{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2020-belec-p-btext","title":"Toombs County Board of Education, Lyons, 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":["2021-03-26"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals","Education--Georgia--Toombs County--Auditing--Periodicals","Education--Georgia--Toombs County--Finance--Statistics--Periodicals"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS 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\nMANAGEMENT'S DISCUSSION AND ANALYSIS \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 \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI 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 PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nPage \r\ni \r\n1 2 \r\n3 4 5 6 7 8 9 \r\n33 34 35 36 37 38 \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND 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\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 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 (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 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 Toombs 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 Toombs 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 (This page left intentionally blank) \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\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\n \r\n (This page left intentionally blank) \r\n \r\n Other Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 26, 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\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nINTRODUCTION \r\nThe discussion and analysis of the Toombs County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2020. 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 financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2020 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflow of resources of the School District exceeded liabilities and deferred inflow of resources by $10.1 million for the fiscal year ended June 30, 2020. \r\n General revenues account for $12.2 million in revenue or 33.6% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $24.0 million or 66.4% of total revenues of $36.2 million. \r\n The School District had $34.0 million in expenses related to governmental activities; however, $24.0 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily taxes) of $12.2 million were adequate to provide for these programs. \r\n Among major funds, the general fund had $32.9 million in revenues and $31.5 million in expenditures. The fund balance for the general fund increased by $1.4 million, from $4.2 million to approximately $5.6 million. This increase was due primarily to the increase in property and sales taxes, grant revenue and expenditures were held consistent to the prior spending. The expenditures were impacted due to the early ending of the school year as required by the state due to COVID-19. \r\n The deficit balance reflected in the unrestricted net provision is due to the recording of pensions per GASB No. 68, GASB No. 71, and GASB No. 75 relating to accounting and financial reporting for postemployment benefits. The amount of the School District's proportionate share of the collective net pension liability for the Teachers Retirement System cost sharing benefit pension plan was $27.5 million. The amount of the School District's proportionate share of the collective net Other Post Employment Benefit (OPEB) liability was $21.5 million. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\ni \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\nThe fund financial statements reflect the School District's most significant funds. For the year ending June 30, 2020, the general fund, capital projects fund and debt service fund represents the significant funds. \r\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. \r\nGovernment-wide Statements \r\nThe government-wide statements report information about the School District as a whole, using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational \r\nii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \r\niii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2020 and 2019. \r\n \r\nTable 1 Net Position \r\n \r\nAssets \r\nCash and Cash Equivalents Investments Receivable, 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\n \r\nFiscal Year 2020 \r\n \r\nGovernmental Activities Fiscal Year 2019 \r\n \r\nNet Change \r\n \r\n$ \r\n \r\n8,669,283 $ 12,942,908 $ (4,273,625) \r\n \r\n1,507,415 \r\n \r\n- \r\n \r\n1,507,415 \r\n \r\n4,053 1,807,082 2,269,093 \r\n512,566 - \r\n101,352 74,598 77,546 \r\n3,983,778 \r\n \r\n1,444,165 2,392,507 \r\n681,445 606 \r\n112,732 43,777 - \r\n1,503,915 \r\n \r\n4,053 362,917 (123,414) (168,879) \r\n(606) (11,380) 30,821 77,546 2,479,863 \r\n \r\n54,201,523 73,208,289 \r\n \r\n53,111,328 72,233,383 \r\n \r\n1,090,195 974,906 \r\n \r\nDeferred Outflows of Resources \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLiabilities \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts 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\n \r\n7,576,177 1,538,019 \r\n9,114,196 \r\n \r\n5,235,162 1,211,472 \r\n6,446,634 \r\n \r\n2,341,015 326,547 \r\n2,667,562 \r\n \r\n315,028 3,466,847 \r\n66,373 784,381 27,453,792 21,468,400 \r\n2,219,405 8,621,026 \r\n64,395,252 \r\n \r\n426,208 3,493,243 \r\n44,498 422,256 24,339,609 22,771,322 \r\n2,159,262 10,840,431 \r\n64,496,829 \r\n \r\n(111,180) (26,396) 21,875 362,125 \r\n3,114,183 (1,302,922) \r\n60,143 (2,219,405) \r\n(101,577) \r\n \r\nDeferred Inflows of Resources \r\n \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n1,875,404 5,903,177 \r\n \r\n1,858,866 4,375,529 \r\n \r\n16,538 1,527,648 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n7,778,581 \r\n \r\n6,234,395 \r\n \r\n1,544,186 \r\n \r\nNet Assets \r\n \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\n \r\n47,454,546 \r\n574,312 507,248 3,182,323 (41,569,777) \r\n \r\n47,399,992 \r\n754,110 805,244 1,689,639 (42,700,192) \r\n \r\n54,554 \r\n(179,798) (297,996) 1,492,684 1,130,415 \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n10,148,652 $ \r\n \r\n7,948,793 $ \r\n \r\n2,199,859 \r\n \r\niv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nTotal assets increased by $974 thousand primarily due to increase in capital assets. Total liabilities, excluding net pension liabilities and net OPEB liabilities, decreased by $1.9 million due to the longterm debt payment. The Pension and OPEB activity changed due to the combination of the increase of deferred outflows of resources and the increase in total liabilities and deferred inflows of resources which yielded a decrease net position of $688 thousand. Total net position increased by $2.2 million due to increased capital assets and ongoing capital projects. \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2020 and June 30, 2019. \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nTable 2 Change in Net Position \r\nFiscal Year 2020 \r\n \r\nGovernmental Activities Fiscal Year 2019 \r\n \r\nNet Change \r\n \r\n$ \r\n \r\n189,357 $ \r\n \r\n209,330 $ \r\n \r\n(19,973) \r\n \r\n23,631,968 \r\n \r\n23,369,447 \r\n \r\n262,521 \r\n \r\n227,220 \r\n \r\n198,344 \r\n \r\n28,876 \r\n \r\nTotal Program Revenues \r\n \r\n24,048,545 \r\n \r\n23,777,121 \r\n \r\n271,424 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nExtraordinary Item Special Item \r\n \r\n6,264,640 20,240 \r\n1,955,000 930,029 101,450 \r\n1,847,243 165,936 874,459 - \r\n \r\n5,925,333 14,711 \r\n \r\n339,307 5,529 \r\n \r\n1,900,000 558,515 43,350 \r\n1,726,333 39,479 \r\n1,007,683 (11,000) \r\n(1,321,878) \r\n \r\n55,000 371,514 \r\n58,100 \r\n120,910 126,457 (133,224) \r\n11,000 1,321,878 \r\n \r\nTotal General Revenues and Special/Extraordinary Items \r\n \r\n12,158,997 \r\n \r\n9,882,526 \r\n \r\n2,276,471 \r\n \r\nTotal Revenues and Special/Extraordinary Items \r\n \r\n36,207,542 \r\n \r\n33,659,647 \r\n \r\n2,547,895 \r\n \r\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 \r\n \r\n22,036,119 \r\n1,306,808 1,239,592 \r\n560,550 300,389 1,766,135 338,198 1,967,098 1,476,730 144,079 \r\n67,245 \r\n221,269 2,327,025 \r\n256,447 \r\n \r\n20,431,344 \r\n1,247,283 1,053,984 \r\n471,149 225,173 1,558,816 468,177 2,226,146 1,632,407 155,121 \r\n64,407 \r\n209,467 2,518,302 \r\n194,182 \r\n \r\n1,604,775 \r\n59,525 185,608 \r\n89,401 75,216 207,319 (129,979) (259,048) (155,677) (11,042) \r\n2,838 \r\n11,802 (191,277) \r\n62,265 \r\n \r\nTotal Expenses \r\n \r\n34,007,684 \r\n \r\n32,455,958 \r\n \r\n1,551,726 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n2,199,858 $ \r\n \r\n1,203,689 $ 996,169 \r\n \r\nv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nFor fiscal year 2020, program revenues, in the form of charges for services, operating grants and contributions, and capital grants and contributions increased by $271 thousand for governmental activities. General revenues, not including Special/Extraordinary Items, increased by $944 thousand due to increases in the collection of property and sales taxes, grant revenue and miscellaneous revenue. Of these revenues $293 thousand were due to changes in the distribution of Title Ad Valorem Tax and additional SPLOST revenue collected by the state for online purchases, as well as an audit of prior year sales taxes. \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nInstruction Support Services: \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ \r\n \r\n22,036,119 $ \r\n \r\n1,306,808 1,239,592 \r\n560,550 300,389 1,766,135 338,198 1,967,098 1,476,730 144,079 \r\n67,245 \r\n \r\n221,269 2,327,025 \r\n256,447 \r\n \r\n20,431,344 $ \r\n1,247,283 1,053,984 \r\n471,149 225,173 1,558,816 468,177 2,226,146 1,632,407 155,121 \r\n64,407 \r\n209,467 2,518,302 \r\n194,182 \r\n \r\n5,739,079 $ \r\n854,689 120,920 140,934 (567,151) 837,162 336,993 1,056,067 757,784 143,387 \r\n30,926 \r\n87,615 164,286 256,447 \r\n \r\n4,467,049 \r\n739,753 37,586 71,252 \r\n(486,271) 662,017 467,124 1,344,018 833,882 155,121 \r\n39,254 \r\n63,964 89,905 194,182 \r\n \r\nTotal Expenses \r\n \r\n$ \r\n \r\n34,007,684 $ \r\n \r\n32,455,958 $ \r\n \r\n9,959,138 $ \r\n \r\n8,678,836 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2020, 29.3% of instruction and support activities were supplemented by taxes and other general revenues compared to 26.7% in 2019. \r\n \r\nvi \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $35.9 million and total expenses and other financing uses of $39.1 million. There was a decrease in the fund balance totaling $3.2 million for the governmental funds as a whole. This decrease was due to an increase in expenditures of the bond proceeds received in the prior year, completion of capital projects and ongoing approved construction projects. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal year 2020, the School District amended its general fund budget as needed. \r\n \r\nThe School District's budget is adopted at the aggregate fund level but is prepared by fund, function and object and presented by fund and function for management control. \r\n \r\nDuring fiscal year 2020, the general fund had final actual revenues and other financing sources totaling $32.9 million, which represented a decrease from the final budgeted amount of $33.1 million by $184 thousand. This difference (actual vs. budget) was due to $184 thousand in property and sales taxes, grants revenues and miscellaneous revenues, in addition to the various principal accounts not included in the final budget. \r\n \r\nFinal actual expenditures during fiscal year 2020, totaling $31.5 million represented a decrease from the final budgeted amount of $33.2 million by $1.7 million. The decrease in actual expenditures versus final budget expenditures was due primarily to the early end to the school year due to COVID-19. \r\n \r\nCAPITAL ASSETS \r\n \r\nAt the end of fiscal year 2020, the School District had $58.2 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land, buildings, transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nFiscal Year 2020 \r\n \r\nGovernmental Activities Fiscal Year 2019 \r\n \r\nNet Change \r\n \r\nLand \r\n \r\n$ \r\n \r\n1,033,709 $ \r\n \r\nConstruction In Progress \r\n \r\n2,950,069 \r\n \r\nBuilding and Improvements \r\n \r\n51,590,669 \r\n \r\nEquipment \r\n \r\n1,789,908 \r\n \r\nLand Improvements \r\n \r\n820,946 \r\n \r\n1,033,709 $ 470,206 \r\n50,792,330 1,498,007 820,991 \r\n \r\n2,479,863 \r\n798,339 291,901 \r\n(45) \r\n \r\nTotal \r\n \r\n$ 58,185,301 $ \r\n \r\n54,615,243 $ \r\n \r\n3,570,058 \r\n \r\nvii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nThe overall capital assets increased in fiscal year 2020 by 3.6 million due to the addition of the assets related to the ongoing capital projects related to the bond issuance in fiscal year 2019. \r\nConstruction in progress increased primarily due to the athletic facility construction still in progress at June 30, 2020. \r\nLONG-TERM LIABILITIES \r\nAt June 30, 2020, the School District had $10.8 million in total debt outstanding with $2.2 million due within one year. Table 5 summarizes long-term liabilities outstanding at June 30, 2020 and 2019. \r\n \r\nTable 5 Long-term Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nGeneral Obligation Bonds Bond Premiums Amortized Capital Lease \r\n \r\n$ 10,120,000 $ 12,075,000 \r\n \r\n712,326 \r\n \r\n912,753 \r\n \r\n8,105 \r\n \r\n11,940 \r\n \r\nTotal \r\n \r\n$ 10,840,431 $ 12,999,693 \r\n \r\nCURRENT ISSUES \r\nApproximately 83.3% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2020. With such heavy personnel expenses, it is difficult to offset mandated expense increases such as TRS and health insurance premium expenses. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that County students receive a quality education from effective personnel. \r\nThe School District's millage rate for fiscal year 2020 was 14.003. The net digest increased from $376.9 million in fiscal year 2019 to $378.8 million in fiscal year 2020. The net digest for fiscal year 2020 produced approximately $378,755 per mill. As shown in Table 3, property tax and sales tax are responsible for covering 29.3% of the School District's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. \r\nIn March 2020, the COVID-19 pandemic caused the School District to cease all face-to-face learning for students and staff. Like all school systems in the State of Georgia, the School District is feeling negative impacts and effects of the COVID-19 pandemic. For fiscal year 2021, the state authorized austerity cuts (or amended formula adjustments) of 10% to QBE funding formula funds that help to fund the education of our students. A portion of the austerity reduction for fiscal year 2021, in the amount of $271,112, was recorded in fiscal year 2020, due to the accrual of summer salaries. The School District has also experienced a decrease in enrollment due to the pandemic, which will also negatively affect QBE earnings for the near future unless held harmless by the state. Additionally, alternative learning platforms (i.e. virtual) due to the pandemic, have caused an increase in technology-related expenditures to the School District. Increases in expenditures on supplies utilized \r\n \r\nviii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 for the proper cleaning and sanitizing of facilities, as well as, personal protective equipment for students and staff are also expected in the next fiscal year. The School District has been awarded $1.2 million in federal CARES relief funds to help offset some of these negative financial impacts. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Stephanie Smith at the Toombs County Board of Education, 600-1 Bulldog Road, Lyons, GA 30436. \r\nix \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n8,669,282.80 \r\n \r\n1,507,415.31 \r\n \r\n4,052.63 1,807,082.45 2,269,092.81 \r\n512,566.06 101,352.21 \r\n74,597.56 77,546.01 3,983,778.07 54,201,523.44 \r\n \r\n73,208,289.35 \r\n \r\n7,576,177.00 1,538,019.00 \r\n9,114,196.00 \r\n \r\n315,027.90 3,466,847.46 \r\n66,372.66 784,381.00 27,453,792.00 21,468,400.00 \r\n2,219,405.36 8,621,025.86 \r\n64,395,252.24 \r\n \r\n1,875,404.00 5,903,177.00 \r\n7,778,581.00 \r\n \r\n47,454,545.77 \r\n574,311.55 507,248.15 3,182,323.54 (41,569,776.90) \r\n \r\n$ \r\n \r\n10,148,652.11 \r\n \r\n- 1 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2020 \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 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\nTotal General Revenues \r\n \r\nChange in Net Position \r\n \r\nNet Position - Beginning of Year \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\n22,036,118.63 $ \r\n1,306,807.79 1,239,591.70 \r\n560,550.00 300,388.62 1,766,134.85 338,198.19 1,967,097.62 1,476,730.41 144,078.69 \r\n67,245.04 \r\n221,268.85 2,327,024.97 \r\n256,447.48 \r\n34,007,682.84 $ \r\n \r\n- $ \r\n- \r\n132,371.39 56,985.21 - \r\n189,356.60 $ \r\n \r\n16,204,433.67 $ \r\n449,906.23 1,118,571.06 \r\n416,742.00 867,366.86 923,626.00 \r\n1,107.08 894,560.76 625,098.22 \r\n36,165.83 \r\n2,094,389.99 \r\n- \r\n23,631,967.70 $ \r\n \r\n92,605.68 $ \r\n2,212.77 100.60 \r\n2,874.11 172.87 \r\n5,346.80 98.01 \r\n16,470.11 93,848.22 \r\n691.47 153.64 \r\n1,282.40 11,363.32 \r\n- \r\n227,220.00 \r\n \r\n(5,739,079.28) \r\n(854,688.79) (120,920.04) (140,933.89) 567,151.11 (837,162.05) (336,993.10) (1,056,066.75) (757,783.97) (143,387.22) \r\n(30,925.57) \r\n(87,615.06) (164,286.45) (256,447.48) \r\n(9,959,138.54) \r\n \r\n6,264,639.53 20,240.06 \r\n1,955,000.00 930,029.47 101,450.17 \r\n1,847,243.00 165,936.02 874,458.96 \r\n12,158,997.21 \r\n2,199,858.67 \r\n7,948,793.44 \r\n \r\nNet Position - End of Year \r\n \r\n$ \r\n \r\n10,148,652.11 \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 TOOMBS 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 Investments Receivables, Net \r\nInterest Taxes State Government Federal Government Other 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$ 4,422,351.49 $ 1,507,415.31 \r\n4,052.63 1,297,544.28 2,269,092.81 \r\n512,566.06 101,352.21 \r\n74,597.56 77,546.01 \r\n \r\n3,755,444.57 $ - \r\n509,538.17 \r\n- \r\n \r\n491,486.74 $ - \r\n- \r\n \r\n8,669,282.80 1,507,415.31 \r\n4,052.63 1,807,082.45 2,269,092.81 \r\n512,566.06 101,352.21 \r\n74,597.56 77,546.01 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 10,266,518.36 $ \r\n \r\n4,264,982.74 $ \r\n \r\n491,486.74 $ 15,022,987.84 \r\n \r\n$ \r\n \r\n261,017.10 $ \r\n \r\n3,466,847.46 \r\n \r\n- \r\n \r\n3,727,864.56 \r\n \r\n54,010.80 $ - \r\n784,381.00 \r\n838,391.80 \r\n \r\n- $ - \r\n- \r\n \r\n315,027.90 3,466,847.46 \r\n784,381.00 \r\n4,566,256.36 \r\n \r\n917,871.34 - \r\n917,871.34 \r\n \r\n293,036.43 \r\n293,036.43 \r\n \r\n- \r\n \r\n917,871.34 \r\n \r\n- \r\n \r\n293,036.43 \r\n \r\n- \r\n \r\n1,210,907.77 \r\n \r\n152,143.57 499,713.99 361,629.99 4,607,294.91 \r\n5,620,782.46 \r\n \r\n2,771,305.26 \r\n362,249.25 - \r\n3,133,554.51 \r\n \r\n491,486.74 \r\n- \r\n491,486.74 \r\n \r\n152,143.57 3,762,505.99 \r\n723,879.24 4,607,294.91 \r\n9,245,823.71 \r\n \r\n$ 10,266,518.36 $ \r\n \r\n4,264,982.74 $ \r\n \r\n491,486.74 $ 15,022,987.84 \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 TOOMBS 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\n \r\n$ 9,245,823.71 \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 Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\n \r\n$ 1,033,709.49 2,950,068.58 \r\n61,975,438.98 6,112,839.72 2,206,456.92 \r\n(16,093,212.18) \r\n \r\n58,185,301.51 \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$ (27,453,792.00) (21,468,400.00) \r\n \r\n(48,922,192.00) \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$ 5,700,773.00 (4,365,158.00) \r\n \r\n1,335,615.00 \r\n \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\n \r\nProperty taxes Sales taxes \r\n \r\n$ \r\n \r\n917,871.34 \r\n \r\n293,036.43 \r\n \r\n1,210,907.77 \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 Unamortized bond premiums \r\n \r\n$ (10,120,000.00) (66,372.66) (8,105.40) \r\n(712,325.82) \r\n \r\n(10,906,803.88) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 10,148,652.11 \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 TOOMBS 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 Dues and Fees 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\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$ \r\n \r\n6,218,502.05 $ \r\n \r\n101,450.17 \r\n \r\n20,633,598.49 \r\n \r\n4,817,495.21 \r\n \r\n189,356.60 \r\n \r\n61,020.60 \r\n \r\n874,458.96 \r\n \r\n32,895,882.08 \r\n \r\n- $ 636,993.04 150,000.00 \r\n96,097.72 - \r\n883,090.76 \r\n \r\n- $ 1,955,000.00 \r\n8,817.70 - \r\n \r\n6,218,502.05 2,693,443.21 20,783,598.49 4,817,495.21 \r\n189,356.60 165,936.02 874,458.96 \r\n \r\n1,963,817.70 \r\n \r\n35,742,790.54 \r\n \r\n20,461,789.58 \r\n1,261,314.25 1,209,203.32 \r\n509,662.04 293,189.25 1,660,777.32 328,503.24 1,767,232.55 1,334,362.71 \r\n88,639.49 65,288.41 207,837.12 2,290,328.68 \r\n- \r\n3,834.33 - \r\n447.74 \r\n31,482,410.03 \r\n1,413,472.05 \r\n \r\n39,543.67 \r\n7,170.93 7,127.22 40,380.00 65,702.36 4,890,019.67 \r\n- \r\n5,049,943.85 \r\n(4,166,853.09) \r\n \r\n- \r\n- \r\n1,955,000.00 1,827.50 \r\n432,725.13 \r\n2,389,552.63 \r\n(425,734.93) \r\n \r\n20,501,333.25 \r\n1,261,314.25 1,209,203.32 \r\n516,832.97 293,189.25 1,660,777.32 328,503.24 1,774,359.77 1,374,742.71 154,341.85 \r\n65,288.41 207,837.12 2,290,328.68 4,890,019.67 \r\n1,958,834.33 1,827.50 \r\n433,172.87 \r\n38,921,906.51 \r\n(3,179,115.97) \r\n \r\n(752.50) (752.50) 1,412,719.55 4,208,062.91 \r\n \r\n(222,450.00) (222,450.00) (4,389,303.09) 7,522,857.60 \r\n \r\n223,202.50 - \r\n223,202.50 (202,532.43) 694,019.17 \r\n \r\n223,202.50 (223,202.50) \r\n(3,179,115.97) 12,424,939.68 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n5,620,782.46 $ \r\n \r\n3,133,554.51 $ \r\n \r\n491,486.74 $ 9,245,823.71 \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 TOOMBS 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\nProperty taxes Sales taxes \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\nBond principal retirements Capital lease payments Amortization of premium on issuance of bonds \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 \r\n \r\n$ \r\n \r\n$ \r\n \r\n5,065,988.05 \r\n \r\n(1,446,178.74) \r\n \r\n$ \r\n \r\n66,377.54 \r\n \r\n293,036.43 \r\n \r\n$ \r\n \r\n1,955,000.00 \r\n \r\n3,834.33 \r\n \r\n200,427.24 \r\n \r\n$ \r\n \r\n(789,705.93) \r\n \r\n101,821.06 \r\n \r\n(3,179,115.97) \r\n3,619,809.31 (49,750.99) 359,413.97 \r\n2,159,261.57 \r\n(687,884.87) (21,874.35) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n2,199,858.67 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2020 \r\nASSETS Cash and Cash Equivalents Receivables, Net \r\nLocal \r\nTotal Assets LIABILITIES Accounts Payable and Accrued Liabilities NET POSITION Restricted for Southeastern Early College and Career Academy \r\n \r\nEXHIBIT \"G\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n312,323.76 \r\n \r\n87,659.00 \r\n \r\n399,982.76 \r\n \r\n247,704.58 \r\n \r\n$ \r\n \r\n152,278.18 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \r\nADDITIONS Contributions Interest Miscellaneous Total Additions \r\nDEDUCTIONS Purchased Professional and Technical Services Supplies and Other Total Deductions Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n521,491.00 \r\n \r\n141.35 \r\n \r\n29,600.00 \r\n \r\n551,232.35 \r\n \r\n506,322.77 94,322.12 \r\n600,644.89 (49,412.54) 201,690.72 \r\n \r\n$ \r\n \r\n152,278.18 \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 TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Toombs 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 \r\nassets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \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 TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and bond proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \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, 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- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\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\n \r\n- 11 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPREPAID ITEMS \r\n \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\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 \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\nBuses \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAny Amount 5,000.00 5,000.00 5,000.00 5,000.00 \r\n200,000.00 \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nN/A 20 to 80 years Up to 80 years \r\n5 to 25 years 8 to 14 years 5 to 10 years \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\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \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\n \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\n \r\n- 12 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \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\nNon-spendable consists of resources that cannot be spent either because they are in a non-spendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\n- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPROPERTY TAXES \r\n \r\nThe Toombs County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on October 4, 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 Toombs 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 $5,204,709.75. \r\nThe tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.003 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $993,552.24 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 $2,591,993.04 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of the amount budgeted for expenditures between any budget function within the same fund. The Superintendent shall report any such adjustments to the Board. If the expenditure of funds is anticipated to exceed the total appropriation at the aggregate fund level, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \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 $8,418,674.61, which includes $1,507,415.31 in Certificates of Deposits that are reported as investments. The School District had a bank balance of $9,285,967.87. The bank balances insured by Federal depository insurance were $500,000.00 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 $121,395.68. \r\nAt June 30, 2020, $8,664,572.19 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\n \r\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 8,669,282.80 312,323.76 \r\n \r\nTotal cash and cash equivalents \r\n \r\n8,981,606.56 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n1,507,415.31 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n2,070,347.26 \r\n \r\nTotal carrying value of deposits - June 30, 2020 \r\n \r\n$ 8,418,674.61 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\n \r\nThe School District reported cash equivalents of $2,070,347.26 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,033,709.49 $ \r\n \r\n- $ \r\n \r\n- $ 1,033,709.49 \r\n \r\n470,205.96 2,943,078.58 463,215.96 \r\n \r\n2,950,068.58 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,503,915.45 2,943,078.58 463,215.96 \r\n \r\n3,983,778.07 \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\n60,130,100.84 5,533,730.32 2,171,147.48 \r\n \r\n1,845,338.14 629,955.70 110,831.59 \r\n \r\n50,846.30 75,522.15 \r\n \r\n61,975,438.98 6,112,839.72 2,206,456.92 \r\n \r\n9,337,770.30 4,035,723.72 1,350,156.88 \r\n \r\n1,046,999.25 324,422.18 74,757.31 \r\n \r\n37,213.75 39,403.71 \r\n \r\n10,384,769.55 4,322,932.15 1,385,510.48 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n53,111,327.74 1,139,946.69 \r\n \r\n49,750.99 54,201,523.44 \r\n \r\nGovernmental Activities Capital Assets - Net $ 54,615,243.19 $ 4,083,025.27 $ 512,966.95 $ 58,185,301.51 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Enterprise Operations \r\n \r\n$ 21,333.72 969.90 \r\n27,709.87 1,666.66 \r\n51,549.55 944.90 \r\n158,791.49 160,315.81 \r\n6,666.63 1,481.29 \r\n \r\n$ 892,829.13 \r\n431,429.82 109,555.91 \r\n12,363.88 \r\n \r\n$ 1,446,178.74 \r\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nNOTE 6: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2020, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nGeneral \r\n \r\nCapital Projects \r\n \r\nFund \r\n \r\nFund \r\n \r\nEXHIBIT \"I\" \r\n \r\nDebt Service Fund \r\n \r\n$ \r\n \r\n752.50 $ \r\n \r\n222,450.00 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the debt service fund for the payment of annual fees on general long-term debt. Also, transfers are used to move Education Special Purpose Local Option Sales Tax (ESPLOST) revenues collected by the capital projects fund to the debt service fund for the payment of principal and interest on general long-term debt. \r\nNOTE 7: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2019 \r\n \r\nAdditions \r\n \r\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 Unamortized Bond Premiums Capital Leases \r\n \r\n$ 12,075,000.00 $ 912,753.06 11,939.73 \r\n \r\n- $ 1,955,000.00 $ 10,120,000.00 $ 2,015,000.00 \r\n \r\n- \r\n \r\n200,427.24 \r\n \r\n712,325.82 \r\n \r\n200,427.24 \r\n \r\n- \r\n \r\n3,834.33 \r\n \r\n8,105.40 \r\n \r\n3,978.12 \r\n \r\n$ 12,999,692.79 $ \r\n \r\n- $ 2,159,261.57 $ 10,840,431.22 $ 2,219,405.36 \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 noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nThe School District's outstanding bonds from direct placements related to governmental activates of $10,120,000.00 contain a provision that in the event the entity is unable to make the principal and interest payments using proceeds from the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \r\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2013A General Government - Series 2019 \r\n \r\n3.00% - 4.00% 3.00% - 5.00% \r\n \r\n10/10/2013 6/18/2019 \r\n \r\n5/1/2022 $ 5/1/2025 \r\n \r\n9,255,000.00 $ 6,025,000.00 \r\n \r\n4,095,000.00 6,025,000.00 \r\n \r\n$ 15,280,000.00 $ 10,120,000.00 \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\nUnamortized Bond Premium \r\n \r\n2021 2022 2023 2024 2025 \r\n \r\n$ \r\n \r\n2,015,000.00 $ \r\n \r\n405,650.00 \r\n \r\n$ \r\n \r\n200,427.24 \r\n \r\n2,080,000.00 \r\n \r\n325,050.00 \r\n \r\n186,182.67 \r\n \r\n1,930,000.00 \r\n \r\n241,850.00 \r\n \r\n114,958.56 \r\n \r\n2,005,000.00 \r\n \r\n164,650.00 \r\n \r\n114,958.56 \r\n \r\n2,090,000.00 \r\n \r\n104,500.00 \r\n \r\n95,798.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n10,120,000.00 $ 1,241,700.00 \r\n \r\n$ \r\n \r\n712,325.82 \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n20,749.47 8,151.58 \r\n \r\n$ \r\n \r\n12,597.89 \r\n \r\nCapital leases currently outstanding are 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\nGrasshopper Mower \r\n \r\n3.75% \r\n \r\n9/22/2017 \r\n \r\n9/22/2021 $ \r\n \r\n20,749.47 $ \r\n \r\n8,105.40 \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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\n2021 2022 \r\n \r\n$ \r\n \r\n3,978.12 $ \r\n \r\n4,127.28 \r\n \r\n303.95 154.79 \r\n \r\nTotal Principal and Interest $ \r\n \r\n8,105.40 $ \r\n \r\n458.74 \r\n \r\nNOTE 8: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. 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\nGeorgia School Boards Association Risk Management Fund \r\nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \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 $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\nSURETY BOND \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education Instruction Athletic Director \r\n \r\n$ \r\n \r\n30,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned Local Capital Outlay Projects School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n74,597.56 \r\n \r\n77,546.01 $ 152,143.57 \r\n \r\n$ 499,713.99 2,689,405.26 573,386.74 \r\n \r\n3,762,505.99 \r\n \r\n$ 362,249.25 361,629.99 \r\n \r\n723,879.24 4,607,294.91 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 9,245,823.71 \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\nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 1% of expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with O.C.G.A.  20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \r\n \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 10: SIGNIFICANT COMMITMENTS COMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2020: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2020 (2) \r\n \r\nAthletic Facility Bus Shop \r\n \r\n$ \r\n \r\n409,270.00 $ 2,929,730.00 \r\n \r\n334,000.00 \r\n \r\n16,000.00 \r\n \r\n$ \r\n \r\n743,270.00 $ 2,945,730.