\n291,849.43 \r\n644,989.03 494,366.50 1,852,937.41 296,099.57 112,416.46 \r\n5,552.70 \r\n \r\n13,796,268.00 \r\n \r\n14,054,756.78 \r\n \r\n370,218.00 72,165.00 \r\n \r\n325,756.80 \r\n \r\n19,113.57 $ 12,634.04 \r\n8,708.82 11,644.23 116,703.96 \r\n6,846.62 \r\n1,996.16 \r\n177,647.40 17,990.25 \r\n \r\n1,737,908.90 \r\n143,857.93 1,981,452.06 \r\n226,509.90 1,299,108.35 \r\n127,290.16 2,323,903.92 2,685,319.08 \r\n298,696.05 \r\n644,989.03 494,366.50 1,852,937.41 296,099.57 112,416.46 \r\n1,996.16 \r\n5,552.70 \r\n14,232,404.18 \r\n343,747.05 84,553.42 \r\n \r\n$ 14,238,651.00 $ 14,380,513.58 $ \r\n \r\n195,637.65 $ 14,660,704.65 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 5, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Meriwether County Board of Education as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise Meriwether County Board of Education's basic financial statements and have issued our report thereon dated April 5, 2016. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Meriwether 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 Meriwether County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Meriwether County Board of Education's internal control. \r\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 that we consider to be a material weakness and significant deficiencies. \r\n \r\n2014YB-40 \r\n \r\n (This page left intentionally blank) \r\n \r\n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2014-001 to be a material weakness. \r\nA significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2014-002, FS 2014-003, FS 2014-004, and FS 2014-005 to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Meriwether 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. \r\nWe noted certain matters that we have reported to management of Meriwether County Board of Education in a separate letter dated April 5, 2016. \r\nMeriwether County Board of Education's Response to Findings \r\nMeriwether County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Meriwether 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. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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. \r\nRespectfully submitted, \r\n \r\nGSG:er 2014YB-40 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 5, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited Meriwether 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. Meriwether 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. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of Meriwether 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 Meriwether County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Meriwether County Board of Education's compliance. \r\n2014SA-10 \r\n \r\n (This page left intentionally blank) \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the Meriwether 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. \r\nReport on Internal Control over Compliance \r\nManagement of Meriwether 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 Meriwether 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 Meriwether County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:er 2014SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-6991-12-01 FS-6991-12-02 FS-6991-13-01 FS-6991-13-02 FS-6991-13-03 FS-6991-13-04 \r\n \r\nFurther Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nSCHOOL ACTIVITY ACCOUNTS Inadequate Controls over School Activity Accounts Finding Control Number: FS-6991-13-01 \r\n \r\nMeriwether County Board of Education will establish and implement policies and procedures to ensure compliance over school activity accounts. \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-6991-13-02 \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal entries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. Additionally, financial statements will be prepared in accordance with generally accepted accounting principles. \r\n \r\nEMPLOYEE COMPENSATION Inadequate Controls over Employee Compensation Finding Control Number: FS-6991-13-03 \r\n \r\nMeriwether County Board of Education will implement policies and procedures to ensure that salaries and salary schedules are documented and approved by the Board. \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Finding Control Number: FS-6991-13-04 \r\n \r\nThe Board will implement procedures to ensure capital assets records conform to the approved capital asset policy. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nYes \r\n \r\n Significant deficiencies identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-001 Inadequate Internal Controls over School Activity Accounts \r\n \r\nControl Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nCash and Cash Equivalents Accounting Controls (Overall) General Ledger Financial Reporting Material Weakness Nonmaterial Noncompliance \r\n \r\nDescription: This is a repeat finding (FS-6991-13-01) from the year ended June 30, 2013. The accounting procedures of the School District were insufficient to provide adequate internal controls over school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\nOfficial Code of Georgia Annotated (O.C.G.A)  20-2-962 requires the principal of each public school to make a quarterly report to the local board of education immediately upon the end of each quarter of the fiscal year, and include all receipts and expenditures of the past quarter. \r\n \r\nCondition: Cash and Cash Equivalents \r\n Bank reconciliations were not reviewed or approved throughout the fiscal year.  The bank reconciliation function was not separated from record keeping, revenue receipting \r\nfunction, and voucher payment function. Accounting Controls (Overall) \r\n An administrative review of school activity accounts to determine if established procedures were being followed was not performed. \r\n The School District did not have a formal process for documenting agency fund sponsors, purpose of accounts, allowable activities of accounts, source of funds, and final disposition of funds related to individual agency fund accounts. \r\n Documentation to support that all school activity accounts were reported on at least a quarterly basis could not be provided. \r\nGeneral Ledger  Agency Funds reported deficit balances of $11,910.18 in total. Governmental Funds were used to cover these deficits. \r\nFinancial Reporting  Several school activity accounts that did not appear to be fiduciary in nature were misclassified as agency funds instead of governmental activities. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nEffect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to error or fraud. \r\nRecommendation: The School District should revise and implement internal controls to ensure proper separation of duties is established, accounting processes are adequately monitored, school activity accounts are properly classified, and agency fund accounts are properly documented. \r\nViews of Responsible Officials and Corrective Action Plans: The School District concurs with this finding. Management has reviewed the design and implementation of internal control procedures and has created a new school accounting manual to ensure adequate controls over school activity accounts. \r\nEstimated Corrective Action Date: February 2016 Contact Person: Angela Newby, Finance Director Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: angela.newby@mcssga.org \r\n \r\nFS 2014-002 Inadequate Control over Financial Reporting \r\n \r\nControl Category: Internal Control Impact: Compliance Impact: \r\n \r\nFinancial Reporting Significant Deficiency N/A \r\n \r\nDescription: This is a repeat finding (FS-6991-12-01 and FS-6991-13-02) from the fiscal years ended June 30, 2012 and June 30, 2013, respectively. The School District did not have adequate internal controls in place over the financial statement process. \r\n \r\nCriteria: The School District is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\n \r\nGASB Statement No. 34, Basic Financial Statements - Management's Discussion and Analysis - for State and Local Governments, requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nChapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\nCondition: The following errors and omissions were noted in the School District's financial statements and note disclosures presented for audit: \r\n A review of federal revenue revealed $354,204.49 that should have been deferred on the fund statements. An adjustment was proposed and accepted to correct this error. \r\n Multiple other adjustments and reclassification entries were proposed and accepted by management to properly present the School District's note disclosures, District-wide statements and fund financial statements. \r\nCause: In discussing this deficiency with the School District, management indicated there were errors that were made during the financial statement preparation process due to a lack of training. \r\nEffect or Potential Effect: Due to the School District not having adequate controls in place to ensure the financial statements are properly presented, inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles could occur. \r\nRecommendation: As part of internal control over the preparation of financial statements, including disclosures, the School District should continue to implement comprehensive preparation and/or review procedures to ensure that the financial statements are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of the applicable GAAP, GASB pronouncements, and knowledge of the School District's activities and operations. \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The School District has contracted with a private CPA, Ronnie Meismer, to prepare our financial statements. \r\nEstimated Corrective Action Date: Fiscal Year 2015 Contact Person: Angela Newby, Finance Director Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: angela.newby@mcssga.org \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-003 Inadequate Internal Controls over Employee Compensation Process \r\n \r\nControl Category: Internal Control Impact: Compliance Impact: \r\n \r\nEmployee Compensation Significant Deficiency N/A \r\n \r\nDescription: This is a repeat finding (FS-6991-13-03) from the fiscal year ended June 30, 2013. The accounting procedures of the School District were insufficient to provide for adequate internal controls over employee compensation. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance employees are paid according to approved salary schedules and documentation is maintained to support the salary payments. \r\n \r\nCondition: A review of employee compensation revealed several instances where salaries were not properly approved, supported by signed contracts and/or Board approved salary schedules. \r\n \r\nCause: In discussing these deficiencies with the School District, they indicated that formal procedures had not been implemented to ensure Board approved salary amounts are supported by adequate documentation. \r\n \r\nEffect or Potential Effect: The failure to maintain adequate internal controls over Employee Compensation increases the risk misstatements could occur in the financial statements due to error or fraud. \r\n \r\nRecommendation: The School District should implement policies and procedures to ensure normal business procedures are followed for all salaries, which includes ensuring salaries are paid according to approved salary schedules and adequate documentation is maintained to support the salary payments. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The School District has implemented new procedures to assure an adequate internal control over processing of employee compensation. \r\n \r\nEstimated Corrective Action Date Fiscal Year 2015 Contact Person: Solomon Ferguson, Assistant Superintendent Human Resources Telephone: (706) 672-4297 E-mail: solomon.ferguson@mcssga.org \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-004 Failure to Adequately Maintain Capital Assets \r\n \r\nControl Category: Internal Control Impact: Compliance Impact: \r\n \r\nCapital Assets Significant Deficiency N/A \r\n \r\nDescription: This is a repeat finding (FS-6991-12-02 and FS-6991-13-04) from the years ended June 30, 2012 and June 30, 2013. Adequate procedures are not in place to ensure that capital assets inventory records are properly maintained \r\n \r\nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration indicates that School Districts must develop capital asset policies, define system requirements, implement a capital asset system and conduct capital asset inventories. \r\n \r\nCondition: A review of the School District's capital assets records noted the following errors or omissions which were corrected based on proposed audit adjustments: \r\n \r\n The School District did not record the accumulated depreciation expense for an impairment of one of the school buildings resulting in an $838,242.29 overstatement of the asset. \r\n \r\n Multiple other adjustments and reclassification entries were needed to properly present capital assets in the School District's note disclosures and District-wide financial statements. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of time and resources to fully monitor and implement procedures over Capital Assets which follow Board policy. Additionally, they stated that the lack of time and resources resulted in inadequacies in the implementation of a new capital assets module. \r\n \r\nEffect or Potential Effect: The failure of the School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \r\n \r\nRecommendation: The School District should review its capital assets records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The School District will reassess internal control procedures related to capital assets to ensure they are in place and operating effectively. An administrative review will be conducted to make sure that the capital assets listing is accurate and to make sure the list conforms to generally accepted accounting principles. \r\n \r\n- 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nEstimated Corrective Action Date: Fiscal Year 2016 (March 2016) Contact Person: Angela Newby, Finance Director Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: angela.newby@mcssga.org \r\n \r\nFS 2014-005 Budget Preparation/Execution \r\n \r\nControl Category: Internal Control Impact: Compliance Impact: \r\n \r\nDeficit Fund Balance Significant Deficiency N/A \r\n \r\nDescription: The General Fund of the School District reported a deficit fund balance at June 30, 2014. \r\n \r\nCriteria: Chapter 25 Governmental Fund Deficits of the Financial Management for the Georgia Local Units of Administration states in part: \"The seriousness of fund balance deficits cannot be overstated. The Georgia Department of Education (GA DOE) required those LUAs with deficit governmental fund balances to meet certain reporting requirements.\" \r\n \r\nThe Department of Audits and Accounts is required to report all instances of budget deficits in accordance with the Official Code of Georgia Annotated  20-2-67 (a) which states: \"When an audit by the Department of Audits and Accounts finds and reports irregularities or budget deficits in the fund accounting information regarding a local school system or a school within the local school system, the Department of Audits and Accounts shall report the findings of irregularities or budget deficits to the State Board of Education and the local board of education.\" \r\n \r\nCondition: The School District's General Fund reported a deficit unassigned fund balance in the amount of $405,217.93. \r\n \r\nCause: In discussing this deficiency with the School District, management indicated that the economic downturn depleted their fund balance. \r\n \r\nEffect or Potential Effect: The unassigned fund balance of the General Fund is not sufficient to meet the fund's obligations at June 30, 2014. \r\n \r\nRecommendation: The School District should design and establish budgetary policies to improve the accuracy of revenue and expense projections to ensure that in future periods the School District does not report a deficit fund balance. \r\n \r\n- 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Views of Responsible Officials and Corrective Action Plans: The School District concurs with this finding. The School District will adopt a balanced budget. The School District will also establish procedures to ensure that expenditures do not exceed available resources, so that the School District does not report a deficit fund balance. Estimated Corrective Action Date: Fiscal Year 2017 (July 1, 2016) Contact Person: Angela Newby, Finance Director; Tim Dixon, Superintendent Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: angela.newby@mcssga.org; tim.dixon@mcssga.org III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 8 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2013-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2013 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":["2015-01-05"],"dcterms_description":["Annual report from the Meriwether 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended 2013 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-bm5-b2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \r\nGREENVILLE, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n(Including Independent Auditor's Reports) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\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 \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 \r\n27 28 30 31 33 \r\n \r\n  MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  SECTION I FINANCIAL \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 5, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Meriwether 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. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n2013ARL-11 \r\n \r\n  includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to 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 Meriwether 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. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2013, the Meriwether County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (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 this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, 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. \r\nOther Information \r\nOur audit was conducted as required by section 50-6-6(a) of the Official Code of Georgia Annotated. We provided basic accounting assistance limited to services such as preparing draft financial statements that were based on the School District's chart of accounts and general ledgers including any adjusting, correcting, and closing entries that have been approved by the School District's management; prepared draft notes to the financial statements based on information determined and approved by the School District's management; and prepared trial balances based on the School District's chart of accounts. \r\n2013ARL-11 \r\n \r\n  Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Meriwether 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. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Governm ent Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated January 5, 2015, on our consideration of the Meriwether 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 Meriwether County Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  MERIWETHER COUNTY BOARD OF EDUCATION \r\n \r\n  MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Prepaid Items Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Deposits and Deferred Revenues Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ 1,432,547.56 454,752.49 \r\n2,300,421.42 1,846,887.05 \r\n744,218.10 12,196.51 91,035.41 \r\n123,527.10 166,019.91 144,263.00 531,808.00 40,005,253.94 \r\n$ 47,852,930.49 \r\n \r\n$ \r\n \r\n480,462.85 \r\n \r\n3,314,050.12 \r\n \r\n285,719.69 \r\n \r\n195,234.88 \r\n \r\n475.00 \r\n \r\n1,878,879.00 15,360,654.57 \r\n \r\n$ 21,515,476.11 \r\n \r\n$ 23,373,166.94 \r\n114,373.72 817,888.37 2,032,025.35 \r\n \r\n$ 26,337,454.38 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2013 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 20,368,346.83 $ \r\n938,570.68 1,897,465.61 \r\n285,846.08 1,006,133.29 1,941,423.47 \r\n228,310.40 2,100,333.86 2,566,466.48 \r\n43,103.43 163,556.83 \r\n289,774.79 1,810,559.67 \r\n737,537.29 \r\n$ 34,377,428.71 $ \r\n \r\n17,650.00 \r\n135,379.71 56,409.02 \r\n209,438.73 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ \r\n \r\n12,282,458.70 \r\n \r\n288,992.97 1,732,943.85 \r\n404,671.62 705,490.58 1,196,335.39 \r\n20,367.09 972,722.19 976,055.55 $ \r\n1,373.43 152,370.26 \r\n \r\n1,751,491.28 \r\n \r\n$ \r\n \r\n20,485,272.91 $ \r\n \r\n$ 76,219.50 76,219.50 $ \r\n \r\n-8,068,238.13 \r\n-649,577.71 -164,521.76 118,825.54 -300,642.71 -745,088.08 -207,943.31 -1,127,611.67 -1,514,191.43 \r\n-41,730.00 -11,186.57 \r\n-154,395.08 -2,659.37 \r\n-737,537.29 \r\n-13,606,497.57 \r\n \r\n$ \r\n \r\n8,771,920.09 \r\n \r\n803,827.34 \r\n \r\n59,384.33 \r\n \r\n1,704,717.03 91,241.07 \r\n1,107,078.00 3,479.01 \r\n805,637.60 \r\n \r\n$ \r\n \r\n13,347,284.47 \r\n \r\n$ \r\n \r\n-259,213.10 \r\n \r\n26,596,667.48 \r\n \r\n$ \r\n \r\n26,337,454.38 \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Prepaid Items \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,281,784.37 $ \r\n2,013,117.25 1,846,887.05 \r\n744,218.10 12,196.51 91,035.41 \r\n123,527.10 166,019.91 \r\n \r\n0.00 $ 150,763.19 $ 1,432,547.56 \r\n \r\n454,752.49 \r\n \r\n454,752.49 \r\n \r\n287,304.17 \r\n \r\n2,300,421.42 1,846,887.05 \r\n744,218.10 12,196.51 91,035.41 \r\n123,527.10 166,019.91 \r\n \r\n$ 6,278,785.70 $ \r\n \r\n0.00 $ 892,819.85 $ 7,171,605.55 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 480,462.85 $ 3,314,050.12 285,719.69 1,204,911.91 \r\n$ 5,285,144.57 $ \r\n$ 289,547.01 265,204.28 $ 71,860.11 367,029.73 \r\n$ 993,641.13 $ \r\n$ 6,278,785.70 $ \r\n \r\n0.00 $ \r\n \r\n$ 98,479.34 \r\n \r\n480,462.85 3,314,050.12 \r\n285,719.69 1,303,391.25 \r\n \r\n0.00 $ 98,479.34 $ 5,383,623.91 \r\n \r\n0.00 $ \r\n \r\n$ 794,340.51 \r\n \r\n289,547.01 1,059,544.79 \r\n71,860.11 367,029.73 \r\n \r\n0.00 $ 794,340.51 $ 1,787,981.64 \r\n \r\n0.00 $ 892,819.85 $ 7,171,605.55 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2013 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nProperty Taxes \r\nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Position. \r\nDeferred Charges - Capitalized Bond Issuance Costs \r\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: \r\nBonds Payable Intergovernmental Contract Deferred Amount on Refunding Accrued Interest Compensated Absences Payable \r\nTotal Long-Term Liabilities \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 1,787,981.64 \r\n \r\n$ \r\n \r\n531,808.00 \r\n \r\n4,324,836.92 \r\n \r\n51,828,079.68 \r\n \r\n5,827,752.25 \r\n \r\n-21,975,414.91 \r\n \r\n40,537,061.94 \r\n \r\n1,302,916.25 \r\n \r\n144,263.00 \r\n \r\n$ -9,390,000.00 -8,120,000.00 346,105.00 -195,234.88 -75,638.57 \r\n \r\n-17,434,768.45 \r\n \r\n$ 26,337,454.38 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Services Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 8,730,339.05 86,360.43 \r\n15,540,399.75 6,128,170.66 209,438.73 2,912.99 $ 805,637.60 \r\n$ 31,503,259.21 $ \r\n \r\n$ 37.32 \r\n \r\n800,851.66 $ 1,709,597.67 \r\n528.70 \r\n \r\n9,531,190.71 1,795,958.10 15,540,399.75 6,128,170.66 \r\n209,438.73 3,479.01 \r\n805,637.60 \r\n \r\n37.32 $ 2,510,978.03 $ 34,014,274.56 \r\n \r\n$ 18,659,144.43 \r\n932,595.74 1,897,993.03 \r\n285,846.08 979,501.87 1,939,685.27 188,131.27 2,063,521.57 $ 2,317,491.98 \r\n43,103.43 163,556.83 289,774.79 1,792,963.84 \r\n \r\n12,188.54 \r\n \r\n$ 31,565,498.67 $ \r\n \r\n$ \r\n \r\n-62,239.46 $ \r\n \r\n$ 18,659,144.43 \r\n \r\n1,393.10 \r\n \r\n932,595.74 1,897,993.03 \r\n285,846.08 979,501.87 1,939,685.27 188,131.27 2,064,914.67 2,317,491.98 \r\n43,103.43 163,556.83 289,774.79 1,792,963.84 \r\n \r\n$ 1,825,000.00 747,965.50 \r\n \r\n1,825,000.00 760,154.04 \r\n \r\n1,393.10 $ 2,572,965.50 $ 34,139,857.27 \r\n \r\n-1,355.78 $ \r\n \r\n-61,987.47 $ \r\n \r\n-125,582.71 \r\n \r\n$ \r\n \r\n$ \r\n \r\n-65,596.00 \r\n \r\n$ \r\n \r\n-65,596.00 $ \r\n \r\n$ \r\n \r\n-127,835.46 $ \r\n \r\n1,121,476.59 \r\n \r\n0.00 $ \r\n0.00 $ -1,355.78 $ 1,355.78 \r\n \r\n65,596.00 $ \r\n65,596.00 $ 3,608.53 $ \r\n790,731.98 \r\n \r\n65,596.00 -65,596.00 \r\n0.00 -125,582.71 1,913,564.35 \r\n \r\n$ \r\n \r\n993,641.13 $ \r\n \r\n0.00 $ 794,340.51 $ 1,787,981.64 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2013 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\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: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nBond issuance costs, deferred gains on refunding bonds and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Position and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Bond Issuance Costs Amortization of Deferred Gain on Refunding of Bonds \r\nTotal Bond Issuance Costs \r\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: \r\nBond Principal Retirements Intergovernmental Contract Repayments \r\nTotal Long-Term Debt Repayments \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nNet Decrease in Accrued Interest Increase in Compensated Absences \r\nTotal Additional Expenditures \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -125,582.71 \r\n \r\n$ \r\n \r\n82,500.00 \r\n \r\n-2,120,028.53 \r\n \r\n-2,037,528.53 \r\n \r\n103,941.05 \r\n \r\n$ \r\n \r\n-13,223.00 \r\n \r\n-26,121.00 \r\n \r\n-39,344.00 \r\n \r\n$ 1,470,000.00 355,000.00 \r\n \r\n1,825,000.00 \r\n \r\n$ \r\n \r\n22,616.75 \r\n \r\n-8,315.66 \r\n \r\n14,301.09 \r\n \r\n$ -259,213.10 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2013 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n62,682.21 \r\n \r\n8,091.01 \r\n \r\n$ \r\n \r\n70,773.22 \r\n \r\n$ \r\n \r\n70,773.22 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Meriwether 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. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\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 Meriwether County Board Of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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. \r\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. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds, including Fiduciary. 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\nThe School District reports the following major governmental funds: \r\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. \r\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. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\n- 9 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, 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. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\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. \r\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 PreNovember 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement incorporate certain accounting and financial reporting guidance into authoritative GASB literature. \r\n \r\n- 10 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\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. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits \r\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. \r\nINVESTMENTS \r\nComposition of Investments \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. 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: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nPROPERTY TAXES \r\nThe Meriwether County Board of Commissioners adopted the property tax levy for the 2012 tax digest year (calendar year) on September 6, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on December 20, 2012 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2012 tax digest are reported as revenue in the governmental funds for fiscal year 2013. The Meriwether County Tax Commissioner bills and collects the property \r\n \r\n- 11 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\ntaxes for the School District, withholds 0.25% 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 $8,514,535.00 and for school bonds amounted to $800,851.66. \r\n \r\nTax millage rates levied for the 2012 tax year (calendar year) for the Meriwether County Board Of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n17.354 mills 1.665 mills \r\n \r\n19.019 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $156,419.72 during fiscal year ended June 30, 2013. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,709,597.67 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories \r\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. \r\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit periods subsequent to June 30, 2013, are recorded as prepaid items. \r\nCAPITAL ASSETS \r\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. \r\n \r\n- 12 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\n$ \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\n5,000.00 5,000.00 5,000.00 5,000.00 500,000.00 \r\n \r\nN/A 20 years \r\n7 to 40 years 5 to 15 years individually determined \r\n \r\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. \r\n \r\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. \r\n \r\nCOMPENSATED ABSENCES \r\nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. \r\n \r\nBeginning of Year Liability \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nEnd of Year Liability \r\n \r\n2011 $ 2012 $ 2013 $ \r\n \r\n59,639.52 $ 65,584.60 $ 67,322.91 $ \r\n \r\n5,945.08 $ 1,738.31 $ 8,315.66 $ \r\n \r\n0.00 $ 0.00 $ 0.00 $ \r\n \r\n65,584.60 67,322.91 75,638.57 \r\n \r\nGENERAL OBLIGATION BONDS \r\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. \r\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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \r\n \r\n- 13 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNET POSITION \r\nThe School District's net position in the District-wide Statements is classified as follows: \r\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. \r\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. \r\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. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\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. \r\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. \r\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. \r\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. \r\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. \r\n \r\n- 14 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n123,527.10 \r\n \r\n166,019.91 $ \r\n \r\n289,547.01 \r\n \r\n$ \r\n \r\n46,421.54 \r\n \r\n1,013,123.25 \r\n \r\n1,059,544.79 \r\n \r\n71,860.11 367,029.73 \r\n \r\nFund Balance, June 30, 2013 \r\n \r\n$ 1,787,981.64 \r\n \r\nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all the general fund is prepared and adopted by function. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of 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. \r\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. \r\n \r\n- 15 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\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. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\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, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\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. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2013, the bank balances were $1,701,193.94. The bank balances were covered by Federal depository insurance or collateralized with securities held by the pledging financial institution but not in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2013, the carrying value of the School District's total investments was $454,752.49, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\n \r\n- 16 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2013, was 43 days. \r\n \r\nThe Georgia Extended Asset Pool is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAf money market rated funds. The pool is not registered with the SEC as an investment company. Net Asset Value (NAV) is calculated daily to determine current share price, which at June 30, 2013 was $2.00 per share. The weighted average maturity of the fund at June 30, 2013, was .26 years. \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\nBalances July 1, 2012 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2013 \r\n \r\n$ \r\n \r\n531,808.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n531,808.00 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 51,828,079.68 5,745,252.25 $ 4,324,836.92 \r\n \r\n$ 82,500.00 \r\n \r\n0.00 $ \r\n \r\n51,828,079.68 5,827,752.25 4,324,836.92 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n14,212,943.17 3,613,075.13 2,029,368.08 \r\n \r\n1,484,876.87 418,909.76 216,241.90 \r\n \r\n15,697,820.04 4,031,984.89 2,245,609.98 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 42,042,782.47 $ -2,037,528.53 $ \r\n \r\n0.00 $ 40,005,253.94 \r\n \r\nGovernmental Activity Capital Assets - Net $ 42,574,590.47 $ -2,037,528.53 $ \r\n \r\n0.00 $ 40,537,061.94 \r\n \r\n- 17 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$ \r\n2,795.99 23,468.39 \r\n1,738.20 32,655.97 336,524.74 \r\n \r\n1,705,249.41 \r\n397,183.29 17,595.83 \r\n \r\n$ 2,120,028.53 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2013, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\nGeneral Fund \r\n \r\nDebt Service Fund \r\n \r\n$ \r\n \r\n65,596.00 \r\n \r\nTransfers are used to move IRS reimbursement revenues collected by the General Fund to the Debt Service Fund for retiring interest on the 2010 QSCB Bond. \r\nNOTE 8: RISK MANAGEMENT \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\nThe School District has obtained commercial insurance for risk of loss associated with motor vehicles. 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. \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\n- 18 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2012 $ 2013 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n45,912.16 $ 36,769.79 $ \r\n \r\n45,912.16 $ 36,769.79 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Other Employees \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: SHORT-TERM DEBT \r\nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $ \r\n \r\n0.00 $ 2,600,000.00 $ 2,600,000.00 $ \r\n \r\n0.00 \r\n \r\nIn addition to the short-term debt mentioned above, the School District issues tax anticipation notes in the amount of $2,000,000.00 in the subsequent period in advance of property tax collections, depositing the proceeds in its General Fund. \r\nNOTE 10: LONG-TERM DEBT \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n- 19 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINTERGOVERNMENTAL CONTRACT \r\nThe Meriwether County Board Of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District and capital outlay projects of the School District. Under the terms of the contract, the Meriwether County Public Facilities Authority (Authority) issued $8,810,000.00 less issuance costs of $229,391.00 in bonds on behalf of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00, (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \r\nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \r\nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \r\nThe debt at June 30, 2013, associated with these agreements is as follows: \r\n \r\nPurpose \r\nGeneral Government - Refunding - Series 2006 General Government - QSCB - Series 2010 \r\n \r\nInterest Rates \r\n4.21% 5.29% \r\n \r\nAmount \r\n$ 6,880,000.00 1,240,000.00 \r\n$ 8,120,000.00 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nGeneral Government - Series 2004 General Government - Refunding - Series 2005 General Government - Series 2007 \r\n \r\n3.84% 3.27% 3.70% - 4.10% \r\n \r\nAmount \r\n$ 3,720,000.00 3,885,000.00 1,785,000.00 \r\n$ 9,390,000.00 \r\n \r\n- 20 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2013, were as follows: \r\n \r\nBalance July 1, 2012 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2013 \r\n \r\nDue Within One Year \r\n \r\nIntergovernmental Agreement $ Less: Deferred Amounts \r\nOn Refunding \r\n \r\n8,475,000.00 $ 372,226.00 \r\n \r\n0.00 $ \r\n \r\n355,000.00 $ 8,120,000.00 $ \r\n \r\n26,121.00 \r\n \r\n346,105.00 \r\n \r\n370,000.00 26,121.00 \r\n \r\nTotal Intergovernmental Agreement \r\n \r\n$ 8,102,774.00 $ \r\n \r\n0.00 $ \r\n \r\n328,879.00 $ 7,773,895.00 $ \r\n \r\n343,879.00 \r\n \r\nG. O. Bonds Compensated Absences (1) \r\n \r\n10,860,000.00 67,322.91 \r\n \r\n8,315.66 \r\n \r\n1,470,000.00 \r\n \r\n9,390,000.00 75,638.57 \r\n \r\n1,535,000.00 \r\n \r\n$ 19,030,096.91 $ \r\n \r\n8,315.66 $ 1,798,879.00 $ 17,239,533.57 $ 1,878,879.00 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2013, payments due by fiscal year which includes principal and interest for these items are as follows. \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2014 2015 2016 2017 2018 2019 - 2023 2024 - 2028 \r\n \r\n$ 1,535,000.00 $ 1,600,000.00 1,670,000.00 335,000.00 350,000.00 1,980,000.00 1,920,000.00 \r\n \r\n335,383.50 283,355.50 228,998.75 172,267.00 159,103.75 575,446.00 154,533.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 9,390,000.00 $ 1,909,087.50 \r\n \r\nFiscal Year Ended June 30: \r\n \r\nIntergovernmental Agreement \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nDeferred Amount on Refunding \r\n \r\n2014 2015 2016 2017 2018 2019 - 2023 2024 - 2028 \r\n \r\n$ 370,000.00 $ 385,000.00 405,000.00 420,000.00 435,000.00 \r\n3,715,000.00 2,390,000.00 \r\n \r\n347,455.50 $ 331,562.75 314,933.25 297,567.00 279,569.25 903,200.75 206,500.50 \r\n \r\n26,121.00 26,121.00 26,121.00 26,121.00 26,121.00 130,605.00 84,895.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 8,120,000.00 $ 2,680,789.00 $ 346,105.00 \r\n \r\n- 21 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $1,845,043.00 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,766,136.00 \r\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 $78,907.00 \r\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. \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: SUBSEQUENT EVENTS \r\nThe School District entered into an intergovernmental contract, dated September 1, 2013, with the Meriwether County Public Facilities Authority for the issuance of revenue bonds on behalf of the School District. Under the terms of the contract, the Authority issued revenue bonds in the amount of $4,200,000.00. The proceeds from these bonds will be used for the purpose of retiring debt service on the School District's General Obligation Refunding Bond, Series 2005. \r\nNOTE 14: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\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. \r\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 \r\n \r\n- 22 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nyears 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 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. \r\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. \r\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: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 2012 - February 2013 March 2013 - June 2013 \r\n \r\n$912.34 per member per month $937.34 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2012 - June 2013 \r\n \r\n$446.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ 3,306,982.40 $ 3,152,346.39 $ 2,970,960.04 \r\n \r\n- 23 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 15: RETIREMENT PLANS \r\n \r\nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\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. \r\n \r\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. \r\n \r\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. \r\n \r\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. \r\n \r\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. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,882,222.45 $ 1,797,763.93 $ 1,762,220.80 \r\n \r\n- 24 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\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. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nTransfers Out \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 8,610,000.00 $ 8,610,000.00 $ 8,730,339.05 $ \r\n \r\n80,000.00 \r\n \r\n80,000.00 \r\n \r\n86,360.43 \r\n \r\n15,631,440.00 \r\n \r\n15,630,196.00 \r\n \r\n15,540,399.75 \r\n \r\n5,989,578.00 \r\n \r\n6,440,845.00 \r\n \r\n6,128,170.66 \r\n \r\n108,500.00 \r\n \r\n108,500.00 \r\n \r\n209,438.73 \r\n \r\n4,260.00 \r\n \r\n4,260.00 \r\n \r\n2,912.99 \r\n \r\n879,500.00 \r\n \r\n879,500.00 \r\n \r\n805,637.60 \r\n \r\n$ 31,303,278.00 $ 31,753,301.00 $ 31,503,259.21 $ \r\n \r\n120,339.05 6,360.43 \r\n-89,796.25 -312,674.34 100,938.73 \r\n-1,347.01 -73,862.40 \r\n-250,041.79 \r\n \r\n$ 18,743,277.00 $ 18,534,876.00 $ 18,659,144.43 $ \r\n \r\n1,017,923.00 1,584,710.00 \r\n290,000.00 1,074,260.00 1,956,000.00 \r\n231,000.00 1,993,000.00 2,360,642.00 \r\n45,000.00 168,966.00 \r\n1,838,500.00 \r\n \r\n1,040,832.00 2,332,502.00 \r\n290,000.00 987,451.00 1,956,000.00 231,000.00 1,993,000.00 2,341,945.00 \r\n51,615.00 155,580.00 \r\n1,838,500.00 \r\n \r\n932,595.74 1,897,993.03 \r\n285,846.08 979,501.87 1,939,685.27 188,131.27 2,063,521.57 2,317,491.98 \r\n43,103.43 163,556.83 289,774.79 1,792,963.84 \r\n \r\n12,188.54 \r\n \r\n$ 31,303,278.00 $ 31,753,301.00 $ 31,565,498.67 $ \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n-62,239.46 $ \r\n \r\n-124,268.43 \r\n108,236.26 434,508.97 \r\n4,153.92 7,949.13 16,314.73 42,868.73 -70,521.57 24,453.02 8,511.57 -7,976.83 -289,774.79 45,536.16 \r\n-12,188.54 \r\n187,802.33 \r\n-62,239.46 \r\n \r\n-65,596.