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts payable at year end. \r\n \r\nOPERATING LEASES \r\nThe School District leases Canon copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases(s) totaled $69,264.00 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2021 2022 2023 \r\n \r\n$ \r\n \r\n69,264.00 \r\n \r\n69,264.00 \r\n \r\n14,436.00 \r\n \r\nTotal \r\n \r\n$ 152,964.00 \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\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\n- 22 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a 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 $558,143.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\nAt June 30, 2020, the School District reported a liability of $21,468,400.00 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 0.174936%, which was an decrease of 0.004229% from its proportion measured as of June 30, 2018. \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of $456,322.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 2,335,538.00 \r\n \r\nChanges of assumptions \r\n \r\n745,555.00 \r\n \r\n3,026,366.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n46,751.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n187,570.00 \r\n \r\n541,273.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n558,143.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,538,019.00 $ 5,903,177.00 \r\n \r\n- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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$ (1,079,850.00) $ (1,079,850.00) $ (1,081,648.00) $ (959,298.00) $ (572,256.00) $ (150,399.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00% - 8.75%, including inflation \r\n \r\nLong-term expected rate of return \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nHealthcare cost trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n7.250% \r\n \r\nMedicare Eligible \r\n \r\n5.375% \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- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\n \r\n- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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 \r\ncalculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\nSchool District's proportionate \r\n \r\nshare of the Net OPEB Liability $ 24,953,367.00 $ \r\n \r\n21,468,400.00 $ 18,633,536.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net \r\nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \r\nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \r\npercentage-point higher than the current healthcare cost trend rates: \r\n \r\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 $ 18,084,852.00 $ \r\n \r\n21,468,400.00 $ 25,765,763.00 \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 13: 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 O.C.G.A 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\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 \r\n \r\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nexpected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 20.91% 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 $3,394,191.00 and $37,739.01 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $52,802.00. \r\n \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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 $27,453,792.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 27,453,792.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n319,100.00 \r\n \r\nTotal \r\n \r\n$ 27,772,892.00 \r\n \r\nThe net pension liability for TRS 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 during the fiscal year ended June 30, 2019. \r\nAt June 30, 2019, the School District's TRS proportion was 0.127676%, which was a decrease of 0.003449% 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 $291,092.00. \r\nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \r\nFor the year ended June 30, 2020, the School District recognized pension expense of $4,290,006.29 for TRS and $89,769.00 for PSERS and revenue of $106,109.00 for TRS and $89,769.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nTRS Deferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\nChanges of assumptions \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n$ 1,547,436.00 $ 2,634,550.00 \r\n \r\n8,139.00 - \r\n \r\n- \r\n \r\n653,759.00 \r\n \r\n- \r\n \r\n1,213,506.00 \r\n \r\n3,394,191.00 \r\n \r\n- \r\n \r\n$ 7,576,177.00 $ 1,875,404.00 \r\n \r\nThe School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2021 \r\n \r\n$ 1,053,880.00 \r\n \r\n2022 \r\n \r\n$ \r\n \r\n(88,938.00) \r\n \r\n2023 \r\n \r\n$ \r\n \r\n577,355.00 \r\n \r\n2024 \r\n \r\n$ \r\n \r\n764,285.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.25%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\n \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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\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 \r\n2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \r\nafter disability retirement. There is a margin for future mortality improvement in the tables used by the \r\nSystem. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected \r\nunder the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\n \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nPSERS Target allocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of assumed rate of inflation. \r\n \r\n- 30 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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 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 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%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate: \r\n \r\nTeachers Retirement System: \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\nSchool District's proportionate share of \r\n \r\nthe net pension liability \r\n \r\n$ 44,565,540.00 $ \r\n \r\n27,453,792.00 $ 13,381,856.00 \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 and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/financials. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\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 \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.127676% $ 27,453,792.00 $ 0.131125% $ 24,339,609.00 $ 0.135991% $ 25,274,346.00 $ 0.136703% $ 28,203,353.00 $ 0.140441% $ 21,380,748.00 $ 0.142080% $ 17,949,934.00 $ \r\n \r\n319,100.00 276,762.00 \r\n47,578.00 - \r\n \r\n$ 27,772,892.00 $ 24,616,371.00 $ 25,321,924.00 $ 28,203,353.00 $ 21,380,748.00 $ 17,949,934.00 \r\n \r\nSchool District's covered payroll \r\n$ 15,762,764.09 $ 15,851,880.81 $ 15,658,673.37 $ 15,094,728.93 $ 14,824,395.13 $ 14,407,600.89 \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\n174.17% 153.54% 161.41% 186.84% 144.23% 124.59% \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 TOOMBS 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 \"2\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \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 \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\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \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\n291,092.00 $ 291,092.00 $ 764,044.93 271,268.00 $ 271,268.00 $ 708,039.17 261,394.00 $ 261,394.00 $ 728,391.07 335,228.00 $ 335,228.00 $ 693,860.80 235,801.00 $ 235,801.00 $ 740,925.09 224,650.00 $ 224,650.00 $ 771,363.07 \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- 34 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet OPEB liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\n0.174936% $ 21,468,400.00 $ 0.179165% $ 22,771,322.00 $ 0.178888% $ 25,133,693.00 $ \r\n \r\n- \r\n \r\n$ 21,468,400.00 $ 13,574,106.07 \r\n \r\n- \r\n \r\n$ 22,771,322.00 $ 13,859,309.24 \r\n \r\n- \r\n \r\n$ 25,133,693.00 $ 13,362,633.48 \r\n \r\n158.16% 164.30% 188.09% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \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- 35 - \r\n \r\n TOOMBS 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\n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n3,394,191.00 $ \r\n \r\n3,394,191.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,256,569.93 $ \r\n \r\n3,256,569.93 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,634,844.45 $ \r\n \r\n2,634,844.45 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,230,298.64 $ \r\n \r\n2,230,298.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,154,017.82 $ \r\n \r\n2,154,017.82 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,949,407.96 $ \r\n \r\n1,949,407.96 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,769,253.39 $ \r\n \r\n1,769,253.39 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,696,148.79 $ \r\n \r\n1,696,148.79 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,525,068.38 $ \r\n \r\n1,525,068.38 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,551,972.13 $ \r\n \r\n1,551,972.13 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 16,237,801.42 $ 15,762,764.09 $ 15,851,880.81 $ 15,658,673.37 $ 15,094,728.93 $ 14,824,395.13 $ 14,407,600.89 $ 14,865,458.28 $ 14,835,295.52 $ 15,097,005.15 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.90% 20.66% 16.62% 14.24% 14.27% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n \r\n- 36 - \r\n \r\n TOOMBS 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 \"5\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 \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-employee \r\npayroll \r\n \r\n$ \r\n \r\n558,143.00 $ \r\n \r\n$ \r\n \r\n942,154.00 $ \r\n \r\n$ \r\n \r\n928,594.00 $ \r\n \r\n$ \r\n \r\n932,733.00 $ \r\n \r\n$ \r\n \r\n740,708.00 $ \r\n \r\n558,143.00 $ 942,154.00 $ 928,594.00 $ 932,733.00 $ 740,708.00 $ \r\n \r\n- \r\n \r\n$ 13,788,312.97 \r\n \r\n- \r\n \r\n$ 13,574,106.07 \r\n \r\n- \r\n \r\n$ 13,859,309.24 \r\n \r\n- \r\n \r\n$ 13,362,633.48 \r\n \r\n- \r\n \r\n$ 12,755,874.89 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n4.05% 6.94% 6.70% 6.98% 5.81% \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 TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2020 \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 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\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\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\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- 38 - \r\n \r\n TOOMBS 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 \"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\nOperating Transfer to Other Funds \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 (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n5,860,652.00 $ \r\n \r\n6,169,202.00 $ \r\n \r\n6,218,502.05 $ \r\n \r\n36,000.00 \r\n \r\n55,000.00 \r\n \r\n101,450.17 \r\n \r\n20,413,042.70 \r\n \r\n20,385,969.40 \r\n \r\n20,633,598.49 \r\n \r\n5,756,374.52 \r\n \r\n5,386,363.00 \r\n \r\n4,817,495.21 \r\n \r\n64,050.00 \r\n \r\n64,050.00 \r\n \r\n189,356.60 \r\n \r\n20,385.00 \r\n \r\n40,385.00 \r\n \r\n61,020.60 \r\n \r\n348,520.78 \r\n \r\n978,716.00 \r\n \r\n874,458.96 \r\n \r\n32,499,025.00 \r\n \r\n33,079,685.40 \r\n \r\n32,895,882.08 \r\n \r\n49,300.05 46,450.17 247,629.09 (568,867.79) 125,306.60 20,635.60 (104,257.04) \r\n(183,803.32) \r\n \r\n20,667,545.35 \r\n1,257,813.00 1,661,063.94 \r\n517,896.00 289,811.00 1,685,601.97 330,247.00 1,964,732.26 1,557,241.05 107,136.00 \r\n42,649.64 - \r\n2,764,389.00 - \r\n32,846,126.21 \r\n(347,101.21) \r\n \r\n21,118,417.57 \r\n1,364,900.65 1,289,013.63 \r\n516,596.89 401,355.00 1,651,172.20 333,626.20 1,958,373.70 1,576,853.05 154,472.88 \r\n53,209.18 - \r\n2,794,741.00 4,282.00 \r\n33,217,013.95 \r\n(137,328.55) \r\n \r\n20,461,789.58 \r\n1,261,314.25 1,209,203.32 \r\n509,662.04 293,189.25 1,660,777.32 328,503.24 1,767,232.55 1,334,362.71 \r\n88,639.49 65,288.41 207,837.12 2,290,328.68 \r\n4,282.07 \r\n31,482,410.03 \r\n1,413,472.05 \r\n \r\n656,627.99 \r\n103,586.40 79,810.31 6,934.85 \r\n108,165.75 (9,605.12) 5,122.96 \r\n191,141.15 242,490.34 \r\n65,833.39 (12,079.23) (207,837.12) 504,412.32 \r\n(0.07) \r\n1,734,603.92 \r\n1,550,800.60 \r\n \r\n(347,101.21) 4,409,753.63 \r\n46,196.02 \r\n \r\n(137,328.55) 4,409,753.63 \r\n30,821.02 \r\n \r\n(752.50) 1,412,719.55 4,208,062.91 \r\n- \r\n \r\n(752.50) 1,550,048.10 \r\n(201,690.72) (30,821.02) \r\n \r\n$ \r\n \r\n4,108,848.44 $ \r\n \r\n4,303,246.10 $ \r\n \r\n5,620,782.46 $ \r\n \r\n1,317,536.36 \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 $582,890.21 and $512,681.44, respectively. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2020 \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services 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 English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program 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\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\n488,591.40 1,899,837.77 \r\n2,388,429.17 \r\n \r\n10.558 10.582 \r\n \r\n205GA368N1099 205GA324L1603 \r\n \r\n11,168.04 \r\n55,643.75 66,811.79 2,455,240.96 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A180073 H027A190073 H173A180081 H173A190081 \r\n \r\n84.048 84.365 84.011 84.011 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 \r\n \r\nV048A190010 S365A190010 S011A180011 S011A190011 S358B190010 S424A180011 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010 S287C180010 \r\n \r\n71,763.00 605,557.97 \r\n15,167.00 26,547.00 \r\n719,034.97 \r\n46,761.00 23,357.36 25,406.00 185,212.91 55,476.39 \r\n8,725.00 103,782.20 \r\n4,389.00 142,331.09 \r\n52,276.00 1,482,691.32 \r\n3,646.76 \r\n2,134,055.03 \r\n2,853,090.00 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,308,330.96 \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 Toombs 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- 40 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Hygiene Products in Georgia Schools Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Security 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\nOther \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n770,053.00 $ \r\n \r\n- $ \r\n \r\n770,053.00 \r\n \r\n987,831.00 162,739.00 2,439,153.00 470,927.00 1,176,326.00 246,002.00 2,168,555.00 1,669,432.00 735,432.00 3,256,324.00 247,491.00 265,637.00 150,394.00 402,695.99 373,892.00 114,393.00 \r\n63,590.00 1,477.00 \r\n675,932.01 828,562.00 765,559.00 (271,112.00) \r\n496,404.00 60,288.00 \r\n1,847,243.00 \r\n54,138.00 3,610.00 8,614.40 \r\n107,583.00 77,220.00 37,739.01 \r\n131,674.90 \r\n52,802.00 \r\n \r\n- \r\n- \r\n- \r\n150,000.00 - \r\n- \r\n \r\n987,831.00 162,739.00 2,439,153.00 470,927.00 1,176,326.00 246,002.00 2,168,555.00 1,669,432.00 735,432.00 3,256,324.00 247,491.00 265,637.00 150,394.00 402,695.99 373,892.00 114,393.00 \r\n63,590.00 1,477.00 \r\n675,932.01 828,562.00 765,559.00 (271,112.00) \r\n496,404.00 60,288.00 \r\n1,847,243.00 \r\n54,138.00 3,610.00 8,614.40 \r\n107,583.00 77,220.00 \r\n150,000.00 37,739.01 \r\n131,674.90 \r\n52,802.00 \r\n \r\n49,997.18 5,000.00 \r\n \r\n- \r\n \r\n49,997.18 \r\n \r\n- \r\n \r\n5,000.00 \r\n \r\n$ 20,633,598.49 $ \r\n \r\n150,000.00 $ 20,783,598.49 \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 TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\nSPLOST #4 i. Constructing and equipping two \r\n(new) or replacement schools, specifically: Toombs County High School and Toombs Central School \r\nii. Modifying and equipping the existing Toombs County High School for further instructional use \r\niii. Purchasing School buses \r\niv. Purchasing textbooks, furniture, technology, additional instructional materials and equipment for all sites \r\nv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\nSPLOST #4 Totals \r\nSPLOST #5 a. The payment of principal and interest \r\non general obligation debt incurred for constructing and equipping Toombs County High School \r\nb. Constructing and equipping a new athletic facility at Toombs County High School \r\nc. Constructing, make additions to and/or renovating, modifying and equipping Toombs Central Elementary School and other school system facilities and making critical infrastructure and security improvements to existing facilities \r\nd. Purchasing School buses \r\ne. Purchasing textbooks (including e-books), furniture, technology and software, additional instructional materials and equipment for all facilities \r\nSPLOST #5 Totals \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ 11,340,000.00 $ 17,543,710.95 $ \r\n \r\n- $ 17,543,710.95 $ 17,543,710.95 $ \r\n \r\n- \r\n \r\n3,000,000.00 \r\n \r\n749,464.46 \r\n \r\n- \r\n \r\n749,464.46 \r\n \r\n749,464.46 \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n150,000.00 \r\n \r\n40,300.00 \r\n \r\n27,334.67 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n750,000.00 \r\n \r\n108,082.98 \r\n \r\n535,415.64 \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n505,000.00 \r\n \r\n170,704.59 \r\n \r\n333,561.75 \r\n \r\n- \r\n \r\n- \r\n \r\n15,340,000.00 \r\n \r\n19,698,175.41 \r\n \r\n319,087.57 \r\n \r\n19,189,487.47 \r\n \r\n18,293,175.41 \r\n \r\n- \r\n \r\n4,342,000.00 \r\n \r\n4,342,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n3,350,000.00 \r\n \r\n3,350,000.00 \r\n \r\n2,927,078.58 \r\n \r\n176,345.02 \r\n \r\n- \r\n \r\n- \r\n \r\n4,598,000.00 \r\n \r\n4,598,000.00 \r\n \r\n1,432,140.64 \r\n \r\n463,215.96 \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n1,250,000.00 \r\n \r\n1,250,000.00 \r\n \r\n371,557.06 \r\n \r\n50,559.50 \r\n \r\n- \r\n \r\n- \r\n \r\n14,040,000.00 \r\n \r\n14,040,000.00 \r\n \r\n4,730,776.28 \r\n \r\n690,120.48 \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nCompleted Completed 6/30/2021 6/30/2021 \r\n6/30/2021 \r\n6/30/2022 12/31/2020 \r\n6/30/2026 6/30/2026 6/30/2026 \r\n \r\n$ 29,380,000.00 $ 33,738,175.41 $ 5,049,863.85 $ 19,879,607.95 $ 18,293,175.41 $ \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 \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 \r\n(3) The voters of Toombs 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\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nSERIES 2013A \r\n \r\nSERIES 2019 \r\n \r\nPrior Years \r\n \r\n$ 1,974,336.88 $ \r\n \r\n- \r\n \r\nCurrent Year \r\n \r\n222,450.00 \r\n \r\n210,275.13 \r\n \r\nTotal \r\n \r\n$ 2,196,786.88 $ \r\n \r\n210,275.13 \r\n \r\n- 43 - \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 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 Toombs 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 Toombs 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 March 26, 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 (This page left intentionally blank) \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\nMarch 26, 2021 \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 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 Toombs County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Toombs County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal program. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for 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 (This page left intentionally blank) \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\nMarch 26, 2021 \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 TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n \r\n (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 TOOMBS 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\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \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-bt6-b2019-belec-p-btext","title":"Toombs County Board of Education, Lyons, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2020-07-27"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS 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\nMANAGEMENT'S DISCUSSION AND ANALYSIS \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 \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI 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 PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nPage \r\ni \r\n1 2 \r\n4 5 6 7 8 9 11 \r\n35 36 37 38 39 40 \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n8 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\n41 42 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 (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\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 Toombs 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 Toombs 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 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 (This page left intentionally blank) \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, 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\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2019, the Toombs County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The School District restated beginning net position and fund balance for the effect of GASB Statement No. 84. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional \r\n \r\n (This page left intentionally blank) \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 July 27, 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\nJuly 27, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nINTRODUCTION \r\nThe discussion and analysis of the Toombs County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2019. 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 financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2019 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflow of resources of the School District exceeded liabilities and deferred inflow of resources by $7.9 million for the fiscal year ended June 30, 2019. \r\n General revenues, excluding special and extraordinary items, accounted for $11.2 million in revenue or 32.1% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $23.8 million or 67.9% of total revenues of $35.0 million. \r\n The School District had $32.5 million in expenses related to governmental activities; however, $23.8 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues, primarily property and sales taxes, of $8.7 million were adequate to provide for the remainder for these programs. \r\n The Toombs County voters passed a one percent sales tax for educational purposes (ESPLOST) for another five years (2020-2025) on March 19, 2019. The voters also approved the issuance of $6.0 million in General Obligation Bonds which were issued on June 18, 2019. This and the principal payments of $1.9 million resulted in a net increase in General Obligation Debt of $4.1 million for 2019. \r\n Among major funds, the general fund had $32.3 million in revenues and $31.4 million in expenditures. The fund balance for the general fund increased by $889 thousand to approximately $4.2 million. This increase was due primarily to an increase in miscellaneous revenues from Medicaid and School Activity Accounts revenues and a reduction in overall expenditures. \r\n The deficit balance reflected in the unrestricted net position is due to the recording of pensions per GASB No. 68, GASB No. 71, and GASB No.75 relating to accounting and financial reporting for postemployment benefits. The amount of the School District's proportionate share of the collective net pension liability for the Teachers Retirement System cost sharing benefit pension plan was $24.3 million. The amount of the School District's proportionate share of the collective net Other Post Employment Benefit (OPEB) liability was $22.8 million. \r\ni \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, 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 government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary fund statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\nThe fund financial statements reflect the School District's most significant funds. For the year ending June 30, 2019, the general fund represents the most significant fund. \r\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. \r\nGovernment-wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of net position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 Fund Financial Statements The 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 detailed information about the most significant funds or major funds. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. Governmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\niii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2019 and 2018. \r\n \r\nTable 1 Net Position \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018(1) \r\n \r\nNet Change \r\n \r\n$ 12,942,908 $ - \r\n \r\n5,434,737 $ 6,207 \r\n \r\n7,508,171 (6,207) \r\n \r\n1,444,165 2,392,507 \r\n681,445 606 \r\n112,732 43,777 \r\n1,503,915 \r\n \r\n1,141,066 2,386,335 \r\n592,663 1,480 \r\n81,090 58,593 1,079,670 \r\n \r\n303,099 6,172 \r\n88,782 (874) \r\n31,642 (14,816) 424,245 \r\n \r\n53,111,328 \r\n \r\n55,990,554 \r\n \r\n(2,879,226) \r\n \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n72,233,383 \r\n \r\n66,772,395 \r\n \r\n5,460,988 \r\n \r\n5,235,162 1,211,472 \r\n \r\n4,134,305 1,183,524 \r\n \r\n1,100,857 27,948 \r\n \r\nLIABILITIES \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts 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\n \r\n6,446,634 \r\n426,208 3,493,243 \r\n44,498 422,256 \r\n24,339,609 22,771,322 \r\n2,159,262 10,840,431 \r\n \r\n5,317,829 \r\n112,648 3,491,109 \r\n46,830 21,975 154,440 25,274,346 25,133,693 \r\n1,989,164 6,304,101 \r\n \r\n1,128,805 \r\n313,560 2,134 (2,332) \r\n400,281 (154,440) (934,737) (2,362,371) \r\n170,098 4,536,330 \r\n \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n64,496,829 \r\n \r\n62,528,306 \r\n \r\n1,968,523 \r\n \r\n1,858,866 4,375,529 \r\n \r\n1,041,178 1,913,867 \r\n \r\n817,688 2,461,662 \r\n \r\nTotal Deferred Inflows of Resources \r\nNET POSITION Net Investment in Capital Assets Restricted for Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\n6,234,395 \r\n \r\n2,955,045 \r\n \r\n3,279,350 \r\n \r\n47,399,992 \r\n \r\n49,026,210 \r\n \r\n(1,626,218) \r\n \r\n754,110 805,244 1,689,639 (42,700,192) \r\n \r\n768,926 1,271,032 \r\n741,442 (45,200,737) \r\n \r\n(14,816) (465,788) 948,197 2,500,545 \r\n \r\n$ 7,948,793 $ 6,606,873 $ 1,341,920 \r\n \r\n(1) Fiscal Year 2018 amounts do not reflect the effects of the restatement of net position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\niv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 The reporting of GASB No. 68, GASB No. 71, and GASB No.75 statements significantly impacts the presentation of the Statement of Net Position by requiring the reporting of the School District's net liability and the deferred inflows and outflows associated with post-employment benefits. The total effect of these benefits on unrestricted net position was an overall decrease of $46.9 million for the year ended June 30, 2019. Although unrestricted net position reflects a large deficit, it should not be considered a financial weakness as these costs are spread out over multiple years well into the future. Total liabilities and deferred inflows of resources increased by $5.2 million. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows of resources yielded an increase in net position of $1.3 million per table 1. \r\nv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2019 and June 30, 2018. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nFiscal Year 2019 \r\n \r\nGovernmental Activities Fiscal \r\nYear 2018(1) \r\n \r\nNet Change \r\n \r\n$ \r\n \r\n209,330 $ \r\n \r\n189,493 $ \r\n \r\n23,369,447 \r\n \r\n22,949,184 \r\n \r\n198,344 \r\n \r\n83,166 \r\n \r\n19,837 420,263 115,178 \r\n \r\nTotal Program Revenues \r\n \r\n23,777,121 \r\n \r\n23,221,843 \r\n \r\n555,278 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nExtraordinary Item Special Items \r\n \r\n5,925,333 14,711 \r\n1,900,000 558,515 43,350 \r\n1,726,333 39,479 \r\n1,007,683 (11,000) \r\n(1,321,878) \r\n \r\n5,634,059 13,450 \r\n2,191,548 148,545 46,917 \r\n1,923,873 4,527 \r\n652,991 (12,000) \r\n- \r\n \r\n291,274 1,261 \r\n(291,548) 409,970 \r\n(3,567) \r\n(197,540) 34,952 \r\n354,692 1,000 \r\n(1,321,878) \r\n \r\nTotal General Revenues and Special/Extraordinary Items \r\n \r\n9,882,526 \r\n \r\n10,603,910 \r\n \r\n(721,384) \r\n \r\nTotal Revenues and Special/Extraordinary Items \r\n \r\n33,659,647 \r\n \r\n33,825,753 \r\n \r\n(166,106) \r\n \r\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 \r\n \r\n20,431,344 \r\n1,247,283 1,053,984 \r\n471,149 225,173 1,558,816 468,177 2,226,146 1,632,407 155,121 \r\n64,407 \r\n209,467 2,518,302 \r\n194,182 \r\n \r\n21,866,032 \r\n1,053,657 1,129,310 \r\n487,451 284,761 1,729,019 202,322 2,060,601 1,548,808 \r\n12,757 122,749 \r\n94,933 2,715,665 \r\n240,957 \r\n \r\n(1,434,688) \r\n193,626 (75,326) (16,302) (59,588) (170,203) 265,855 165,545 83,599 142,364 (58,342) \r\n114,534 (197,363) \r\n(46,775) \r\n \r\nTotal Expenses \r\n \r\n32,455,958 \r\n \r\n33,549,022 \r\n \r\n(1,093,064) \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n1,203,689 $ \r\n \r\n(1) Fiscal Year 2018 amounts do not reflect the effects of the restatement of net position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\n \r\n276,731 $ \r\n \r\n926,958 \r\nvi \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $555 thousand for governmental activities. This increase is largely due to increase in funds received from the state as capital grants and contributions for bus purchases and as operating grants and contributions due to the elimination of the QBE Austerity Reduction. \r\n \r\nFor fiscal year 2019, general revenues increased by $599 thousand due to an increase in property tax revenues and an increase in miscellaneous revenues received from Medicaid Cost Report settlements. General revenues net of special and extraordinary items decreased by $721 thousand due to a loss on the sale of capital assets of $1.3 million as described in Note 16. \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nInstruction \r\n \r\n$ \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 Expenses \r\n \r\n$ \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018(1) \r\n \r\n20,431,344 $ \r\n \r\n21,866,032 $ \r\n \r\n1,247,283 1,053,984 \r\n471,149 225,173 1,558,816 468,177 2,226,146 1,632,407 155,121 \r\n64,407 \r\n \r\n1,053,657 1,129,310 \r\n487,451 284,761 1,729,019 202,322 2,060,601 1,548,808 \r\n12,757 122,749 \r\n \r\n209,467 2,518,302 \r\n194,182 \r\n \r\n94,933 2,715,665 \r\n240,957 \r\n \r\n32,455,958 $ \r\n \r\n33,549,022 $ \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018(1) \r\n \r\n4,467,049 $ \r\n \r\n6,065,859 \r\n \r\n739,753 37,586 71,252 \r\n(486,271) 662,017 467,124 1,344,018 833,882 155,121 \r\n39,254 \r\n \r\n555,993 260,955 \r\n96,526 (408,113) 860,620 200,227 1,188,264 919,872 \r\n11,002 38,314 \r\n \r\n63,964 89,905 194,182 \r\n \r\n(25,344) 322,047 240,957 \r\n \r\n8,678,836 $ \r\n \r\n10,327,179 \r\n \r\n(1) Fiscal Year 2018 amounts do not reflect the effects of the restatement of net position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2019, 26.7% of instruction and support activities were supplemented by taxes and other general revenues compared to 30.8% in 2018. \r\n \r\nvii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\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 $41.7 million and expenditures and other financing uses of $35.1 million. Total governmental funds had an increase in fund balance of $7.0 million. This increase is due mostly to the proceeds of the general obligation bonds issued which increased the capital projects fund overall $5.5 million and the debt service fund $694 thousand. The general fund had an overall increase of $889 thousand due to an increase in property tax revenues, state funds and miscellaneous revenues reported in the general fund. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal year 2019, the School District amended its general fund budget as needed. \r\n \r\nThe School District's budget is adopted at the aggregate fund level but is prepared by fund, function and object and presented by fund and function for management control. \r\n \r\nDuring fiscal year 2019 the general fund had final actual revenues and other financing sources totaling $32.3 million, which represented an increase from the final budgeted amount of $32.2 million by $145 thousand. This difference (actual vs. budget) was mostly due to $119 thousand in miscellaneous revenues of various principal accounts not included in the final budget. \r\n \r\nFinal actual expenditures during fiscal year 2019 totaling $31.4 million represented a decrease from the final budgeted amount of $32.4 million by $1.0 million. \r\n \r\nCAPITAL ASSETS \r\n \r\nAt the end of fiscal year 2019, the School District had $54.6 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land, buildings, transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nFiscal Year 2019 \r\n \r\nGovernmental Activities Fiscal \r\nYear 2018 \r\n \r\nNet Change \r\n \r\nLand \r\n \r\n$ \r\n \r\n1,033,709 $ \r\n \r\nConstruction In Progress \r\n \r\n470,206 \r\n \r\nBuilding and Improvements \r\n \r\n50,792,330 \r\n \r\nEquipment \r\n \r\n1,498,007 \r\n \r\nLand Improvements \r\n \r\n820,991 \r\n \r\n1,079,670 $ - \r\n53,460,067 1,647,386 883,101 \r\n \r\n(45,961) 470,206 (2,667,737) (149,379) (62,110) \r\n \r\nTotal \r\n \r\n$ 54,615,243 $ \r\n \r\n57,070,224 $ (2,454,981) \r\n \r\nThe overall capital assets decreased in fiscal year 2019 by $2.5 million due to depreciation in the amount of 1.4 million and the sale of land and buildings not fully depreciated. \r\n \r\nviii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nConstruction in progress increased primarily due to capital projects funded by bond proceeds in progress at June 30, 2019. \r\n \r\nLONG-TERM LIABILITIES \r\n \r\nAt June 30, 2019, the School District had $12.1 million in general obligation bond debt outstanding with $2.0 million due within one year. The School District issued General Obligation Bonds in the amount of $6,025,000 in fiscal year 2019. A schedule of future payments can be found in the notes to the financial statements. Table 5 summarizes the long-term liabilities outstanding at June 30, 2019 and 2018. \r\n \r\nTable 5 Long-term Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nGeneral Obligation Bonds Bond Premiums Amortized Capital Lease \r\n \r\n$ 12,075,000 $ 912,753 11,940 \r\n \r\n7,950,000 327,630 15,636 \r\n \r\nTotal \r\n \r\n$ 12,999,693 $ \r\n \r\n8,293,266 \r\n \r\nCURRENT ISSUES \r\n Approximately 81.5% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2019. With such heavy personnel expenses, it is difficult to offset mandated expense increases such as TRS employer contributions and state increases to the teacher salary scale. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that County students receive a quality education from effective personnel. \r\n In fiscal year 2020, the cost of the employer portion of TRS pension will increase \r\napproximately $150 thousand as the employer contribution rate increases for the fourth consecutive year from 20.90% to 21.14%.  The School District's millage rate for fiscal year 2019 was 14.00. The net digest for fiscal year 2019 was $376.9 million, which produced approximately $376,926 per mill. As shown in Table 3, property tax and sales tax are responsible for covering more than a quarter of the School District's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. The School District also plans to implement additional programs for county students such as performing arts and STEM which will increase the amount needed from local revenues to support these programs.  In December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \r\n \r\nix \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Stephanie Smith at the Toombs County Board of Education, 117 East Wesley Avenue, Lyons, GA 30436. \r\nx \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \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 Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts 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 Plan 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 Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n12,942,907.65 \r\n \r\n1,444,165.39 2,392,506.68 \r\n681,445.32 606.15 \r\n112,732.21 43,776.54 \r\n1,503,915.45 53,111,327.74 \r\n \r\n72,233,383.13 \r\n \r\n5,235,161.93 1,211,471.94 \r\n6,446,633.87 \r\n \r\n426,208.19 3,493,242.27 \r\n44,498.31 422,256.00 24,339,609.00 22,771,322.00 \r\n2,159,261.57 10,840,431.22 \r\n64,496,828.56 \r\n \r\n1,858,866.00 4,375,529.00 \r\n6,234,395.00 \r\n \r\n47,399,991.86 \r\n754,109.89 805,244.17 1,689,639.39 (42,700,191.87) \r\n \r\n$ \r\n \r\n7,948,793.44 \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 TOOMBS 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Loss on sale of assets \r\nExtraordinary Item Fire Damage repairs \r\nTotal General Revenues, Special Items, and Extraordinary Item \r\nChange in Net Position \r\nNet Position - Beginning of Year - Restated \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n20,431,344.05 $ \r\n \r\n1,247,283.48 1,053,983.61 \r\n471,148.36 225,173.08 1,558,816.24 468,176.87 2,226,145.70 1,632,407.11 155,120.38 \r\n64,407.33 \r\n \r\n209,466.78 2,518,302.45 \r\n194,182.12 \r\n \r\n$ \r\n \r\n32,455,957.56 $ \r\n \r\n- \r\n- \r\n145,156.28 64,173.67 - \r\n209,329.95 \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$ \r\n \r\n15,937,154.62 $ \r\n \r\n507,301.81 1,016,367.75 \r\n399,052.00 711,392.97 895,229.00 \r\n1,023.59 876,139.89 638,882.03 \r\n25,108.06 \r\n \r\n2,361,795.78 \r\n- \r\n \r\n$ \r\n \r\n23,369,447.50 $ \r\n \r\n27,140.27 $ \r\n228.95 29.71 \r\n844.22 51.05 \r\n1,569.88 28.94 \r\n5,988.11 159,642.68 \r\n45.37 \r\n346.96 2,427.86 \r\n- \r\n198,344.00 \r\n \r\n(4,467,049.16) \r\n(739,752.72) (37,586.15) (71,252.14) 486,270.94 \r\n(662,017.36) (467,124.34) (1,344,017.70) (833,882.40) (155,120.38) \r\n(39,253.90) \r\n(63,963.54) (89,905.14) (194,182.12) \r\n(8,678,836.11) \r\n \r\n5,925,333.72 14,710.92 \r\n1,900,000.00 558,514.87 43,349.98 \r\n1,726,333.00 39,478.93 \r\n1,007,683.12 \r\n(1,321,878.16) \r\n(11,000.00) \r\n9,882,526.38 \r\n1,203,690.27 \r\n6,745,103.17 \r\n \r\n$ \r\n \r\n7,948,793.44 \r\n \r\n- 3 - \r\n \r\n TOOMBS 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\nTaxes State Government Federal Government Local Other Inventories \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$ 4,347,395.60 $ \r\n1,228,723.24 2,392,506.68 \r\n681,445.32 606.15 \r\n112,732.21 43,776.54 \r\n \r\n7,901,492.88 $ \r\n215,442.15 - \r\n \r\n694,019.17 $ \r\n- \r\n \r\n12,942,907.65 \r\n1,444,165.39 2,392,506.68 \r\n681,445.32 606.15 \r\n112,732.21 43,776.54 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts 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$ 8,807,185.74 $ \r\n \r\n8,116,935.03 $ \r\n \r\n694,019.17 $ 17,618,139.94 \r\n \r\n$ \r\n \r\n254,386.76 $ \r\n \r\n3,493,242.27 \r\n \r\n- \r\n \r\n3,747,629.03 \r\n \r\n171,821.43 $ - \r\n422,256.00 \r\n594,077.43 \r\n \r\n- $ - \r\n- \r\n \r\n426,208.19 3,493,242.27 \r\n422,256.00 \r\n4,341,706.46 \r\n \r\n851,493.80 \r\n \r\n- \r\n \r\n- \r\n \r\n851,493.80 \r\n \r\n43,776.54 710,333.35 291,421.22 3,162,531.80 \r\n4,208,062.91 \r\n \r\n7,160,638.13 \r\n362,219.47 - \r\n7,522,857.60 \r\n \r\n694,019.17 \r\n- \r\n694,019.17 \r\n \r\n43,776.54 8,564,990.65 \r\n653,640.69 3,162,531.80 \r\n12,424,939.68 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 8,807,185.74 $ \r\n \r\n8,116,935.03 $ \r\n \r\n694,019.17 $ 17,618,139.94 \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 TOOMBS 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 Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \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 Capital leases payable Unamortized bond premiums \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 12,424,939.68 \r\n \r\n$ 1,033,709.49 470,205.96 \r\n60,130,100.84 5,533,730.32 2,171,147.48 \r\n(14,723,650.90) \r\n \r\n54,615,243.19 \r\n \r\n$ (24,339,609.00) (22,771,322.00) \r\n \r\n(47,110,931.00) \r\n \r\n$ 3,376,295.93 (3,164,057.06) \r\n \r\n212,238.87 851,493.80 \r\n \r\n$ (12,075,000.00) (44,498.31) (11,939.73) \r\n(912,753.06) \r\n \r\n(13,044,191.10) \r\n \r\n$ 7,948,793.44 \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 TOOMBS 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\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out Extraordinary Item: Fire damage repairs \r\nTotal Other Financing Sources (Uses) \r\nSPECIAL ITEMS \r\nProceeds from Sale of Buildings Proceeds from Sale of Land \r\nTotal Special Items \r\nNet Change in Fund Balances \r\nFund Balances - Beginning - Restated \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$ \r\n \r\n5,770,329.83 $ \r\n \r\n43,349.98 \r\n \r\n19,593,147.42 \r\n \r\n5,598,828.90 \r\n \r\n209,329.95 \r\n \r\n34,095.43 \r\n \r\n1,007,683.12 \r\n \r\n32,256,764.63 \r\n \r\n- $ 558,514.87 \r\n43,904.00 - \r\n5,369.48 - \r\n607,788.35 \r\n \r\n- $ 1,900,000.00 \r\n14.02 - \r\n1,900,014.02 \r\n \r\n5,770,329.83 2,501,864.85 19,637,051.42 5,598,828.90 \r\n209,329.95 39,478.93 \r\n1,007,683.12 \r\n34,764,567.00 \r\n \r\n20,264,250.01 \r\n1,272,358.27 1,101,349.72 \r\n466,555.26 234,271.84 1,590,171.98 310,769.27 1,868,254.62 1,554,398.62 \r\n50,639.20 66,388.03 205,249.33 2,432,184.05 \r\n- \r\n3,695.74 - \r\n586.33 \r\n31,421,122.27 \r\n835,642.36 \r\n \r\n202,253.18 \r\n169,355.02 141,766.36 63,980.30 117,974.89 532,039.09 \r\n- \r\n1,227,368.84 \r\n(619,580.49) \r\n \r\n- \r\n- \r\n1,900,000.00 725.63 \r\n284,450.00 \r\n2,185,175.63 \r\n(285,161.61) \r\n \r\n20,466,503.19 \r\n1,272,358.27 1,101,349.72 \r\n466,555.26 234,271.84 1,590,171.98 480,124.29 2,010,020.98 1,618,378.92 168,614.09 \r\n66,388.03 205,249.33 2,432,184.05 532,039.09 \r\n1,903,695.74 725.63 \r\n285,036.33 \r\n34,833,666.74 \r\n(69,099.74) \r\n \r\n(725.63) (11,000.00) \r\n(11,725.63) \r\n \r\n5,331,024.86 674,371.05 (284,450.00) - \r\n5,720,945.91 \r\n \r\n693,975.14 - \r\n285,175.63 - \r\n979,150.77 \r\n \r\n6,025,000.00 674,371.05 285,175.63 (285,175.63) (11,000.00) \r\n6,688,371.05 \r\n \r\n65,000.00 65,000.00 888,916.73 3,319,146.18 \r\n \r\n362,218.00 - \r\n362,218.00 5,463,583.42 2,059,274.18 \r\n \r\n693,989.16 30.01 \r\n \r\n362,218.00 65,000.00 \r\n427,218.00 7,046,489.31 5,378,450.37 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4,208,062.91 $ \r\n \r\n7,522,857.60 $ \r\n \r\n694,019.17 $ 12,424,939.68 \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 TOOMBS 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\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nGeneral obligation bonds issued, including a premium of $674,371.05 Bond principal retirements Capital lease payments Amortization of bond premium \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 7,046,489.31 \r\n \r\n$ \r\n \r\n759,383.01 \r\n \r\n(1,433,332.03) \r\n \r\n(673,949.02) \r\n \r\n(1,781,031.78) \r\n \r\n169,714.81 \r\n \r\n$ (6,699,371.05) 1,900,000.00 3,695.74 89,248.14 \r\n \r\n(4,706,427.17) \r\n \r\n$ \r\n \r\n1,217,905.48 \r\n \r\n(71,343.06) \r\n \r\n1,146,562.42 \r\n \r\n2,331.70 $ 1,203,690.27 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2019 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Accounts Payable and Other Liabilities \r\nNET POSITION Restricted for Southeastern Early College and Career Academy \r\n \r\nEXHIBIT \"G\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n394,134.31 \r\n \r\n192,443.59 \r\n \r\n$ \r\n \r\n201,690.72 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 \r\nADDITIONS Contributions Investment Earnings Miscellaneous Total Additions \r\nDEDUCTIONS Purchased Professional and Technical Services Supplies and Other Total Deductions Change in Net Position \r\nNet Position - Beginning - Restated \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n480,134.74 \r\n \r\n142.53 \r\n \r\n16,981.70 \r\n \r\n497,258.97 \r\n \r\n442,942.96 77,617.04 \r\n520,560.00 (23,301.03) 224,991.75 \r\n \r\n$ \r\n \r\n201,690.72 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Toombs 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- 11 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), and Bond Proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \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, 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- 12 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The primary objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. As noted in the Restatement of Net Position note disclosure, the School District restated beginning net positions and fund balances for the cumulative effect of this accounting change. \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\n \r\n- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 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 Buses Intangible Assets \r\n \r\nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 200,000.00 \r\n \r\nN/A 20 to 80 years Up to 80 years \r\n5 to 25 years 8 to 14 years 5 to 10 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\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- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nLONG-TERM LIABILITIES AND BOND 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- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 Toombs County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on September 24, 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 Toombs 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 $5,159,866.69. \r\nThe tax millage rate levied for the 2018 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.00 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $595,752.22 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 $2,458,514.87 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe Superintendent is authorized by the Board to approve adjustments of the amount budgeted for expenditures between any budget function within the same fund. The Superintendent shall report any such adjustments to the Board. If the expenditure of funds is anticipated to exceed the total appropriation at the aggregate fund level, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \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 3each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\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 $13,337,041.96, and a bank balance of $13,530,045.17. The bank balances insured by Federal depository insurance were $500,000.00 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 $49,127.50, and the bank balances included in the State's Secure Deposit Program (SDP) were $12,980,917.67. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2018 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2019 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,079,669.70 $ - \r\n \r\n- $ 470,205.96 \r\n \r\n45,960.21 $ 1,033,709.49 \r\n \r\n- \r\n \r\n470,205.96 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,079,669.70 \r\n \r\n470,205.96 \r\n \r\n45,960.21 \r\n \r\n1,503,915.45 \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\n62,851,423.67 5,384,480.95 2,181,509.48 \r\n \r\n60,195.13 219,981.92 \r\n9,000.00 \r\n \r\n2,781,517.96 70,732.55 19,362.00 \r\n \r\n60,130,100.84 5,533,730.32 2,171,147.48 \r\n \r\n9,391,356.36 3,737,095.06 1,298,408.39 \r\n \r\n1,026,429.29 335,792.25 71,110.49 \r\n \r\n1,080,015.35 37,163.59 19,362.00 \r\n \r\n9,337,770.30 4,035,723.72 1,350,156.88 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n55,990,554.29 (1,144,154.98) 1,735,071.57 53,111,327.74 \r\n \r\nGovernmental Activities Capital Assets - Net $ 57,070,223.99 $ (673,949.02) $ 1,781,031.78 $ 54,615,243.19 \r\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\nImprovements 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\nOther Support Services \r\n \r\nFood Services \r\n \r\nEnterprise Operations \r\n \r\n7,474.47 969.90 \r\n27,561.06 1,666.69 \r\n51,251.92 944.90 \r\n195,493.64 169,851.83 \r\n1,481.29 \r\n \r\n$ 886,046.86 \r\n456,695.70 79,262.40 11,327.07 \r\n \r\n$ 1,433,332.03 \r\n \r\nNOTE 6: INTERFUND TRANSFERS 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 \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nDebt Service Fund \r\n \r\n$ \r\n \r\n725.63 $ 284,450.00 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the debt service fund for the payment of annual fees on general long-term debt. Also, transfers are used to move Education Special Purpose Local Option Sales Tax (ESPLOST) revenues collected by the capital projects fund to the debt service fund for the payment of principal and interest on general long-term debt. \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, 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\nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Capital Leases \r\n \r\n$ 7,950,000.00 $ 6,025,000.00 $ 1,900,000.00 $ 12,075,000.00 $ 1,955,000.00 \r\n \r\n327,630.15 \r\n \r\n674,371.05 \r\n \r\n89,248.14 \r\n \r\n912,753.06 \r\n \r\n200,427.24 \r\n \r\n15,635.47 \r\n \r\n- \r\n \r\n3,695.74 \r\n \r\n11,939.73 \r\n \r\n3,834.33 \r\n \r\n$ 8,293,265.62 $ 6,699,371.05 $ 1,992,943.88 $ 12,999,692.79 $ 2,159,261.57 \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved Education Special Purpose Local Option Sales Taxes (ESPLOST). General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nDuring the current year, the School District issued general obligation bonds totaling $6,025,000.00 to fund, in part, the construction and equipping of a new athletic facility at Toombs County High School; constructing, making additions to, and/or renovating, and equipping Toombs Central Elementary School and other school system facilities and making critical infrastructure and security improvements to existing facilities. \r\n \r\nThe School District's outstanding bonds from direct placements related to governmental activities of $12,075,000.00 contain a provision that in an event of default, the State of Georgia Board of Education is authorized to withhold any state appropriation to which the district may be entitled and apply it to the payment of the principal of, premium, if any, and interest on the bonds then due. \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 2013A General Government - Series 2019 \r\n \r\n3.00% - 4.00% 10/10/2013 3.00% - 5.00% 6/18/2019 \r\n \r\n5/1/2022 $ 9,255,000.00 $ 6,050,000.00 \r\n \r\n5/1/2025 \r\n \r\n6,025,000.00 \r\n \r\n6,025,000.00 \r\n \r\n$ 15,280,000.00 $ 12,075,000.00 \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\nUnamortized Bond Premium \r\n \r\n2020 2021 2022 2023 2024 2025 \r\n \r\n$ \r\n \r\n1,955,000.00 $ \r\n \r\n432,725.14 \r\n \r\n$ \r\n \r\n200,427.24 \r\n \r\n2,015,000.00 \r\n \r\n405,650.00 \r\n \r\n200,427.24 \r\n \r\n2,080,000.00 \r\n \r\n325,050.00 \r\n \r\n186,182.67 \r\n \r\n1,930,000.00 \r\n \r\n241,850.00 \r\n \r\n114,958.56 \r\n \r\n2,005,000.00 \r\n \r\n164,650.00 \r\n \r\n114,958.56 \r\n \r\n2,090,000.00 \r\n \r\n104,500.00 \r\n \r\n95,798.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n12,075,000.00 $ 1,674,425.14 \r\n \r\n$ \r\n \r\n912,753.06 \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired equipment under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n20,749.47 5,187.37 \r\n \r\n$ \r\n \r\n15,562.10 \r\n \r\nCapital leases currently outstanding are 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\nGrasshopper Mower \r\n \r\n3.75% \r\n \r\n9/22/2017 \r\n \r\n9/22/2021 $ \r\n \r\n20,749.47 $ \r\n \r\n11,939.73 \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\n2020 2021 2022 \r\n \r\n$ \r\n \r\n3,834.33 $ \r\n \r\n3,978.12 \r\n \r\n4,127.28 \r\n \r\n447.74 303.95 154.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n11,939.73 $ \r\n \r\n906.48 \r\n \r\nNOTE 8: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. 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\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including \r\n \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\ncoverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \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. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \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\n3,037.48 \r\n \r\n$ \r\n \r\n3,037.48 \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\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased surety bonds 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\nDrivers Education Instruction \r\n \r\n$ \r\n \r\nAthletic Director \r\n \r\n$ \r\n \r\n30,000.00 10,000.00 10,000.00 \r\n \r\n- 22 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned Local Capital Outlay Projects School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n43,776.54 \r\n \r\n$ \r\n \r\n710,333.35 \r\n \r\n7,049,413.13 \r\n \r\n805,244.17 \r\n \r\n8,564,990.65 \r\n \r\n$ \r\n \r\n362,219.47 \r\n \r\n291,421.22 \r\n \r\n653,640.69 3,162,531.80 \r\n \r\nFund Balance, June 30, 2019 \r\n \r\n$ 12,424,939.68 \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\nNOTE 10: SIGNIFICANT COMMITMENTS \r\n \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2019: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2019 (2) \r\n \r\nBooster Stadium Renovation TCES Renovation \r\n \r\n$ \r\n \r\n492,744.00 $ 457,256.00 \r\n \r\n950,131.00 \r\n \r\n- \r\n \r\n$ 1,442,875.00 $ 457,256.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts payable at year end. \r\n \r\n- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases Canon copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $68,257.88 for governmental activities for the year ended June 30, 2019. The following future minimum lease payments were required under operating leases at June 30, 2019: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2020 2021 2022 2023 \r\n \r\n$ \r\n \r\n69,264.00 \r\n \r\n69,264.00 \r\n \r\n69,264.00 \r\n \r\n14,436.00 \r\n \r\nTotal \r\n \r\n$ 222,228.00 \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\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $942,153.94 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 $22,771,322.00 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 0.179165%, which was an increase of 0.000277% 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 $1,013,497.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 517,958.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n3,857,571.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n30,809.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences \r\n \r\nbetween School District contributions and \r\n \r\nproportionate share of contributions \r\n \r\n238,509.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n942,153.94 \r\n \r\n- \r\n \r\n$ 1,211,471.94 $ 4,375,529.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $942,153.94 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2020 2021 2022 2023 2024 Thereafter \r\n \r\n$ (792,606.00) $ (792,606.00) $ (792,606.00) $ (794,446.00) $ (668,665.00) $ (265,282.00) \r\n \r\n- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\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\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\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\n \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\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$ 26,589,763.00 $ \r\n \r\n22,771,322.000 $ 19,692,148.00 \r\n \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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$ 19,144,033.00 $ \r\n \r\n22,771,322.00 $ 27,406,863.00 \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 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \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 \r\nSystem of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\n \r\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\n \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 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 20.66% 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 $3,256,569.93 and $36,515.82 from the School District and the State, respectively. \r\n \r\n- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\n \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\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 $15.00, 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\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 $48,176.00. \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 $24,339,609.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 24,339,609.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n276,762.00 \r\n \r\nTotal \r\n \r\n$ 24,616,371.00 \r\n \r\nThe net pension liability for TRS 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 during the fiscal year ended June 30, 2018. \r\n \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2018, the School District's TRS proportion was 0.131125%, which was a decrease of 0.004866% 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 $271,268.00. \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 $2,029,174.00 for TRS and $62,808.00 for PSERS and revenue of $80,128.00 for TRS and $62,808.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nTRS Deferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience Changes of assumptions \r\n \r\n$ 1,611,316.00 $ 367,276.00 \r\n \r\n50,164.00 - \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n665,492.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n- \r\n \r\n1,143,210.00 \r\n \r\n3,256,569.93 \r\n \r\n- \r\n \r\n$ 5,235,161.93 $ 1,858,866.00 \r\n \r\nThe School District contributions subsequent to the measurement date for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 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\n2020 2021 2022 2023 2024 \r\n \r\n$ 848,172.00 $ 311,832.00 $ (864,734.00) $ (181,674.00) $ 6,130.00 \r\n \r\n- 30 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\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 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, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\n- 31 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nPSERS Target allocation \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\n \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 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 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\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$ 40,629,776.00 $ \r\n \r\n24,339,609.00 $ 10,915,682.00 \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 and PSERS financial report which is publicly available \r\nat www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 32 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2019, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in \"New Accounting Pronouncements,\" which require the restatement of the June 30, 2018 net position in Governmental Activities and fund balance in the General Fund. These changes are in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2018 as previously reported \r\n \r\n$ \r\n \r\n6,606,873.31 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \r\n \r\n138,229.86 \r\n \r\nNet Position, July 1, 2018, as restated \r\n \r\n$ \r\n \r\n6,745,103.17 \r\n \r\nFund Balance (General Fund), July 1, 2018 as previously reported \r\n \r\n$ \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \r\n \r\nFund Balance (General Fund), July 1, 2018, as restated \r\n \r\n$ \r\n \r\n3,180,916.32 \r\n138,229.86 3,319,146.18 \r\n \r\nNet Position (Fiduciary Funds), July 1, 2018 as previously reported \r\n \r\n$ \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: Restatement for Custodial Funds Beginning Net Position \r\n \r\nNet Position (Fiduciary Funds), July 1, 2018, as restated \r\n \r\n$ \r\n \r\n- \r\n224,991.75 224,991.75 \r\n \r\nNOTE 15: EXTRAORDINARY ITEM \r\nDuring fiscal year 2019, the School District sustained fire damages to the press box at the Middle School athletic field. The total cost of the repairs was $11,000.00. \r\nNOTE 16: SPECIAL ITEMS \r\nDuring fiscal year 2019, the School District sold land and buildings. Total proceeds from the sale were $427,218.00 and the net book value of the assets sold were $1,749,096.16. This resulted in a loss on sale of assets of $1,321,878.16. \r\nNOTE 17: SUBSEQUENT EVENT \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 COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\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 \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\n2019 2018 2017 2016 2015 \r\n \r\n0.131125% $ 24,339,609.00 $ 0.135991% $ 25,274,346.00 $ 0.136703% $ 28,203,353.00 $ 0.140441% $ 21,380,748.00 $ 0.142080% $ 17,949,934.00 $ \r\n \r\n276,762.00 47,578.00 - \r\n \r\n$ 24,616,371.00 $ 25,321,924.00 $ 28,203,353.00 $ 21,380,748.00 $ 17,949,934.00 \r\n \r\n$ 15,851,880.81 $ 15,658,673.37 $ 15,094,728.93 $ 14,824,395.13 $ 14,407,600.89 \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\n153.54% 161.41% 186.84% 144.23% 124.59% \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- 35 - \r\n \r\n TOOMBS 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 \"2\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \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 \r\nnet pension liability associated with the School \r\nDistrict \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\n271,268.00 $ 261,394.00 $ 335,228.00 $ 235,801.00 $ 224,650.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n271,268.00 $ 261,394.00 $ 335,228.00 $ 235,801.00 $ 224,650.00 $ \r\n \r\n708,039.17 728,391.07 693,860.80 740,925.09 771,363.07 \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- 36 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \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\n2019 \r\n \r\n0.179165% $ 22,771,322.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n0.178888% $ 25,133,693.00 $ \r\n \r\n- \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n$ 22,771,322.00 $ 25,133,693.00 \r\n \r\n$ 13,859,309.24 $ 13,362,633.48 \r\n \r\n164.30% 188.09% \r\n \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- 37 - \r\n \r\n TOOMBS 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\n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \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\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n3,256,569.93 $ \r\n \r\n$ \r\n \r\n2,634,844.45 $ \r\n \r\n$ \r\n \r\n2,230,298.64 $ \r\n \r\n$ \r\n \r\n2,154,017.82 $ \r\n \r\n$ \r\n \r\n1,949,407.96 $ \r\n \r\n$ \r\n \r\n1,769,253.39 $ \r\n \r\n$ \r\n \r\n1,696,148.79 $ \r\n \r\n$ \r\n \r\n1,525,068.38 $ \r\n \r\n$ \r\n \r\n1,551,972.13 $ \r\n \r\n$ \r\n \r\n1,549,155.71 $ \r\n \r\n3,256,569.93 $ 2,634,844.45 $ 2,230,298.64 $ 2,154,017.82 $ 1,949,407.96 $ 1,769,253.39 $ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n15,762,764.09 \r\n \r\n- \r\n \r\n$ \r\n \r\n15,851,880.81 \r\n \r\n- \r\n \r\n$ \r\n \r\n15,658,673.37 \r\n \r\n- \r\n \r\n$ \r\n \r\n15,094,728.93 \r\n \r\n- \r\n \r\n$ \r\n \r\n14,824,395.13 \r\n \r\n- \r\n \r\n$ \r\n \r\n14,407,600.89 \r\n \r\n- \r\n \r\n$ \r\n \r\n14,865,458.28 \r\n \r\n- \r\n \r\n$ \r\n \r\n14,835,295.52 \r\n \r\n- \r\n \r\n$ \r\n \r\n15,097,005.15 \r\n \r\n- \r\n \r\n$ \r\n \r\n15,905,089.42 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.66% 16.62% 14.24% 14.27% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% \r\n \r\n- 38 - \r\n \r\n TOOMBS 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 \"5\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 \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\n942,153.94 $ \r\n \r\n942,153.94 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n928,594.00 $ \r\n \r\n928,594.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n932,733.00 $ \r\n \r\n932,733.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n740,708.00 $ \r\n \r\n740,708.