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n-127,835.46 $ \r\n \r\n2,153,936.66 \r\n \r\n1,053,571.43 \r\n \r\n1,121,476.59 \r\n \r\n-65,596.00 -127,835.46 \r\n67,905.16 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,153,936.66 $ 1,053,571.43 $ \r\n \r\n993,641.13 $ \r\n \r\n-59,930.30 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of School Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants School Improvement Grants \r\nTotal School Improvement Grant Cluster \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I - Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grant Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nTotal Expenditures of Federal Awards \r\nN/A = Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 1,740,461.84 (1) \r\n \r\n$ 1,740,461.84 \r\n \r\n84.388 84.377 \r\n \r\nN/A $ N/A \r\n \r\n193,269.56 962,408.80 \r\n \r\n$ 1,155,678.36 \r\n \r\n* 84.027 * 84.173 \r\n \r\nN/A $ N/A \r\n$ \r\n \r\n864,283.00 59,668.00 \r\n923,951.00 \r\n \r\n84.010 \r\n \r\nN/A $ 1,523,612.44 \r\n \r\n* 84.395 84.048 84.410 84.367 84.287 \r\n \r\nN/A $ N/A N/A N/A N/A \r\n \r\n479,227.14 31,973.01 1,244.00 \r\n287,994.37 31,976.68 \r\n \r\n$ \r\n \r\n832,415.20 \r\n \r\n$ 4,435,657.00 \r\n \r\n$ 6,176,118.84 \r\n \r\n- 28 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $130,303.04. \r\n(2) Expenditures for the fund earned on the School Breakfast Program ($467,051.72) were not maintained separately and are included in the 2013 National School Lunch Program. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright from the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program 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 Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Amended Formula Adjustment Other State Programs Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Rule 10 Special Education State Grant Vocational Education \r\nOffice of the State Treasurer Public School Employees' Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n707,403.47 \r\n \r\n1,102,086.00 108,194.00 \r\n1,979,924.00 635,418.00 898,410.00 402,807.00 -446.00 \r\n1,808,102.00 1,587,322.00 \r\n512,614.00 2,595,723.00 \r\n29,035.00 72,441.00 148,026.00 319,893.00 98,937.00 62,999.00 \r\n477,419.00 886,848.00 754,171.00 \r\n804,504.00 61,706.00 \r\n115,681.00 1,107,078.00 \r\n51,816.00 -2,241,540.00 \r\n26,663.78 107,769.00 \r\n76,219.50 90,000.00 29,269.00 \r\n78,907.00 \r\n45,000.00 \r\n$ 15,540,399.75 \r\n \r\n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $1,766,136.00 are included as part of the Quality Basic Education revenue. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nSPLOST I \r\n(iii) Paying a portion of the principal of and interest on the Series 2004 Bonds, the maximum amount of debt to be paid will not exceed $1,670,616.00 as set forth in the School District Resolution \r\n$ \r\n(iv) Paying a portion of the principal of and interest on the Series 2005 Bonds, the maximum amount of debt to be paid will not exceed $5,675,012.75 as set forth in the School District Resolution \r\n(v) Paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $2,840,098.75 as set forth in the School District Resolution \r\n \r\n1,670,616.00 $ 5,675,012.75 2,840,098.75 \r\n \r\n1,670,616.00 $ 5,675,012.75 2,840,098.75 \r\n \r\n259,976.00 $ 1,410,640.00 $ 1,670,616.00 $ \r\n \r\n82,976.25 \r\n \r\n5,592,036.50 \r\n \r\n5,675,012.75 \r\n \r\n463,775.75 \r\n \r\n2,224,026.25 \r\n \r\n2,687,802.00 \r\n \r\n0.00 0.00 0.00 \r\n \r\nTotal SPLOST I \r\n \r\n$ 10,185,727.50 $ 10,185,727.50 $ \r\n \r\n806,728.00 $ 9,226,702.75 $ 10,033,430.75 $ \r\n \r\n0.00 \r\n \r\nSPLOST II \r\n \r\n(iii) Paying a portion of the principal of and interest on the Series 2004 Bonds, the maximum amount of debt to be paid will not exceed $1,680,200.00 as set forth in the School District Resolution \r\n$ \r\n(iv) Paying a portion of the principal of and interest on the Series 2005 Bonds, the maximum amount of debt to be paid will not exceed $5,415,652.25 as set forth in the School District Resolution \r\n(v) Paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $3,261,255.25 as set forth in the School District Resolution \r\n(iv) Paying a portion of the principal of and interest on the Series 2007 Bonds, the maximum amount of debt to be paid will not exceed $836,425.00 as set forth in the School District Resolution \r\n(v) Paying a portion of the principal of and interest on the Series 2010 Bonds, the maximum amount of debt to be paid will not exceed $310,000.00 as set forth in the School District Resolution \r\n(vi) Paying for system-wide technology upgrades, and renovations and improvements to existing school facilities, the amount of debt to be paid will not exceed $306,157.50 as set forth in the School District Resolution. \r\n \r\n1,680,200.00 $ 5,415,652.25 3,261,255.25 \r\n836,425.00 310,000.00 306,157.50 \r\n \r\n1,680,200.00 $ 5,415,652.25 3,261,255.25 \r\n836,425.00 310,000.00 306,157.50 \r\n \r\n71,424.00 $ 1,272,976.25 \r\n188,345.00 167,896.25 \r\n65,596.00 \r\n \r\nTotal SPLOST II \r\n \r\n$ 11,809,690.00 $ 11,809,690.00 $ 1,766,237.50 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n0.00 0.00 \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nComplete Complete Complete \r\n6/30/2017 6/30/2017 6/30/2017 6/30/2017 6/30/2017 6/30/2017 \r\n \r\n$ 21,995,417.50 $ 21,995,417.50 $ 2,572,965.50 $ 9,226,702.75 $ 10,033,430.75 $ \r\n \r\n0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Meriwether 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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,265,230.00 $ 1,381,241.45 $ \r\n \r\n16,079.93 $ \r\n \r\n1,397,321.38 \r\n \r\n146,606.00 \r\n \r\n129,985.76 \r\n \r\n129,985.76 \r\n \r\n2,284,213.00 \r\n \r\n2,152,618.32 \r\n \r\n10,935.54 \r\n \r\n2,163,553.86 \r\n \r\n763,337.00 \r\n \r\n221,524.48 \r\n \r\n221,524.48 \r\n \r\n1,048,250.00 \r\n \r\n1,219,265.99 \r\n \r\n7,378.66 \r\n \r\n1,226,644.65 \r\n \r\n507,653.00 2,125,888.00 1,869,630.00 \r\n589,635.00 3,059,214.00 \r\n66,670.00 97,462.00 173,069.00 \r\n \r\n127,643.99 2,377,347.93 2,672,471.01 \r\n298,345.66 \r\n616,704.14 573,052.34 1,663,680.62 326,373.20 152,216.63 -12,375.88 \r\n99,308.44 \r\n \r\n22,237.63 130,221.26 \r\n18,870.80 \r\n \r\n127,643.99 2,399,585.56 2,802,692.27 \r\n317,216.46 \r\n616,704.14 573,052.34 1,663,680.62 326,373.20 152,216.63 -12,375.88 \r\n99,308.44 \r\n \r\n$ \r\n \r\n13,996,857.00 $ 13,999,404.08 $ \r\n \r\n205,723.82 $ 14,205,127.90 \r\n \r\n374,816.00 74,007.00 \r\n \r\n250,901.06 \r\n \r\n17,338.52 \r\n \r\n268,239.58 57,946.28 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n14,445,680.00 $ 14,250,305.14 $ \r\n \r\n223,062.34 $ 14,531,313.76 \r\n \r\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. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 5, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Meriwether 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 Meriwether County Board of Education's basic financial statements and have issued our report thereon dated January 5, 2015. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Meriwether 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 Meriwether County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Meriwether County Board of Education's internal control. \r\nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and a significant deficiency. \r\n \r\n2013YB-40 \r\n \r\n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS-6991-13-01, FS-6991-13-02, and FS-6991-13-04 to be material weaknesses. \r\nA significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS-6991-13-03 to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Meriwether 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. \r\nWe noted certain matters that we have reported to management of Meriwether County Board of Education in a separate letter dated January 5, 2015. \r\nMeriwether County Board of Education's Response to Findings \r\nMeriwether County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Meriwether 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. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the 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. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013YB-40 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 5, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Meriwether County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited Meriwether 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. Meriwether 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. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of Meriwether 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 Meriwether County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of Meriwether County Board of Education's compliance. \r\n2013SA-10 \r\n \r\n  Opinion on Each Major Federal Program \r\nIn our opinion, the Meriwether 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. \r\nReport on Internal Control over Compliance \r\nManagement of Meriwether 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 Meriwether 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 Meriwether County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-6991-12-01 FS-6991-12-02 \r\n \r\nUnresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Finding Control Number: FS-6991-12-01 \r\n \r\nThe Board will implement procedures to ensure that all required activity in the form of journal entries are in the financial statements. Management will ensure that the financial statements are in accordance with Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration. Additionally, financial statements will be prepared in accordance with generally accepted accounting principles. \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Finding Control Number: FS-6991-12-02 \r\n \r\nThe Board will implement procedures to ensure capital assets records conform to the approved capital assets policy. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weaknesses identified? \r\n \r\nYes \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.027, 84.173 84.395 \r\n \r\nChild Nutrition Cluster Special Education Cluster Race-to-the-Top Incentive Grants \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFinding Control Number: Control Category: \r\nInternal Control Impact: \r\n \r\nFS-6991-13-01 Inadequate Internal Controls over School Activity Accounts Cash and Cash Equivalents Accounting Controls (Overall) General Ledger Financial Reporting Material Weakness \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls over school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and provide reasonable assurance transactions are processed according to established procedures. \r\n \r\nCondition: \r\n \r\nCash and Cash Equivalents  Bank reconciliations were not reviewed or approved throughout the fiscal year.  The bank reconciliation function was not separated from record keeping and voucher payment function. \r\n \r\nAccounting Controls (Overall)  An administrative review of school activity accounts to determine if established procedures were being followed was not performed.  The School District did not have a formal process for documenting agency fund sponsors, purpose of accounts, allowable activities of accounts, source of funds, and final disposition of funds related to individual agency fund accounts. \r\n \r\nGeneral Ledger  Agency Funds reported deficit balances of $12,563.59 in total. Governmental Funds were used to cover these deficits. \r\n \r\nFinancial Reporting  Several school activity accounts that did not appear to be fiduciary in nature were misclassified as agency funds instead of governmental activities. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of formal policies and procedures regarding school activity accounts. \r\n \r\nEffect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to error or fraud. \r\n \r\n- 2 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nRecommendation: The School District should revise and implement internal controls to ensure proper separation of duties is established, accounting processes are adequately monitored, school activity accounts are properly classified, and agency fund accounts are properly documented. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: Meriwether County Board of Education will establish and implement policies and procedures to ensure compliance over school activity accounts. \r\n \r\nEstimated Corrective Action Date: July 1, 2015 Contact Person: Bridgett Holder Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: bridgett.holder@mcssga.org \r\n \r\nFinding Control Number: \r\nControl Category: Internal Control Impact: \r\n \r\nFS-6991-13-02 Inadequate Control over Financial Reporting Financial Reporting Material Weakness \r\n \r\nDescription: This is a repeat finding (FS-6991-12-01) from the year ended June 30, 2012. The School District did not have adequate internal controls in place over the financial statement reporting process. \r\n \r\nCriteria: Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nThe Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Integrated Framework states that an essential attribute to reliable financial reporting is the timely performance of procedures. \r\n \r\nCondition: The Department of Audits and Accounts provided basic accounting assistance limited to services such as preparing draft financial statements that were based on the School District's chart of accounts and general ledgers including adjusting, correcting, and closing entries that have been approved by the School District's staff; prepared draft notes to the financial statements based on information determined and approved by management; and prepared trial balances based on the School District's chart of accounts. \r\n \r\nCause: In discussing this deficiency with the School District, they stated that the cause was a direct result of the lack of time and resources to train Board personnel to accomplish the preparation of financial statements and/or the lack of funding to secure outside services to prepare the financial statements. \r\n \r\n- 3 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEffect or Potential Effect: The School District did not comply with the requirements of the Department of Education regarding financial reporting. Adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \r\n \r\nRecommendation: The School District should establish and implement controls over the financial statement reporting process as required by the Financial Management for Georgia Local Units of Administration. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: Meriwether County Board of Education will implement controls over the financial statement reporting process as required by the Financial Management for Georgia Local Units of Administration. \r\n \r\nEstimated Corrective Action Date: July 1, 2015 Contact Person: Bridgett Holder Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: bridgett.holder@mcssga.org \r\n \r\nFinding Control Number: \r\nControl Category: Internal Control Impact: \r\n \r\nFS-6991-13-03 Inadequate Internal Controls over Employee Compensation Process Employee Compensation Significant Deficiency \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over employee compensation. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance employees are paid according to approved salary schedules and documentation is maintained to support the salary payments. \r\n \r\nCondition: A review of employee compensation revealed several instances where salaries were not properly approved, supported by signed contracts and/or Board approved salary schedules. \r\n \r\nCause: In discussing these deficiencies with the School District, they indicated that formal procedures had not been implemented to ensure Board approved salary amounts are supported by adequate documentation. \r\n \r\nEffect or Potential Effect: The failure to maintain adequate internal controls over Employee Compensation increases the risk misstatements could occur in the financial statements due to error or fraud. \r\n \r\nRecommendation: The School District should implement policies and procedures to ensure normal business procedures are followed for all salaries, which includes ensuring salaries are paid according to approved salary schedules and adequate documentation is maintained to support the salary payments. \r\n \r\n- 4 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nViews of Responsible Officials and Corrective Action Plans: Meriwether County Board of Education will implement policies and procedures to ensure that salaries and salary schedules are documented and approved by the Board. \r\n \r\nEstimated Corrective Action Date: July 1, 2015 Contact Person: Bridgett Holder Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: bridgett.holder@mcssga.org \r\n \r\nFinding Control Number: \r\nControl Category: Internal Control Impact: \r\n \r\nFS-6991-13-04 Failure to Adequately Maintain Capital Assets Capital Assets Material Weakness \r\n \r\nDescription: This is a repeat finding (FS-6991-12-02) from the year ended June 30, 2012. Adequate procedures are not in place to ensure that capital assets inventory records are properly maintained. \r\n \r\nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration indicates that School Districts must develop capital asset policies, define system requirements, implement a capital asset system and conduct capital asset inventories. \r\n \r\nCondition: A review of the School District's capital assets records noted the following errors or omissions which were corrected based on proposed audit adjustments: \r\n \r\n Depreciation expense for prior year additions totaling $400,396.17 was not calculated by the School District. \r\n The School District did not record $7,291,104.11 in prior year additions to Building Improvements, Equipment, and Land Improvements listings. \r\n The School District did not record the impairment of a school building resulting in a $3,506,251.40 overstatement of the asset and an overstatement of depreciation expense by $87,656.29. \r\n The School District did not record a prior year deletion of equipment resulting in an overstatement of equipment by $27,822.00. \r\n The School District did not perform a physical inventory over capital assets as required by their capital assets policy. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated that the cause was a direct result of the lack of time and resources to fully monitor and implement procedures over Capital Assets which follow Board policy. Additionally, they stated that the lack of time and resources resulted in inadequacies in the implementation of a new capital assets module. \r\n \r\nEffect or Potential Effect: The failure of the School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. \r\n \r\n- 5 - \r\n \r\n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Recommendation: The School District should review its capital assets records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. Views of Responsible Officials and Corrective Action Plans: Meriwether County Board of Education will ensure that capital assets are reviewed and maintained correctly within the Munis financial system. Estimated Corrective Action Date: July 1, 2015 Contact Person: Bridgett Holder Telephone: (706) 672-4297 Fax: (706) 672-1618 E-mail: bridgett.holder@mcssga.org III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 6 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2011-h2012-belec-p-btext","title":"Meriwether County Board of Education, Greenville, 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; ceased with: Fiscal year ended June 30, 2020.","\"Prepared by Assistant Superintendent for Finance and Operations.\"","Report year covers fiscal year.","For fiscal year ended June 30, 2009, chronology appears also as FY 2009.","Fiscal year ended June 30, 2009 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed May 23, 2023).","Fiscal year ended June 30, 2020 (online surrogate); (Georgia Government Publications database, viewed May 23, 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, 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-bm5-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \nGREENVILLE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n(Including Independent Auditor's Reports) \n \n MERIWETHER 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 \n25 \n \n  MERIWETHER 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 \n26 28 29 31 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \n \n  SECTION I FINANCIAL \n \n  Greg S. Griffin \nSTATE AUDITOR \n(404) 656-2174 \n \nDEPARTMENT OF AUDITS AND ACCOUNTS \n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \nApril 12, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Meriwether 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 Meriwether 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 Meriwether 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 Meriwether 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 April 12, 2013, on our consideration of the Meriwether 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 vii and page 25 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 Meriwether 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  MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \nIntroduction \nThe discussion and analysis of Meriwether County Board of Education's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2012. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and the financial statements to enhance their understanding of the School District's financial performance. \nFinancial Highlights \nKey financial highlights for fiscal year 2012 are as follows: \n In total, net assets increased $1.89 million, which represents a 7.6 percent increase from fiscal year 2011. This total increase was due to governmental activities since the Board has no business-type activities. \n On the District-wide financial statements, the assets of the School District exceeded liabilities by $26.6 million. \n The School District has $35.2 million in expenses related to governmental activities; only $23.9 million of these expenses were offset by program specific charges for services, grants and contributions. General revenues (primarily taxes) of $13.2 million were used to provide for these programs. \n As stated above, general revenues accounted for $13.2 million or 35.6 percent of all revenues totaling $37.1 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts: management's discussion and analysis (this section), the basic 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 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. \"Fiduciary Funds\" statement provides information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Meriwether County School District, the General Fund, District-wide Capital Projects Fund and Debt Service Fund are the most significant funds. \ni \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \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 Meriwether 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 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. \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 reduction in state funding, property tax base, facility conditions, required educational programs and other factors. \nThe \"Statement of Net Assets\" and the \"Statement of Activities\" reflects the School District's governmental activities. \nFund Financial Statements \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \nGovernmental Funds: The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. \nThe governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is 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. \nii \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n Recall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2012 compared to fiscal year 2011. \nTable 1 Net Assets (In Thousands) \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 \n7,763 $ \n \n13,646 \n \n42,575 \n \n40,489 \n \nTotal Assets \n \n$ \n \n50,338 $ \n \n54,135 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n4,711 $ \n \n8,557 \n \n19,030 \n \n20,869 \n \nTotal Liabilities \n \n$ \n \n23,741 $ \n \n29,426 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ \n \n23,662 $ \n \n20,643 \n \n768 \n \n962 \n \n2,167 \n \n3,104 \n \nTotal Net Assets \n \n$ \n \n26,597 $ \n \n24,709 \n \nTotal net assets increased $1.89 million in fiscal year 2012. \nTable 2 shows the changes in net assets for fiscal year 2012 compared to the changes in net assets for fiscal year 2011. \n \niii \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nTable 2 Change in Net Assets \n(In Thousands) \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Building \nTotal General Revenues and Special Items \nTotal Revenues \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \niv \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2012 \n \n2011 \n \n$ \n \n197 $ \n \n466 \n \n20,641 \n \n21,895 \n \n3,141 \n \n2,066 \n \n$ \n \n23,979 $ \n \n24,427 \n \n$ \n \n8,514 $ \n \n9,069 \n \n803 \n \n585 \n \n57 \n \n60 \n \n1,695 76 \n966 5 \n1,012 \n \n1,668 94 \n1,119 9 \n685 \n \n27 \n \n$ \n \n13,155 $ \n \n13,289 \n \n$ \n \n37,134 $ \n \n37,716 \n \n$ \n \n21,396 $ \n \n21,992 \n \n1,080 1,403 \n372 1,043 1,888 \n317 2,019 2,660 \n45 161 \n \n970 1,016 \n317 1,109 1,859 \n421 2,360 2,375 \n45 119 \n \n262 1,775 \n825 \n \n284 1,800 \n840 \n \n$ \n \n35,246 $ \n \n35,507 \n \n$ \n \n1,888 $ \n \n2,209 \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nGovernmental Activities \nInstruction comprises 60.8 percent of governmental program expenses. Interest expense was 2.3 percent of governmental program expenses. Interest expense was attributable to capital leases and the outstanding bonds for capital projects. \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services comparing fiscal year 2012 with fiscal year 2011. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. \nTable 3 Governmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nInstruction Support Services: \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$ \n \n21,396 $ \n \n21,992 $ \n \n1,080 1,403 \n372 1,043 1,888 \n317 2,019 2,660 \n45 161 \n \n970 1,016 \n317 1,109 1,859 \n421 2,360 2,375 \n45 119 \n \n262 1,775 \n825 \n \n284 1,800 \n840 \n \n5,522 $ \n669 128 \n19 286 799 295 1,020 1,385 \n44 6 \n136 198 759 \n \n5,000 \n598 340 -64 278 815 420 1,450 1,015 \n45 7 \n16 320 840 \n \nTotal Expenses \n \n$ \n \n35,246 $ \n \n35,507 $ \n \n11,266 $ \n \n11,080 \n \nAlthough program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for governmental activities. Over 26 percent of instruction activities are supported through taxes and other general revenues; for all governmental activities general revenue support is 32.2 percent. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $37.2 million and expenditures and other financing uses of $39.2 million. \n \nv \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nGeneral Fund Budgeting 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. \nFor the General Fund, the actual revenues and other financing sources of $31.8 million was less than the original budgeted amount of $32.4 million by $591 thousand. This difference (actual vs. original budget) was primarily due to less actual state and Federal revenue received along with increased actual property tax revenue and miscellaneous. \nThe final budgeted expenditures and other financing uses of $33.0 million was more than the original budgeted amount of $32.5 million by $0.5 million. The difference was primarily due to an increase in expenditures to coincide with increased revenues from Property taxes. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt the end of fiscal year 2012 the School District had $42.5 million invested in capital assets, all in governmental activities. Table 4 shows fiscal year 2012 balances compared with fiscal year 2011 balances, net of depreciation. \nTable 4 Capital Assets (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nLand \n \n$ \n \nConstruction in Progress \n \nLand Improvements \n \nBuildings and Building Improvement \n \nEquipment \n \n532 $ \n2,296 37,615 \n2,132 \n \n532 3,414 2,453 32,217 1,873 \n \nTotal \n \n$ \n \n42,575 $ \n \n40,489 \n \nvi \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \n \nDebt \nAt June 30, 2012, the School District had $10.9 million in bonds outstanding with $1.5 million due within one year and $8.1 million in intergovernmental contracts outstanding with $329 thousand due within one year. Table 5 summarizes the School District's debt for compensated absences, general obligation bonds, intergovernmental contract and capital leases. \n \nTable 5 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2012 \n \nYear 2011 \n \nCapital Leases \n \nCompensated Absences \n \n$ \n \nGeneral Obligation Bonds \n \nIntergovernmental Agreement \n \n$ 67 10,860 8,103 \n \n112 66 \n12,270 8,421 \n \nTotal \n \n$ \n \n19,030 $ \n \n20,869 \n \nAt June 30, 2012, the School District's Series 2007 Bonds are \"AA+\" by virtue of the State Intercept Program as determined by the Standard and Poor's Rating Services. \n \nCurrent Issues \n \nMeriwether County is on the fringe of the Greater Atlanta Area and the Greater Columbus Area. It is fifty miles from Atlanta and fifty miles from Columbus. It is poised for growth over the next decade. The School District has made extraordinary efforts to upgrade facilities with the replacement of five aging elementary schools with three state of the art elementary schools. The School District has also replaced one of its two high schools and extensively upgraded the other high school. The School District also just completed the replacement of a middle school in fiscal year 2007. While these capital projects have put a strain on the fiscal integrity of the School District, recent untimely \"austerity\" reductions in state funding have been devastating to the system's reserves. To address this deficit situation, the School District has begun a process of revenue enhancements and staff reduction through attrition to restore the financial integrity to the School District. \n \nContacting the Board's Financial Management \n \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 Bridgett Holder, Finance Director at the Meriwether County Board of Education, P.O. Box 70, 2100 Gaston Street, Greenville, Georgia 30222. You may also email your questions to bridgett.holder@mcssga.org. \n \nvii \n \n  MERIWETHER COUNTY BOARD OF EDUCATION \n \n  MERIWETHER 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 Other Inventories Prepaid Items Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Contracts Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n1,615,493.70 \n \n462,273.17 \n \n1,774,562.06 1,938,711.16 1,080,414.01 \n9,940.17 366,655.62 118,492.52 238,756.57 157,486.00 531,808.00 42,042,782.47 \n \n$ \n \n50,337,375.45 \n \n$ \n \n455,318.88 \n \n3,548,287.36 \n \n416,108.19 \n \n217,851.63 \n \n72,945.00 \n \n100.00 \n \n1,798,879.00 17,231,217.91 \n \n$ \n \n23,740,707.97 \n \n$ \n \n23,662,001.95 \n \n98,684.09 668,384.05 \n670.30 2,166,927.09 \n \n$ \n \n26,596,667.48 \n \n$ \n \n50,337,375.45 \n \n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2012 \n \nGOVERNMENTAL ACTIVITIES \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nSpecial Items Gain on Sale of Building \nTotal General Revenues and Special Items \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n21,395,579.00 $ \n \n1,079,990.74 1,403,322.87 \n372,109.99 1,042,945.97 1,888,431.67 \n317,102.90 2,018,832.75 2,660,312.37 \n44,653.00 160,554.44 \n \n261,982.21 1,775,477.08 \n824,703.15 \n \n$ \n \n35,245,998.14 $ \n \n8,968.00 \n125,664.83 62,715.48 \n197,348.31 \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$ \n \n12,971,105.62 $ \n \n410,531.90 1,275,428.93 \n353,424.30 742,829.30 1,088,223.43 \n22,240.24 997,996.75 1,122,988.26 \n \n154,092.59 \n \n1,502,387.55 \n \n$ \n \n20,641,248.87 $ \n \n2,893,321.73 $ \n14,592.89 1,170.24 1,165.66 \n152,439.00 \n12,332.27 65,595.99 3,140,617.78 $ \n \n-5,522,183.65 \n-669,458.84 -127,893.94 \n-18,685.69 -285,523.78 -799,038.00 -294,862.66 -1,019,670.34 -1,384,885.11 \n-44,653.00 -6,461.85 \n-136,317.38 -198,041.78 -759,107.16 \n-11,266,783.18 \n \n$ \n \n8,514,022.47 \n \n802,978.90 \n \n56,971.81 \n \n1,695,128.70 75,546.48 \n965,735.00 5,020.54 \n1,012,754.18 \n \n26,500.00 \n \n$ \n \n13,154,658.08 \n \n$ \n \n1,887,874.90 \n \n24,708,792.58 \n \n$ \n \n26,596,667.48 \n \n- 3 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2012 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 1,513,533.79 \n \n$ \n \n1,506,034.21 1,817,826.76 $ 1,080,414.01 \n9,940.17 315,128.59 118,492.52 238,756.57 \n \n120,884.40 51,527.03 \n \n155,434.62 $ 462,273.17 \n \n1,668,968.41 462,273.17 \n \n268,527.85 \n \n1,774,562.06 1,938,711.16 1,080,414.01 \n9,940.17 366,655.62 118,492.52 238,756.57 \n \nTotal Assets \n \n$ 6,600,126.62 $ 172,411.43 $ \n \n886,235.64 $ 7,658,773.69 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nCash Overdraft Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \n \n$ \n \n$ \n \n410,682.94 \n \n3,548,287.36 \n \n416,108.19 \n \n1,103,571.54 \n \n53,474.71 44,635.94 \n72,945.00 $ \n \n$ 5,478,650.03 $ 171,055.65 $ \n \n$ 95,503.66 \n \n53,474.71 455,318.88 3,548,287.36 416,108.19 \n72,945.00 1,199,075.20 \n \n95,503.66 $ 5,745,209.34 \n \n$ \n \n357,249.09 \n \n34,233.35 $ \n \n87,681.61 \n \n642,312.54 \n \n$ 1,121,476.59 $ \n \n1,355.78 $ 1,355.78 $ \n \n$ 790,731.98 \n \n357,249.09 826,321.11 \n87,681.61 642,312.54 \n \n790,731.98 $ 1,913,564.35 \n \nTotal Liabilities and Fund Balances \n \n$ 6,600,126.62 $ 172,411.43 $ \n \n886,235.64 $ 7,658,773.69 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n MERIWETHER 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 in the funds. These assets consist of: \nLand Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nProperty Taxes \nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets. \nDeferred Charges - Capitalized Bond Issuance Costs \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 Intergovernmental Contract Deferred Amount on Refunding Accrued Interest Compensated Absences Payable \nTotal Long-Term Liabilities \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 1,913,564.35 \n \n$ \n \n531,808.00 \n \n4,324,836.92 \n \n51,828,079.68 \n \n5,745,252.25 \n \n-19,855,386.38 \n \n42,574,590.47 \n \n1,198,975.20 \n \n157,486.00 \n \n$ -10,860,000.00 -8,475,000.00 372,226.00 -217,851.63 -67,322.91 \n \n-19,247,948.54 \n \n$ 26,596,667.48 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \n \nEXHIBIT \"E\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nSale of Equipment Insurance 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$ 8,662,143.47 \n \n$ 790,960.62 $ 9,453,104.09 \n \n71,100.39 \n \n1,699,574.79 \n \n1,770,675.18 \n \n15,338,866.48 $ 1,208,844.00 \n \n16,547,710.48 \n \n6,420,556.38 \n \n6,420,556.38 \n \n197,348.31 \n \n197,348.31 \n \n3,852.62 \n \n670.30 \n \n497.62 \n \n5,020.54 \n \n1,078,350.17 \n \n1,078,350.17 \n \n$ 31,772,217.82 $ 1,209,514.30 $ 2,491,033.03 $ 35,472,765.15 \n \n$ 19,762,804.20 \n \n$ 19,762,804.20 \n \n1,102,751.89 1,403,322.87 \n372,109.99 1,058,014.31 1,886,422.04 \n277,758.90 2,076,785.65 $ 2,459,996.56 \n44,653.00 160,554.44 261,982.21 1,754,299.11 \n \n267,121.06 3,577,596.04 \n \n1,102,751.89 1,403,322.87 \n372,109.99 1,058,014.31 1,886,422.04 \n277,758.90 2,343,906.71 2,459,996.56 \n44,653.00 160,554.44 261,982.21 1,754,299.11 3,577,596.04 \n \n112,200.69 35,994.52 \n \n$ 1,755,000.00 810,432.75 \n \n1,867,200.69 846,427.27 \n \n$ 32,769,650.38 $ 3,844,717.10 $ 2,565,432.75 $ 39,179,800.23 \n \n$ \n \n-997,432.56 $ -2,635,202.80 $ \n \n-74,399.72 $ -3,707,035.08 \n \n$ \n \n26,500.00 \n \n$ 1,713,738.80 \n \n121,471.91 $ \n \n-228,596.10 \n \n$ \n \n-202,096.10 $ 1,835,210.71 $ \n \n$ -1,199,528.66 $ -799,992.09 $ \n \n2,321,005.25 \n \n801,347.87 \n \n$ 107,124.19 \n \n26,500.00 1,713,738.80 \n228,596.10 -228,596.10 \n \n107,124.19 $ 1,740,238.80 \n \n32,724.47 $ -1,966,796.28 \n \n758,007.51 \n \n3,880,360.63 \n \n$ 1,121,476.59 $ \n \n1,355.78 $ 790,731.98 $ 1,913,564.35 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2012 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nBond issuance costs, deferred gains on refunding bonds and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \nAmortization of Bond Issuance Costs Amortization of Deferred Gain on Refunding of Bonds \nTotal Bond Issuance Costs \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Accrued Interest Capital Lease Payments Intergovernmental Contract Repayments \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: \nIncrease in Compensated Absences \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ -1,966,796.28 \n \n$ 4,035,031.87 -1,949,072.28 \n \n2,085,959.59 \n \n-79,130.91 \n \n$ \n \n-13,223.00 \n \n-26,121.00 \n \n-39,344.00 \n \n$ 1,410,000.00 21,724.12 \n112,200.69 345,000.00 \n \n1,888,924.81 \n \n-1,738.31 $ 1,887,874.90 \n \nThe notes to the basic financial statements are an integral part of this statement. - 7 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 \nASSETS Cash and Cash Equivalents Investments \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n59,527.49 \n \n8,091.01 \n \n$ \n \n67,618.50 \n \n$ \n \n67,618.50 \n \nThe notes to the basic financial statements are an integral part of this statement. - 8 - \n \n MERIWETHER 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 Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nBASIS OF PRESENTATION \nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Meriwether 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. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n District-wide Capital Projects Fund accounts for and reports financial resources including 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 (property and sales) legally restricted for the payment of general long-term principal and interest. \n \n- 9 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \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 financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end, except for reimbursable grants. 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. \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 \n- 10 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nCode of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \n \n1. Obligations issued by the State of Georgia or by other states, \n \n2. Obligations issued by the United States government, \n \n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \n \n4. Obligations of any corporation of the United States government, \n \n5. Prime banker's acceptances, \n \n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \n \n7. Repurchase agreements, and \n \n8. Obligations of other political subdivisions of the State of Georgia. \n \nThe School District does not have a formal policy regarding investment policies that address credit risk, custodial credit risk, concentration credit risks, interest rate risks or foreign currency risks. \nRECEIVABLES \n \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nPROPERTY TAXES \n \nThe Meriwether County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on September 30, 2011 (levy date). Taxes were due on December 20, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The Meriwether County Tax Commissioner bills and collects the property taxes for the School District, withholds 0.