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 13,574,106.07 $ 13,859,309.24 $ 13,362,633.48 $ 12,755,874.89 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.94% 6.70% 6.98% 5.81% \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 TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to 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\nIn 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\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 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\nIn 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\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 TOOMBS 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 \"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 SOURCES (USES)/SPECIAL ITEMS \r\nOperating Transfer to Other Funds Sale or Compensation for the Loss of Capital Assets Extraordinary Items - Other Uses \r\nTotal Other Financing Sources (Uses)/Special Items \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$ 5,796,702.00 $ 40,000.00 \r\n19,568,421.09 5,773,128.00 72,450.00 1,450.00 409,953.91 \r\n31,662,105.00 \r\n \r\n5,796,702.00 $ 40,000.00 \r\n19,588,211.09 5,777,829.00 72,450.00 1,580.00 888,373.67 \r\n \r\n5,770,329.83 $ 43,349.98 \r\n19,593,147.42 5,598,828.90 209,329.95 34,095.43 1,007,683.12 \r\n \r\n32,165,145.76 \r\n \r\n32,256,764.63 \r\n \r\n(26,372.17) 3,349.98 4,936.33 \r\n(179,000.10) 136,879.95 \r\n32,515.43 119,309.45 \r\n91,618.87 \r\n \r\n20,485,660.74 \r\n1,389,293.63 1,033,821.00 \r\n492,360.01 360,155.15 1,593,473.01 311,022.56 1,982,636.11 1,548,596.72 \r\n58,451.47 71,538.38 \r\n2,608,246.76 \r\n- \r\n31,935,255.54 \r\n(273,150.54) \r\n \r\n20,715,260.76 \r\n1,413,935.63 1,118,126.00 \r\n492,360.00 446,146.15 1,593,473.01 311,022.56 2,014,732.11 1,576,753.72 \r\n80,951.47 67,288.38 \r\n2,608,246.76 \r\n- \r\n32,438,296.55 \r\n(273,150.79) \r\n \r\n20,264,250.01 \r\n1,272,358.27 1,101,349.72 \r\n466,555.26 234,271.84 1,590,171.98 310,769.27 1,868,254.62 1,554,398.62 \r\n50,639.20 66,388.03 205,249.33 2,432,184.05 \r\n4,282.07 \r\n31,421,122.27 \r\n835,642.36 \r\n \r\n451,010.75 \r\n141,577.36 16,776.28 25,804.74 \r\n211,874.31 3,301.03 253.29 \r\n146,477.49 22,355.10 30,312.27 900.35 \r\n(205,249.33) 176,062.71 \r\n(4,282.07) \r\n1,017,174.28 \r\n1,108,793.15 \r\n \r\n- \r\n- \r\n(273,150.54) \r\n3,405,908.07 \r\n24,010.64 \r\n \r\n- \r\n- \r\n(273,150.79) \r\n3,405,908.07 \r\n123,413.59 \r\n \r\n(725.63) 65,000.00 (11,000.00) \r\n53,274.37 \r\n888,916.73 \r\n3,319,146.18 \r\n- \r\n \r\n(725.63) 65,000.00 (11,000.00) \r\n53,274.37 \r\n1,162,067.52 \r\n(86,761.89) \r\n(123,413.59) \r\n \r\nFund Balances - Ending \r\n \r\n$ 3,156,768.17 $ \r\n \r\n3,256,170.87 $ 4,208,062.91 $ 951,892.04 \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 $702,966.77 and $692,128.43, 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 TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2019 \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services 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 English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program 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 Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n10.553 10.555 \r\n10.558 \r\n10.582 \r\n84.027 84.027 84.173 84.173 \r\n84.048 84.365 84.365 84.011 84.011 84.358 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \r\n \r\nSCHEDULE \"8\" \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n195GA324N1099 $ 195GA324N1099 \r\n \r\n571,016.20 1,650,327.20 \r\n2,221,343.40 \r\n \r\n195GA368N1099 195GA324L1603 \r\n \r\n15,326.51 \r\n78,545.15 93,871.66 2,315,215.06 \r\n \r\nH027A170073 H027A180073 H173A170081 H173A180081 \r\nV048A180010 S365A170010 S365A180010 S011A170011 S011A180011 S365B170010 S365B180010 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 S287C170010 S287C180010 \r\n \r\n6,363.15 776,334.47 \r\n251.08 10,732.62 \r\n793,681.32 \r\n57,005.59 2,857.00 \r\n27,120.73 2,840.70 \r\n228,635.17 525.00 \r\n55,364.89 307.00 \r\n105,624.32 854.08 \r\n187,460.27 17,075.30 \r\n1,514,709.34 5,841.60 \r\n348,550.37 \r\n2,554,771.36 \r\n3,348,452.68 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,663,667.74 \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 Toombs 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 notes to the basic financial statements. \r\n \r\n- 42 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development 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 Purchases - State Allotment Food Services Math and Science Supplements Preschool Disability Services School Safety Grant Teachers Retirement Vocational Education Vocational Supervisors \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n712,905.94 $ \r\n \r\n- $ \r\n \r\n712,905.94 \r\n \r\n918,040.00 189,491.00 2,323,311.00 450,133.00 1,170,052.00 205,454.00 2,061,990.00 1,689,191.00 639,962.00 3,029,110.00 227,545.00 167,647.00 146,854.00 386,660.00 356,830.00 109,304.00 \r\n57,567.00 1,373.00 \r\n529,204.00 800,985.00 748,495.00 (181,440.00) \r\n470,924.00 59,511.00 \r\n1,726,333.00 \r\n154,440.00 50,747.04 13,202.84 \r\n115,292.00 - \r\n36,515.82 113,042.78 \r\n14,299.00 \r\n48,176.00 \r\n \r\n- \r\n- \r\n- \r\n43,904.00 - \r\n- \r\n \r\n918,040.00 189,491.00 2,323,311.00 450,133.00 1,170,052.00 205,454.00 2,061,990.00 1,689,191.00 639,962.00 3,029,110.00 227,545.00 167,647.00 146,854.00 386,660.00 356,830.00 109,304.00 \r\n57,567.00 1,373.00 \r\n529,204.00 800,985.00 748,495.00 (181,440.00) \r\n470,924.00 59,511.00 \r\n1,726,333.00 \r\n154,440.00 50,747.04 13,202.84 \r\n115,292.00 43,904.00 36,515.82 \r\n113,042.78 14,299.00 \r\n48,176.00 \r\n \r\n$ \r\n \r\n19,543,147.42 $ \r\n \r\n43,904.00 $ \r\n \r\n19,587,051.42 \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 TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2019 \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 YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nSPLOST #4 \r\n \r\ni. Constructing and equipping two (new) or \r\n \r\nreplacement schools, specifically: Toombs \r\n \r\nCounty High School and Toombs Central School $ 11,340,000.00 $ 17,543,710.95 $ \r\n \r\n- $ 17,543,710.95 $ 17,543,710.95 $ \r\n \r\n- \r\n \r\nii. Modifying and equipping the existing Toombs County High School for further instructional use \r\n \r\n3,000,000.00 \r\n \r\n749,464.46 \r\n \r\n- \r\n \r\n749,464.46 \r\n \r\n749,464.46 \r\n \r\niii. Purchasing School buses \r\n \r\n500,000.00 \r\n \r\n100,000.00 \r\n \r\n22,560.00 \r\n \r\n4,774.67 \r\n \r\n- \r\n \r\n- \r\n \r\niv. Purchasing textbooks, furniture, technology, \r\n \r\nadditional instructional materials and equipment \r\n \r\nfor all sites \r\n \r\n- \r\n \r\n750,000.00 \r\n \r\n320,228.07 \r\n \r\n215,187.57 \r\n \r\n- \r\n \r\n- \r\n \r\nv. Constructing additions to and/or renovating, \r\n \r\nmodifying, and equipping existing school system \r\n \r\nfacilities and making critical infrastructure \r\n \r\nimprovements to existing facilities \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n194,460.29 \r\n \r\n139,101.46 \r\n \r\n- \r\n \r\n- \r\n \r\nSPLOST #4 Totals \r\n \r\n15,340,000.00 \r\n \r\n19,643,175.41 \r\n \r\n537,248.36 18,652,239.11 \r\n \r\n18,293,175.41 \r\n \r\n- \r\n \r\nSPLOST #5 \r\n \r\na. The payment of principal and interest on general \r\n \r\nobligation debt incurred for constructing and \r\n \r\nequipping Toombs County High School \r\n \r\n4,342,000.00 \r\n \r\n4,342,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nb. Constructing and equipping a new athletic \r\n \r\nfacility at Toombs County High School \r\n \r\n3,350,000.00 \r\n \r\n3,350,000.00 \r\n \r\n176,345.02 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nc. Constructing, make additions to and/or \r\n \r\nrenovating, modifying and equipping Toombs \r\n \r\nCentral Elementary School and other school \r\n \r\nsystem facilities and making critical \r\n \r\ninfrastructure and security improvements to \r\n \r\nexisting facilities \r\n \r\n4,598,000.00 \r\n \r\n4,598,000.00 \r\n \r\n463,215.96 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nd. Purchasing School buses \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\ne. Purchasing textbooks (including e-books), \r\n \r\nfurniture, technology and software, additional \r\n \r\ninstructional materials and equipment for all \r\n \r\nfacilities. \r\n \r\n1,250,000.00 \r\n \r\n1,250,000.00 \r\n \r\n50,559.50 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nSPLOST #5 Totals \r\n \r\n14,040,000.00 \r\n \r\n14,040,000.00 \r\n \r\n690,120.48 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nCompleted Completed 6/30/2021 6/30/2021 \r\n6/30/2021 \r\n6/30/2022 12/31/2020 \r\n6/30/2026 6/30/2026 \r\n6/30/2026 \r\n \r\n$ 29,380,000.00 $ 33,683,175.41 $ 1,227,368.84 $ 18,652,239.11 $ 18,293,175.41 $ \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 \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 \r\n(3) The voters of Toombs 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\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years $ 1,689,886.88 \r\n \r\nCurrent Year \r\n \r\n284,450.00 \r\n \r\nTotal \r\n \r\n$ 1,974,336.88 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \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\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 Toombs 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 Toombs 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 July 27, 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\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 (This page left intentionally blank) \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 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\nJuly 27, 2020 \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\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 Toombs County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Toombs 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 (This page left intentionally blank) \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\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\nJuly 27, 2020 \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 TOOMBS 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\nNo matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \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 TOOMBS 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; Capital Projects Fund; Debt Service Fund; 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 84.027, 84.173 \r\n \r\nTitle I Grants to Local Educational Agencies Special Education \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-bt6-b2018-belec-p-btext","title":"Toombs County Board of Education, Lyons, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2019-12-10"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS 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\nMANAGEMENT'S DISCUSSION AND ANALYSIS \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\nPage \r\ni \r\n1 2 4 6 8 10 11 12 \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\n37 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n38 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\n \r\nSCHOOL OPEB FUND \r\n \r\n39 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n40 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \r\n \r\n41 \r\n \r\n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n42 \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\n43 \r\n \r\n TOOMBS 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\n44 45 47 \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 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 10, 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 Toombs 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 Toombs 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 \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, 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 Toombs 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. The School District restated beginning net position for the effect of GASB Statement No. 75. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\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 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 10, 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 TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nINTRODUCTION \r\nThe discussion and analysis of the Toombs County Board of Education's (the School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2018. 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 financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2018 are as follows: \r\n General revenues accounted for $10.6 million in revenue or 31.3% of total revenues and extraordinary item. Program specific revenues in the form of charges for services and grants and contributions accounted for $23.2 million or 68.7% of total revenues and extraordinary item of $33.8 million. \r\n The School District had $33.5 million in expenses related to governmental activities; however, only $23.2 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues net the extraordinary item, primarily property and sales taxes, of $10.6 million were adequate to provide for these programs. \r\n Long-term liabilities decreased by $1.9 million for 2018. This decrease was due primarily to the principal payments on outstanding general obligation bond debt. \r\n Among major funds, the general fund had $31.4 million in revenues and $30.8 million in expenditures. The fund balance for the general fund increased from $2.6 million to approximately $3.2 million. This increase was due primarily to an increase in property tax collections and the reduction of formula cuts by the State of Georgia. \r\n The deficit balance reflected in the unrestricted net position is due to the recording of pensions per GASB No. 68 and GASB No. 71 and the implementation of GASB No.75 relating to accounting and financial reporting for other postemployment benefits (OPEB). The amount of the School District's proportionate share of the collective net pension liability for the Teachers Retirement System cost sharing benefit pension plan was $25.3 million. The amount of the School District's proportionate share of the collective net OPEB liability was $25.1 million. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\ni \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary fund statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\nThe fund financial statements reflect the School District's most significant funds. For the year ending June 30, 2018, the general fund represents the most significant fund. \r\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. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\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 detailed information about the most significant funds or major funds. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance \r\nii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE Recall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2018 and 2017. \r\niii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nASSETS \r\n \r\nTable 1 \r\n \r\nNet Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year 2018 \r\n \r\nFiscal Year 2017(1) \r\n \r\nNet Change \r\n \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\n \r\n$ 5,434,737 $ 6,207 \r\n \r\n5,036,332 $ 6,114 \r\n \r\n398,405 93 \r\n \r\n1,141,066 2,386,335 \r\n592,663 1,480 \r\n81,090 58,593 1,079,670 \r\n \r\n1,022,074 2,274,312 \r\n919,318 2,543 8,128 \r\n55,405 1,274,557 \r\n \r\n118,992 112,023 (326,655) \r\n(1,063) 72,962 \r\n3,188 (194,887) \r\n \r\n55,990,554 \r\n \r\n57,135,389 \r\n \r\n(1,144,835) \r\n \r\nTotal Assets DEFERRED OUTFLOWS OF RESOURCES \r\n \r\n66,772,395 \r\n \r\n67,734,172 \r\n \r\n(961,777) \r\n \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n4,134,305 1,183,524 \r\n \r\n6,949,285 - \r\n \r\n(2,814,980) 1,183,524 \r\n \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contacts Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liabilities Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\n \r\n5,317,829 \r\n \r\n6,949,285 \r\n \r\n(1,631,456) \r\n \r\n112,648 3,491,109 \r\n46,830 21,975 \r\n154,440 25,274,346 25,133,693 \r\n1,989,164 6,304,101 \r\n \r\n88,965 3,359,121 \r\n55,555 - \r\n10,231 22,525 28,203,353 \r\n- \r\n1,940,469 8,277,630 \r\n \r\n23,683 131,988 \r\n(8,725) 21,975 (10,231) 131,915 (2,929,007) 25,133,693 \r\n48,695 (1,973,529) \r\n \r\nTotal Liabilities DEFERRED INFLOWS OF RESOURCES \r\n \r\n62,528,306 \r\n \r\n41,957,849 \r\n \r\n20,570,457 \r\n \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n1,041,178 1,913,867 \r\n \r\n1,108,594 - \r\n \r\n(67,416) 1,913,867 \r\n \r\nTotal Deferred Inflows of Resources NET ASSETS \r\n \r\n2,955,045 \r\n \r\n1,108,594 \r\n \r\n1,846,451 \r\n \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Charter School Contract Unrestricted (Deficit) \r\n \r\n49,026,210 \r\n \r\n48,441,099 \r\n \r\n585,111 \r\n \r\n768,926 1,271,032 \r\n741,442 - \r\n(45,200,737) \r\n \r\n744,123 2,134,621 \r\n237,535 209,413 (20,149,777) \r\n \r\n24,803 (863,589) 503,907 (209,413) (25,050,960) \r\n \r\nTotal Net Position \r\n \r\n$ 6,606,873 $ 31,617,014 $ (25,010,141) \r\n \r\n(1) Fiscal year 2017 amounts do not reflect the effects of the Restatement of Net Position. \r\n \r\nSee Note 14 in the Notes to the Basic Financial Statements for more information. \r\n \r\niv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 During fiscal year 2018, The School District adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits other than Pensions. This statement significantly impacted the presentation of the Statement of Net Position by requiring the reporting of the School District's net liability and the deferred inflows and outflows associated with OPEB. The total effect of these Postemployment Benefits on unrestricted net position was an overall decrease of $25.8 million for the year ended June 30, 2018. Although unrestricted net position reflects a large deficit, it should not be considered a financial weakness as these costs are spread out over multiple years well into the future. Table 2 shows the changes in net position for fiscal years ending June 30, 2018 and June 30, 2017. \r\nv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nTable 2 \r\n \r\nChange in Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2018 \r\n \r\n2017 (1) \r\n \r\nRevenues: \r\n \r\nProgram Revenues: \r\n \r\nCharges for Services \r\n \r\n$ \r\n \r\n189,493 $ \r\n \r\n210,829 \r\n \r\nOperating Grants and Contributions \r\n \r\n22,949,184 \r\n \r\n22,653,560 \r\n \r\nCapital Grants and Contributions \r\n \r\n83,166 \r\n \r\n108,789 \r\n \r\nTotal Program Revenues \r\n \r\n23,221,843 \r\n \r\n22,973,178 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Service For Capital Projects Other Sales Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nExtraordinary Item \r\n \r\n5,634,059 13,450 \r\n \r\n5,359,639 11,036 \r\n \r\n2,191,548 148,545 46,917 \r\n1,923,873 4,527 \r\n652,991 (12,000) \r\n \r\n2,316,136 \r\n48,366 \r\n1,951,050 4,553 \r\n1,060,249 - \r\n \r\nTotal General Revenues and Extraordinary item \r\n \r\n10,603,910 \r\n \r\n10,751,029 \r\n \r\nTotal Revenues and Extraordinary item \r\n \r\n$ 33,825,753 $ 33,724,207 \r\n \r\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 \r\n \r\n21,866,032 \r\n1,053,657 1,129,310 \r\n487,451 284,761 1,729,019 202,322 2,060,601 1,548,808 \r\n12,757 122,749 \r\n94,933 2,715,665 \r\n240,957 \r\n \r\n21,648,703 \r\n956,315 1,253,520 \r\n453,356 433,225 1,630,385 292,560 1,951,910 1,494,677 \r\n1,447 70,431 \r\n107,160 2,532,366 \r\n275,421 \r\n \r\nTotal Expenses \r\n \r\n33,549,022 \r\n \r\n33,101,476 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n276,731 $ \r\n \r\n622,731 \r\n \r\n(1) Fiscal year 2017 amounts do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\nvi \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided by specific programs. The net cost reflects the financial burden of the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year 2018 \r\n \r\nFiscal Year 2017 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year 2018 \r\n \r\nFiscal Year 2017 (1) \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$ 21,866,032 $ 21,648,703 $ 6,065,859 $ 5,996,106 \r\n \r\n1,053,657 1,129,310 \r\n487,451 284,761 1,729,019 202,322 2,060,601 1,548,808 \r\n12,915 12,757 \r\n \r\n956,315 1,253,520 \r\n453,356 433,225 1,630,385 292,560 1,951,910 1,494,677 \r\n1,447 70,431 \r\n \r\n555,993 260,955 \r\n96,526 (408,113) 860,620 200,227 1,188,264 919,872 \r\n11,002 38,314 \r\n \r\n597,732 187,114 \r\n75,911 (160,262) 791,780 290,593 1,079,549 823,410 \r\n1,152 34,186 \r\n \r\n94,933 2,715,665 \r\n240,957 \r\n \r\n107,160 2,532,366 \r\n275,421 \r\n \r\n(25,344) 322,047 240,957 \r\n \r\n(32,869) 168,475 275,421 \r\n \r\nTotal Expenses \r\n \r\n$ 33,549,022 $ 33,101,476 $ 10,327,179 $ 10,128,298 \r\n \r\n(1) Fiscal year 2017 amounts do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\nAlthough program revenues make up 67.8% of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2018, 30.8% of cost of services were supplemented by taxes and other general revenues compared to 30.6 % in 2017. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\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 $33.8 million and expenditures and other financing uses of $33.8 million. Total governmental funds had an increase in fund balance of $22.5 thousand. This increase was due primarily to increases in property taxes and state funds reported in the general fund, which allowed the general fund balance to increase by $600.3 thousand. The capital projects fund balance decreased by $368.4 thousand due to the School District receiving less state funds to cover capital expenditures and Special Purpose Local Option Sales Tax revenues being used for the payment of principal and interest on general long-term debt. The nonmajor governmental fund balance also decreased by $209.4 thousand due to a change in reporting for the activity in this fund. \r\n \r\nvii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nGeneral Fund Budgeting Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal year 2018, the School District amended its general fund budget as needed. \r\nThe School District's budget is adopted at the aggregate fund and function level but is prepared and presented by fund, function, and object for management control. \r\nDuring fiscal year 2018, the general fund had final actual revenues and other financing sources totaling $31.39 million, which represented an increase from the final budgeted amount of $31.36 million by $34.0 thousand. This difference (actual vs. budget) was mostly due to an increase in state program revenues. \r\nFinal actual expenditures during fiscal year 2018 totaling $30.8 million represented a decrease from the final budgeted amount of $31.2 million. \r\nCAPITAL ASSETS \r\nAt the end of fiscal year 2018, the School District had $57.1 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land, buildings, transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nNet \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\nChange \r\n \r\nLand Construction in Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ 1,079,670 $ 1,079,670 $ \r\n \r\n- \r\n \r\n194,887 \r\n \r\n53,460,067 54,426,518 \r\n \r\n1,647,386 \r\n \r\n1,746,847 \r\n \r\n883,101 \r\n \r\n962,024 \r\n \r\n(194,887) (966,451) \r\n(99,461) (78,923) \r\n \r\nTotal \r\n \r\n$ 57,070,224 $ 58,409,946 $ (1,339,722) \r\n \r\nThe overall capital assets decreased in fiscal year 2018 by $1.3 million due mostly to depreciation in the amount of 1.7 million. \r\n \r\nviii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nLONG-TERM LIABILITIES \r\nAt June 30, 2018, the School District had $7.9 million in general obligation bond debt outstanding with $1.9 million due within one year. The School District entered into one new capital lease in fiscal year 2018. A schedule of future payments can be found in the Notes to the Basic Financial Statements. Table 5 summarizes the long-term liabilities outstanding at June 30, 2018 and 2017. \r\n \r\nTable 5 Long-term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\nGeneral Obligation Bonds \r\n \r\n$ \r\n \r\nCapital Lease \r\n \r\nUnamortized Bond Premiums \r\n \r\n7,950,000 $ 15,636 \r\n327,630 \r\n \r\n9,805,000 - \r\n413,099 \r\n \r\nTotal Long-term Liabilities \r\nCURRENT ISSUES \r\n \r\n$ 8,293,266 $ 10,218,099 \r\n \r\n In fiscal year 2019, the cost of the employer portion of TRS pension will increase approximately $544,500 as the employer contribution rate increases from 16.81% for fiscal year 2018 to 20.90% for fiscal year 2019. \r\n \r\n Approximately 76% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2018. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS and health insurance premium expenses. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that County students receive a quality education from effective personnel. \r\n \r\n The School District's millage rate for fiscal year 2018 was 13.956. The net digest for fiscal year 2018 was $371.0 million, which produced approximately $370,640 per mill. As shown in Table 3, property tax, sales taxes and other general revenues are responsible for covering 30.8% of the School District's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. \r\n \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Stephanie Smith at the Toombs County Board of Education, 117 East Wesley Avenue, Lyons, GA 30436. \r\n \r\nix \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n5,434,737.14 \r\n \r\n6,206.63 \r\n \r\n1,141,066.31 2,386,334.53 \r\n592,663.03 1,480.56 \r\n81,090.31 58,592.81 1,079,669.70 55,990,554.29 \r\n \r\n66,772,395.31 \r\n \r\n4,134,305.45 1,183,524.00 \r\n5,317,829.45 \r\n \r\n112,647.70 3,491,109.12 \r\n46,830.01 21,975.00 154,440.00 25,274,346.00 25,133,693.00 \r\n1,989,164.42 6,304,101.20 \r\n62,528,306.45 \r\n \r\n1,041,178.00 1,913,867.00 \r\n2,955,045.00 \r\n \r\n49,026,209.88 \r\n768,926.16 1,271,031.92 \r\n741,442.26 (45,200,736.91) \r\n \r\n$ \r\n \r\n6,606,873.31 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2018 \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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nExtraordinary Item Insurance deductible/expenses related to hurricane damages \r\nTotal General Revenues and Extraordinary Item \r\nChange in Net Position \r\nNet Position - Beginning of Year - Restated \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n21,866,032.29 $ \r\n \r\n1,053,656.64 1,129,309.90 \r\n487,451.05 284,761.10 1,729,018.78 202,321.93 2,060,601.53 1,548,808.38 \r\n12,756.91 122,748.76 \r\n \r\n94,933.35 2,715,664.80 \r\n240,956.80 \r\n \r\n$ \r\n \r\n33,549,022.22 $ \r\n \r\n- \r\n- \r\n120,277.09 69,215.52 - \r\n189,492.61 \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 \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN \r\nNET POSITION \r\n \r\n$ 15,753,600.67 $ \r\n497,663.47 868,354.37 389,511.00 692,874.50 865,654.00 \r\n2,094.65 863,189.68 619,788.18 \r\n1,755.12 84,434.78 \r\n2,310,264.26 \r\n- \r\n$ 22,949,184.68 $ \r\n \r\n46,573.07 $ \r\n1,413.82 2,744.48 9,148.28 9,148.28 - \r\n14,138.25 \r\n- \r\n83,166.18 \r\n \r\n(6,065,858.55) \r\n(555,993.17) (260,955.53) \r\n(96,526.23) 408,113.40 (860,620.30) (200,227.28) (1,188,263.57) (919,871.92) (11,001.79) (38,313.98) \r\n25,343.74 (322,046.77) (240,956.80) \r\n(10,327,178.75) \r\n \r\n5,634,058.99 13,450.48 \r\n2,191,547.50 148,544.45 46,917.20 \r\n1,923,873.00 4,527.43 \r\n652,990.96 \r\n(12,000.00) \r\n10,603,910.01 \r\n276,731.26 \r\n6,330,142.05 \r\n \r\n$ \r\n \r\n6,606,873.31 \r\n \r\n- 3 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2018 \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Due from Other Funds Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ \r\n \r\n3,523,042.64 $ \r\n \r\n1,911,664.49 \r\n \r\n6,206.63 \r\n \r\n- \r\n \r\n938,270.42 2,386,334.53 \r\n592,663.03 1,480.56 \r\n70,832.31 43,469.20 58,592.81 \r\n \r\n202,795.89 - \r\n10,258.00 - \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Due to Other Funds Contracts 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$ \r\n \r\n7,620,892.13 $ \r\n \r\n2,124,718.38 \r\n \r\n$ \r\n \r\n112,647.70 $ \r\n \r\n3,491,109.12 \r\n \r\n- \r\n \r\n- \r\n \r\n154,440.00 \r\n \r\n3,758,196.82 \r\n \r\n43,469.20 21,975.00 - \r\n65,444.20 \r\n \r\n681,778.99 \r\n \r\n- \r\n \r\n58,592.81 710,333.35 142,353.02 2,269,637.14 \r\n3,180,916.32 \r\n \r\n2,059,274.18 \r\n- \r\n2,059,274.18 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ \r\n \r\n7,620,892.13 $ \r\n \r\n2,124,718.38 \r\n \r\n- 4 - \r\n \r\n EXHIBIT \"C\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n30.01 $ \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n5,434,737.14 \r\n \r\n- \r\n \r\n6,206.63 \r\n \r\n- \r\n \r\n1,141,066.31 \r\n \r\n- \r\n \r\n2,386,334.53 \r\n \r\n- \r\n \r\n592,663.03 \r\n \r\n- \r\n \r\n1,480.56 \r\n \r\n- \r\n \r\n81,090.31 \r\n \r\n- \r\n \r\n43,469.20 \r\n \r\n- \r\n \r\n58,592.81 \r\n \r\n$ \r\n \r\n30.01 $ \r\n \r\n- \r\n \r\n9,745,640.52 \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\n112,647.70 \r\n \r\n- \r\n \r\n3,491,109.12 \r\n \r\n- \r\n \r\n43,469.20 \r\n \r\n- \r\n \r\n21,975.00 \r\n \r\n- \r\n \r\n154,440.00 \r\n \r\n- \r\n \r\n3,823,641.02 \r\n \r\n- \r\n \r\n- \r\n \r\n681,778.99 \r\n \r\n30.01 \r\n- \r\n30.01 \r\n \r\n- \r\n \r\n58,592.81 \r\n \r\n- \r\n \r\n2,769,637.54 \r\n \r\n- \r\n \r\n142,353.02 \r\n \r\n- \r\n \r\n2,269,637.14 \r\n \r\n- \r\n \r\n5,240,220.51 \r\n \r\n$ \r\n \r\n30.01 $ \r\n \r\n- \r\n \r\n9,745,640.52 \r\n \r\n- 5 - \r\n \r\n TOOMBS 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\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 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 Capital leases payable Unamortized bond premiums \r\n \r\n$ \r\n \r\n5,240,220.51 \r\n \r\n$ \r\n \r\n1,079,669.70 \r\n \r\n62,851,423.67 \r\n \r\n5,384,480.95 \r\n \r\n2,181,509.48 \r\n \r\n(14,426,859.81) \r\n \r\n57,070,223.99 \r\n \r\n$ (25,274,346.00) (25,133,693.00) \r\n \r\n(50,408,039.00) \r\n \r\n$ \r\n \r\n3,093,127.45 \r\n \r\n(730,343.00) \r\n \r\n2,362,784.45 681,778.99 \r\n \r\n$ (7,950,000.00) (46,830.01) (15,635.47) \r\n(327,630.15) \r\n \r\n(8,340,095.63) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n6,606,873.31 \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 (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 \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 Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nInsurance Proceeds Capital Leases Transfers In Transfers Out Extraordinary Item hurricane damages \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\n$ \r\n \r\n5,591,352.60 $ \r\n \r\n46,917.20 \r\n \r\n19,343,856.16 \r\n \r\n5,544,807.30 \r\n \r\n189,492.61 \r\n \r\n3,553.76 \r\n \r\n652,990.96 \r\n \r\n31,372,970.59 \r\n \r\n148,544.45 \r\n969.28 - \r\n149,513.73 \r\n \r\n20,127,290.47 \r\n1,045,408.95 1,124,925.72 \r\n451,186.29 276,307.79 1,653,930.37 283,103.09 1,898,593.98 1,322,726.85 \r\n12,756.91 121,515.25 \r\n77,047.09 2,393,253.90 \r\n- \r\n5,114.00 - \r\n30,793,160.66 \r\n579,809.93 \r\n \r\n215,187.57 \r\n13,351.93 277,666.35 \r\n- \r\n506,205.85 \r\n(356,692.12) \r\n \r\n20,749.47 \r\n(280.80) \r\n- \r\n20,468.67 \r\n600,278.60 \r\n2,580,637.72 \r\n \r\n53,725.00 - \r\n280.80 - \r\n(65,725.00) \r\n(11,719.20) \r\n(368,411.32) \r\n2,427,685.50 \r\n \r\n$ \r\n \r\n3,180,916.32 $ \r\n \r\n2,059,274.18 \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 EXHIBIT \"E\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n- $ \r\n \r\n2,191,547.50 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n4.39 \r\n \r\n- \r\n \r\n2,191,551.89 \r\n \r\n- $ - \r\n- \r\n \r\n5,591,352.60 2,387,009.15 19,343,856.16 5,544,807.30 \r\n189,492.61 4,527.43 \r\n652,990.96 \r\n33,714,036.21 \r\n \r\n- \r\n- \r\n1,855,000.00 1,397.50 \r\n335,150.00 \r\n2,191,547.50 \r\n4.39 \r\n \r\n- \r\n \r\n20,342,478.04 \r\n \r\n- \r\n \r\n1,045,408.95 \r\n \r\n- \r\n \r\n1,124,925.72 \r\n \r\n- \r\n \r\n451,186.29 \r\n \r\n- \r\n \r\n276,307.79 \r\n \r\n- \r\n \r\n1,653,930.37 \r\n \r\n- \r\n \r\n283,103.09 \r\n \r\n- \r\n \r\n1,898,593.98 \r\n \r\n- \r\n \r\n1,336,078.78 \r\n \r\n- \r\n \r\n12,756.91 \r\n \r\n- \r\n \r\n121,515.25 \r\n \r\n- \r\n \r\n77,047.09 \r\n \r\n- \r\n \r\n2,393,253.90 \r\n \r\n- \r\n \r\n277,666.35 \r\n \r\n- \r\n \r\n1,860,114.00 \r\n \r\n- \r\n \r\n1,397.50 \r\n \r\n- \r\n \r\n335,150.00 \r\n \r\n- \r\n \r\n33,490,914.01 \r\n \r\n- \r\n \r\n223,122.20 \r\n \r\n- \r\n- \r\n4.39 \r\n25.62 \r\n \r\n(209,412.85) - \r\n(209,412.85) \r\n(209,412.85) \r\n209,412.85 \r\n \r\n53,725.00 20,749.47 \r\n280.80 (209,693.65) \r\n(65,725.00) \r\n(200,663.38) \r\n22,458.82 \r\n5,217,761.69 \r\n \r\n$ \r\n \r\n30.01 $ \r\n \r\n- $ \r\n \r\n5,240,220.51 \r\n \r\n- 9 - \r\n \r\n TOOMBS 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\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nCapital assets purchased with Universal Service Fund (e-rate) proceeds are not reported in governmental funds. However, in the Statement of Activities, the e-rate proceeds are shown as capital grants and contributions. \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\nCapital leases issued Amortization of bond premium 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 \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n22,458.82 \r\n \r\n$ \r\n \r\n348,527.22 \r\n \r\n(1,742,707.48) \r\n \r\n(1,394,180.26) (28,707.89) \r\n \r\n83,166.18 56,156.87 \r\n \r\n$ \r\n \r\n(20,749.47) \r\n \r\n85,468.68 \r\n \r\n1,855,000.00 \r\n \r\n5,114.00 \r\n \r\n1,924,833.21 \r\n \r\n$ \r\n \r\n181,443.81 \r\n \r\n(577,164.00) \r\n \r\n(395,720.19) \r\n \r\n8,724.52 \r\n \r\n$ \r\n \r\n276,731.26 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 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\n557,746.96 \r\n \r\n$ \r\n \r\n557,746.96 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 11 - \r\n \r\n TOOMBS 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 Toombs 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 and its component units, 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- 12 - \r\n \r\n TOOMBS 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nAll other governmental funds not meeting the criteria established for major funds are presented in the nonmajor governmental column of the fund financial statements. \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 \r\n- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nrecorded 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. \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 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 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\n \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\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\nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \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\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\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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 Buses \r\n \r\nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 \r\n \r\nN/A 20 to 80 years up to 80 years \r\n5 to 25 years 8 to 14 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\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\nLONG-TERM LIABILITIES AND BOND 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\n \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\n \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\n \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\n \r\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFUND BALANCES \r\n \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\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\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 Toombs County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on October 4, 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 Toombs County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2018, for maintenance and operations amounted to $5,050,976.58. \r\n \r\nThe tax millage rate levied for the 2017 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.956 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $526,925.54 during fiscal year ended June 30, 2018. \r\n \r\n- 17 - \r\n \r\n TOOMBS 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 $2,340,091.95 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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\nThe Superintendent is authorized by the Board to approve adjustments of the amount budgeted for expenditures between any budget function within the same fund. The Superintendent shall report any such adjustments to the Board. If the expenditure of funds is anticipated to exceed the total appropriation at the aggregate fund level, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \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\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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(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 in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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, 2018, the School District had deposits with a carrying amount of $5,998,690.73, and a bank balance of $6,620,376.71. The bank balances insured by Federal depository insurance were $500,030.01, the bank balances collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name were $35,461.89, and the bank balances included in the State's Secure Deposit Program (SDP) were $6,084,884.81. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 5,434,737.14 557,746.96 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,992,484.10 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n6,206.63 \r\n \r\nTotal carrying value of deposits - June 30, 2018 \r\n \r\n$ 5,998,690.73 \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, 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 Construction in Progress \r\n \r\n$ 1,079,669.70 $ 194,886.98 \r\n \r\n- $ \r\n \r\n- $ 1,079,669.70 \r\n \r\n- \r\n \r\n194,886.98 \r\n \r\n- \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,274,556.68 \r\n \r\n- \r\n \r\n194,886.98 \r\n \r\n1,079,669.70 \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\n62,720,069.16 5,047,633.62 2,224,971.48 \r\n \r\n191,570.29 435,010.09 \r\n- \r\n \r\n8,293,551.13 3,300,787.05 1,262,946.80 \r\n \r\n1,135,918.35 527,865.54 78,923.59 \r\n \r\n60,215.78 98,162.76 43,462.00 \r\n38,113.12 91,557.53 43,462.00 \r\n \r\n62,851,423.67 5,384,480.95 2,181,509.48 \r\n9,391,356.36 3,737,095.06 1,298,408.39 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n57,135,389.28 \r\n \r\n(1,116,127.10) \r\n \r\n28,707.89 \r\n \r\n55,990,554.29 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 58,409,945.96 $ (1,116,127.10) $ 223,594.87 $ 57,070,223.99 \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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\nImprovements 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\nOther Support Services \r\n \r\nFood Services \r\n \r\nEnterprise Operations \r\n \r\n7,474.47 1,099.90 30,022.57 1,929.65 56,945.83 \r\n944.90 190,828.24 182,650.37 \r\n1,481.29 \r\n \r\n$ 966,984.88 \r\n473,377.22 284,749.00 \r\n17,596.38 \r\n \r\n$ 1,742,707.48 \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \r\n \r\nINTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2018, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral Fund Capital Projects Fund \r\nTotal \r\n \r\n$ \r\n \r\n43,469.20 \r\n \r\n- \r\n \r\n$ \r\n \r\n43,469.20 \r\n \r\n$ \r\n \r\n- \r\n \r\n43,469.20 \r\n \r\n$ \r\n \r\n43,469.20 \r\n \r\nThe capital projects fund plans to reimburse the general fund for loaning funds used to pay for repairs to Booster Stadium. \r\n \r\nINTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2018, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nNonmajor \r\n \r\nGeneral \r\n \r\nGovernmental \r\n \r\nFund \r\n \r\nFund \r\n \r\nCapital Projects Fund \r\n \r\n$ \r\n \r\n280.80 $ \r\n \r\n- \r\n \r\nAgency Funds \r\n \r\n- \r\n \r\n209,412.85 \r\n \r\n$ \r\n \r\n280.80 $ 209,412.85 \r\n \r\nA transfer was used to move revenues collected by the general fund to the capital projects fund to cover a portion of the repairs to Booster Stadium. Additionally, a transfer was used to move the southeastern Early College and Career Academy (Charter School) funds from the nonmajor governmental fund to agency funds. Toombs County Board of Education (School District) no longer has \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nfinancial benefit or burden relationship with the Charter School. All operational responsibility for the Charter School now rest with Charter School management. The School District is the fiscal agent for the Charter School and acts in a fiduciary capacity. \r\n \r\nNOTE 7: 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- $ 900,000.00 $ 900,000.00 $ \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 Unamortized Bond Premiums Capital Leases \r\n \r\nBalance July 1, 2017 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2018 \r\n \r\nDue Within One Year \r\n \r\n$ \r\n \r\n9,805,000.00 $ \r\n \r\n- $ 1,855,000.00 $ 7,950,000.00 $ 1,900,000.00 \r\n \r\n413,098.83 \r\n \r\n- \r\n \r\n85,468.68 \r\n \r\n327,630.15 \r\n \r\n85,468.68 \r\n \r\n- \r\n \r\n20,749.47 \r\n \r\n5,114.00 \r\n \r\n15,635.47 \r\n \r\n3,695.74 \r\n \r\n$ 10,218,098.83 $ 20,749.47 $ 1,945,582.68 $ 8,293,265.62 $ 1,989,164.42 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \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 2013A 3.00% - 4.00% \r\n \r\n10/10/2013 \r\n \r\n5/1/2022 $ 9,255,000.00 $ 7,950,000.00 \r\n \r\n- 22 - \r\n \r\n TOOMBS 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\nUnamortized Bond Premium \r\n \r\n2019 2020 2021 2022 \r\n \r\n$ \r\n \r\n1,900,000.00 $ \r\n \r\n284,450.00 \r\n \r\n$ \r\n \r\n1,955,000.00 \r\n \r\n222,450.00 \r\n \r\n2,015,000.00 \r\n \r\n163,800.00 \r\n \r\n2,080,000.00 \r\n \r\n83,200.00 \r\n \r\n85,468.68 85,468.68 85,468.68 71,224.11 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n7,950,000.00 $ \r\n \r\n753,900.00 \r\n \r\n$ \r\n \r\n327,630.15 \r\n \r\nCAPITAL LEASE \r\nThe School District has acquired equipment 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\n \r\nThe following asset was acquired through a capital lease and is reflected in the capital asset note at fiscal year-end: \r\n \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n20,749.47 2,223.16 \r\n \r\n$ \r\n \r\n18,526.31 \r\n \r\nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of a 2018 Grasshopper Mower with Deck, Sprayer and Aera-Vator at a cost of $20,749.47 with a down payment of $5,114.00. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \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\nGrasshopper Mower \r\n \r\n3.75% \r\n \r\n9/22/2017 \r\n \r\n9/22/2021 $ \r\n \r\n20,749.47 $ \r\n \r\n15,635.47 \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 2020 2021 2022 \r\n \r\n$ \r\n \r\n3,695.74 $ \r\n \r\n3,834.33 \r\n \r\n3,978.12 \r\n \r\n4,127.28 \r\n \r\n586.33 447.74 303.95 154.79 \r\n \r\nTotal Principal and Interest $ \r\n \r\n15,635.47 $ \r\n \r\n1,492.81 \r\n \r\n- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for the risk of loss associated with automobiles. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \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\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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\n2017 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n120.52 \r\n \r\n$ \r\n \r\n120.52 \r\n \r\n$ \r\n \r\n- \r\n \r\n2018 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,037.48 \r\n \r\n$ \r\n \r\n3,037.48 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education Instruction Athletic Director \r\n \r\n$ 30,000.00 $ 10,000.00 $ 10,000.00 \r\n \r\nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \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 Capital projects Debt service \r\nAssigned School activity accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n58,592.81 \r\n \r\n$ 710,333.35 741,442.26 \r\n1,317,861.93 \r\n \r\n2,769,637.54 \r\n \r\n142,353.02 2,269,637.14 \r\n \r\nFund Balance, June 30, 2018 \r\n \r\n$ 5,240,220.51 \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 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\n \r\n- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $928,594.00 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\nAt June 30, 2018, the School District reported a liability of $25,133,693.00 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 0.178888%, which was an increase of 0.001971% from its proportion measured as of June 30, 2016. \r\n \r\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFor the year ended June 30, 2018, the School District recognized OPEB expense of $1,505,758.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nChanges of assumptions \r\n \r\n$ \r\n \r\n- $ 1,913,867.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n7,351.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences \r\n \r\nbetween School District contributions and \r\n \r\nproportionate share of contributions \r\n \r\n247,579.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n928,594.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,183,524.00 $ 1,913,867.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $928,594.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2019 2020 2021 2022 2023 2024 \r\n \r\n$ (297,854.00) $ (297,854.00) $ (297,854.00) $ (297,854.00) $ (299,693.00) $ (167,828.00) \r\n \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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: \r\nInflation Salary increases \r\nERS 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% 3.25% - 7.00%, average, including inflation 4.50%, 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\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 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \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- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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 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\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. 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\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\n \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 \r\nlower (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$ 29,841,757.00 $ \r\n \r\n25,133,693.00 $ 21,418,075.00 \r\n \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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 liability, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \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$ 20,832,967.00 $ \r\n \r\n25,133,693.00 $ 30,733,230.00 \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 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \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 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 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 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 $2,634,844.45 and $29,074.78 from the School District and the State, respectively. \r\n \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. \r\n- 30 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nassigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \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 $53,103.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2018, the School District reported a liability of $25,274,346.00 for its proportionate share of the net pension liability for TRS. \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 25,274,346.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n47,578.00 \r\n \r\nTotal \r\n \r\n$ 25,321,924.00 \r\n \r\nThe net pension liability for TRS 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 during the fiscal year ended June 30, 2017. \r\nAt June 30, 2017, the School District's TRS proportion was 0.135991%, which was a decrease of 0.000712% from its proportion measured as of June 30, 2016. \r\n \r\n- 31 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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 $261,394.00. \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 $2,465,235.00 for TRS and $52,681.00 for PSERS and revenue of $13,891.00 for TRS and $52,681.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\nChanges of assumptions \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\nSchool District contributions subsequent to the measurement date \r\n \r\n$ 945,416.00 $ 554,045.00 - \r\n2,634,844.45 \r\n \r\n95,383.00 - \r\n173,930.00 \r\n771,865.00 - \r\n \r\nTotal \r\n \r\n$ 4,134,305.45 $ 1,041,178.00 \r\n \r\n- 32 - \r\n \r\n TOOMBS 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 $2,634,844 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ (481,093.00) \r\n \r\n$ 1,090,000.00 \r\n \r\n$ 530,338.00 \r\n \r\n$ (693,839.00) \r\n \r\n$ \r\n \r\n12,877.00 \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods \r\nincluded 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\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\n \r\n- 33 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \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 * 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\nPSERS Target allocation \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 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 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\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 \r\n \r\nthe net pension liability \r\n \r\n$ 41,478,167.00 $ \r\n \r\n25,274,346.00 $ 11,926,039.00 \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 and PSERS financial report which is publicly available \r\nat www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 34 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 14: 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 $25,286,872.00. This change is in accordance with generally accepted accounting procedures. \r\n \r\nNet Position, July 1, 2017 as previously reported \r\n \r\n$ 31,617,014.05 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \r\n \r\n(26,219,605.00) \r\n \r\nDeferred Outflows - School District's Contributions made during fiscal year 2017 \r\n \r\n932,733.00 \r\n \r\nNet Position, July 1, 2017, as restated \r\n \r\n$ \r\n \r\n6,330,142.05 \r\n \r\nNOTE 15: EXTRAORDINARY ITEM \r\nDuring fiscal year 2018, the School District sustained damages to the football stadium during Hurricane Irma in the amount of $65,725.00 A property claim was filed with Georgia School Board Association Risk and Insurance Management System which covered $63,725.00 of the repairs less the $10,000.00 deductible. \r\nNOTE 16: SUBSEQUENT EVENTS \r\nOn May 19, 2019 the voters of Toombs County authorized the School District to issue General Obligation Bonds in the amount of $6,025,000.00 and the continuation of a 1% sales tax to be used for capital improvement and for the repayment of debt incurred for the construction of Toombs County High School. \r\n \r\n- 35 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2018 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 \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\n0.135991% $ 25,274,346.00 $ 0.136703% $ 28,203,353.00 $ 0.140441% $ 21,380,748.00 $ 0.142080% $ 17,949,934.00 $ \r\n \r\n47,578.00 $ \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\nTotal \r\n25,321,924.00 28,203,353.00 21,380,748.00 17,949,934.00 \r\n \r\nSchool District's covered payroll \r\n$ 15,658,673.37 $ 15,094,728.93 $ 14,824,395.13 $ 14,407,600.89 \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\n161.41% 186.84% 144.23% 124.59% \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- 37 - \r\n \r\n TOOMBS 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 \"2\" \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 the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n0.00% $ 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\n261,394.00 $ 335,228.00 $ 235,801.00 $ 224,650.00 $ \r\n \r\nTotal \r\n261,394.00 335,228.00 235,801.00 224,650.00 \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n728,391.07 \r\n \r\n$ \r\n \r\n693,860.80 \r\n \r\n$ \r\n \r\n740,925.09 \r\n \r\n$ \r\n \r\n771,363.07 \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\n85.69% \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- 38 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended 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(asset) \r\n \r\nState of Georgia's proportionate share of the \r\nnet OPEB liability associated with the \r\nSchool District \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net OPEB liability as \r\na percentage of its covered-employee \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n0.178888% $ \r\n \r\n25,133,693.00 $ \r\n \r\n- \r\n \r\n$ 25,133,693.00 $ 13,362,633.48 \r\n \r\n188.09% \r\n \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- 39 - \r\n \r\n TOOMBS 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\n2018 \r\n \r\n$ \r\n \r\n2017 \r\n \r\n$ \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2010 \r\n \r\n$ \r\n \r\n2009 \r\n \r\n$ \r\n \r\n2,634,844.45 $ 2,230,298.64 $ 2,154,017.82 $ 1,949,407.96 $ 1,769,253.39 $ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ 1,505,834.98 $ \r\n \r\n2,634,844.45 $ 2,230,298.64 $ 2,154,017.82 $ 1,949,407.96 $ 1,769,253.39 $ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ 1,505,834.98 $ \r\n \r\n- \r\n \r\n$ 15,851,880.81 \r\n \r\n- \r\n \r\n$ 15,658,673.37 \r\n \r\n- \r\n \r\n$ 15,094,728.93 \r\n \r\n- \r\n \r\n$ 14,824,395.13 \r\n \r\n- \r\n \r\n$ 14,407,600.89 \r\n \r\n- \r\n \r\n$ 14,865,458.28 \r\n \r\n- \r\n \r\n$ 14,835,295.52 \r\n \r\n- \r\n \r\n$ 15,097,005.15 \r\n \r\n- \r\n \r\n$ 15,905,089.42 \r\n \r\n- \r\n \r\n$ 16,226,670.04 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n16.62% 14.24% 14.27% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% \r\n \r\n- 40 - \r\n \r\n TOOMBS 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 \"5\" \r\n \r\nYear Ended \r\n2018 2017 2016 \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\n928,594.00 $ \r\n \r\n928,594.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n932,733.00 $ \r\n \r\n932,733.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n740,708.00 $ \r\n \r\n740,708.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 13,859,309.24 $ 13,362,633.48 $ 12,755,874.89 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.70% 6.98% 5.81% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 41 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2018 \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, 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, 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 slary 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\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. \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\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 42 - \r\n \r\n TOOMBS 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 \"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 SOURCES (USES) \r\nOther Long-Term Debt Proceeds 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$ \r\n \r\n5,826,980.00 $ \r\n \r\n26,013.00 \r\n \r\n18,205,606.00 \r\n \r\n5,460,855.00 \r\n \r\n71,100.00 \r\n \r\n1,412.00 \r\n \r\n836,412.00 \r\n \r\n30,428,378.00 \r\n \r\n5,826,980.00 $ 26,013.00 \r\n19,089,010.00 5,508,699.00 71,100.00 1,412.00 836,412.00 \r\n \r\n5,591,352.60 $ 46,917.20 \r\n19,343,856.16 5,544,807.30 189,492.61 3,553.76 652,990.96 \r\n \r\n31,359,626.00 \r\n \r\n31,372,970.59 \r\n \r\n(235,627.40) 20,904.20 \r\n254,846.16 36,108.30 \r\n118,392.61 2,141.76 \r\n(183,421.04) \r\n13,344.59 \r\n \r\n20,004,943.74 \r\n908,767.64 555,328.00 449,451.83 315,797.96 1,527,887.14 295,785.44 1,928,440.42 1,456,810.83 \r\n30,000.00 30,517.67 \r\n2,435,422.45 \r\n- \r\n29,939,153.12 \r\n489,224.88 \r\n \r\n20,050,779.74 \r\n1,290,344.00 1,210,725.33 \r\n449,452.00 393,290.00 1,516,060.00 293,686.00 1,930,640.24 1,496,211.00 \r\n30,000.00 77,346.67 \r\n2,443,852.45 \r\n- \r\n31,182,387.43 \r\n177,238.57 \r\n \r\n20,127,290.47 \r\n1,045,408.95 1,124,925.72 \r\n451,186.29 276,307.79 1,653,930.37 283,103.09 1,898,593.98 1,322,726.85 \r\n12,756.91 121,515.25 \r\n77,047.09 2,393,253.90 \r\n5,114.00 \r\n30,793,160.66 \r\n579,809.93 \r\n \r\n(76,510.73) \r\n244,935.05 85,799.61 (1,734.29) \r\n116,982.21 (137,870.37) \r\n10,582.91 32,046.26 173,484.15 17,243.09 (44,168.58) (77,047.09) 50,598.55 (5,114.00) \r\n389,226.77 \r\n402,571.36 \r\n \r\n489,224.88 2,862,654.31 71,828.36 \r\n \r\n177,238.57 2,862,654.31 (70,163.43) \r\n \r\n20,749.47 (280.80) \r\n20,468.67 600,278.60 2,580,637.72 \r\n- \r\n \r\n20,749.47 (280.80) \r\n20,468.67 423,040.03 (282,016.59) \r\n70,163.43 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n3,423,707.55 $ \r\n \r\n2,969,729.45 $ 3,180,916.32 $ \r\n \r\n211,186.87 \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 $330,842.71 and $331,437.19, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2018 \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services 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 English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \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\n10.558 10.582 \r\n \r\n185GA324N1099 \r\n \r\n$ \r\n \r\n185GA324N1099 \r\n \r\n560,928.83 1,629,912.54 \r\n2,190,841.37 \r\n \r\n16165GA368N1099 185GA324L1603 \r\n \r\n14,414.88 \r\n74,780.19 89,195.07 2,280,036.44 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A170073 H027A180073 H173A170081 H173A180081 \r\n \r\n84.048 84.365 84.365 84.011 84.011 84.358 84.358 84.371 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \r\n \r\nV048A180010 S365A170010 S365A180010 S011A170011 S011A180011 S365B170010 S365B180010 S371C170002 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 S287C170010 S287C180010 \r\n \r\n160,963.30 451,272.90 \r\n764.00 24,751.36 \r\n637,751.56 \r\n60,341.56 6,164.73 \r\n29,748.17 33,705.51 243,596.74 \r\n1,461.00 50,621.95 74,757.62 30,499.17 46,127.90 83,322.39 155,603.46 1,506,523.73 55,976.72 312,991.43 \r\n2,691,442.08 \r\n3,329,193.64 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,609,230.08 \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 Toombs 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\n \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- 44 - \r\n \r\n TOOMBS 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 Sparsity Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services Teacher of the Year Teachers Retirement Vocation Supervisors Vocational Education \r\nGovernor's Office of Student Achievement Connections for Classrooms Grant \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\n702,458.05 \r\n \r\n887,477.00 189,366.00 2,239,263.00 507,133.00 1,153,964.00 229,694.00 1,989,327.00 1,719,799.00 625,828.00 2,720,701.00 272,595.00 120,411.00 141,526.00 427,774.00 349,873.00 107,383.00 \r\n57,463.00 1,372.00 \r\n550,165.00 777,210.00 755,570.00 \r\n31,575.00 (260,640.00) \r\n496,569.00 58,368.00 \r\n1,923,873.00 \r\n50,510.00 15,644.06 96,066.00 \r\n507.25 29,074.78 16,502.00 119,152.00 \r\n138,950.00 \r\n53,103.00 \r\n \r\n48,250.02 \r\n \r\n$ \r\n \r\n19,343,856.16 \r\n \r\n- 45 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2018 \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 YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \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 #4 \r\ni. Constructing and equipping two (new) or replacement schools, specifically: Toombs County High School and Toombs Central School $ 11,340,000.00 $ \r\n \r\n17,543,710.95 $ \r\n \r\n207,788.04 $ 17,335,922.91 $ 17,543,710.95 $ \r\n \r\nii. Modifying and equipping the \r\n \r\nexisting Toombs County High School \r\n \r\nfor further instructional use \r\n \r\n3,000,000.00 \r\n \r\n3,000,000.00 \r\n \r\n- \r\n \r\n749,464.46 \r\n \r\n- \r\n \r\niii. Purchasing School buses \r\n \r\n500,000.00 \r\n \r\n100,000.00 \r\n \r\n- \r\n \r\n4,774.67 \r\n \r\n- \r\n \r\niv. Purchasing textbooks, furniture, \r\n \r\ntechology, additional instructional \r\n \r\nmaterials and equipment for all it \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n215,187.57 \r\n \r\n- \r\n \r\n- \r\n \r\nv. Constructing additions to and/or \r\n \r\nrenovating, modifying, and \r\n \r\nequipping existing school system \r\n \r\nfacilities and making critical \r\n \r\ninfrastructure improvements to \r\n \r\n500,000.00 \r\n \r\n400,000.00 \r\n \r\n83,230.24 \r\n \r\n55,871.22 \r\n \r\n- \r\n \r\nexisting facilities \r\n \r\n- \r\n \r\nCompleted \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\nSPLOST #4 Totals \r\n \r\n$ 15,340,000.00 $ 21,543,710.95 $ 506,205.85 $ 18,146,033.26 $ 17,543,710.95 $ \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 \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 \r\n(3) The voters of Toombs 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\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 1,354,736.88 \r\n \r\nCurrent Year \r\n \r\n335,150.00 \r\n \r\nTotal \r\n \r\n$ 1,689,886.88 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 47 - \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 10, 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 Toombs 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 Toombs 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\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\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 10, 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 Toombs 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 Toombs 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 December 10, 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\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 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\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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TOOMBS 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 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:  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 program: 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\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-bt6-b2017-belec-p-btext","title":"Toombs County Board of Education, Lyons, Georgia, annual financial report for the fiscal year ended 2017 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2018-08-06"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS 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\nMANAGEMENT'S DISCUSSION AND ANALYSIS \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 PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 4 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 5 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\ni \r\n1 2 \r\n4 6 8 10 11 12 \r\n33 34 35 36 37 \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n8 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 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 6, 2018 \r\n \r\nThe Honorable Nathan Deal, 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 Toombs 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 Toombs 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 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, 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\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedule of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through viii , and pages 33 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 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 August 6, 2018 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nINTRODUCTION \r\nThe discussion and analysis of the Toombs County Board of Education's (the School District) financial performance provides an overview of the School District's financial activities for the fiscal year ending June 30, 2017. 