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2012, for maintenance and operations amounted to $8,605,171.66 and for school bonds amounted to $790,960.62. \n \nTax millage rates levied for the 2011 tax year (calendar year) for the Meriwether County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n17.181 m ills 1.650 m ills \n \n18.831 m ills \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,695,128.70 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- 11 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \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 \nPREPAID ITEMS \n \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2012, are recorded as prepaid items. \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \n \nstatements are as follows: \n \nC a p ita liz a tio n \n \nEstim ated \n \nPolicy \n \nUseful Life \n \nLand Land Im provem ents Buildings and Im provem ents Equipm ent Intangible Assets \n \n$ \n \n5 ,0 0 0 .0 0 \n \nN/A \n \n$ \n \n5 ,0 0 0 .0 0 \n \n20 years \n \n$ \n \n5 ,0 0 0 .0 0 \n \n7 to 40 years \n \n$ \n \n5 ,0 0 0 .0 0 \n \n5 to 15 years \n \n$ \n \n5 0 0 ,0 0 0 .0 0 \n \nindividually determ ined \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. \nCOMPENSATED ABSENCES \nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. \n- 12 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2010 2011 2012 \n \n$ \n \n73,221.52 $ \n \n$ \n \n59,639.52 $ \n \n$ \n \n65,584.60 $ \n \n0.00 $ 5,945.08 $ 1,738.31 $ \n \n13,582.00 $ 0.00 $ 0.00 $ \n \n59,639.52 65,584.60 67,322.91 \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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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. \n \n- 13 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \n \nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \n \nN o nspe nda ble In v e n to rie s Prepaid Assets \nRestricted Continuation of Federal Program s Capital Projects Debt Service \nAssigned School Activity Accounts \nUnassigned \n \n$ \n \n1 1 8 ,4 9 2 .5 2 \n \n238,756.57 $ \n \n$ \n \n3 4 ,2 3 3 .3 5 \n \n1 ,3 5 5 .7 8 \n \n7 9 0 ,7 3 1 .9 8 \n \n3 5 7 ,2 4 9 .0 9 \n8 2 6 ,3 2 1 .1 1 8 7 ,6 8 1 .6 1 \n6 4 2 ,3 1 2 .5 4 \n \nFund Balance, June 30, 2012 \n \n$ \n \n1 ,9 1 3 ,5 6 4 .3 5 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nUSE OF ESTIMATES \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for the general fund is prepared and adopted by function. The legal level of budgetary control was established by the Board at the aggregate function 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 \n \n- 14 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nand adopts a final budget. The approved budget is then submitted, in accordance with provisions of Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS AND INVESTMENTS \nCOLLATERALIZATION OF DEPOSITS \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $1,993,940.20. The bank balances were covered by Federal depository insurance or collateralized with securities held by the pledging financial institution in the School District's name. \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2012, the carrying value of the School District's total investments was $462,273.17, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the \n \n- 15 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nState Treasurer which is not required to be categorized since the School District did not own any \nspecific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the \nState Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in \nderivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \n \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \n \nNOTE 5: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \nNOTE 6: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nBalances July 1, 2011 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2012 \n \nGovernmental Activities Capital Assets, Not B eing Depreciated: \nLa n d Construction in Progress \n \n$ \n \n531,808.00 \n \n$ \n \n3,413,784.24 $ 3,273,235.62 $ 6,687,019.86 \n \n531,808.00 0.00 \n \nTotal Capital Assets Not B eing Depreciated \n \n$ 3,945,592.24 $ 3,273,235.62 $ 6,687,019.86 $ \n \n531,808.00 \n \nCapital Assets B eing Depreciated Buildings and Improvements Equipment Land Improvements \nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \n \n$ 45,068,114.82 $ 5,441,817.00 4,267,666.92 \n \n6,759,964.86 631,681.25 $ 57,170.00 \n \n$ 328,246.00 \n \n51,828,079.68 5,745,252.25 4,324,836.92 \n \n12,851,487.76 3,568,665.41 1,814,406.93 \n \n1,361,455.41 372,655.72 214,961.15 \n \n328,246.00 \n \n14,212,943.17 3,613,075.13 2,029,368.08 \n \nTotal Capital Assets, B eing Depreciated, Net $ 36,543,038.64 $ 5,499,743.83 $ \n \n0.00 $ 42,042,782.47 \n \nGovernmental Activity Capital Assets - Net \n \n$ 40,488,630.88 $ 8,772,979.45 $ 6,687,019.86 $ 42,574,590.47 \n \nCapital assets being acquired under capital leases as of June 30, 2012, are as follows: \n \nEquipm ent Less: Accum ulated Depreciation \n \nGovernm ental \n \nFunds \n \n$ \n \n4 4 2 ,5 0 0 .0 0 \n \n1 5 7 ,1 8 7 .5 0 \n \n$ \n \n2 8 5 ,3 1 2 .5 0 \n \n- 16 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nIn s tru c tio n \n \nSupport Services \n \nPupil Services \n \n$ \n \nGeneral Adm inistration \n \nSchool Adm inistration \n \nM aintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n4 6 6 .0 0 2 4 ,4 8 3 .3 9 \n1 ,7 3 8 .2 0 7 ,3 7 8 .9 5 3 2 4 ,4 2 3 .7 9 \n \n$ \n \n1 ,5 7 2 ,2 6 4 .3 9 \n3 5 8 ,4 9 0 .3 3 1 8 ,3 1 7 .5 6 \n1 ,9 4 9 ,0 7 2 .2 8 \n \nNOTE 7: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2012, consisted of the following: \n \nTransfers to \n \nTransfers F ro m \nGeneral Fund \n \nDistrict-w ide C apital Projects Debt Service Fund \n \n$ \n \n1 2 1 ,4 7 1 .9 1 \n \n1 0 7 ,1 2 4 .1 9 \n \nTotal \n \n$ \n \n2 2 8 ,5 9 6 .1 0 \n \nTransfers are used to move (1) local funds collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects, (2) property tax revenues from the General Fund for retiring principal and interest on the Series 2004 Bond Issue to the Debt Service Fund, and (3) IRS reimbursement revenues collected by the General Fund to the Debt Service Fund for retiring interest on the 2010 QSCB Bond. \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 motor vehicles. 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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \n- 17 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nBeginning of Year Liability \n \nClaim s and Changes in Estim ates \n \nClaim s Paid \n \nEnd of Year Liability \n \n2011 \n \n$ \n \n2012 \n \n$ \n \n0.00 $ 0.00 $ \n \n31,968.62 $ 45,912.16 $ \n \n31,968.62 $ 45,912.16 $ \n \n0 .0 0 0 .0 0 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAm ount \n \nSu p e rin te n d e n t Other Em ployees \n \n$ \n \n5 0 ,0 0 0.0 0 \n \n$ \n \n5 0 ,0 0 0.0 0 \n \nNOTE 9: SHORT-TERM DEBT \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nB e gi n n i n g Balance \n \nIssued \n \nRedeemed \n \nEnding B a l a nce \n \nTax Anticipation Notes \n \n$ \n \n0.00 $ 2,000,000.00 $ 2,000,000.00 $ \n \n0.00 \n \nIn addition to the short-term debt mentioned above, the School District issues tax anticipation notes in the amount of $2,600,000.00 in the subsequent period in advance of property tax collections, depositing the proceeds in its General fund. \n \n- 18 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 10: LONG-TERM DEBT CAPITAL LEASES \n \nThe Meriwether County Board of Education entered into various lease agreements for school buses. 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. \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. \nINTERGOVERNMENTAL CONTRACT \n \nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District. Under the terms of the contract, the Authority issued $8,810,000.00 (less issuance costs of $229,391.00) in revenue bonds on behalf of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00 (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999, issue due from October 1, 2010, through October 1, 2026. \n \nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the school district. \n \nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \n \nThe debt at June 30, 2012, associated with these agreements is as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Refunding - Series 2006 General Government - QSCB - Series 2010 \n \n4.21% 5.29% \n \n$ 7,235,000.00 1,240,000.00 \n \n$ 8,475,000.00 \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPu rp o s e \n \nInterest Rates \n \nAm ount \n \nGeneral Governm ent - Series 2004 General Governm ent - Refunding - Series 2005 General Governm ent - Series 2007 \n \n3 .8 4 % 3 .2 7 % 3.70% - 4.10% \n \n$ 3,905,000.00 5 ,0 7 5 ,0 0 0 .0 0 1 ,8 8 0 ,0 0 0 .0 0 \n \n$ 10,860,000.00 \n \n- 19 - \n \n MERIWETHER 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 \nIntergovernmental Agreement Less: Deferred Amounts \nOn Refunding \n \n$ 8,820,000.00 -398,347.00 $ \n \n$ 345,000.00 $ 8,475,000.00 $ 355,000.00 \n \n26,121.00 \n \n-372,226.00 \n \n-26,121.00 \n \nAgreement \n \n$ 8,421,653.00 $ \n \n26,121.00 $ 345,000.00 $ 8,102,774.00 $ 328,879.00 \n \nG. O. Bonds Capital Leases Compensated Absences(1) \n \n12,270,000.00 112,200.69 65,584.60 \n \n1,738.31 \n \n1,410,000.00 112,200.69 \n \n10,860,000.00 0.00 \n67,322.91 \n \n1,470,000.00 (1) \n \n$ 20,869,438.29 $ \n \n27,859.31 $ 1,867,200.69 $ 19,030,096.91 $ 1,798,879.00 \n \n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \n \nAt June 30, 2012, payments due by fiscal year which includes principal and interest for these items \n \nare as follows: \n \nGeneral Obligation Debt \n \nPrincipal \n \nI n te r e st \n \nFiscal Year Ended June 30: \n \n2013 2014 2015 2016 2017 2018 - 2022 2023 - 2027 \nTotal Principal and Interest \n \n$ 1,470,000.00 $ 1,535,000.00 1,600,000.00 1,670,000.00 335,000.00 1,900,000.00 2,350,000.00 \n \n385,248.75 335,383.50 283,355.50 228,998.75 172,267.00 650,867.75 238,215.00 \n \n$ 10,860,000.00 $ 2,294,336.25 \n \nFiscal Year Ended June 30: \n \nIntergovernm ental Agreem ent \n \nDeferred Amount \n \nPrincipal \n \nI n te r e s t \n \non Refunding \n \n2013 2014 2015 2016 2017 2018 - 2022 2023 - 2027 \nTotal Principal and Interest \n \n$ \n \n355,000.00 $ \n \n362,716.75 $ \n \n370,000.00 \n \n347,455.50 \n \n385,000.00 \n \n331,562.75 \n \n405,000.00 \n \n314,933.25 \n \n420,000.00 \n \n297,567.00 \n \n3,615,000.00 \n \n1,070,889.25 \n \n2,925,000.00 \n \n318,381.15 \n \n$ 8,475,000.00 $ 3,043,505.65 $ \n \n-26,121.00 -26,121.00 -26,121.00 -26,121.00 -26,121.00 -130,605.00 -111,016.00 \n-372,226.00 \n \n- 20 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \n \nNOTE 11: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $2,101,350.00 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $2,051,640.00 \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 $49,710.00 \nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \nNOTE 13: POST-EMPLOYMENT BENEFITS \nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \n- 21 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \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, 2012: \nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \n \nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \n \n1.429% of covered payroll for July coverage 18.534% of covered payroll for August coverage 24.000% of covered payroll for September - April coverage \n3.958% of covered payroll for May - July coverage \n \nFor non-certificated school personnel: \n \nJuly 2011 - August 2011 \n \n$246.20 per member per month \n \nSeptember 2011 - June 2012 $296.20 per member per month \n \nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which \n \nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \n \nas follows: \n \nPercentage \n \nRequired \n \nFiscal Year \n \nC o ntribute d \n \nC o n trib u tio n \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ \n \n3 ,1 5 2,3 4 6.3 9 \n \n$ \n \n2 ,9 7 0,9 6 0.0 4 \n \n$ \n \n2 ,9 5 4,4 8 7.0 6 \n \nNOTE 13: RETIREMENT PLANS \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \n- 22 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2012 \n \nEXHIBIT \"H\" \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 C o ntribute d \n \nRequired C o n trib u tio n \n \n2012 2011 2010 \n \n100% 100% 100% \n \n$ \n \n1 ,7 9 7,7 6 3.9 3 \n \n$ \n \n1 ,7 6 2,2 2 0.8 0 \n \n$ \n \n1 ,7 8 9,8 6 5.3 6 \n \nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \n \n- 23 - \n \n (This page left intentionally blank) \n \n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nDebt Service Interest Redemption of Principal \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING USES \nSale of Equipment Transfers Out \nTotal Other Financing Sources \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$ 8,410,000.00 $ 8,470,000.00 $ 8,662,143.47 $ 192,143.47 \n \n80,000.00 \n \n80,000.00 \n \n71,100.39 \n \n-8,899.61 \n \n15,507,250.00 \n \n16,138,813.00 \n \n15,338,866.48 \n \n-799,946.52 \n \n7,501,519.00 \n \n8,379,772.00 \n \n6,420,556.38 \n \n-1,959,215.62 \n \n111,000.00 \n \n111,000.00 \n \n197,348.31 \n \n86,348.31 \n \n5,000.00 \n \n5,000.00 \n \n3,852.62 \n \n-1,147.38 \n \n748,600.00 \n \n890,600.00 \n \n1,078,350.17 \n \n187,750.17 \n \n$ 32,363,369.00 $ 34,075,185.00 $ 31,772,217.82 $ -2,302,967.18 \n \n$ 19,491,956.00 $ 20,520,777.30 $ 19,762,804.20 $ 757,973.10 \n \n1,127,362.00 1,998,588.00 \n415,000.00 893,204.00 1,855,000.00 315,000.00 2,015,000.00 2,237,911.00 \n45,000.00 223,248.00 \n1,841,100.00 \n \n1,326,906.00 1,701,499.70 \n375,000.00 973,935.00 1,900,000.00 315,000.00 2,062,640.00 2,625,179.00 \n45,500.00 223,648.00 \n1,841,100.00 \n \n1,102,751.89 1,403,322.87 \n372,109.99 1,058,014.31 1,886,422.04 \n277,758.90 2,076,785.65 2,459,996.56 \n44,653.00 160,554.44 261,982.21 1,754,299.11 \n \n224,154.11 298,176.83 \n2,890.01 -84,079.31 13,577.96 37,241.10 -14,145.65 165,182.44 \n847.00 63,093.56 -261,982.21 86,800.89 \n \n5,000.00 \n \n42,000.00 \n \n35,994.52 112,200.69 \n \n6,005.48 -112,200.69 \n \n$ 32,463,369.00 $ 33,953,185.00 $ 32,769,650.38 $ 1,183,534.62 \n \n$ -100,000.00 $ \n \n122,000.00 $ -997,432.56 $ -1,119,432.56 \n \n$ \n \n100,000.00 \n \n$ \n \n26,500.00 $ \n \n26,500.00 \n \n$ -122,000.00 \n \n-228,596.10 \n \n-106,596.10 \n \n100,000.00 \n \n-122,000.00 \n \n-202,096.10 \n \n-80,096.10 \n \n$ \n \n0.00 $ \n \n0.00 $ -1,199,528.66 $ -1,199,528.66 \n \n0.00 \n \n2,153,936.66 \n \n2,321,005.25 \n \n167,068.59 \n \n$ \n \n0.00 $ 2,153,936.66 $ 1,121,476.59 $ -1,032,460.07 \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 ($425,624.02) or expenditures ($480,775.04) of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \nSee notes to the basic financial statements. \n- 25 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"2\" \n \nFUNDING AGENCY PROGRAM/GRANT \nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \nTotal Child Nutrition Cluster \nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of School Improvement Grants Cluster Pass-Through From Georgia Department of Education ARRA - School Improvement Grants \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \nTotal Special Education Cluster \nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I - Grants to Local Educational Agencies \nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grant Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n* 10.553 * 10.555 \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n(2) 1,537,951.08 (1) \n1,537,951.08 \n \n10.582 \n \nN/A $ \n \n42,935.19 1,580,886.27 \n \n* 84.388 \n \nN/A \n \n$ \n \n956,420.89 \n \n84.027 84.173 \n84.010 \n* 84.395 84.048 84.410 84.367 \n* 84.287 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n872,485.00 61,954.00 \n934,439.00 \n \nN/A \n \n$ \n \n1,377,714.19 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n295,310.95 34,721.85 7,687.00 \n277,619.49 1,055,093.72 \n1,670,433.01 \n4,939,007.09 \n \nTotal Expenditures of Federal Awards N/A = Not Available \n \n$ \n \n6,519,893.36 \n \n- 26 - \n \n MERIWETHER 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 $70,851.28. \n(2) Expenditures for the funds earned on the School Breakfast Program ($412,416.21) were not maintained separately and are included in the 2012 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Meriwether 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- 27 - \n \n MERIWETHER 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 Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Amended Formula Adjustment Other State Programs Vocational Education Equalization Health Insurance Preschool Handicapped Program Pupil Transportation - State Bonds Residential Treatment Centers Grant Rule 10 Special Education State Grant State Health Reimbursement Virtual Schools Grant \nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \nOffice of the State Treasurer Public School Employees Retirement \nCONTRACT Human Resources, Georgia Department of Family Connection \n \nGOVERNMENTAL FUND TYPES \n \nCAPITAL \n \nGENERAL \n \nPROJECTS \n \nFUND \n \nFUND \n \nTOTAL \n \n$ \n \n696,584.88 \n \n$ \n \n696,584.88 \n \n762,832.00 200,254.00 1,383,692.00 650,988.00 684,178.00 558,966.00 \n2,744.00 1,537,593.00 1,359,956.00 \n355,317.00 2,171,333.00 \n179,500.00 119,585.00 120,014.00 \n-1,321.00 268,494.00 \n81,050.00 62,357.00 \n414,632.00 750,297.00 734,050.00 \n798,144.00 60,870.00 \n127,548.00 965,735.00 \n55,818.00 -2,314,113.00 \n24,395.00 5,775.00 \n2,051,640.00 106,910.60 152,439.00 16,058.00 90,000.00 9,841.00 1,000.00 \n \n762,832.00 200,254.00 1,383,692.00 650,988.00 684,178.00 558,966.00 \n2,744.00 1,537,593.00 1,359,956.00 \n355,317.00 2,171,333.00 \n179,500.00 119,585.00 120,014.00 \n-1,321.00 268,494.00 \n81,050.00 62,357.00 \n414,632.00 750,297.00 734,050.00 \n798,144.00 60,870.00 \n127,548.00 965,735.00 \n55,818.00 -2,314,113.00 \n24,395.00 5,775.00 \n2,051,640.00 106,910.60 152,439.00 16,058.00 90,000.00 9,841.00 1,000.00 \n \n$ 1,208,844.00 49,710.00 \n \n1,208,844.00 49,710.00 \n \n44,000.00 \n \n44,000.00 \n \n$ 15,338,866.48 $ 1,208,844.00 $ 16,547,710.48 \n \nSee notes to the basic financial statements. \n \n- 28 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"4\" \n \nPROJECT \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \nESTIMATED COMPLETION \nDATE \n \n(iii) Paying a portion of the principal of and \n \ninterest on the Series 2004 Bonds, the \n \nmaximum amount of debt to be paid will not \n \nexceed $1,670,616.00 as set forth in the \n \nSchool District Resolution \n \n$ \n \n1,670,616.00 $ \n \n1,670,616.00 $ \n \n333,408.00 $ 1,077,232.00 $ \n \n0.00 $ \n \n0.00 \n \n10/1/2012 \n \n(iv) Paying a portion of the principal of and interest on the Series 2005 Bonds, the maximum amount of debt to be paid will not exceed $5,675,012.75 as set forth in the School District Resolution \n \n5,675,012.75 \n \n5,675,012.75 \n \n1,343,230.50 \n \n4,248,806.00 \n \n0.00 \n \n0.00 \n \n8/1/2012 \n \n(v) Paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $2,840,098.75 as set forth in the School District Resolution \n \n2,840,098.75 \n \n2,840,098.75 \n \n656,855.75 \n \n1,567,170.50 \n \n0.00 \n \n0.00 \n \n10/1/2012 \n \n$ 10,185,727.50 $ 10,185,727.50 $ 2,333,494.25 $ 6,893,208.50 $ \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(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 Meriwether 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- 29 - \n \n (This page left intentionally blank) \n \n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \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 \n929,433.00 $ 1,178,357.72 $ \n \n227,865.00 \n \n135,600.16 \n \n1,738,854.00 \n \n2,331,071.16 \n \n742,838.00 \n \n275,339.45 \n \n861,642.00 \n \n1,387,248.11 \n \n615,461.00 2,775.00 \n1,832,880.00 1,635,098.00 \n440,150.00 2,681,554.00 \n229,155.00 148,316.00 144,221.00 \n \n119,200.80 \n2,139,913.94 2,838,974.61 \n417,351.51 \n515,673.25 576,599.62 1,712,805.15 312,085.42 143,360.59 206,223.60 \n99,622.86 \n \n$ \n \n12,230,242.00 $ 14,389,427.95 $ \n \n325,993.00 75,286.00 \n \n337,623.61 \n \n10,570.60 $ 16,016.88 \n7,425.42 \n22,514.39 107,148.83 \n22,513.32 \n245.54 2,153.70 188,588.68 $ 17,483.14 \n \n1,188,928.32 135,600.16 \n2,347,088.04 275,339.45 \n1,394,673.53 \n119,200.80 \n2,162,428.33 2,946,123.44 \n439,864.83 \n515,673.25 576,599.62 1,712,805.15 312,085.42 143,360.59 206,469.14 \n101,776.56 \n14,578,016.63 \n355,106.75 74,418.93 \n \nTOTAL QBE FORMULA FUNDS \n \n$ \n \n12,631,521.00 $ 14,727,051.56 $ \n \n206,071.82 $ 15,007,542.31 \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 \nApril 12, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Meriwether 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 Meriwether County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Meriwether County Board of Education's basic financial statements and have issued our report thereon dated April 12, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \nInternal Control Over Financial Reporting \nManagement of Meriwether County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Meriwether 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 Meriwether County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Meriwether County Board of Education's internal control over financial reporting. \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 and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses. \n \n2012YB-42 \n \n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider items FS-6991-12-01, and FS-6991-12-02 to be material weaknesses. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Meriwether 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 Meriwether County Board of Education in a separate letter dated April 12, 2013. \nMeriwether County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Meriwether County Board of Education's response and, accordingly, we express no opinion on the response. \nThis report is intended solely for the information and use of management, members of the Meriwether County Board of Education, others within the entity, Federal awarding agencies and passthrough 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-42 \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 \nApril 12, 2013 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Meriwether 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 Meriwether 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. Meriwether 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 Meriwether County Board of Education's management. Our responsibility is to express an opinion on Meriwether 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 Meriwether 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 Meriwether County Board of Education's compliance with those requirements. \nIn our opinion, the Meriwether 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. \n2012SA-10 \n \n  Internal Control Over Compliance \nManagement of Meriwether 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 Meriwether 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 Meriwether 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 Meriwether County Board of Education, others within the entity, Federal awarding agencies and passthrough 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  MERIWETHER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \n \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINDING CONTROL NUMBER AND STATUS \n \nFS-6991-11-01 \n \nPreviously Reported Corrective Action Implemented \n \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \n \nNo matters were reported. \n \n  SECTION IV FINDINGS AND QUESTIONED COSTS \n \n  MERIWETHER 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 \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 \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 84.395 84.287 84.388 \n \nChild Nutrition Cluster Race-to-the-Top Incentive Grants Twenty-First Century Community Learning Centers School Improvement Grants \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$300,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-6991-12-01 \nCondition: The School District did not have adequate internal controls in place over the financial statement reporting process. \n \n- 1 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \nCriteria: Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \nThe Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Integrated Framework states that an essential attribute to reliable financial reporting is the timely performance of procedures. \nQuestioned Cost: N/A \nInformation: The Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the preparation of both fund and entity-wide level statements in the School District's financial statements. The School District has not implemented an adequate level of internal control to ensure that financial data is processed and reported. Auditor prepared the School District's fund level and entity-wide level financial statements, including note disclosures. \nCause: The School District did not implement an adequate system of internal control over the financial statement reporting process. \nEffect: The School District does not have adequate internal controls in place to ensure that the financial statements are properly prepared in accordance with generally accepted accounting principles. \nRecommendation: The School District should implement an adequate level of internal control to ensure that all required financial data is processed timely and accurately included in the financial statements. \nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Material Weakness Finding Control Number: FS-6991-12-02 \nCondition: Adequate policies and procedures are not in place to ensure that capital assets inventory records are properly maintained. \nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. \nQuestioned Cost: N/A \n- 2 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2012 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Information: A review of the School District's capital assets records noted the following errors or omissions which management corrected based on proposed audit adjustments: \n The School District failed to summarize and record Construction in Progress (CIP) additions totaling $3,273,235 for the current year. \n Current year CIP deletions and current year additions to Building Improvements of $6,687,019 were not calculated and reported by the School District. \n The School District failed to capitalize $761,796 in additions to Building Improvements, Equipment, and Land Improvements. \n Depreciation expense for the current year additions totaling $153,522 was not calculated by the School District. \n Current year deletions of $328,246 and the associated accumulated depreciation were not maintained and removed by the School District. \nCause: The School District failed to properly maintain capital assets records in accordance with the approved capital assets policy. Effect: The failure of the School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. Recommendation: The School District should review its capital assets records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n- 3 - \n \n  SECTION V MANAGEMENT'S RESPONSES \n \n  MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2012 \n \nFinding Control Number: FS-6991-12-01 \n \nWe concur with this finding. We will be establishing a check list of recurring entries and year-end procedures and entries to use as a guide to avoiding any future misstatement of the school system financial statements. These changes either have been implemented or will be implemented by June 2013. \n \nFinding Control Number: FS-6991-12-02 \n \nWe concur with this finding. The error was the result of inadequate tracking related to the two construction projects and we have implemented procedures to prohibit the error from reoccurring. The new fixed asset module within Munis will assist in capturing new assets and will calculate the annual depreciation entry in addition to our procedures of validating asset disposals and acquisitions to insure compliance with our fixed asset policy. \n \nContact Person: Title: Telephone: Fax: E-mail: \n \nBridgett Holder Director of Finance (706) 672-4297 (706) 672-1618 bridgett.holder@mcssga.org \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2010-h2011-belec-p-btext","title":"Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2011-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2009; ceased with: Fiscal year ended June 30, 2020.","\"Prepared by Assistant Superintendent for Finance and Operations.\"","Report year covers fiscal year.","For fiscal year ended June 30, 2009, chronology appears also as FY 2009.","Fiscal year ended June 30, 2009 (online surrogate); title from PDF cover (Georgia Government Publications database, viewed May 23, 2023).","Fiscal year ended June 30, 2020 (online surrogate); (Georgia Government Publications database, viewed May 23, 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":["Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Meriwether County--Auditing--Periodicals","Education--Georgia--Meriwether County--Finance--Statistics--Periodicals"],"dcterms_title":["Meriwether County Board of Education, Greenville, 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-bm5-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bm5-b2010-h2011-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","audits","financial records","financial statements"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"MERIWETHER COUNTY BOARD OF EDUCATION \nGREENVILLE, GEORGIA \nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n(Including Independent Auditor's Reports) \n \n MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \n \nFINANCIAL \n \nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \nMANAGEMENT'S DISCUSSION AND ANALYSIS \n \nEXHIBITS \n \nBASIC FINANCIAL STATEMENTS \n \nDISTRICT-WIDE FINANCIAL STATEMENTS \n \nA \n \nSTATEMENT OF NET ASSETS \n \nB \n \nSTATEMENT OF ACTIVITIES \n \nFUND FINANCIAL STATEMENTS \n \nC \n \nBALANCE SHEET \n \nGOVERNMENTAL FUNDS \n \nD \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \n \nTO THE STATEMENT OF NET ASSETS \n \nE \n \nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \n \nIN FUND BALANCES \n \nGOVERNMENTAL FUNDS \n \nF \n \nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \n \nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \n \nBALANCES TO THE STATEMENT OF ACTIVITIES \n \nG \n \nSTATEMENT OF FIDUCIARY NET ASSETS \n \nFIDUCIARY FUNDS \n \nH \n \nNOTES TO THE BASIC FINANCIAL STATEMENTS \n \nSCHEDULES \n \nREQUIRED SUPPLEMENTARY INFORMATION \n \n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \n \nPage \ni \n1 2 4 5 6 7 9 10 \n29 \n \n  MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \n \nSECTION I \nFINANCIAL \nSCHEDULES \nSUPPLEMENTARY INFORMATION \n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \n \nPage \n30 32 33 35 \n \nSECTION II \nCOMPLIANCE AND INTERNAL CONTROL REPORTS \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \n \nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \n \nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \n \n  MERIWETHER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \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 17, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Meriwether 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 Meriwether 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 Meriwether 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 Meriwether 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 17, 2012, on our consideration of the Meriwether 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 vii and page 29 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 Meriwether 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  MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \nIntroduction \nThe discussion and analysis of Meriwether County Board of Education's financial performance provides an overall review of the School District's financial activities for the fiscal year ended June 30, 2011. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and the financial statements to enhance their understanding of the School District's financial performance. \nFinancial Highlights \nKey financial highlights for fiscal year 2011 are as follows: \n In total, net assets increased $2.21 million, which represents a 9.8 percent increase from fiscal year 2010. This total increase was due to governmental activities since the Board has no business-type activities. \n On the District-wide financial statements, the assets of the School District exceeded liabilities by $24.7 million. \n The School District has $35.5 million in expenses related to governmental activities; only $24.4 million of these expenses were offset by program specific charges for services, grants and contributions. General revenues (primarily taxes) of $13.3 million were used to provide for these programs. \n As stated above, general revenues accounted for $13.3 million or 35.0 percent of all revenues totaling $37.7 million. Program specific revenues in the form of charges for services, grants and contributions accounted for the rest. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThis annual report consists of three parts: management's discussion and analysis (this section), the basic 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 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. \"Fiduciary Funds\" statement provides information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Meriwether County School District, the General Fund, District-wide Capital Projects Fund and Debt Service Fund are the most significant funds. \ni \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \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 Meriwether 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 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. \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 reduction in state funding, property tax base, facility conditions, required educational programs and other factors. \nThe \"Statement of Net Assets\" and the \"Statement of Activities\" reflects the School District's governmental activities. \nFund Financial Statements \nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \nGovernmental Funds: The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. \nThe governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds is 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. \nii \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \n Recall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net assets for fiscal year 2011 compared to fiscal year 2010. \n \nTable 1 Net Assets (In Thousands) \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 \n13,646 $ \n \n9,006 \n \n40,489 \n \n40,941 \n \nTotal Assets \n \n$ \n \n54,135 $ \n \n49,947 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities \n \n$ \n \n8,557 $ \n \n5,962 \n \n20,869 \n \n21,485 \n \nTotal Liabilities \n \n$ \n \n29,426 $ \n \n27,447 \n \nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \n \n$ \n \n20,643 $ \n \n20,708 \n \n962 \n \n1,196 \n \n3,104 \n \n596 \n \nTotal Net Assets \n \n$ \n \n24,709 $ \n \n22,500 \n \nTotal net assets increased $2.209 million in fiscal year 2011. \nTable 2 shows the changes in net assets for fiscal year 2011 compared to the changes in net assets for fiscal year 2010. \n \niii \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nTable 2 Change in Net Assets \n(In Thousands) \nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nTotal Revenues \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \nTotal Expenses \nIncrease in Net Assets \niv \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2011 \n \n2010 \n \n$ \n \n466 $ \n \n800 \n \n21,895 \n \n22,843 \n \n2,066 \n \n$ \n \n24,427 $ \n \n23,643 \n \n$ \n \n9,069 $ \n \n8,357 \n \n585 \n \n550 \n \n60 \n \n49 \n \n1,668 94 \n \n1,619 76 \n \n1,119 9 \n685 \n \n1,916 5 \n570 \n \n$ \n \n13,289 $ \n \n13,142 \n \n$ \n \n37,716 $ \n \n36,785 \n \n$ \n \n21,992 $ \n \n21,602 \n \n970 1,016 \n317 1,109 1,859 \n421 2,360 2,375 \n45 119 \n \n1,499 1,099 \n567 904 1,979 388 1,963 2,053 \n47 153 \n \n284 1,800 \n840 \n \n783 1,839 \n884 \n \n$ \n \n35,507 $ \n \n35,760 \n \n$ \n \n2,209 $ \n \n1,025 \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nGovernmental Activities \n \nInstruction comprises 61.9 percent of governmental program expenses. Interest expense was 2.4 percent of governmental program expenses. Interest expense was attributable to capital leases and the outstanding bonds for capital projects. \n \nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services comparing fiscal year 2011 with fiscal year 2010. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. \nTable 3 \nGovernmental Activities \n(In Thousands) \n \nTotal Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nNet Cost of Services \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nInstruction Support Services: \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \n \n$ \n \n21,992 $ \n \n21,602 $ \n \n970 1,016 \n317 1,109 1,859 \n421 2,360 2,375 \n45 119 \n \n1,499 1,099 \n567 904 1,979 388 1,963 2,053 \n47 153 \n \n284 1,800 \n840 \n \n783 1,839 \n884 \n \n5,000 $ \n598 340 -64 278 815 420 1,450 1,015 \n45 7 \n16 320 840 \n \n6,140 \n745 438 187 116 1,016 387 1,039 1,012 \n46 11 \n276 -181 884 \n \nTotal Expenses \n \n$ \n \n35,507 $ \n \n35,760 $ \n \n11,080 $ \n \n12,116 \n \nAlthough program revenues make up a majority of the revenues, the School District is still dependent upon tax revenues for governmental activities. Over 22.7 percent of instruction activities are supported through taxes and other general revenues; for all governmental activities general revenue support is 31.2 percent. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $41.0 million and expenditures and other financing uses of $39.7 million. \n \nv \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nGeneral Fund Budgeting 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. \nFor the General Fund, the actual revenues and other financing sources of $33.0 million was more than the original budgeted amount of $30.9 million by $2.1 million. This difference (actual vs. original budget) was primarily due to increased actual State revenue, Federal revenue, charges for services and miscellaneous revenue. \nThe actual revenues and other financing sources of $33.0 million were less than the final budgeted amounts by $94 thousand. Conservative budgeting for property taxes, sales taxes and state funds more than offset any shortfall in other revenue categories. \nThe final budgeted expenditures and other financing uses of $33.1 million was more than the original budgeted amount of $31.0 million by $2.1 million. The difference was primarily due to an increase in expenditures to coincide with increased revenues from Federal sources and the inclusion of our school principal accounts in our financial statements, which were not included in our budget. \nCAPITAL ASSETS AND DEBT ADMINISTRATION \nCapital Assets \nAt the end of fiscal year 2011 the School District had $40.5 million invested in capital assets, all in governmental activities. Table 4 shows fiscal year 2011 balances compared with fiscal year 2010 balances, net of depreciation. \nTable 4 Capital Assets (Net of Depreciation, in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nLand \n \n$ \n \nConstruction in Progress \n \nLand Improvements \n \nBuildings and Building Improvements \n \nEquipment \n \n532 $ 3,414 2,453 32,217 1,873 \n \n532 \n2,624 35,950 \n1,835 \n \nTotal \n \n$ \n \n40,489 $ \n \n40,941 \n \nvi \n \n MERIWETHER COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \n \nDebt \nAt June 30, 2011, the School District had $12.2 million in bonds outstanding with $1.4 million due within one year and $8.4 million in intergovernmental contracts outstanding with $318 thousand due within one year. Table 5 summarizes the School District's debt for compensated absences, general obligation bonds, intergovernmental contract and capital leases. \n \nTable 5 Debt at June 30 (in Thousands) \n \nGovernmental Activities \n \nFiscal \n \nFiscal \n \nYear 2011 \n \nYear 2010 \n \nCapital Leases \n \n$ \n \nCompensated Absences \n \nGeneral Obligation Bonds \n \nIntergovernmental Agreement \n \n112 $ 66 \n12,270 8,421 \n \n335 60 \n13,625 7,465 \n \nTotal \n \n$ \n \n20,869 $ \n \n21,485 \n \nAt June 30, 2011, the School District's Series 2007 Bonds are \"AA+\" by virtue of the State Intercept Program as determined by the Standard and Poor's Rating Services. \n \nCurrent Issues \n \nMeriwether County is on the fringe of the Greater Atlanta Area and the Greater Columbus Area. It is fifty miles from Atlanta and fifty miles from Columbus. It is poised for growth over the next decade. The School District has made extraordinary efforts to upgrade facilities with the replacement of five aging elementary schools with three state of the art elementary schools. The School District has also replaced one of its two high schools and extensively upgraded the other high school. The School District also just completed the replacement of a middle school in fiscal year 2007. While these capital projects have put a strain on the fiscal integrity of the School District, recent untimely \"austerity\" reductions in state funding have been devastating to the system's reserves. To address this deficit situation, the School District has begun a process of revenue enhancements and staff reduction through attrition to restore the financial integrity to the School District. \n \nContacting the Board's Financial Management \n \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 Byron K. Jones, Chief Financial Officer, at the Meriwether County Board of Education, P.O. Box 70, 2100 Gaston Street, Greenville, Georgia 30222. You may also email your questions to byron.jones@mcssga.org. \n \nvii \n \n  MERIWETHER COUNTY BOARD OF EDUCATION \n \n  MERIWETHER 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 Other Inventories Prepaid Items Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \nTotal Assets \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Contracts Payable Retainages Payable Deposits and Deferred Revenues Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nNET ASSETS \nInvested in Capital Assets, Net of Related Debt Restricted for \nContinuation of Federal Programs Debt Service Unrestricted \nTotal Net Assets \nTotal Liabilities and Net Assets \nThe notes to the basic financial statements are an integral part of this statement. - 1 - \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n7,282,600.93 \n \n477,133.97 \n \n1,863,996.33 2,243,442.69 1,164,471.08 \n10,061.45 218,675.02 188,973.98 \n26,340.33 170,709.00 3,945,592.24 36,543,038.64 \n \n$ \n \n54,135,035.66 \n \n$ \n \n1,431,189.51 \n \n3,563,388.89 \n \n131,917.24 \n \n239,575.75 \n \n2,935,385.55 \n \n240,722.85 \n \n14,625.00 \n \n1,841,079.69 19,028,358.60 \n \n$ \n \n29,426,243.08 \n \n$ \n \n20,642,588.88 \n \n253,925.35 708,515.88 3,103,762.47 \n \n$ \n \n24,708,792.58 \n \n$ \n \n54,135,035.66 \n \n MERIWETHER 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 Interest on Short-Term and Long-Term Debt \nTotal Governmental Activities \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \nTotal General Revenues \nChange in Net Assets \nNet Assets - Beginning of Year \nNet Assets - End of Year \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \n$ \n \n21,991,719.06 $ \n \n970,357.82 1,015,504.74 \n317,317.30 1,108,546.68 1,859,111.54 \n420,911.21 2,359,750.82 2,374,551.19 \n45,156.50 119,419.15 \n \n284,378.18 1,800,470.67 \n840,302.85 \n \n$ \n \n35,507,497.71 $ \n \n139,581.24 \n267,902.59 58,739.77 \n466,223.60 \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$ \n \n15,091,579.30 $ \n \n372,290.57 675,433.61 381,547.48 830,061.89 1,044,502.61 \n1,015.90 909,799.16 1,054,382.83 \n \n112,609.35 \n \n1,421,632.96 \n \n$ \n \n21,894,855.66 $ \n \n1,760,382.89 $ 305,168.00 \n2,065,550.89 $ \n \n-5,000,175.63 \n-598,067.25 -340,071.13 \n64,230.18 -278,484.79 -814,608.93 -419,895.31 -1,449,951.66 -1,015,000.36 \n-45,156.50 -6,809.80 \n-16,475.59 -320,097.94 -840,302.85 \n-11,080,867.56 \n \n$ \n \n9,068,439.91 \n \n585,447.83 \n \n60,111.64 \n \n1,667,939.19 93,943.19 \n1,119,103.00 9,433.16 \n685,224.11 \n \n$ \n \n13,289,642.03 \n \n$ \n \n2,208,774.47 \n \n22,500,018.11 \n \n$ \n \n24,708,792.58 \n \n- 3 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2011 \n \nEXHIBIT \"C\" \n \nASSETS \nCash and Cash Equivalents Investments Accounts Receivable, Net \nTaxes State Government Federal Government Local Other