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 financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2017 are as follows: \r\n General revenues accounted for $10.8 million in revenue or 31.9% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $23.0 million or 68.1% of total revenues of $33.7 million. \r\n The School District had $33.1 million in expenses related to governmental activities; however, only $23.0 million of these expenses were offset by program specific charges for services, grants, or contributions. General revenues, primarily property and sales taxes, of $10.8 million were adequate to provide for these programs. \r\n Long-term debt decreased by $1.9 million for 2017. This decrease was due primarily to the principal payments on outstanding general obligation bond debt. \r\n Among major funds, the general fund had $31.1 million in revenues and $29.9 million in expenditures. The fund balance for the general fund increased from $1.4 million to approximately $2.6 million. This increase was due primarily to an increase in property tax collections, state revenue for a construction grant to purchase vocational equipment, and the reduction of formula cuts by the State of Georgia. \r\n The deficit balance reflected in the unrestricted net position was due to the recording of pensions. The amount of the School District's proportionate share of the collective net pension liability for the Teachers Retirement System (TRS) cost sharing benefit pension plan was $28.2 million. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts: management's discussion and analysis, the basic financial statements, and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\ni \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nThe fund financial statements reflect the School District's most significant funds. For the year ending June 30, 2017, the general fund represents the most significant fund. \r\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. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\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 detailed information about the most significant funds or major funds. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled within the financial statements. \r\nii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2017 and 2016. \r\n \r\nAssets Cash and Cash Equivalents Investments Receivable, Net Taxes 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\n \r\nTable 1 Net Position \r\nFiscal Year 2017 \r\n \r\nGovernmental Activities Fiscal \r\nYear 2016 \r\n \r\n$ \r\n \r\n5,036,332 $ \r\n \r\n6,114 \r\n \r\n1,022,074 2,274,312 \r\n919,318 2,543 8,128 \r\n55,405 1,274,557 \r\n \r\n57,135,389 \r\n \r\n67,734,172 \r\n \r\n3,970,154 $ 6,023 \r\n1,245,909 2,285,186 \r\n927,211 29,658 46,845 \r\n1,735,123 \r\n58,266,858 \r\n68,512,967 \r\n \r\nNet Change \r\n1,066,178 91 \r\n(223,835) (10,874) (7,893) (27,115) 8,128 8,560 \r\n(460,566) \r\n(1,131,469) \r\n(778,795) \r\n \r\nRelated to Defined Benefit Pension Plan \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable Interest Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Long-Term Liabilities Due Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF OUTFLOWS \r\nRelated to Defined Benefit Pension Plan \r\nNET POSITION Net Investment in Capital Assets Restricted for Continuation of Federal Programs Debt Service Capital Projects Charter School Contract Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\n6,949,285 \r\n88,965 3,359,121 \r\n55,555 10,231 22,525 28,203,353 \r\n1,940,469 8,277,630 \r\n41,957,849 \r\n \r\n2,154,018 \r\n218,408 3,259,539 \r\n60,669 - \r\n21,380,748 \r\n1,900,469 10,218,099 \r\n37,037,932 \r\n \r\n4,795,267 \r\n(129,443) 99,582 (5,114) 10,231 22,525 \r\n6,822,605 \r\n40,000 (1,940,469) \r\n4,919,917 \r\n \r\n1,108,594 \r\n \r\n48,441,099 \r\n744,123 2,134,621 \r\n237,535 209,413 (20,149,777) \r\n \r\n$ \r\n \r\n31,617,014 $ \r\n \r\n2,634,770 \r\n48,132,665 \r\n623,089 2,120,359 \r\n550,696 206,436 (20,638,962) \r\n30,994,283 $ \r\n \r\n(1,526,176) \r\n308,434 \r\n121,034 14,262 \r\n(313,161) 2,977 \r\n489,185 \r\n622,731 \r\n \r\niii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nTotal cash and cash equivalents increased by $1.1 million. Total net position increased $622.7 thousand. \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2017 and June 30, 2016. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2017 \r\n \r\n2016 \r\n \r\n$ \r\n \r\n210,829 $ \r\n \r\n213,936 \r\n \r\n22,653,560 \r\n \r\n21,734,475 \r\n \r\n108,789 \r\n \r\n937,366 \r\n \r\nTotal Program Revenues \r\n \r\n22,973,178 \r\n \r\n22,885,777 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n5,359,639 11,036 \r\n2,316,136 48,366 \r\n1,951,050 4,553 \r\n1,060,249 \r\n \r\n5,345,746 10,705 \r\n2,366,284 33,640 \r\n1,518,741 4,524 \r\n1,014,766 \r\n \r\nTotal General Revenues \r\n \r\n10,751,029 \r\n \r\n10,294,406 \r\n \r\nTotal Revenues \r\n \r\n33,724,207 \r\n \r\n33,180,183 \r\n \r\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 \r\n \r\n21,648,703 \r\n956,315 1,253,520 \r\n453,356 433,225 1,630,385 292,560 1,951,910 1,494,677 \r\n1,447 70,431 \r\n107,160 2,532,366 \r\n275,421 \r\n \r\n19,859,841 \r\n863,852 1,140,335 \r\n389,435 368,656 1,309,621 227,199 1,920,950 1,311,366 \r\n349 128,292 \r\n119,516 2,215,953 \r\n383,082 \r\n \r\nTotal Expenses \r\n \r\n33,101,476 \r\n \r\n30,238,447 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n622,731 $ \r\n \r\n2,941,736 \r\n \r\niv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \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\n21,648,703 $ \r\n956,315 1,253,520 \r\n453,356 433,225 1,630,385 292,560 1,951,910 1,494,677 \r\n1,447 70,431 \r\n107,160 2,532,366 \r\n275,421 \r\n \r\n19,859,841 $ \r\n863,852 1,140,335 \r\n389,435 368,656 1,309,621 227,199 1,920,950 1,311,366 \r\n349 128,292 \r\n119,516 2,215,953 \r\n383,082 \r\n \r\n5,996,106 $ \r\n597,732 187,114 \r\n75,911 (160,262) 791,780 290,593 1,079,549 823,410 \r\n1,152 34,186 \r\n(32,869) 168,475 275,421 \r\n \r\n4,259,167 \r\n514,173 151,460 \r\n16,511 (229,230) 494,348 221,848 944,838 634,817 \r\n(67) (814) \r\n(17,609) (19,855) 383,082 \r\n \r\nTotal Expenses \r\n \r\n$ \r\n \r\n33,101,476 $ \r\n \r\n30,238,447 $ \r\n \r\n10,128,298 $ \r\n \r\n7,352,669 \r\n \r\nAlthough program revenues make up 68.1% of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2017, 30.1% of instruction and support activities were supplemented by taxes and other general revenues compared to 24.3% in 2016. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\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 $36.0 million and expenditures and other financing uses of $35.1 million. Total governmental funds had an increase in fund balance of $871.8 thousand. This increase is primarily due to increases in property taxes and state funds reported in the general fund, which allowed the general fund balance to increase by $1.2 million. The capital projects fund balance decreased by $304.0 thousand due to the School District receiving less state funds to cover capital expenditures and Special Purpose Local Option Sales Tax revenues being used for the payment of principal and interest on general long-term debt. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared in accordance with Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal year 2017, the School District amended its general fund budget as needed. \r\nv \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nThe School District's budget is adopted by fund and function but is prepared and presented by fund, function, and object for management control. \r\nDuring fiscal year 2017, the general fund had final actual revenues and other financing sources totaling $31.1 million, which represented a decrease from the final budgeted amount of $32.0 million. This difference (actual vs. budget) was mostly due to a decrease in federal program revenues. \r\nFinal actual expenditures during fiscal year 2017 totaling $29.9 million represented a decrease from the final budgeted amount of $32.1 million. The decrease in actual expenditures versus final budget expenditures was due primarily to a reduction in spending due to decreases in federal program revenues. \r\nCAPITAL ASSETS \r\nAt the end of fiscal year 2017, the School District had $58.4 million in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land, buildings and transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nFiscal Year 2017 \r\n \r\nGovernmental Activities Fiscal \r\nYear 2016 \r\n \r\nNet Change \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n1,079,670 $ \r\n \r\n194,887 \r\n \r\n54,426,518 \r\n \r\n1,746,847 \r\n \r\n962,024 \r\n \r\n1,144,872 $ 590,251 \r\n55,165,985 1,778,127 1,322,746 \r\n \r\n(65,202) (395,364) (739,467) \r\n(31,280) (360,722) \r\n \r\nTotal \r\n \r\n$ \r\n \r\n58,409,946 $ \r\n \r\n60,001,981 $ \r\n \r\n(1,592,035) \r\n \r\nThe overall capital assets decreased in fiscal year 2017 by $1.6 million due to a donation of land to the City of Lyons for construction of a road to help alleviate traffic issues at the schools. The remainder of the decrease is mostly due to disposals and a clean-up of the asset ledger. \r\n \r\nvi \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nLONG-TERM LIABILITIES \r\nAt June 30, 2017, the School District had $9.8 million in general obligation bond debt outstanding with $1.9 million due within one year. Table 5 summarizes long-term liabilities outstanding at June 30, 2017 and 2016. \r\n \r\nTable 5 Long-term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\n$ \r\n \r\n9,805,000 $ 11,620,000 \r\n \r\n413,099 \r\n \r\n498,568 \r\n \r\nTotal \r\n \r\n$ 10,218,099 $ 12,118,568 \r\n \r\nCURRENT ISSUES \r\nThe following issues are expected to have a significant effect on the financial position of the School District: \r\n In fiscal year 2018, the cost of the employer portion of TRS pension will increase approximately $290,000, and an increase in health insurance premiums for non-certified employees is expected to be an additional $100,000. \r\n Funding from the State of Georgia continues to reflect the QBE Austerity Reduction which began in 2003 but showed a significant decrease from $888,237 in fiscal year 2016 to $318,270 in fiscal year 2017 and a small reduction to $311,218 for fiscal year 2018. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Stephanie Smith at the Toombs County Board of Education, 117 East Wesley Avenue, Lyons, GA 30436. \r\n \r\nvii \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Charter School Contract Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n5,036,331.52 \r\n \r\n6,114.23 \r\n \r\n1,022,074.27 2,274,311.98 \r\n919,318.08 2,542.94 8,127.83 \r\n55,405.50 1,274,556.68 57,135,389.28 \r\n \r\n67,734,172.31 \r\n \r\n6,949,284.64 \r\n \r\n88,964.95 3,359,120.98 \r\n55,554.53 10,231.40 22,525.21 28,203,353.00 \r\n1,940,468.68 8,277,630.15 \r\n41,957,848.90 \r\n \r\n1,108,594.00 \r\n \r\n48,441,098.64 \r\n744,123.36 2,134,621.09 \r\n237,535.50 209,412.85 (20,149,777.39) \r\n \r\n$ \r\n \r\n31,617,014.05 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nPROGRAM REVENUE \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \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 Short-Term and Long-Term Debt \r\n \r\n$ \r\n \r\n21,648,703.37 $ \r\n \r\n956,314.89 1,253,520.21 \r\n453,355.75 433,224.39 1,630,384.83 292,559.78 1,951,909.87 1,494,677.07 \r\n1,446.62 70,431.05 \r\n \r\n107,160.28 2,532,366.09 \r\n275,421.54 \r\n \r\n- \r\n- \r\n140,030.01 70,799.06 - \r\n \r\nTotal Governmental Activities \r\n \r\n$ \r\n \r\n33,101,475.74 $ \r\n \r\n210,829.07 \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\nTotal General Revenues \r\n \r\nChange in Net Position \r\n \r\nNet Position - Beginning of Year \r\n \r\nNet Position - End of Year \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$ \r\n \r\n15,621,025.35 $ \r\n \r\n358,582.90 1,066,405.79 \r\n377,445.00 593,486.87 838,605.00 \r\n1,966.54 872,360.52 594,050.98 \r\n294.60 36,244.76 \r\n \r\n2,293,091.66 \r\n- \r\n \r\n$ \r\n \r\n22,653,559.97 $ \r\n \r\n31,572.40 $ \r\n77,216.25 - \r\n- \r\n108,788.65 \r\n \r\n(5,996,105.62) \r\n(597,731.99) (187,114.42) \r\n(75,910.75) 160,262.48 (791,779.83) (290,593.24) (1,079,549.35) (823,409.84) \r\n(1,152.02) (34,186.29) \r\n32,869.73 (168,475.37) (275,421.54) \r\n(10,128,298.05) \r\n \r\n5,359,638.86 11,035.87 \r\n2,316,135.76 48,365.62 \r\n1,951,050.00 4,553.37 \r\n1,060,249.26 \r\n10,751,028.74 \r\n622,730.69 \r\n30,994,283.36 \r\n \r\n$ \r\n \r\n31,617,014.05 \r\n \r\n- 3 - \r\n \r\n ASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\n \r\nTOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2017 \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ 2,507,059.25 $ 6,114.23 \r\n824,803.90 2,274,311.98 \r\n919,318.08 276.68 \r\n8,127.83 55,405.50 \r\n \r\n2,240,646.53 - \r\n197,270.37 - \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Retainages 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$ 6,595,417.45 $ \r\n \r\n2,437,916.90 \r\n \r\n$ \r\n \r\n7,511.42 $ \r\n \r\n3,359,120.98 \r\n \r\n- \r\n \r\n22,525.21 \r\n \r\n3,389,157.61 \r\n \r\n10,231.40 - \r\n10,231.40 \r\n \r\n625,622.12 \r\n \r\n- \r\n \r\n55,405.50 688,717.86 142,829.14 1,693,685.22 \r\n2,580,637.72 \r\n \r\n2,427,685.50 \r\n- \r\n2,427,685.50 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 6,595,417.45 $ \r\n \r\n2,437,916.90 \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 EXHIBIT \"C\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n25.62 $ \r\n \r\n288,600.12 $ 5,036,331.52 \r\n \r\n- \r\n \r\n- \r\n \r\n6,114.23 \r\n \r\n- \r\n \r\n- \r\n \r\n1,022,074.27 \r\n \r\n- \r\n \r\n- \r\n \r\n2,274,311.98 \r\n \r\n- \r\n \r\n- \r\n \r\n919,318.08 \r\n \r\n- \r\n \r\n2,266.26 \r\n \r\n2,542.94 \r\n \r\n- \r\n \r\n- \r\n \r\n8,127.83 \r\n \r\n- \r\n \r\n- \r\n \r\n55,405.50 \r\n \r\n$ \r\n \r\n25.62 $ \r\n \r\n290,866.38 $ 9,324,226.35 \r\n \r\n$ \r\n \r\n- $ \r\n \r\n81,453.53 $ \r\n \r\n88,964.95 \r\n \r\n- \r\n \r\n- \r\n \r\n3,359,120.98 \r\n \r\n- \r\n \r\n- \r\n \r\n10,231.40 \r\n \r\n- \r\n \r\n- \r\n \r\n22,525.21 \r\n \r\n- \r\n \r\n81,453.53 \r\n \r\n3,480,842.54 \r\n \r\n- \r\n \r\n- \r\n \r\n625,622.12 \r\n \r\n25.62 \r\n- \r\n25.62 \r\n \r\n209,412.85 \r\n- \r\n209,412.85 \r\n \r\n55,405.50 3,325,841.83 \r\n142,829.14 1,693,685.22 \r\n5,217,761.69 \r\n \r\n$ \r\n \r\n25.62 $ \r\n \r\n290,866.38 $ 9,324,226.35 \r\n \r\n- 5 - \r\n \r\n TOOMBS 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 Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability \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 Unamortized bond premiums \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n5,217,761.69 \r\n \r\n$ \r\n \r\n1,079,669.70 \r\n \r\n194,886.98 \r\n \r\n62,720,069.16 \r\n \r\n5,047,633.62 \r\n \r\n2,224,971.48 \r\n \r\n(12,857,284.98) \r\n \r\n58,409,945.96 \r\n \r\n(28,203,353.00) 5,840,690.64 625,622.12 \r\n \r\n$ (9,805,000.00) (55,554.53) \r\n(413,098.83) \r\n \r\n(10,273,653.36) \r\n \r\n$ 31,617,014.05 \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 (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 \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 Services \r\nPrincipal Dues and Fees 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\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ \r\n \r\n5,432,115.53 $ \r\n \r\n48,365.62 \r\n \r\n18,732,226.54 \r\n \r\n5,981,541.08 \r\n \r\n210,829.07 \r\n \r\n3,320.54 \r\n \r\n696,295.68 \r\n \r\n31,104,694.06 \r\n \r\n2,316,135.76 \r\n1,082.63 - \r\n2,317,218.39 \r\n \r\n19,733,754.48 \r\n934,314.41 1,227,212.91 \r\n414,471.31 300,689.11 1,525,116.88 283,408.41 1,791,183.42 1,309,850.53 \r\n1,296.62 67,774.88 90,615.77 2,252,227.13 \r\n- \r\n- \r\n29,931,915.86 \r\n1,172,778.20 \r\n \r\n- \r\n435,454.09 \r\n- \r\n435,454.09 \r\n1,881,764.30 \r\n \r\n4,774.67 (4,730.83) \r\n43.84 1,172,822.04 1,407,815.68 \r\n \r\n(2,185,779.67) (2,185,779.67) \r\n(304,015.37) 2,731,700.87 \r\n \r\nFund Balances - Ending The notes to the basic financial statements are an integral part of this statement. \r\n \r\n$ \r\n \r\n2,580,637.72 $ \r\n \r\n2,427,685.50 \r\n \r\n- 8 - \r\n \r\n EXHIBIT \"E\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n5,432,115.53 \r\n \r\n- \r\n \r\n- \r\n \r\n2,364,501.38 \r\n \r\n- \r\n \r\n- \r\n \r\n18,732,226.54 \r\n \r\n- \r\n \r\n- \r\n \r\n5,981,541.08 \r\n \r\n- \r\n \r\n- \r\n \r\n210,829.07 \r\n \r\n1.77 \r\n \r\n148.43 \r\n \r\n4,553.37 \r\n \r\n- \r\n \r\n363,953.58 \r\n \r\n1,060,249.26 \r\n \r\n1.77 \r\n \r\n364,102.01 \r\n \r\n33,786,016.23 \r\n \r\n- \r\n- \r\n1,815,000.00 1,397.50 \r\n366,005.00 \r\n2,182,402.50 \r\n(2,182,400.73) \r\n \r\n313,169.57 \r\n17,000.00 34,138.88 150.00 - \r\n- \r\n364,458.45 \r\n(356.44) \r\n \r\n20,046,924.05 \r\n934,314.41 1,227,212.91 \r\n414,471.31 317,689.11 1,525,116.88 283,408.41 1,825,322.30 1,309,850.53 \r\n1,446.62 67,774.88 90,615.77 2,252,227.13 435,454.09 \r\n1,815,000.00 1,397.50 \r\n366,005.00 \r\n32,914,230.90 \r\n871,785.33 \r\n \r\n2,182,402.50 - \r\n2,182,402.50 1.77 \r\n23.85 \r\n \r\n3,333.33 - \r\n3,333.33 2,976.89 206,435.96 \r\n \r\n2,190,510.50 (2,190,510.50) \r\n871,785.33 4,345,976.36 \r\n \r\n$ \r\n \r\n25.62 $ \r\n \r\n209,412.85 $ \r\n \r\n5,217,761.69 \r\n \r\n- 9 - \r\n \r\n TOOMBS 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\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\nAmortization of bond premium 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 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\nAccrued interest on issuance of bonds \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 871,785.33 \r\n \r\n$ \r\n \r\n533,522.65 \r\n \r\n(1,499,489.90) \r\n \r\n(965,967.25) \r\n \r\n(626,067.87) \r\n \r\n(61,440.80) \r\n \r\n$ \r\n \r\n85,468.68 \r\n \r\n1,815,000.00 \r\n \r\n1,900,468.68 \r\n \r\n(501,162.18) 5,114.78 \r\n$ 622,730.69 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2017 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 129,231.01 \r\n$ 129,231.01 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 11 - \r\n \r\n TOOMBS 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 Toombs 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\nBlended Component Unit \r\nThe Southeastern Early College and Career Academy (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A) 20-2-2060 et seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the Toombs County Board of Education, the Treutlen County Board of Education, the Montgomery County Board of Education, the Vidalia City Board of Education and the State Board of Education to serve students in grade 9 through 12. The Charter School's mission is to ensure a viable 21st century workforce for these counties and is a partner with Southeastern Technical College and will utilize a dual-enrollment model to integrate traditional high school academic courses with career, technical and agricultural education courses. The Charter School shall function as an extension of each student's Home High School. The financial statements of the Charter School have been reported as a Special Revenue Fund. \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 and its component units, 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\n \r\n- 12 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \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\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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nAll other governmental funds not meeting the criteria established for major funds are presented in the nonmajor governmental column of the fund financial statements. \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 \r\n- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\ndonations. 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, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted 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 \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nand No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payrollrelated measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\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\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\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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 method 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 Buses \r\n \r\nAny Amount $5,000.00 $5,000.00 $5,000.00 $5,000.00 \r\n \r\nN/A 20 to 80 years up to 80 years \r\n5 to 25 years 8 to 14 years \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\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \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\n \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\n \r\nPENSIONS \r\n \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\n \r\nFUND BALANCES \r\n \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- 16 - \r\n \r\n TOOMBS 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's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Toombs County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on October 13, 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 Toombs County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2017, for maintenance and operations amounted to $4,974,063.30. \r\nThe tax millage rate levied for the 2016 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.956 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $447,016.36 during fiscal year ended June 30, 2017. \r\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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 $2,316,135.76 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal accounts), is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \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\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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\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, School District had deposits with a carrying amount of $5,171,676.76, and a bank balance of $6,180,524.13. The bank balances insured by Federal depository insurance were $500,025.62 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 $31,817.83. \r\nAt June 30, 2017, $5,648,680.68 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n5,648,680.68 \r\n \r\nTotal \r\n \r\n$ 5,648,680.68 \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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$ 5,036,331.52 129,231.01 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,165,562.53 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n6,114.23 \r\n \r\nTotal carrying value of deposits - June 30, 2017 \r\n \r\n$ 5,171,676.76 \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\nBalances July 1, 2016 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2017 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,144,872.40 $ \r\n \r\n- $ 65,202.70 $ 1,079,669.70 \r\n \r\n590,250.82 \r\n \r\n194,886.98 \r\n \r\n590,250.82 \r\n \r\n194,886.98 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,735,123.22 \r\n \r\n194,886.98 \r\n \r\n655,453.52 \r\n \r\n1,274,556.68 \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\n62,478,580.17 4,884,753.40 2,512,318.64 \r\n \r\n576,885.89 333,025.60 \r\n18,975.00 \r\n \r\n7,312,594.65 3,106,626.85 1,189,572.85 \r\n \r\n1,035,190.16 341,914.23 122,385.51 \r\n \r\n335,396.90 170,145.38 306,322.16 \r\n \r\n62,720,069.16 5,047,633.62 2,224,971.48 \r\n \r\n54,233.68 147,754.03 \r\n49,011.56 \r\n \r\n8,293,551.13 3,300,787.05 1,262,946.80 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n58,266,857.86 \r\n \r\n(570,603.41) \r\n \r\n560,865.17 \r\n \r\n57,135,389.28 \r\n \r\nGovernmental Activity Capital Assets - Net $ 60,001,981.08 $ (375,716.43) $ 1,216,318.69 $ 58,409,945.96 \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services Enterprise Operations \r\n \r\n$ \r\n \r\n6,564.27 \r\n \r\n2,971.19 \r\n \r\n27,709.88 \r\n \r\n42,282.31 \r\n \r\n51,549.54 \r\n \r\n1,494.85 \r\n \r\n128,132.01 \r\n \r\n187,071.85 \r\n \r\n$ \r\n \r\n890,098.82 \r\n \r\n447,775.90 149,251.29 \r\n12,363.89 \r\n \r\n$ 1,499,489.90 \r\n \r\nNOTE 6: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2017, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nCapital Projects \r\n \r\nGeneral Fund \r\n \r\nFund \r\n \r\nGeneral fund Debt service fund All others \r\n \r\n$ \r\n \r\n- \r\n \r\n1,397.50 \r\n \r\n3,333.33 \r\n \r\n$ \r\n \r\n4,774.67 \r\n \r\n2,181,005.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 4,730.83 $ 2,185,779.67 \r\n \r\nTransfers are used to move (1) Education Special Purpose Local Option Sales Tax (ESPLOST) revenues collected by the capital projects fund to the debt service fund for the payment of principal and interest on general long-term debt, and (2) to the general fund to cover a portion of the cost of a bus and (3) to move revenues collected by the general fund to the non-major governmental fund in support of the charter school and (4) to the debt service fund to cover fees from paying agent. \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\n \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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$ \r\n \r\n- $ 1,300,000.00 $ 1,300,000.00 $ \r\n \r\n- \r\n \r\nNOTE 8: 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, 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\nGeneral Obligation Bonds \r\n \r\n$ \r\n \r\nUnamortized Bond Premiums \r\n \r\n11,620,000.00 $ 498,567.51 \r\n \r\n$ 12,118,567.51 $ \r\n \r\n- $ 1,815,000.00 $ \r\n \r\n- \r\n \r\n85,468.68 \r\n \r\n9,805,000.00 $ 1,855,000.00 \r\n \r\n413,098.83 \r\n \r\n85,468.68 \r\n \r\n- $ 1,900,468.68 $ 10,218,098.83 $ 1,940,468.68 \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 noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \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 2013A General Government - Series 2013B \r\n \r\n3.00% - 4.00% 1.15% - 2.10% \r\n \r\n10/10/2013 10/10/2013 \r\n \r\n5/1/2022 $ 5/1/2018 \r\n \r\n9,255,000.00 $ 9,255,000.00 \r\n \r\n4,145,000.00 \r\n \r\n550,000.00 \r\n \r\n$ 13,400,000.00 $ 9,805,000.00 \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\nUnamortized Bond Premium \r\n \r\n2018 2019 2020 2021 2022 \r\n \r\n$ 1,855,000.00 $ 1,900,000.00 1,955,000.00 2,015,000.00 2,080,000.00 \r\n \r\n335,150.00 $ 284,450.00 222,450.00 163,800.00 \r\n83,200.00 \r\n \r\n85,468.68 85,468.68 85,468.68 85,468.68 71,224.11 \r\n \r\nTotal Principal and Interest $ 9,805,000.00 $ 1,089,050.00 $ \r\n \r\n413,098.83 \r\n \r\n- 22 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disasters; and unemployment compensation. Except as described below, the School District carries commercial insurance for the risk of loss associated with automobiles. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \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 $200,000.00 per year corridor retention. \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\n- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2016 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n588.00 \r\n \r\n$ \r\n \r\n588.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n120.52 \r\n \r\n$ \r\n \r\n120.52 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND The School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education \r\n \r\n$ 30,000.00 $ 10,000.00 \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 Charter school contract Continuation of federal programs Capital projects Debt service \r\nAssigned School activity accounts \r\nUnassigned \r\n \r\n$ 55,405.50 \r\n \r\n$ 209,412.85 688,717.86 237,535.50 \r\n2,190,175.62 \r\n \r\n3,325,841.83 \r\n \r\n142,829.14 1,693,685.22 \r\n \r\nFund Balance, June 30, 2017 \r\n \r\n$ 5,217,761.69 \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\nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 1% of expenditures of the total budget of the subsequent fiscal year. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS COMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2017: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2017 (2) \r\n \r\nToombs Central Renovation \r\n \r\n$ \r\n \r\n174,542.00 $ \r\n \r\n204,628.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include retainages payable at year-end. \r\nNOTE 12: 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\nNOTE 13: 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 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- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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 $846.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2017 2016 2015 \r\n \r\n100% \r\n \r\n$ \r\n \r\n3,374,645.60 \r\n \r\n100% \r\n \r\n$ \r\n \r\n3,085,366.22 \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,898,874.30 \r\n \r\nNOTE 14: 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) Plan 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 \r\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nof 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 14.24% of payroll was required from the School District and 0.03% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,230,298.64 and $4,194.20 from the School District and the State, respectively. \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 $55,326.00. \r\n \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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\nAt June 30, 2017, the School District reported a liability of $28,203,353.00 for its proportionate share of the net pension liability for TRS. \r\nThe net pension liability for TRS 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 during the fiscal year ended June 30, 2016. \r\nAt June 30, 2016, the School District's TRS proportion was 0.136703%, which was a decrease of 0.003738% 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 $335,228.00. \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 $2,717,218.00 for TRS and $54,957.00 for PSERS and revenue of $54,957.00 for PSERS. The revenue is support provided by the State of Georgia. \r\n \r\n- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2017, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ \r\n \r\n420,154.00 $ 139,466.00 \r\n \r\nChanges of assumptions \r\n \r\n730,992.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n3,567,840.00 \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\n969,128.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,230,298.64 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 6,949,284.64 $ 1,108,594.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $2,230,298.64 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2018 \r\n \r\n$ 246,179.00 \r\n \r\n2019 \r\n \r\n$ 246,178.00 \r\n \r\n2020 \r\n \r\n$ 1,825,110.00 \r\n \r\n2021 \r\n \r\n$ 1,262,036.00 \r\n \r\n2022 \r\n \r\n$ \r\n \r\n30,889.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \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 \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDisabled 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, 2015 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 Investment rate of return \r\n \r\nN/A \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 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\nPSERS Target allocation \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\n- 30 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDiscount rate: The discount rate used to measure the total TRS 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 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$ 43,898,867.00 $ \r\n \r\n28,203,353.00 $ 15,280,685.00 \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 and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\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\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\n2017 2016 2015 \r\n \r\n0.136703% $ 0.140441% $ 0.142080% $ \r\n \r\n28,203,353.00 $ 21,380,748.00 $ 17,949,934.00 $ \r\n \r\n15,094,728.93 14,824,395.13 14,407,600.89 \r\n \r\n186.84% 144.23% 124.59% \r\n \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- 33 - \r\n \r\n TOOMBS 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 \"2\" \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 \r\nshare of the net pension liability \r\n \r\nState of Georgia's proprotionate share of \r\nthe net pension liaibility associated \r\nwith the School District \r\n \r\n2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n335,228.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n235,801.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n224,650.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension \r\nliability as a percentage of its covered payroll \r\n \r\nPlan fiduciary net position as a percentage of \r\nthe total pension liability \r\n \r\n335,228.00 $ 693,860.80 \r\n \r\nN/A \r\n \r\n235,801.00 $ 740,925.09 \r\n \r\nN/A \r\n \r\n224,650.00 $ 771,363.07 \r\n \r\nN/A \r\n \r\n81.00% 87.00% 88.29% \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- 34 - \r\n \r\n TOOMBS 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 \"3\" \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\n2,230,298.64 $ \r\n \r\n2,230,298.64 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2,154,017.82 $ \r\n \r\n2,154,017.82 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n1,949,407.96 $ \r\n \r\n1,949,407.96 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n1,769,253.39 $ \r\n \r\n1,769,253.39 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n1,696,148.79 $ \r\n \r\n1,696,148.79 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n1,525,068.38 $ \r\n \r\n1,525,068.38 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n1,551,972.13 $ \r\n \r\n1,551,972.13 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n1,549,155.71 $ \r\n \r\n1,549,155.71 $ \r\n \r\n- \r\n \r\n2009 \r\n \r\n$ \r\n \r\n1,505,834.98 $ \r\n \r\n1,505,834.98 $ \r\n \r\n- \r\n \r\n2008 \r\n \r\n$ \r\n \r\n1,403,855.62 $ \r\n \r\n1,403,855.62 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n15,658,673.37 \r\n \r\n$ \r\n \r\n15,094,728.93 \r\n \r\n$ \r\n \r\n14,824,395.13 \r\n \r\n$ \r\n \r\n14,407,600.89 \r\n \r\n$ \r\n \r\n14,865,458.28 \r\n \r\n$ \r\n \r\n14,835,295.52 \r\n \r\n$ \r\n \r\n15,097,005.15 \r\n \r\n$ \r\n \r\n15,905,089.42 \r\n \r\n$ \r\n \r\n16,226,670.04 \r\n \r\n$ \r\n \r\n15,127,754.52 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n14.24% 14.27% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% 9.28% \r\n \r\n- 35 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"4\" \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\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\n \r\n- 36 - \r\n \r\n TOOMBS 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 \"5\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources 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 (2) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n- $ \r\n \r\n5,726,767.00 $ \r\n \r\n5,432,115.53 $ \r\n \r\n(294,651.47) \r\n \r\n- \r\n \r\n56,850.00 \r\n \r\n48,365.62 \r\n \r\n(8,484.38) \r\n \r\n- \r\n \r\n18,598,729.52 \r\n \r\n18,732,226.54 \r\n \r\n133,497.02 \r\n \r\n- \r\n \r\n6,962,698.00 \r\n \r\n5,981,541.08 \r\n \r\n(981,156.92) \r\n \r\n- \r\n \r\n88,650.00 \r\n \r\n210,829.07 \r\n \r\n122,179.07 \r\n \r\n- \r\n \r\n1,450.00 \r\n \r\n3,320.54 \r\n \r\n1,870.54 \r\n \r\n- \r\n \r\n575,559.95 \r\n \r\n696,295.68 \r\n \r\n120,735.73 \r\n \r\n- \r\n \r\n32,010,704.47 \r\n \r\n31,104,694.06 \r\n \r\n(906,010.41) \r\n \r\n1,905,459.75 \r\n266,335.61 422,765.00 \r\n4,449.00 \r\n2,026.27 \r\n85,248.00 \r\n18,788.20 \r\n2,301,523.37 \r\n5,006,595.20 \r\n(5,006,595.20) \r\n \r\n20,943,199.14 \r\n1,261,272.97 1,509,825.88 \r\n369,664.00 344,313.00 1,363,611.00 452,371.00 2,052,061.00 1,502,322.00 \r\n10,694.00 26,350.20 \r\n2,301,523.37 \r\n32,137,207.56 \r\n(126,503.09) \r\n \r\n19,733,754.48 \r\n934,314.41 1,227,212.91 \r\n414,471.31 300,689.11 1,525,116.88 283,408.41 1,791,183.42 1,309,850.53 \r\n1,296.62 67,774.88 90,615.77 2,252,227.13 \r\n29,931,915.86 \r\n1,172,778.20 \r\n \r\n(5,006,595.20) 2,179,210.76 475.83 \r\n \r\n(126,503.09) 2,179,210.76 (518,779.86) \r\n \r\n4,774.67 (4,730.83) \r\n43.84 1,172,822.04 1,407,815.68 \r\n- \r\n \r\n1,209,444.66 \r\n326,958.56 282,612.97 (44,807.31) \r\n43,623.89 (161,505.88) 168,962.59 260,877.58 192,471.47 \r\n9,397.38 (41,424.68) (90,615.77) 49,296.24 \r\n2,205,291.70 \r\n1,299,281.29 \r\n4,774.67 (4,730.83) \r\n43.84 \r\n1,299,325.13 \r\n(771,395.08) \r\n518,779.86 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n(2,826,908.61) $ \r\n \r\n1,533,927.81 $ \r\n \r\n2,580,637.72 $ \r\n \r\n1,046,709.91 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original budget amounts did not include any budgeted revenues and only included budgeted expenditures for federal programs. \r\n(2) 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 $398,172.07 and $376,732.76, 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- 37 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"6\" \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services 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 English Language Acquisition Grants English Language Acquisition Grants Improving Teacher Quality State Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Rural Education Rural Education Striving Readers Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \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\n536,120.16 1,550,372.03 \r\n2,086,492.19 \r\n \r\n10.558 \r\n \r\n16165GA324N1099 \r\n \r\n10.582 \r\n \r\n16145GA324L1603 \r\n \r\n16,136.48 \r\n79,869.46 96,005.94 2,182,498.13 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A150073 H027A160073 H173A150081 H173A160081 \r\n \r\n84.048 84.365 84.365 84.367 84.367 84.011 84.011 84.358 84.358 84.371 84.010 84.010 84.287 84.287 \r\n \r\nV048A150010 S365A150010 S365A160010 S367A150001 S367A160001 S011A150011 S011A160011 S358B150010 S358B160010 S371C110049 S010A150010 S010A160010 S287C150010 S287C160010 \r\n \r\n93,811.00 482,241.38 \r\n6,007.00 25,301.89 \r\n607,361.27 \r\n50,521.00 7,534.00 \r\n27,840.50 20,651.00 132,401.09 49,567.00 275,835.14 10,979.00 61,729.08 759,585.74 128,039.00 1,266,509.52 48,388.00 310,788.60 \r\n3,150,368.67 \r\n3,757,729.94 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,940,228.07 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\nNote 1. Basis of Presentation \r\n \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Toombs 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\n \r\nNote 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 TOOMBS 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 Teacher of the Year Vocational Supervisors Vocational Education Vocational Construction Related Equipment - State Bonds \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 \"7\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n718,345.61 \r\n \r\n943,499.00 204,137.00 2,136,302.00 468,172.00 1,108,529.00 214,947.00 1,917,025.00 1,733,471.00 551,422.00 2,445,010.00 269,321.00 \r\n75,739.00 145,716.00 356,079.00 338,657.00 103,876.00 \r\n56,512.00 1,348.00 \r\n487,744.00 752,034.00 763,991.00 186,965.00 (227,511.00) \r\n485,976.00 56,944.00 \r\n1,951,050.00 \r\n49,680.00 16,609.29 64,673.00 77,216.25 \r\n507.25 13,306.00 121,138.00 31,572.40 \r\n55,326.00 \r\n56,897.74 \r\n$ 18,732,226.54 \r\n \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"8\" \r\n \r\nSPLOST PROJECT \r\nSPLOST #2 \r\ni. Develop, construct, and furnish a new Lyons Upper Elementary School (3rd - 5th grades) to accommodate approximately 600 students \r\nii. Modification/Renovation of Lyons Primary School \r\nSPLOST #2 Totals \r\nSPLOST #4 i. Constructing and equipping two (new) or replacement schools, specifically: Toombs County High School and Toombs Central School \r\nii. Modifying and equipping the existing Toombs County High School for further instructional use \r\niii. Purchasing School buses \r\niv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\nSPLOST #4 Totals \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEAR (3) (4) \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$ 9,481,500.00 $ 255,000.00 \r\n9,736,500.00 \r\n \r\n9,623,195.16 $ 90,671.21 \r\n9,713,866.37 \r\n \r\n34,960.00 $ - \r\n34,960.00 \r\n \r\n9,588,235.16 $ 9,623,195.16 $ \r\n \r\n90,671.21 \r\n \r\n90,671.21 \r\n \r\n9,678,906.37 \r\n \r\n9,713,866.37 \r\n \r\n- \r\n \r\nCompleted \r\n \r\n- \r\n \r\nCompleted \r\n \r\n- \r\n \r\n11,340,000.00 \r\n \r\n28,596,447.33 \r\n \r\n222,305.45 \r\n \r\n17,113,617.46 \r\n \r\n- \r\n \r\n3,000,000.00 \r\n \r\n3,000,000.00 \r\n \r\n- \r\n \r\n585,507.07 \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n4,774.67 \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n178,188.64 \r\n \r\n41,639.97 \r\n \r\n- \r\n \r\n15,340,000.00 \r\n \r\n32,596,447.33 \r\n \r\n405,268.76 \r\n \r\n17,740,764.50 \r\n \r\n- \r\n \r\n- \r\n \r\n12/31/2018 \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\n- \r\n \r\n6/30/2020 \r\n \r\n- \r\n \r\n$ 25,076,500.00 $ 42,310,313.70 $ \r\n \r\n440,228.76 $ 27,419,670.87 $ 9,713,866.37 $ \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 \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 \r\n(3) The voters of Toombs County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n988,731.88 \r\n \r\nCurrent Year \r\n \r\n366,005.00 \r\n \r\nTotal \r\n \r\n$ 1,354,736.88 \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 6, 2018 \r\n \r\nThe Honorable Nathan Deal, 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 Toombs 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 Toombs 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 August 6, 2018. \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 were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \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 discloses 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\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 6, 2018 \r\n \r\nThe Honorable Nathan Deal, 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 Toombs 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 Toombs 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, 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\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\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 TOOMBS 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-7381-13-01 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Cash and Cash Equivalents Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Plan Implemented \r\n \r\nFS 2014-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Plan Implemented \r\n \r\nFS 2015-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Plan Implemented \r\n \r\nFS 2016-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Capital Assets Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nFS 2016-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Plan Implemented \r\n \r\n- 1 - \r\n \r\n TOOMBS 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 2016-003 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nBudget Deficit Budget Preparation/Execution Significant Deficiency Non-Material Noncompliance \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Plan Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n- 2 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n TOOMBS 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\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\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nNo \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.371 \r\n \r\nChild Nutrition Cluster Striving Readers \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\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2016-belec-p-btext","title":"Toombs County Board of Education, Lyons, Georgia, annual financial report for the fiscal year ended 2016 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2017-08-16"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS  \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nSECTION I FINANCIAL \r\n \r\nPage \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\n6 \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\n8 \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\n10 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n11 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n13 \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\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n35 \r\n \r\n4 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n36 \r\n \r\n5 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 (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n6 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n38 \r\n \r\n7 SCHEDULE OF STATE REVENUE \r\n \r\n39 \r\n \r\n8 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n41 \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 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\nSECTION V MANAGEMENT'S CORRECTIVE ACTION SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \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\nAugust 16, 2017 \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 Toombs 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 Toombs 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 effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \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 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 68, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Our opinions are not modified with respect to this matter. \r\nAs discussed in Note 14 to the financial statements, in 2016, the School District restated the prior period financial statements to correct a misstatement. 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, Schedule 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 33 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 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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, consisting of Schedules 6 through 8, 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 16, 2017, on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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 (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2016 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits 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 Plan \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Charter School Contract Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n3,970,153.59 \r\n \r\n6,023.33 \r\n \r\n1,245,909.42 2,285,186.56 \r\n927,211.01 29,657.62 46,845.02 \r\n1,735,123.22 58,266,857.86 \r\n \r\n68,512,967.63 \r\n \r\n2,154,017.82 \r\n \r\n218,408.46 3,259,538.81 \r\n60,669.31 21,380,748.00 \r\n1,900,468.68 10,218,098.83 \r\n37,037,932.09 \r\n \r\n2,634,770.00 \r\n \r\n48,132,665.08 \r\n623,088.98 2,120,359.54 \r\n550,695.87 206,435.96 (20,638,962.07) \r\n \r\n$ \r\n \r\n30,994,283.36 \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 TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2016 \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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year, Restated \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 19,859,840.85 $ \r\n \r\n- \r\n \r\n863,852.01 \r\n \r\n- \r\n \r\n1,140,335.53 \r\n \r\n- \r\n \r\n389,435.29 \r\n \r\n- \r\n \r\n368,655.96 \r\n \r\n- \r\n \r\n1,309,620.56 \r\n \r\n- \r\n \r\n227,198.90 \r\n \r\n- \r\n \r\n1,920,949.71 \r\n \r\n- \r\n \r\n1,311,365.70 \r\n \r\n- \r\n \r\n349.11 \r\n \r\n- \r\n \r\n128,291.93 \r\n \r\n- \r\n \r\n119,516.28 2,215,953.01 \r\n383,081.88 \r\n \r\n129,537.17 84,399.28 - \r\n \r\n$ 30,238,446.72 $ 213,936.45 \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 \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 14,949,968.60 $ \r\n345,620.13 987,185.22 352,686.00 596,862.98 782,843.00 \r\n4,096.40 877,341.18 599,328.21 \r\n416.01 129,105.45 \r\n2,109,021.28 \r\n- \r\n$ 21,734,474.46 $ \r\n \r\n650,705.24 $ (4,259,167.01) \r\n \r\n4,058.97 1,690.45 20,238.83 1,022.84 32,429.84 1,254.90 98,770.33 77,220.00 \r\n- \r\n \r\n(514,172.91) (151,459.86) \r\n(16,510.46) 229,229.86 (494,347.72) (221,847.60) (944,838.20) (634,817.49) \r\n66.90 813.52 \r\n \r\n7,587.79 42,387.03 \r\n- \r\n \r\n17,608.68 19,854.58 (383,081.88) \r\n \r\n937,366.22 \r\n \r\n(7,352,669.59) \r\n \r\n5,345,745.36 10,704.95 \r\n2,366,283.87 33,640.34 \r\n1,518,741.00 4,523.88 \r\n1,014,765.87 10,294,405.27 \r\n2,941,735.68 28,052,547.68 \r\n$ 30,994,283.36 \r\n \r\n- 3 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2016 \r\nASSETS Cash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Due from Other Funds Inventories \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable Due to Other Funds \r\nTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ 1,517,770.32 $ 2,134,041.75 \r\n \r\n6,023.33 \r\n \r\n- \r\n \r\n1,038,761.90 2,285,186.56 \r\n927,211.01 29,657.62 46,845.02 \r\n \r\n207,147.52 - \r\n390,511.60 - \r\n \r\n$ 5,851,455.76 $ 2,731,700.87 \r\n \r\n$ 106,526.75 $ \r\n \r\n- \r\n \r\n3,259,538.81 \r\n \r\n- \r\n \r\n390,511.60 \r\n \r\n- \r\n \r\n3,756,577.16 \r\n \r\n- \r\n \r\n687,062.92 \r\n \r\n- \r\n \r\n46,845.02 576,243.96 108,448.72 676,277.98 \r\n1,407,815.68 \r\n \r\n2,731,700.87 \r\n- \r\n2,731,700.87 \r\n \r\n$ 5,851,455.76 $ 2,731,700.87 \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 EXHIBIT \"C\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n23.85 $ 318,317.67 $ 3,970,153.59 \r\n \r\n- \r\n \r\n- \r\n \r\n6,023.33 \r\n \r\n- \r\n \r\n- \r\n \r\n1,245,909.42 \r\n \r\n- \r\n \r\n- \r\n \r\n2,285,186.56 \r\n \r\n- \r\n \r\n- \r\n \r\n927,211.01 \r\n \r\n- \r\n \r\n- \r\n \r\n29,657.62 \r\n \r\n- \r\n \r\n- \r\n \r\n390,511.60 \r\n \r\n- \r\n \r\n- \r\n \r\n46,845.02 \r\n \r\n$ \r\n \r\n23.85 $ 318,317.67 $ 8,901,498.15 \r\n \r\n$ \r\n \r\n- $ 111,881.71 $ 218,408.46 \r\n \r\n- \r\n \r\n- \r\n \r\n3,259,538.81 \r\n \r\n- \r\n \r\n- \r\n \r\n390,511.60 \r\n \r\n- \r\n \r\n111,881.71 \r\n \r\n3,868,458.87 \r\n \r\n- \r\n \r\n- \r\n \r\n687,062.92 \r\n \r\n23.85 \r\n- \r\n23.85 \r\n \r\n206,435.96 \r\n- \r\n206,435.96 \r\n \r\n46,845.02 3,514,404.64 \r\n108,448.72 676,277.98 \r\n4,345,976.36 \r\n \r\n$ \r\n \r\n23.85 $ 318,317.67 $ 8,901,498.15 \r\n \r\n- 5 - \r\n \r\n TOOMBS 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 Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability \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 Unamortized bond premiums \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n4,345,976.36 \r\n \r\n$ \r\n \r\n1,144,872.40 \r\n \r\n590,250.82 \r\n \r\n62,478,580.17 \r\n \r\n4,884,753.40 \r\n \r\n2,512,318.64 \r\n \r\n(11,608,794.35) \r\n \r\n60,001,981.08 \r\n \r\n(21,380,748.00) (480,752.18) 687,062.92 \r\n \r\n$ (11,620,000.00) (60,669.31) \r\n(498,567.51) \r\n \r\n(12,179,236.82) \r\n \r\n$ 30,994,283.36 \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 (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 \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 Services \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, Restated \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ 5,202,697.06 $ \r\n \r\n- \r\n \r\n33,640.34 2,366,283.87 \r\n \r\n17,858,099.62 \r\n \r\n407,368.80 \r\n \r\n5,970,719.26 \r\n \r\n- \r\n \r\n213,936.45 \r\n \r\n- \r\n \r\n2,706.01 \r\n \r\n1,654.07 \r\n \r\n628,472.24 \r\n \r\n19,450.00 \r\n \r\n29,910,270.98 2,794,756.74 \r\n \r\n19,666,580.88 \r\n879,101.74 1,177,777.14 \r\n370,645.59 351,630.72 1,304,700.39 321,049.35 1,736,849.24 1,388,843.80 \r\n349.11 133,465.17 106,673.77 2,178,209.16 \r\n- \r\n- \r\n29,615,876.06 \r\n294,394.92 \r\n \r\n- \r\n1,930,504.98 \r\n- \r\n1,930,504.98 \r\n864,251.76 \r\n \r\n- \r\n- \r\n294,394.92 \r\n1,113,420.76 \r\n \r\n(732.76) \r\n(732.76) \r\n863,519.00 \r\n1,868,181.87 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,407,815.68 $ 2,731,700.87 \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 EXHIBIT \"E\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- $ 5,202,697.06 \r\n \r\n- \r\n \r\n- \r\n \r\n2,399,924.21 \r\n \r\n- \r\n \r\n- \r\n \r\n18,265,468.42 \r\n \r\n- \r\n \r\n- \r\n \r\n5,970,719.26 \r\n \r\n- \r\n \r\n- \r\n \r\n213,936.45 \r\n \r\n70.93 \r\n \r\n92.87 \r\n \r\n4,523.88 \r\n \r\n- \r\n \r\n366,843.63 \r\n \r\n1,014,765.87 \r\n \r\n70.93 \r\n \r\n366,936.50 33,072,035.15 \r\n \r\n- \r\n1,397.50 - \r\n1,780,000.00 386,475.00 \r\n2,167,872.50 \r\n(2,167,801.57) \r\n \r\n252,291.61 \r\n23,635.79 175.99 187.59 35,430.72 - \r\n- \r\n311,721.70 \r\n55,214.80 \r\n \r\n19,918,872.49 \r\n879,101.74 1,177,777.14 \r\n370,645.59 375,266.51 1,304,876.38 322,634.44 1,772,279.96 1,388,843.80 \r\n349.11 133,465.17 106,673.77 2,178,209.16 1,930,504.98 \r\n1,780,000.00 386,475.00 \r\n34,025,975.24 \r\n(953,940.09) \r\n \r\n732.76 - \r\n732.76 \r\n(2,167,068.81) \r\n2,167,092.66 \r\n \r\n- \r\n- \r\n55,214.80 \r\n151,221.16 \r\n \r\n732.76 (732.76) \r\n- \r\n(953,940.09) \r\n5,299,916.45 \r\n \r\n$ \r\n \r\n23.85 $ 206,435.96 $ 4,345,976.36 \r\n \r\n- 9 - \r\n \r\n TOOMBS 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\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\nAmortization of bond premium 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 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\nAccrued interest on issuance of bonds \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n(953,940.09) \r\n \r\n$ \r\n \r\n2,351,858.82 \r\n \r\n(1,403,043.26) \r\n \r\n948,815.56 (13,027.70) 153,753.25 \r\n \r\n$ \r\n \r\n85,468.68 \r\n \r\n1,780,000.00 \r\n \r\n1,865,468.68 \r\n \r\n937,272.86 \r\n \r\n3,393.12 \r\n \r\n$ \r\n \r\n2,941,735.68 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2016 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 114,649.73 \r\n$ 114,649.73 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 11 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS 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 Toombs 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\nBlended Component Unit \r\nThe Southeastern Early College and Career Academy (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A) 20-2-2060 et seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the Toombs County Board of Education, the Treutlen County Board of Education, the Montgomery County Board of Education, the Vidalia City Board of Education and the State Board of Education to serve students in grade 9 through 12. The Charter School's mission is to ensure a viable 21st century workforce for these counties and is a partner with Southeastern Technical College and will utilize a dual-enrollment model to integrate traditional high school academic courses with career, technical and agricultural education courses. The Charter School shall function as an extension of each student's Home High School. The financial statements of the Charter School have been reported as a Special Revenue Fund. \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\n \r\n- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \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\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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nAll other governmental funds not meeting the criteria established for major funds are presented in the nonmajor governmental column of the fund financial statements. \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 \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\ndirectly 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, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement. \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 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 \r\n \r\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nexternal 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 adoption of this statement does not have an impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\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\nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \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\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 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- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \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 method 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 Buses \r\n \r\nAny amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 \r\n \r\nN/A 20 to 80 years up to 80 years \r\n5 to 25 years 8 to 14 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\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\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\n \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\n \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\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Toombs County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on September 29, 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 Toombs County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $4,680,603.98. \r\nThe tax millage rate levied for the 2015 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.956 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $511,388.13 during fiscal year ended June 30, 2016. \r\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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 $2,366,283.87 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \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\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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(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\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, 2016, the School District had deposits with a carrying amount of $4,090,826.65, which includes $6,023.33 in Certificates of Deposit that are recorded as investments, and a bank balance of $5,505,775.53. The bank balances insured by Federal depository insurance were $476,937.36. \r\nAt June 30, 2016, $5,028,838.17 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n5,028,838.17 \r\n \r\nTotal \r\n \r\n$ 5,028,838.17 \r\n \r\n- 20 - \r\n \r\n TOOMBS 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\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 Construction in Progress \r\n \r\n$ 1,144,872.40 $ 25,794,235.93 \r\n \r\n- $ \r\n \r\n- $ 1,144,872.40 \r\n \r\n590,250.82 \r\n \r\n25,794,235.93 \r\n \r\n590,250.82 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n26,939,108.33 \r\n \r\n590,250.82 \r\n \r\n25,794,235.93 \r\n \r\n1,735,123.22 \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\n35,255,427.37 4,638,505.27 2,512,318.64 \r\n \r\n27,223,152.80 332,691.13 - \r\n \r\n6,287,429.41 2,873,640.58 1,118,096.40 \r\n \r\n1,025,165.24 306,401.57 71,476.45 \r\n \r\n86,443.00 \r\n- \r\n \r\n62,478,580.17 4,884,753.40 2,512,318.64 \r\n \r\n73,415.30 \r\n- \r\n \r\n7,312,594.65 3,106,626.85 1,189,572.85 \r\n \r\nTotal Capital Assets, Being Depreciated, Net 32,127,084.89 26,152,800.67 \r\n \r\n13,027.70 58,266,857.86 \r\n \r\nGovernmental Activity Capital Assets - Net $ 59,066,193.22 $ 26,743,051.49 $ 25,807,263.63 $ 60,001,981.08 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services Enterprise Operations \r\n \r\n$ 6,613.88 4,235.79 \r\n32,978.08 1,666.66 \r\n52,842.68 2,044.80 \r\n160,940.93 175,452.21 \r\n \r\n$ 884,836.96 \r\n436,775.03 69,067.38 12,363.89 \r\n$ 1,403,043.26 \r\n \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \r\nINTERFUND ASSETS AND LIABILITIES Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2016, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral Fund Capital Projects Fund \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 390,511.60 \r\n \r\n390,511.60 \r\n \r\n- \r\n \r\n$ 390,511.60 $ 390,511.60 \r\n \r\nThe capital projects fund borrowed funds from the general fund to cover capital outlay expenditures. \r\n \r\nINTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2016, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From Capital \r\nProjects Fund \r\n \r\nDebt Service Fund $ \r\n \r\n732.76 \r\n \r\nTransfers are used to move Education Special Purpose Local Option Sales Tax (ESPLOST) revenues collected by the capital projects fund to the debt service fund for the payment of principal and interest on general long-term debt. \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\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$ \r\n \r\n- $ 1,895,925.15 $ 1,895,925.15 $ \r\n \r\n- \r\n \r\n- 22 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 8: 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, 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\nGeneral Obligation Bonds $ 13,400,000.00 $ \r\n \r\nUnamortized Bond Premiums \r\n \r\n584,036.19 \r\n \r\n- $ 1,780,000.00 $ 11,620,000.00 $ 1,815,000.00 \r\n \r\n- \r\n \r\n85,468.68 \r\n \r\n498,567.51 \r\n \r\n85,468.68 \r\n \r\n$ 13,984,036.19 $ \r\n \r\n- $ 1,865,468.68 $ 12,118,567.51 $ 1,900,468.68 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \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 2013A General Government - Series 2013B \r\n \r\n3.00% - 4.00% 11/1/2013 1.15% - 2.10% 11/1/2013 \r\n \r\n5/1/2022 $ 9,255,000.00 $ 9,255,000.00 \r\n \r\n5/1/2018 \r\n \r\n4,145,000.00 \r\n \r\n2,365,000.00 \r\n \r\n$ 13,400,000.00 $ 11,620,000.00 \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\nUnamortized Bond Premium \r\n \r\n2017 2018 2019 2020 2021 2022 \r\n \r\n$ 1,815,000.00 $ 366,005.00 \r\n \r\n$ \r\n \r\n1,855,000.00 \r\n \r\n335,150.00 \r\n \r\n1,900,000.00 \r\n \r\n284,450.00 \r\n \r\n1,955,000.00 \r\n \r\n222,450.00 \r\n \r\n2,015,000.00 \r\n \r\n163,800.00 \r\n \r\n2,080,000.00 \r\n \r\n83,200.00 \r\n \r\n85,468.68 85,468.68 85,468.68 85,468.68 85,468.68 71,224.11 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 11,620,000.00 $ 1,455,055.00 \r\n \r\n$ \r\n \r\n498,567.51 \r\n \r\nNOTE 9: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disasters; and unemployment compensation. The School District carries commercial insurance for the risk of loss associated with automobiles. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\n \r\n- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia Education Workers' Compensation Trust \r\nThe School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the general fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2015 \r\n \r\n$ 5,889.00 \r\n \r\n$ 1,630.00 \r\n \r\n$ 7,519.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n588.00 \r\n \r\n$ 588.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSURETY BOND The School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Athletic Director Driver's Education Teacher \r\n \r\n$ \r\n \r\n30,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service Charter School Contract \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ 46,845.02 \r\n \r\n$ 576,243.96 550,695.87 \r\n2,181,028.85 206,435.96 \r\n \r\n3,514,404.64 \r\n \r\n108,448.72 676,277.98 \r\n \r\nFund Balance, June 30, 2016 \r\n \r\n$ 4,345,976.36 \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\nIt is the goal of the School District to achieve and maintain a committed, assigned, and unassigned fund balance in the general fund at fiscal year-end of not less than 1% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with O.C.G.A.  20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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\n \r\n- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 12: 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 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\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 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2015  December 31, 2015 $596.20 per member per month \r\n \r\nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \r\n \r\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2016 2015 2014 \r\n \r\n100% \r\n \r\n$ \r\n \r\n3,085,366.22 \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,898,874.30 \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,782,781.84 \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\n \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%. For the current fiscal year, employer contributions to the pension plan were $2,154,017.82 from the School District. \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 \r\n \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPSERS. 