Inventories Prepaid Items \nTotal Assets \n \nGENERAL FUND \n \nDISTRICTWIDE \nCAPITAL PROJECTS \nFUND \n \nDEBT SERVICE \nFUND \n \nTOTAL \n \n$ 3,180,171.21 $ 3,994,148.05 $ \n1,607,919.08 2,243,442.69 1,164,471.08 \n10,061.45 218,675.02 188,973.98 \n26,340.33 \n \n108,281.67 $ 477,133.97 \n \n7,282,600.93 477,133.97 \n \n256,077.25 \n \n1,863,996.33 2,243,442.69 1,164,471.08 \n10,061.45 218,675.02 188,973.98 \n26,340.33 \n \n$ 8,640,054.84 $ 3,994,148.05 $ \n \n841,492.89 $ 13,475,695.78 \n \nLIABILITIES AND FUND BALANCES \nLIABILITIES \nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Deferred Revenue \nTotal Liabilities \nFUND BALANCES \nNonspendable Restricted Assigned Unassigned \nTotal Fund Balances \nTotal Liabilities and Fund Balances \n \n$ 1,414,497.73 $ \n \n16,691.78 \n \n3,563,388.89 \n \n131,917.24 \n \n2,935,385.55 \n \n240,722.85 \n \n1,209,245.73 \n \n$ \n \n$ 6,319,049.59 $ 3,192,800.18 $ \n \n$ 83,485.38 \n \n1,431,189.51 3,563,388.89 \n131,917.24 2,935,385.55 \n240,722.85 1,292,731.11 \n \n83,485.38 $ 9,595,335.15 \n \n$ \n \n215,314.31 \n \n237,808.56 $ 801,347.87 $ \n \n160,131.97 \n \n1,707,750.41 \n \n$ 2,321,005.25 $ 801,347.87 $ \n \n$ 758,007.51 \n \n215,314.31 1,797,163.94 \n160,131.97 1,707,750.41 \n \n758,007.51 $ 3,880,360.63 \n \n$ 8,640,054.84 $ 3,994,148.05 $ \n \n841,492.89 $ 13,475,695.78 \n \nThe notes to the basic financial statements are an integral part of this statement. - 4 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \n \nEXHIBIT \"D\" \n \nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \nTotal Capital Assets \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nProperty Taxes \nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets. \nDeferred Charges - Capitalized Bond Issuance Costs \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 Intergovernmental Contract Deferred Amount on Refunding Accrued Interest Capital Leases Payable Compensated Absences Payable \nTotal Long-Term Liabilities \n \n$ 3,880,360.63 \n \n$ \n \n531,808.00 \n \n3,413,784.24 \n \n4,267,666.92 \n \n45,068,114.82 \n \n5,441,817.00 \n \n-18,234,560.10 \n \n40,488,630.88 \n \n1,278,106.11 \n \n170,709.00 \n \n$ -12,270,000.00 -8,820,000.00 398,347.00 -239,575.75 -112,200.69 -65,584.60 \n \n-21,109,014.04 \n \nNet Assets of Governmental Activities (Exhibit \"A\") \n \n$ 24,708,792.58 \n \nThe notes to the basic financial statements are an integral part of this statement. - 5 - \n \n MERIWETHER 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 Food Services Operation \nCapital Outlay Debt Services \nPrincipal Interest \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) \nProceeds of Intergovernmental Contract Insurance 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$ 8,482,140.98 88,471.61 \n16,360,805.80 6,958,320.86 466,223.60 5,803.42 $ 685,224.11 \n$ 33,046,990.38 $ \n \n$ \n2,863.57 2,863.57 $ \n \n544,001.10 $ 1,673,410.77 \n766.17 \n \n9,026,142.08 1,761,882.38 16,360,805.80 6,958,320.86 \n466,223.60 9,433.16 \n685,224.11 \n \n2,218,178.04 $ 35,268,031.99 \n \n$ 19,652,888.08 \n \n970,357.82 1,015,504.74 \n317,317.30 1,099,496.06 $ 1,856,520.84 \n406,761.48 2,019,836.50 2,438,451.10 \n45,156.50 119,419.15 284,378.18 1,762,721.74 \n \n8,448.00 24,300.00 346,217.65 \n4,417,075.92 \n \n222,333.93 \n \n$ \n \n11,192.79 \n \n$ 32,222,336.21 $ 4,796,041.57 $ \n \n$ \n \n824,654.17 $ -4,793,178.00 $ \n \n$ 19,652,888.08 \n \n970,357.82 1,015,504.74 \n317,317.30 1,107,944.06 1,856,520.84 \n431,061.48 2,366,054.15 2,438,451.10 \n45,156.50 119,419.15 284,378.18 1,762,721.74 4,417,075.92 \n \n1,665,000.00 850,215.99 \n \n1,887,333.93 861,408.78 \n \n2,515,215.99 $ 39,533,593.77 \n \n-297,037.95 $ -4,265,561.78 \n \n$ 1,240,000.00 \n \n4,326,126.28 \n \n$ \n \n$ \n \n-179,253.49 \n \n$ \n \n-179,253.49 $ 5,566,126.28 $ \n \n$ \n \n645,400.68 $ \n \n772,948.28 $ \n \n1,675,604.57 \n \n28,399.59 \n \n$ 179,253.49 $ \n179,253.49 $ -117,784.46 $ 875,791.97 \n \n1,240,000.00 4,326,126.28 \n179,253.49 -179,253.49 \n5,566,126.28 \n1,300,564.50 \n2,579,796.13 \n \n$ 2,321,005.25 $ \n \n801,347.87 $ \n \n758,007.51 $ \n \n3,880,360.63 \n \nThe notes to the basic financial statements are an integral part of this statement. - 6 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \n \nEXHIBIT \"F\" \n \nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \nAmounts reported for Governmental Activities in the Statement of Activities are different because: \nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \nCapital Outlay Depreciation Expense \nExcess of Capital Outlay over Depreciation Expense \nIn the Statement of Activities, capital asset impairment losses are reported net of the associated insurance recovery, whereas in the Governmental Funds, the entire insurance recovery increases the financial resources. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \nDebt proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were received from Intergovernmental Contract issued, General Government - QSCB - Series 2010. \nBond issuance costs, deferred gains on refunding bonds and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \nAmortization of Bond Issuance Costs Amortization of Deferred Gain on Refunding of Bonds \nTotal Bond Issuance Costs \nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \nBond Principal Retirements Accrued Interest Capital Lease Payments Intergovernmental Contract Repayments \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: \nIncrease in Deferred Charges Increase in Compensated Absences \nTotal Additional Expenditures \nChange in Net Assets of Governmental Activities (Exhibit \"B\") \n \n$ 1,300,564.50 \n \n$ 4,099,723.38 -1,986,278.11 \n \n2,113,445.27 \n \n-2,565,743.39 687,857.30 \n \n-1,240,000.00 \n \n$ \n \n-13,223.00 \n \n-26,121.00 \n \n-39,344.00 \n \n$ 1,355,000.00 21,105.94 \n222,333.93 310,000.00 \n \n1,908,439.87 \n \n$ \n \n49,500.00 \n \n-5,945.08 \n \n43,554.92 \n \n$ 2,208,774.47 \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 MERIWETHER COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 \nASSETS Cash and Cash Equivalents Investments \nTotal Assets \nLIABILITIES Funds Held for Others \n \nEXHIBIT \"G\" \n \nAGENCY FUNDS \n \n$ \n \n56,727.86 \n \n8,091.01 \n \n$ \n \n64,818.87 \n \n$ \n \n64,818.87 \n \nThe notes to the basic financial statements are an integral part of this statement. - 9 - \n \n MERIWETHER 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 REPORTING ENTITY \nThe Meriwether County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS 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 Meriwether 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, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n District-wide Capital Projects Fund accounts for and reports financial resources including Bond Proceeds and insurance 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- 10 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \n Debt Service Fund accounts for and reports financial resources that are restricted, committed or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal, 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 and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nThe State of Georgia reimburses the School District for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are 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 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- 11 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNEW ACCOUNTING PRONOUNCEMENTS \nIn fiscal year 2011, the School District adopted the Governmental Accounting and Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \nCASH AND CASH EQUIVALENTS \nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nINVESTMENTS \nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \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 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. \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 \n \n- 12 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nrecognition 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 Meriwether County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on September 21, 2010 (levy date). Taxes were due on December 20, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. The Meriwether County Tax Commissioner bills and collects the property taxes for the School District, withholds 0.25% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2011, for maintenance and operations amounted to $8,422,029.34 and for school bonds amounted to $544,001.10. \nTax millage rates levied for the 2010 tax year (calendar year) for the Meriwether County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations School Bonds \n \n16.998 mills 1.106 mills \n \n18.104 mills \nSALES TAXES \nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,667,939.19 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \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. \nPREPAID ITEMS \nPayments made to vendors for services that will benefit periods subsequent to June 30, 2011, are recorded as prepaid items. \n \n- 13 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCAPITAL ASSETS \n \nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. \n \nDuring the fiscal year under review, Mountain View Elementary School sustained storm damage in the estimated amount of $4,511,054.00, which resulted in an impairment loss of $2,565,743.39. The School District received insurance proceeds in the amount of $4,326,126.28 to cover the cost of the repairs related to the storm damage. No other events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \n \nCapitalization \n \nEstimated \n \nPolicy \n \nUseful Life \n \nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \n \n$ \n \n5,000.00 \n \nN/A \n \n$ \n \n5,000.00 \n \n20 years \n \n$ \n \n5,000.00 \n \n7 to 40 years \n \n$ \n \n5,000.00 \n \n5 to 15 years \n \n$ 500,000.00 individually determined \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. \n \nCOMPENSATED ABSENCES \n \nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \n \nVacation leave of 12 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 10 days. \n \n- 14 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nBeginning of Year Liability \n \nIncreases \n \nDecreases \n \nEnd of Year Liability \n \n2009 $ 2010 $ 2011 $ \n \n74,179.59 $ 73,221.52 $ 59,639.52 $ \n \n0.00 $ 0.00 $ 5,945.08 $ \n \n958.07 $ 13,582.00 $ \n0.00 $ \n \n73,221.52 59,639.52 65,584.60 \n \nGENERAL OBLIGATION BONDS \n \nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, 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 \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. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \n \nNET ASSETS \n \nThe School District's net assets in the District-wide Statements are classified as follows: \n \nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \n \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. \n \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. \n \nFUND BALANCES \n \nThe School District's fund balances are classified as follows: \n \nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \n \nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \n \n- 15 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \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 \nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \n \nFUND BALANCES \n \nNonspendable \n \nInventories \n \n$ \n \nPrepaid Assets \n \nRestricted \n \nContinuation of Federal Programs $ \n \nCapital Projects \n \nDebt Service \n \nAssigned \n \nFamily Connection \n \n$ \n \nPre-Kindergarten Program \n \nSchool Activity Accounts \n \nUnassigned \n \n188,973.98 26,340.33 $ \n131,209.82 801,347.87 864,606.25 \n16,364.91 36,485.40 107,281.66 \n \n215,314.31 \n1,797,163.94 \n160,131.97 1,707,750.41 \n \nFund Balance, June 30, 2011 \n \n$ \n \n3,880,360.63 \n \nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year end, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \n \nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \nUSE OF ESTIMATES \n \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \n \n- 16 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 3: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS \n \nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \n \nAcceptable security for deposits consists of any one of or any combination of the following: \n \n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCATEGORIZATION OF DEPOSITS \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 $7,325,254.41. The amounts exposed to custodial credit risk are classified into three categories as follows: \n \nCategory 1 Category 2 - \nCategory 3 - \n \nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \n \n- 17 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District's deposits by custodial risk category at June 30, 2011, are as follows: \n \nCustodial Credit Risk Category \n \nBank Balance \n \n1 \n \n$ 1,014,882.71 \n \n2 \n \n0.00 \n \n3 \n \n0.00 \n \nTotal \n \n$ 1,014,882.71 \n \nCATEGORIZATION OF INVESTMENTS \nAt June 30, 2011, the carrying value of the School District's total investments was $477,133.97, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of State Treasurer which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \nNOTE 4: NON-MONETARY TRANSACTIONS \n \nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \n \n- 18 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 5: CAPITAL ASSETS \n \nThe following is a summary of changes in the Capital Assets during the fiscal year: \n \nGovernmental Activities Capital Assets, Not Being Depreciated: \nLand Construction Work In Progress \n \nBalances July 1, 2010 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2011 \n \n$ \n \n531,808.00 \n \n$ \n \n0.00 $ 3,413,784.24 \n \n0.00 $ \n \n531,808.00 3,413,784.24 \n \nTotal Capital Assets, Not Being Depreciated $ \n \n531,808.00 $ 3,413,784.24 $ \n \n0.00 $ 3,945,592.24 \n \nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \n \n$ 48,328,421.00 $ 5,087,591.00 4,209,721.00 \n \n245,945.22 $ 382,048.00 \n57,945.92 \n \n3,506,251.40 $ 27,822.00 \n \n45,068,114.82 5,441,817.00 4,267,666.92 \n \nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \n \n12,378,529.00 3,252,830.00 1,585,253.00 \n \n1,413,466.77 343,657.41 229,153.93 \n \n940,508.01 27,822.00 \n \n12,851,487.76 3,568,665.41 1,814,406.93 \n \nTotal Capital Assets, Being Depreciated, Net $ 40,409,121.00 $ -1,300,338.97 $ 2,565,743.39 $ 36,543,038.64 \n \nGovernmental Activity Capital Assets - Net $ 40,940,929.00 $ 2,113,445.27 $ 2,565,743.39 $ 40,488,630.88 \n \nCapital assets being acquired under capital leases as of June 30, 2011, are as follows: \nGovernmental Funds \n \nEquipment Less: Accumulated Depreciation \n \n$ 442,500.00 106,937.52 \n \n$ 335,562.48 \n \n- 19 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nCurrent year depreciation expense by function is as follows: \n \nInstruction \n \nSupport Services \n \nGeneral Administration \n \n$ \n \nSchool Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ 1,626,466.50 \n \n21,112.15 1,738.20 1,731.40 \n309,700.10 \n \n334,281.85 25,529.76 \n \nNOTE 6: INTERFUND TRANSFERS \n \n$ 1,986,278.11 \n \nInterfund transfers for the year ended June 30, 2011, consisted of the following: \nTransfer to \n \nTransfers From \nGeneral Fund \n \nDebt Service Fund \n \n$ 179,253.49 \n \nTransfers are used to move property tax revenues budgeted in the General Fund for retiring principal and interest on the Series 2004 Bond Issue to the Debt Service Fund. \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. \nThe School District has obtained commercial insurance for risk of loss associated with motor vehicles. 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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \n \n- 20 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \n \nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \n \nClaims and \n \nBeginning of Year \n \nChanges in \n \nClaims \n \nEnd of Year \n \nLiability \n \nEstimates \n \nPaid \n \nLiability \n \n2010 $ 2011 $ \n \n0.00 $ 0.00 $ \n \n90,416.00 $ 31,968.62 $ \n \n90,416.00 $ 31,968.62 $ \n \n0.00 0.00 \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \n \nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \n \nPosition Covered \nSuperintendent Other Employees \nNOTE 8: SHORT-TERM DEBT \n \nAmount \n \n$ \n \n50,000.00 \n \n$ \n \n50,000.00 \n \nThe School District issues tax anticipation notes in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \n \nShort-term debt activity for the fiscal year is as follows: \n \nBeginning \n \nBalance \n \nIssued \n \nRedeemed \n \nEnding Balance \n \nTax Anticipation Notes \n \n$ \n \n0.00 $ 3,000,000.00 $ 3,000,000.00 $ \n \n0.00 \n \nIn addition to the short-term debt mentioned above, the School District issues tax anticipation notes in the amount of $2,000,000.00 in the subsequent period in advance of property tax collections, depositing the proceeds in its General Fund. \n \n- 21 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 9: LONG-TERM DEBT CAPITAL LEASES \nThe Meriwether County Board of Education has entered into various lease agreements for school buses. 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. \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. \nINTERGOVERNMENTAL CONTRACT \nThe Meriwether County Board of Education entered into a contract with the Meriwether County Public Facilities Authority (Authority) dated October 1, 1999, for the issuance of bonds to provide funds for the financing of the construction and renovation of various school facilities owned by the School District. Under the terms of the contract, the Authority issued $8,810,000.00 (less issuance costs of $229,391.00) in revenue bonds on behalf of the School District. On January 4, 2006, the Authority issued refunding bonds in the amount of $8,160,000.00 (less issuance costs of $171,600.00) to refund a portion of the October 1, 1999 issue due from October 1, 2010 through October 1, 2026. \nOn July 20, 2010, the Authority issued QSCB bonds in the amount of $1,240,000.00 (less issuance costs of $49,500.00) on behalf of the School District. \nThe School District has contractually agreed to make semi-annual payments to the Authority sufficient to retire principal and interest on the outstanding bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \nThe debt at June 30, 2011, associated with these agreements is as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Refunding - Series 2006 General Government - QSCB - Series 2010 \n \n4.21% 5.29% \n \n$ 7,580,000.00 1,240,000.00 \n \n$ 8,820,000.00 \n \n- 22 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nGENERAL OBLIGATION DEBT OUTSTANDING \n \nGeneral Obligation Bonds currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nAmount \n \nGeneral Government - Series 2004 General Government - Refunding - Series 2005 General Government - Series 2007 \n \n3.84% 3.27% 3.70% - 4.10% \n \n$ 4,085,000.00 6,215,000.00 1,970,000.00 \n \n$ 12,270,000.00 \nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \n \nBalance July 1, 2010 \n \nAdditions \n \nGovernmental Funds \n \nBalance \n \nDeductions \n \nJune 30, 2011 \n \nDue Within One Year \n \nIntergovernmental Agreement $ Less: Deferred Amounts \nOn Refunding \n \n7,890,000.00 $ -424,468.00 \n \n1,240,000.00 $ 26,121.00 \n \n310,000.00 $ 8,820,000.00 $ -398,347.00 \n \n345,000.00 -26,121.00 \n \nTotal Intergovernmental Agreement \n \n$ 7,465,532.00 $ 1,266,121.00 $ \n \n310,000.00 $ 8,421,653.00 $ \n \n318,879.00 \n \nG. O. Bonds Capital Leases Compensated Absences (1) \n \n13,625,000.00 334,534.62 59,639.52 \n \n5,945.08 \n \n1,355,000.00 222,333.93 \n \n12,270,000.00 112,200.69 65,584.60 \n \n1,410,000.00 112,200.40 (1) \n \n$ 21,484,706.14 $ 1,272,066.08 $ 1,887,333.93 $ 20,869,438.29 $ 1,841,079.40 \n \n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \n \n- 23 - \n \n MERIWETHER 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 \nCapital Leases \n \nGeneral Obligation Debt \n \nPrincipal \n \nInterest \n \nPrincipal \n \nInterest \n \nFiscal Year Ended June 30: \n \n2012 2013 2014 2015 2016 2017 - 2021 2022 - 2026 2027 \n \n$ \n \n112,200.69 $ \n \n3,093.96 $ \n \n1,410,000.00 $ 1,470,000.00 1,535,000.00 1,600,000.00 1,670,000.00 1,825,000.00 2,250,000.00 \n510,000.00 \n \n432,981.00 385,248.75 335,383.50 283,355.50 228,998.75 723,108.75 328,241.00 \n10,000.00 \n \nTotal Principal and Interest \n \n$ \n \n112,200.69 $ \n \n3,093.96 $ 12,270,000.00 $ \n \n2,727,317.25 \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nIntergovernmental Agreement \n \nDeferred Amount \n \nInterest \n \non Refunding \n \n2012 2013 2014 2015 2016 2017 - 2021 2022 - 2026 2027 \n \n$ \n \n345,000.00 $ \n \n377,451.75 $ \n \n355,000.00 \n \n362,716.75 \n \n370,000.00 \n \n347,455.50 \n \n385,000.00 \n \n331,562.75 \n \n405,000.00 \n \n314,933.25 \n \n3,520,000.00 \n \n1,234,473.00 \n \n2,805,000.00 \n \n438,997.75 \n \n635,000.00 \n \n13,366.75 \n \n-26,121.00 -26,121.00 -26,121.00 -26,121.00 -26,121.00 -130,605.00 -130,605.00 \n-6,532.00 \n \nTotal Principal and Interest \n \n$ \n \n8,820,000.00 $ \n \n3,420,957.50 $ \n \n-398,347.00 \n \nNOTE 10: ON-BEHALF PAYMENTS \nThe School District has recognized revenues and costs in the amount of $101,152.27 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 $77,383.27 \n \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 $23,769.00 \n \n- 24 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nNOTE 11: SIGNIFICANT COMMITMENTS \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011: \n \nUnearned \n \nExecuted \n \nProject \n \nContracts \n \nMountain View Manchester High School \n \n$ \n \n2,108,747.33 \n \n712,533.29 \n \n$ \n \n2,821,280.62 \n \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. \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 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). 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 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. \n \n- 25 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \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, 2011: \n \nFor certificated teachers, librarians and regional educational service agencies: \n \nJuly 2010 - April 2011 May 2011 - June 2011 \n \n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \n \nFor non-certificated school personnel: \n \nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \n \n$162.72 per member per month $218.20 per member per month $246.20 per member per month \n \nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \n \nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \n \nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% 100% 100% \n \n$ \n \n2,970,960.04 \n \n$ \n \n2,954,487.06 \n \n$ \n \n2,353,069.03 \n \nNOTE 14: RETIREMENT PLANS \n \nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \n \nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \n \nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \n \n- 26 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2011 \n \nEXHIBIT \"H\" \n \nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \n \nFiscal Year \n \nPercentage Contributed \n \nRequired Contribution \n \n2011 2010 2009 \n \n100% \n \n$ \n \n1,762,220.80 \n \n100% \n \n$ \n \n1,789,865.36 \n \n100% \n \n$ \n \n1,875,908.00 \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- 27 - \n \n (This page left intentionally blank) \n \n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"1\" \n \nREVENUES \nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \nTotal Revenues \nEXPENDITURES \nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \nDebt Service \nTotal Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING USES \nOther Uses \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \n$ 8,469,910.00 $ 8,350,000.00 $ 8,482,140.98 \n \n88,471.61 \n \n16,248,340.00 \n \n16,367,912.00 \n \n16,360,805.80 \n \n5,654,370.00 \n \n7,528,056.00 \n \n6,958,320.86 \n \n118,000.00 \n \n118,000.00 \n \n466,223.60 \n \n1,000.00 \n \n1,000.00 \n \n5,803.42 \n \n501,000.00 \n \n776,000.00 \n \n685,224.11 \n \n$ 30,992,620.00 $ 33,140,968.00 $ 33,046,990.38 \n \n$ 17,948,346.00 $ 19,879,547.00 $ 19,652,888.08 \n \n1,086,260.00 1,175,183.00 \n433,000.00 1,042,464.00 1,975,000.00 \n430,000.00 2,050,000.00 2,485,221.00 \n45,500.00 142,146.00 \n1,978,000.00 201,500.00 \n \n1,142,278.00 1,470,156.00 \n375,000.00 1,033,904.00 1,900,000.00 \n425,000.00 2,050,000.00 2,485,221.00 \n45,500.00 176,862.00 \n1,978,000.00 179,500.00 \n \n970,357.82 1,015,504.74 \n317,317.30 1,099,496.06 1,856,520.84 \n406,761.48 2,019,836.50 2,438,451.10 \n45,156.50 119,419.15 284,378.18 1,762,721.74 233,526.72 \n \n$ 30,992,620.00 $ 33,140,968.00 $ 32,222,336.21 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n824,654.17 \n \n-179,253.49 \n \n$ \n \n0.00 $ \n \n0.00 $ \n \n645,400.68 \n \n0.00 \n \n1,591,402.42 \n \n1,675,604.57 \n \n$ \n \n0.00 $ 1,591,402.42 $ 2,321,005.25 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 29 - \n \n MERIWETHER 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 \nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \nTotal U. S. Department of Agriculture \nEducation, U. S. Department of Special 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 \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 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 Safe and Drug-Free Schools and Communities - State Grants Twenty-First Century Community Learning Centers \nTotal Other Programs \nTotal U. S. Department of Education \nTotal Expenditures of Federal Awards \nN/A = Not Available \n \nCFDA NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n(2) 1,603,624.57 (1) \n1,603,624.57 \n \n10.582 \n \nN/A $ \n \n97,906.37 1,701,530.94 \n \n* 84.391 * 84.392 * 84.027 * 84.173 \n84.394 \n* 84.389 * 84.010 \n84.048 * 84.410 \n84.365 84.367 84.186 84.287 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n325,633.42 4,485.40 \n900,986.00 60,306.00 \n1,291,410.82 \n \nN/A \n \n$ \n \n976.00 \n \nN/A \n \n$ \n \nN/A \n \n$ \n \n545,139.00 1,653,181.13 \n2,198,320.13 \n \nN/A \n \n$ \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \nN/A \n \n$ \n \n$ \n \n47,936.00 627,139.00 \n770.15 284,985.60 \n1,152.00 1,075,327.40 \n2,037,310.15 \n5,528,017.10 \n \n$ \n \n7,229,548.04 \n \n- 30 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2011 \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 $77,617.89. \n(2) Expenditures for the fund earned on the School Breakfast Program ($369,092.90) were not maintained separately and are included in the 2011 National School Lunch Program. \nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \nThe School District did not provide Federal Assistance to any Subrecipient. \nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Meriwether 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- 31 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \n \nAGENCY/FUNDING \nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program 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 Migrant Education Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Funding Health Insurance Math and Science Supplements Move On When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Residential Treatment Centers Grant Rule 10 Special Education State Grant Virtual Schools Grant \nOffice of the State Treasurer Public School Employees Retirement \nCONTRACT Human Resources, Georgia Department of Family Connection \n \nSee notes to the basic financial statements. \n \n- 32 - \n \nSCHEDULE \"3\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n878,545.11 \n \n944,383.00 160,627.00 1,993,016.00 535,132.00 1,014,551.00 314,960.00 1,635,140.00 1,539,328.00 477,393.00 2,923,659.00 314,650.00 178,933.00 136,293.00 \n7,887.00 322,574.00 \n96,379.00 75,407.00 \n502,556.00 881,643.00 771,922.00 \n851,853.00 61,706.00 14,635.00 \n1,119,103.00 61,190.80 25,728.00 \n-2,204,589.00 \n1,728.00 77,383.27 72,064.62 \n100.00 111,489.00 305,168.00 \n1,499.00 90,000.00 \n750.00 \n23,769.00 \n \n42,250.00 \n \n$ \n \n16,360,805.80 \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"4\" \n \nPROJECT \n \n(i) Paying a portion of the principal of and interest on \n \nthe Series 1996 Bond, the maximum amount of debt \n \nto be paid will not exceed $851,372.50 as set forth in \n \nthe School District Resolution \n \n$ \n \nORIGINAL ESTIMATED \nCOST (1) \n851,372.50 $ \n \nCURRENT ESTIMATED COSTS (2) \n851,372.50 \n \n(ii) Paying a portion of the principal of and interest on the Series 1999 Bonds, the maximum amount of debt to be paid will not exceed $462,900.00 as set forth in the School District Resolution \n \n462,900.00 \n \n462,900.00 \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nPROJECT STATUS \n \n$ \n \n851,372.50 Completed \n \n462,900.00 Completed \n \n(iii) Paying a portion of the principal of and interest on the Series 2004 Bonds, the maximum amount of debt to be paid will not exceed $1,670,616.00 as set forth in the School District Resolution \n(iv) Paying a portion of the principal of and interest on the Series 2005 Bonds, the maximum amount of debt to be paid will not exceed $5,675,012.75 as set forth in the School District Resolution \n(v) Paying a portion of the principal of and interest on the Series 2006 Bonds, the maximum amount of debt to be paid will not exceed $2,840,098.75 as set forth in the School District Resolution \n \n1,670,616.00 5,675,012.75 2,840,098.75 \n \n1,670,616.00 $ \n \n330,128.00 \n \n5,675,012.75 \n \n1,334,037.00 \n \n2,840,098.75 \n \n635,643.50 \n \n747,104.00 Ongoing 2,914,769.00 Ongoing \n931,527.00 Ongoing \n \n$ 11,500,000.00 $ 11,500,000.00 $ 2,299,808.50 $ 5,907,672.50 \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 Meriwether 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- 33 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \n \nSCHEDULE \"5\" \n \nDESCRIPTION \nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \nMedia Center Program Staff and Professional Development \nTOTAL QBE FORMULA FUNDS \n \nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \n \nELIGIBLE QBE PROGRAM COSTS \n \nSALARIES \n \nOPERATIONS \n \nTOTAL \n \n$ \n \n1,111,112.00 $ \n \n993,593.04 $ \n \n179,295.00 \n \n189,816.12 \n \n2,386,338.00 \n \n1,842,405.69 \n \n596,645.00 \n \n267,200.02 \n \n1,193,029.00 \n \n1,221,700.60 \n \n357,105.00 1,954,765.00 1,821,580.00 \n567,854.00 3,412,309.00 \n334,629.00 192,449.00 160,821.00 \n9,258.00 \n \n284,780.50 2,157,027.75 2,487,024.38 \n368,776.49 \n466,197.52 487,640.49 1,244,725.21 333,024.68 147,336.16 208,970.33 \n169.56 49,224.78 \n \n$ 14,277,189.00 $ 12,749,613.32 $ \n \n378,926.00 76,623.00 \n \n289,691.83 62,423.25 \n \n7,984.00 $ 24,152.59 11,476.41 \n17,229.94 162,058.25 \n31,419.77 39.27 \n1,530.22 15,338.21 \n \n1,001,577.04 189,816.12 \n1,866,558.28 267,200.02 \n1,233,177.01 \n284,780.50 2,174,257.69 2,649,082.63 \n400,196.26 \n466,236.79 487,640.49 1,244,725.21 333,024.68 147,336.16 210,500.55 \n169.56 64,562.99 \n \n271,228.66 $ 8,904.51 \n \n13,020,841.98 \n298,596.34 62,423.25 \n \n$ 14,732,738.00 $ 13,101,728.40 $ \n \n280,133.17 $ 13,381,861.57 \n \n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \n \nSee notes to the basic financial statements. \n \n- 35 - \n \n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \n \n  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 17, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Meriwether 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 Meriwether County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Meriwether County Board of Education's basic financial statements and have issued our report thereon dated May 17, 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 Meriwether County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Meriwether 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 Meriwether County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Meriwether 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-30 \n \n  Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we consider item FS-6991-11-01, described in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nCompliance and Other Matters \nAs part of obtaining reasonable assurance about whether Meriwether 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 Meriwether County Board of Education in a separate letter dated May 17, 2012. \nMeriwether County Board of Education's response to the finding identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit Meriwether County Board of Education's response and, accordingly, we express no opinion on it. \nThis report is intended solely for the information and use of management, members of the Meriwether County Board of Education, others within the entity, Federal awarding agencies and passthrough 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-30 \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 17, 2012 \n \nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \nand Superintendent and Members of the Meriwether 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 Meriwether 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. Meriwether 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 Meriwether County Board of Education's management. Our responsibility is to express an opinion on Meriwether 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 Meriwether 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 Meriwether County Board of Education's compliance with those requirements. \nIn our opinion, the Meriwether County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. \n2011SA-10 \n \n  Internal Control Over Compliance \nManagement of Meriwether 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 Meriwether 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 Meriwether 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 Meriwether County Board of Education, others within the entity, Federal awarding agencies and passthrough 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  MERIWETHER 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  MERIWETHER 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: \n \n Material weakness identified? \n \nNo \n \n Significant deficiency identified? \n \nYes \n \nNoncompliance material to financial statements noted: \n \nNo \n \nFederal Awards \n \nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \n \nNo None Reported \n \nType of auditor's report issued on compliance for major programs: All major programs \n \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 \n84.010, 84.389 84.027, 84.173, 84.391, 84.392 84.410 \n \nTitle I, Part A Cluster Special Education Cluster Education Jobs Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \n$300,000.00 \n \nAuditee qualified as low-risk auditee? \n \nNo \n \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \n \nCASH AND CASH EQUIVALENTS EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Controls Significant Deficiency Finding Control Number: FS-6991-11-01 \n \nCondition: The accounting procedures of the School District were insufficient to provide adequate internal controls over balance sheet reconciliations. \n \n- 1 - \n \n MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2011 \nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \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. \nQuestioned Cost: N/A \nInformation: Cash and Cash Equivalents \nSchool District management informed the auditors that the June 30, 2011, bank reconciliation was started timely, but the School District needed to perform additional analysis due to conversion information which became available subsequent to closing the fiscal year. The conversion information was related to a change of accounting systems from PC Genesis to Munis. The fundamental difference in accounting systems caused additional entries to be made to appropriately reconcile cash balances, and these entries were made to the cash control fund and examined across all funds. \nEmployee Compensation A reconciliation of salary and benefits payable recorded on the School District's financial statements to the School District's salary and benefits payable listing identified several items that needed additional analysis due to the conversion of accounting systems. The accounts payable entries made to the accounting records during the interim period of conversion made analysis of salaries and benefits payable a lengthy process. Since records were hard to analyze, a variance was detected during the reconciliation. An adjustment was made to correct this variance. \nExpenditures/Liabilities/Disbursements A reconciliation of accounts payable recorded on the School District's financial statements to the School District's accounts payable listing was not able to be produced in a timely manner. A variance was noted between the financial statement balance and the listing. \nCause: The School District converted their financial accounting system from PC Genesis to Munis towards the end of June 2011, which required new processes to be placed in operation. Complications were encountered related to this conversion that either delayed or prohibited the reconciliation of certain balance sheet accounts. \nEffect: Failure to properly reconcile balance sheet accounts timely may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. \nRecommendation: The School District should revise and implement internal controls to ensure that all balance sheet accounts are properly reconciled in a timely manner after the end of each month throughout the fiscal year. Any reconciling items should be researched and corrected in a timely manner. \nII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n- 2 - \n \n SECTION V MANAGEMENT'S RESPONSES \n \n  MERIWETHER COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \nYEAR ENDED JUNE 30, 2011 \n \nFinding Control Number: FS-6991-11-01 \n \nWe concur with this finding. The conversion training for the new software system has been completed, and appropriate personnel have been trained on reconciling procedures within the new system. Reports have been identified that verify totals which are reflected on the balance sheets. Monthly reconciliations are performed, and the balances are verified accordingly. \n \nContact Person: Telephone: Fax: Email: \n \nByron K. Jones, Assistant Superintendent - Finance and Operations (706) 672-4297 (706) 672-1618 byron.jones@mcssga.org \n \n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":12,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":12}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits and Accounts","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"subject_facet","items":[{"value":"Education--Georgia--Meriwether County--Auditing--Periodicals","hits":12},{"value":"Education--Georgia--Meriwether County--Finance--Statistics--Periodicals","hits":12},{"value":"Meriwether County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"location_facet","items":[{"value":"United States, Georgia, 32.75042, -83.50018","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"year_facet","items":[{"value":"2019","hits":2},{"value":"2021","hits":2},{"value":"2009","hits":1},{"value":"2010","hits":1},{"value":"2011","hits":1},{"value":"2012","hits":1},{"value":"2015","hits":1},{"value":"2016","hits":1},{"value":"2018","hits":1},{"value":"2020","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null},"min":"2009","max":"2021","count":12,"missing":0},{"name":"medium_facet","items":[{"value":"audits","hits":12},{"value":"financial records","hits":12},{"value":"financial statements","hits":12},{"value":"state government records","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"fulltext_present_b","items":[{"value":"true","hits":12}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"rights_facet","items":[{"value":"http://rightsstatements.org/vocab/InC/1.0/","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"collection_titles_sms","items":[{"value":"Georgia Government Publications","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"serial_titles_sms","items":[{"value":"Fiscal year ended June 30, 2010-fiscal year ended June 30, 2020 have title: Meriwether County Board of Education, Greenville, Georgia, annual financial report for the fiscal year ended ... (including independent auditor's reports)","hits":12},{"value":"Meriwether County Board of Education, annual financial report fiscal year ended June 30, 2009","hits":12},{"value":"Meriwether County Board of Education, annual financial report, Greenville, Georgia, for the fiscal year ended ... including independent auditor's reports.","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"provenance_facet","items":[{"value":"University of Georgia. Map and Government Information Library","hits":12}],"options":{"sort":"count","limit":11,"offset":0,"prefix":null}},{"name":"call_numbers_sms","items":[{"value":"A800 .R1 E26 M5","hits":12},{"value":"A800 .R1 E26 M5 2008-2009","hits":1},{"value":"A800 .R1 E26 M5 2009-2010","hits":1},{"value":"A800 .R1 E26 M5 2010-2011","hits":1},{"value":"A800 .R1 E26 M5 2011-2012","hits":1},{"value":"A800 .R1 E26 M5 2013","hits":1},{"value":"A800 .R1 E26 M5 2014","hits":1},{"value":"A800 .R1 E26 M5 2015","hits":1},{"value":"A800 .R1 E26 M5 2016","hits":1},{"value":"A800 .R1 E26 M5 2017","hits":1},{"value":"A800 .R1 E26 M5 2018","hits":1},{"value":"A800 .R1 E26 M5 2019","hits":1},{"value":"A800 .R1 E26 M5 2020","hits":1}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"class_name","items":[{"value":"Item","hits":12}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}},{"name":"geojson","items":[{"value":"{\"type\":\"Feature\",\"geometry\":{\"type\":\"Point\",\"coordinates\":[-83.50018, 32.75042]},\"properties\":{\"placename\":\"United States, Georgia\"}}","hits":12}],"options":{"sort":"index","limit":-2,"offset":0,"prefix":null}},{"name":"placename","items":[{"value":"United States, Georgia","hits":12}],"options":{"sort":"count","limit":100,"offset":0,"prefix":null}}]}}