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 $59,668.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2016, the School District reported a liability of $21,380,748.00 for its proportionate share of the net pension liability for TRS. \r\nThe net pension liability for TRS 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 during the fiscal year ended June 30, 2015. \r\nAt June 30, 2015, the School District's TRS proportion was 0.140441%, which was a decrease of 0.001639% from its proportion measured as of June 30, 2014. \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 $235,801.00. \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\n- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFor the year ended June 30, 2016, the School District recognized pension expense of $1,216,745.00 for TRS and $14,062.00 for PSERS and revenue of $14,062.00 for PSERS. The revenue is support provided by the State of Georgia. \r\n \r\nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 188,055.00 \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n1,803,489.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n643,226.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,154,017.82 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,154,017.82 $ 2,634,770.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $2,154,017.82 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2017 2018 2019 2020 2021 \r\n \r\n$ (1,058,791.00) \r\n \r\n$ (1,058,791.00) \r\n \r\n$ (1,058,793.00) \r\n \r\n$ 561,298.00 \r\n \r\n$ \r\n \r\n(19,693.00) \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n3.00% \r\n3.75%  7.00%, average, including inflation \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\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \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\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined \r\n \r\nusing a log-normal distribution analysis in which best-estimate ranges of expected future real rates of \r\n \r\nreturn (expected returns, net of pension plan investment expense and inflation) are developed for \r\n \r\neach major asset class. These ranges are combined to produce the long-term expected rate of return \r\n \r\nby weighting the expected future real rates of return by the target asset allocation percentage and by \r\n \r\nadding expected inflation. The target asset allocation and best estimates of arithmetic real rates of \r\n \r\nreturn for each major asset class are summarized in the following table: \r\n \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 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 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 TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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%, 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 \r\nis 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$ 36,741,198.00 $ \r\n \r\n21,380,748.00 $ 8,720,081.00 \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 and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION/FUND BALANCE \r\nNet position in Governmental Activities and fund balance in the Nonmajor Governmental Fund as of July 1, 2015 have been restated for prior period expenditures. These changes are in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2015 as previously reported \r\n \r\n$ 28,157,802.21 \r\n \r\nCorrection of period period expenditures \r\n \r\n(105,254.53) \r\n \r\nNet Position, July 1, 2015, as restated \r\n \r\n$ 28,263,056.74 \r\n \r\nFund Balance, July 1, 2015, as previously reported Correction of prior period expenditures \r\nFund Balance, July 1, 2015, as restated \r\n \r\n$ \r\n \r\n256,475.69 \r\n \r\n(105,254.53) \r\n \r\n$ \r\n \r\n361,730.22 \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2016 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\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 \r\ncovered employee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n0.140441% $ 0.142080% $ \r\n \r\n21,380,748.00 17,949,934.00 \r\n \r\n$ 14,824,395.13 $ 14,407,600.89 \r\n \r\n144.23% 124.59% \r\n \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- 33 - \r\n \r\n TOOMBS 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 \"2\" \r\n \r\nYear Ended \r\n2016 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\n0.00% $ \r\n \r\n- \r\n \r\n0.00% $ \r\n \r\n- \r\n \r\nState of Georgia's proportionate share of the net \r\npension liability associated with the School District \r\n \r\nTotal \r\n \r\n$ \r\n \r\n235,801.00 $ 235,801.00 \r\n \r\n$ \r\n \r\n224,650.00 $ 224,650.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net pension \r\nliability as a percentage of its covered employee \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n$ \r\n \r\n740,925.09 \r\n \r\n$ \r\n \r\n771,363.07 \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- 34 - \r\n \r\n TOOMBS 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 \"3\" \r\n \r\nContractually required \r\n \r\nYear Ended \r\n \r\ncontribution \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-employee \r\npayroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n2016 $ 2015 $ 2014 $ 2013 $ 2012 $ 2011 $ 2010 $ 2009 $ 2008 $ 2007 $ \r\n \r\n2,154,017.82 $ 1,949,407.96 $ 1,769,253.39 $ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ 1,505,834.98 $ 1,403,855.62 $ 1,309,363.17 $ \r\n \r\n2,154,017.82 $ 1,949,407.96 $ 1,769,253.39 $ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ 1,505,834.98 $ 1,403,855.62 $ 1,309,363.17 $ \r\n \r\n- \r\n \r\n$ 15,094,728.93 \r\n \r\n- \r\n \r\n$ 14,824,395.13 \r\n \r\n- \r\n \r\n$ 14,407,600.89 \r\n \r\n- \r\n \r\n$ 14,865,458.28 \r\n \r\n- \r\n \r\n$ 14,835,295.52 \r\n \r\n- \r\n \r\n$ 15,097,005.15 \r\n \r\n- \r\n \r\n$ 15,905,089.42 \r\n \r\n- \r\n \r\n$ 16,226,670.04 \r\n \r\n- \r\n \r\n$ 15,127,754.52 \r\n \r\n- \r\n \r\n$ 14,109,516.92 \r\n \r\n14.27% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% 9.28% 9.28% \r\n \r\n- 35 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"4\" \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 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, 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\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\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 TOOMBS 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 \"5\" \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 Balance \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$ \r\n \r\n5,935,635.00 $ \r\n \r\n- \r\n \r\n13,855,110.00 \r\n \r\n3,646,926.60 \r\n \r\n8,000.00 \r\n \r\n2,475.00 \r\n \r\n1,237,300.00 \r\n \r\n24,685,446.60 \r\n \r\n5,318,614.00 $ - \r\n16,078,088.00 3,646,926.60 8,000.00 2,475.00 (365,525.00) \r\n24,688,578.60 \r\n \r\n5,202,697.06 $ 33,640.34 \r\n17,858,099.62 5,970,719.26 213,936.45 2,706.01 628,472.24 \r\n29,910,270.98 \r\n \r\n(115,916.94) 33,640.34 \r\n1,780,011.62 2,323,792.66 \r\n205,936.45 231.01 \r\n993,997.24 \r\n5,221,692.38 \r\n \r\n18,378,803.60 \r\n951,247.08 1,381,696.27 \r\n355,338.65 330,075.63 1,277,923.08 453,613.19 1,535,230.56 1,431,818.54 \r\n8,326.92 235,286.46 \r\n1,898,650.65 \r\n28,238,010.63 \r\n(3,552,564.03) \r\n1,369,896.45 \r\n- \r\n \r\n19,199,256.74 \r\n1,368,806.00 1,278,368.84 \r\n361,223.35 266,918.00 1,384,049.55 370,443.62 1,894,564.00 1,408,471.00 \r\n12,705.00 129,794.46 \r\n1,898,650.65 \r\n29,573,251.21 \r\n(4,884,672.61) \r\n1,369,896.45 \r\n(9,370.72) \r\n \r\n19,666,580.88 \r\n879,101.74 1,177,777.14 \r\n370,645.59 351,630.72 1,304,700.39 321,049.35 1,736,849.24 1,388,843.80 \r\n349.11 133,465.17 106,673.77 2,178,209.16 \r\n29,615,876.06 \r\n294,394.92 \r\n1,113,420.76 \r\n- \r\n \r\n(467,324.14) \r\n489,704.26 100,591.70 \r\n(9,422.24) (84,712.72) 79,349.16 49,394.27 157,714.76 19,627.20 12,355.89 \r\n(3,670.71) (106,673.77) (279,558.51) \r\n(42,624.85) \r\n5,179,067.53 \r\n(256,475.69) \r\n9,370.72 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n(2,182,667.58) $ \r\n \r\n(3,524,146.88) $ \r\n \r\n1,407,815.68 $ \r\n \r\n4,931,962.56 \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 $402,931.22 and $381,739.69, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"6\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n16165GA324N1099 16165GA324N1099 \r\n \r\n$ \r\n \r\n468,396.25 \r\n \r\n1,529,309.51 \r\n \r\n1,997,705.76 \r\n \r\n10.558 \r\n \r\n16165GA368N1099 \r\n \r\n10.579 10.582 \r\n \r\n15155GA350N8103 16145GA324L1603 \r\n \r\n13,878.81 \r\n11,379.03 77,413.76 102,671.60 2,100,377.36 \r\n \r\n84.027 84.173 \r\n \r\nH027A150073 H173A150081 \r\n \r\n84.048 84.365 84.367 84.011 84.358 84.371 84.010 84.287 \r\n \r\nV048A150010 S365A150010 S367A150001 S011A150011 S358B150010 S371C110049 S010A150010 S287C150010 \r\n \r\n616,956.55 24,104.62 \r\n641,061.17 \r\n53,826.86 32,621.75 172,981.04 351,511.35 54,318.27 562,473.56 1,708,332.09 323,900.59 \r\n3,259,965.51 \r\n3,901,026.68 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 6,001,404.04 \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 Toombs County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net assets of the Board. \r\n \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 TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"7\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Agriculture Construction Related Equipment - State Bonds Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Vocational Supervisors Vocational Education Vocational Construction Related Equipment - State Bonds \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n721,076.22 $ \r\n \r\n- $ \r\n \r\n721,076.22 \r\n \r\n881,158.00 187,231.00 2,215,684.00 475,866.00 1,047,511.00 236,775.00 1,997,530.00 1,706,251.00 547,129.00 2,542,172.00 240,924.00 \r\n70,090.00 137,498.00 369,927.00 314,158.00 \r\n94,129.00 57,448.00 \r\n1,341.00 \r\n441,902.00 696,918.00 773,249.00 (800,699.00) \r\n480,918.00 55,133.00 \r\n1,518,741.00 \r\n223,204.71 44,873.00 26,501.05 69,699.00 77,220.00 13,584.00 50,876.90 \r\n236,495.29 \r\n \r\n- \r\n \r\n881,158.00 \r\n \r\n- \r\n \r\n187,231.00 \r\n \r\n- \r\n \r\n2,215,684.00 \r\n \r\n- \r\n \r\n475,866.00 \r\n \r\n- \r\n \r\n1,047,511.00 \r\n \r\n- \r\n \r\n236,775.00 \r\n \r\n- \r\n \r\n1,997,530.00 \r\n \r\n- \r\n \r\n1,706,251.00 \r\n \r\n- \r\n \r\n547,129.00 \r\n \r\n- \r\n \r\n2,542,172.00 \r\n \r\n- \r\n \r\n240,924.00 \r\n \r\n- \r\n \r\n70,090.00 \r\n \r\n- \r\n \r\n137,498.00 \r\n \r\n- \r\n \r\n369,927.00 \r\n \r\n- \r\n \r\n314,158.00 \r\n \r\n- \r\n \r\n94,129.00 \r\n \r\n- \r\n \r\n57,448.00 \r\n \r\n- \r\n \r\n1,341.00 \r\n \r\n- \r\n \r\n441,902.00 \r\n \r\n- \r\n \r\n696,918.00 \r\n \r\n- \r\n \r\n773,249.00 \r\n \r\n- \r\n \r\n(800,699.00) \r\n \r\n- \r\n \r\n480,918.00 \r\n \r\n- \r\n \r\n55,133.00 \r\n \r\n- \r\n \r\n1,518,741.00 \r\n \r\n- \r\n \r\n223,204.71 \r\n \r\n- \r\n \r\n44,873.00 \r\n \r\n- \r\n \r\n26,501.05 \r\n \r\n- \r\n \r\n69,699.00 \r\n \r\n- \r\n \r\n77,220.00 \r\n \r\n- \r\n \r\n13,584.00 \r\n \r\n- \r\n \r\n50,876.90 \r\n \r\n- \r\n \r\n236,495.29 \r\n \r\n- \r\n \r\n407,368.80 \r\n \r\n59,668.00 \r\n \r\n- \r\n \r\n407,368.80 59,668.00 \r\n \r\n45,917.45 \r\n \r\n- \r\n \r\n45,917.45 \r\n \r\n$ 17,858,099.62 $ 407,368.80 $ 18,265,468.42 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"8\" \r\n \r\nSPLOST PROJECT \r\nSPLOST #2 \r\ni. Develop, construct, and furnish a new Lyons Upper Elementary School (3rd - 5th grades) to accommodate approximately 600 students \r\nii. Modification/Renovation of Lyons Primary School \r\niii. Repair and/or replacement of the Toombs Central Roof \r\niv. Purchase of Additional Buses for the School System \r\nSPLOST #2 Totals \r\nSPLOST #4 \r\ni. Retiring, at a maximum amount of $13,400,000.00, previously incurred general obligation debt of the Toombs County School District \r\nii. Constructing and equipping two (new) or replacement schools, specifically: Toombs County High School and Toombs Central School \r\niii. Modifying and equipping the existing Toombs County High School for further instructional use \r\niv. Purchasing School buses \r\nv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\nSPLOST #4 Totals \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEAR (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 9,481,500.00 $ 9,610,075.15 $ \r\n \r\n255,000.00 \r\n \r\n126,605.85 \r\n \r\n157,500.00 \r\n \r\n157,319.00 \r\n \r\n610,000.00 \r\n \r\n657,434.00 \r\n \r\n10,504,000.00 \r\n \r\n10,551,434.00 \r\n \r\n5,938.59 $ 9,582,296.57 $ \r\n \r\n425.00 \r\n \r\n90,246.21 \r\n \r\n- \r\n \r\n157,319.00 \r\n \r\n- \r\n \r\n657,434.00 \r\n \r\n6,363.59 \r\n \r\n10,487,295.78 \r\n \r\n157,319.00 657,434.00 814,753.00 \r\n \r\n12/31/2016 12/31/2016 Completed Completed \r\n \r\n9,305,000.00 \r\n \r\n9,305,000.00 \r\n \r\n1,780,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n2,035,000.00 \r\n \r\n28,596,447.33 \r\n \r\n1,296,994.35 \r\n \r\n15,816,623.11 \r\n \r\n- \r\n \r\n3,000,000.00 \r\n \r\n3,000,000.00 \r\n \r\n585,507.07 \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n41,639.97 \r\n \r\n- \r\n \r\n- \r\n \r\n15,340,000.00 \r\n \r\n41,901,447.33 \r\n \r\n3,704,141.39 \r\n \r\n15,816,623.11 \r\n \r\n- \r\n \r\n5/1/2020 12/31/2017 6/30/2020 6/30/2020 \r\n6/30/2020 \r\n \r\n$ 25,844,000.00 $ 52,452,881.33 $ 3,710,504.98 $ 26,303,918.89 $ 814,753.00 \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 \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 \r\n(3) The voters of Toombs County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 602,256.88 \r\n \r\nCurrent Year \r\n \r\n386,475.00 \r\n \r\nTotal \r\n \r\n$ 988,731.88 \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 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\nAugust 16, 2017 \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 Toombs 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\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 Toombs 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 16, 2017. \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 a 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 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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 2016-002 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 2016-001 and FS 2016-003 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 (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\nAugust 16, 2017 \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 Toombs 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\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited Toombs 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 (This page left intentionally blank) \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\nOpinion 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, 2016. \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\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 TOOMBS 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 7381-13-01 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board is working to implement the recommendations of the Georgia Department of Audits. Procedures are being set up to strengthen the controls over the Cash and Revenue procedures. \r\n \r\nFS 2014-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board is working to implement the recommendations of the Georgia Department of Audits. Procedures are being set up to strengthen the controls over the Cash and Revenue procedures. \r\n \r\nFS 2015-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Board is working to implement the recommendations of the Georgia Department of Audits. Procedures are being set up to strengthen the controls over the Cash and Revenue procedures. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No 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 TOOMBS 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; 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 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 84.027, 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: Auditee qualified as low-risk auditee? \r\n \r\n$750,000.00 No \r\n \r\n- 1 - \r\n \r\n TOOMBS 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 Categories: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Capital Assets Significant Deficiency None FS 7381-13-01, FS 2014-001 and FS 2015-001 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for 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 does not have adequate logical access controls in place to ensure only appropriate users have access to School District's significant financial application and school food point of sale system. 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. \r\n The School District does not store backups for the significant financial applications off-site. \r\n \r\nCash and Cash Equivalents  All bank account reconciliations for the current fiscal year were not performed and/or reviewed in a timely manner. \r\n \r\nRevenues/Receivables/Receipts  Six of the eleven nonmajor governmental fund receipts tested were not recorded or deposited in a timely manner.  A review of the federal grant activity revealed that the School District did not properly monitor federal grants to ensure the following: grants were maintained by grant period, revenues and expenditures were properly recorded in the appropriate fiscal year, and that the related accounts receivables and deferred revenues were recorded when appropriate.  Unused federal grant funds, remaining after the end of the grant period, were not returned to the grantors in a timely manner and local funds were not transferred in a timely manner to cover over-expenditures. \r\n \r\n- 2 - \r\n \r\n TOOMBS 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\nExpenditures/Liabilities/Disbursements  Five of 28 voucher packages tested related to capital asset additions did not include proper approval on the purchase orders.  One of five non-purchase order expenditures tested did not include proper approval.  One of six expenditures tested was recorded in the wrong period causing an overstatement of current year expenditures totaling $105,254.53. \r\nGeneral Ledger  All journal entries tested were not signed or initialed by the preparer or an approver.  Adequate documentation was not maintained to support the journal entries tested. \r\nCapital Assets  The School District's reconciliation of capital expenditures to capital asset additions had no evidence of a preparer or reviewer.  A capital asset addition related to a wiring project is understated by $169,091.94.  A capital asset building addition useful life was recorded as 50 years but the policy states permanent building's useful life is deemed to be 80 years. \r\nCause: In discussing this deficiency with the School District, they stated that these issues were a result of a lack of separation of duties and internal control procedures within the finance department. \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. The School District should establish monitoring processes to provide reasonable assurance that the controls are functioning and financial transactions are properly processed and recorded. \r\nViews of Responsible Officials: We concur with this finding. \r\n- 3 - \r\n \r\n TOOMBS 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 2016-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nDescription: The School District did not have adequate controls in place to ensure the accuracy of the financial statement information presented for audit. \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\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\nChapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration indicates that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition: During the audit, the following correcting entries were proposed and accepted by the School District to properly present the entity's financial statements: \r\n \r\n A transfer of cash, in the amount of $390,511.60, was recorded on the financial statements between general fund and capital projects fund. An audit adjustment was proposed and accepted by the client to reclassify the cash portion of the entry to due to general fund and due from capital projects fund because the entry had not been posted to the general ledger by the end of fieldwork. This entry was material to the capital projects fund. \r\n Expenditures, in the amount of $105,254.53, that were related to fiscal year 2015 were recorded in the current fiscal year. An audit adjustment was proposed and accepted by the client to restate the beginning fund balance/beginning net position and remove the purchased professional and technical services expenditures on the governmental funds statements and government-wide statements. The entry was material to the nonmajor fund. \r\n An accounts payable, in the amount of $111,881.71, was not recorded. An audit adjustment was proposed and accepted by the client to record the accounts payable and purchased professional and technical services expenditures on the governmental funds statements and government-wide statements. The entry was material to the nonmajor fund. \r\n Other immaterial audit adjustments and reclassifications were proposed and accepted by the client to properly present the School District's financial statements, note disclosures and supplemental information. \r\n- 4 - \r\n \r\n TOOMBS 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\nCause: In discussing the issue with management, the financial statements presented for audit were inaccurate due to various posting errors caused by the changing of key personnel. \r\nEffect or Potential Effect: Material misstatements were included in the financial statements presented for audit. Numerous other significant adjustments, including reclassification entries were made. 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's management should implement controls over the financial statement reporting process to ensure the completeness and accuracy of all activity recorded in the financial statement information presented for audit. \r\nViews of Responsible Officials: We concur with this finding. \r\n \r\nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nBudget Deficit Budget Preparation/Execution Significant Deficiency Non-Material Noncompliance \r\n \r\nDescription: The School District did not adopt a balanced general fund original or final budget for fiscal year 2016. \r\n \r\nCriteria: Chapter 32, 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 unreserved fund balance from previous years must be used to fund the short fall. In the event there is insufficient unreserved fund balance from previous years to fund anticipated expenditures, then such expenditures must be reduced to equal anticipated revenues plus available unreserved fund balance\". \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 original and final budgets for the general fund were not balanced. Total anticipated revenues and beginning fund balance were less than total estimated expenditures resulting in an original budget deficit of $2,182,667.58 and a final budget deficit of $3,524,146.88. \r\n \r\n- 5 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Cause: In discussing this issue with management, they stated that they were not aware of the reporting requirements of the budget due to staffing changes made at year-end. Effect or Potential Effect: Ineffective budgeting techniques in the final budget resulted in a budget deficit and noncompliance with Chapter 32 of the Financial Management for Georgia Local Units of Administration. This resulted in a financial statement irregularity in accordance with the Official Code of Georgia Annotated (O.C.G.A) 20-2-67. Recommendation: The School District should strengthen controls over the budget process to ensure that both anticipated revenues and estimated expenditures for each program are included and that the adopted budget for each budgeted fund is balanced as required. Views of Responsible Officials: We concur with this finding. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 6 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \r\n \r\nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \r\n \r\nFS 2016-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over Central Office Accounting Controls (Overall) Cash and Cash Equivalents Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Capital Assets Significant Deficiency None FS 7381-13-01, FS 2014-001 and FS 2015-001 \r\n \r\nThe accounting procedures of the School District were insufficient to provide for adequate internal controls at the Central Office. \r\n \r\nCorrective Action Plans: The Toombs County School District has implemented corrective actions to address this finding. The backups for the financial applications are now stored off-site. Bank reconciliations are now performed by the CFO timely and reviewed and approved by the Superintendent. The revenue receipting process has been modified so that one employee records all deposits coming in on a deposit log and forwards the log and deposits to the accounting office for the deposit to be made daily and recorded in PCG. General ledger journal entries are initialed by the prepaper and the approver with documentation attached. \r\n \r\nEstimated Completion Date: June 30, 2018 \r\n \r\nContact Person: Stephanie Smith Title: CFO Telephone: (912) 524-3220 Fax: (912) 526-3291 E-mail: Stephanie.smith@toombs.k12.ga.us \r\n \r\nFS 2016-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nThe School District did not have adequate controls in place to ensure the accuracy of the financial statement information presented for audit. \r\n \r\nCorrective Action Plans: The Toombs County School District has implemented corrective actions to address this finding. These errors resulting mostly from timing issues. Bank transfers, invoices and receipts are now processed timely by the accounting department. \r\n \r\n- 1 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \r\n \r\nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \r\n \r\nEstimated Completion Date: June 30, 2018 \r\n \r\nContact Person: Stephanie Smith Title: CFO Telephone: (912) 524-3220 Fax: (912) 526-3291 E-mail: Stephanie.smith@toombs.k12.ga.us \r\n \r\nFS 2016-003 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nBudget Deficit Budget Preparation/Execution Significant Deficiency Non-Material Noncompliance \r\n \r\nThe School District did not adopt a balanced general fund original or final budget for fiscal year 2016. \r\n \r\nCorrective Action Plans: The Toombs County School District has implemented corrective actions to address this finding. There was a budget adopted for the fiscal year but it was not entered in the financial accounting system properly. This will be corrected in fiscal year 2017. \r\n \r\nEstimated Completion Date: June 30, 2018 \r\n \r\nContact Person: Stephanie Smith Title: CFO Telephone: (912) 524-3220 Fax: (912) 526-3291 E-mail: Stephanie.smith@toombs.k12.ga.us \r\n \r\nCORRECTIVE ACTION PLANS  FEDERAL AWARD FINDINGS \r\n \r\nNo matters were reported. \r\n \r\n- 2 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2015-belec-p-btext","title":"Toombs County Board of Education, Lyons, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2017-01-06"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS 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 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 CONTRIBUTIONS  TEACHERS' RETIREMENT SYSTEM OF GEORGIA 3 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 4 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\n1 2 4 6 8 10 11 13 \r\n33 34 36 37 \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n5 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6 SCHEDULE OF STATE REVENUE 7 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 8 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n38 39 40 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 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 (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\nJanuary 6, 2017 \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 Toombs 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 Toombs 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 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 \r\n2015ARL-11 \r\n \r\n (This page left intentionally blank) \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 Toombs 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 Toombs County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions  an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB Statement No. 68. The School District restated beginning Net Position for the cumulative effect of these accounting changes. Our opinion is not modified with respect to this matter. \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 Proportionate Share of the Net Pension Liability, Schedule 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 33 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\n2015ARL-11 \r\n \r\n (This page left intentionally blank) \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 Toombs County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 5 through 8, 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 January 6, 2017, on our consideration of the Toombs 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 Toombs 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: jw 2015ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2015 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, 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 Defined Benefit Pension Plan \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Interest Payable Retainages 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 Plan \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Charter School Contract Unrestricted (Deficit) \r\nTotal Net Position \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 1 - \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n5,951,701.47 \r\n \r\n5,933.53 \r\n \r\n1,026,092.55 2,064,731.85 \r\n789,080.94 1,771.83 \r\n35,944.17 56,376.96 26,939,108.33 32,127,084.89 \r\n \r\n68,997,826.52 \r\n \r\n1,949,407.96 \r\n \r\n2,935.14 3,229,112.25 \r\n793.60 64,062.43 760,311.66 \r\n1,865,468.68 12,118,567.51 17,949,934.00 \r\n35,991,185.27 \r\n \r\n6,798,247.00 \r\n \r\n45,331,408.54 \r\n558,534.36 2,103,030.23 1,868,181.87 \r\n256,475.69 -21,959,828.48 \r\n \r\n$ \r\n \r\n28,157,802.21 \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2015 \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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year, Restated \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 18,962,658.77 \r\n857,643.75 1,100,347.44 \r\n349,672.35 267,288.15 1,197,823.83 187,047.85 1,720,610.96 1,273,695.62 \r\n860.86 118,284.85 \r\n138,475.79 $ 2,118,845.14 \r\n386,475.00 \r\n$ 28,679,730.36 $ \r\n \r\n110,941.04 73,982.47 \r\n184,923.51 \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$ 14,156,401.13 \r\n309,560.35 909,136.18 371,814.00 578,784.91 871,609.00 \r\n3,336.86 867,568.61 589,781.30 $ \r\n78.65 110,640.63 \r\n2,027,975.36 \r\n$ 20,796,686.98 $ \r\n \r\n$ 77,220.00 77,220.00 \r\n \r\n-4,806,257.64 \r\n-548,083.40 -191,211.26 \r\n22,141.65 311,496.76 -326,214.83 -183,710.99 -853,042.35 -606,694.32 \r\n-782.21 -7,644.22 \r\n-27,534.75 -16,887.31 -386,475.00 \r\n-7,620,899.87 \r\n \r\n5,222,195.31 10,566.85 \r\n \r\n2,476,361.40 154,285.19 \r\n1,728,492.00 13,919.40 \r\n896,623.44 \r\n10,502,443.59 \r\n2,881,543.72 \r\n25,276,258.49 \r\n \r\n$ \r\n \r\n28,157,802.21 \r\n \r\n- 3 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2015 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Retainages Payable \r\nTotal Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes FUND BALANCES Nonspendable Restricted Assigned Unassigned Total Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources and Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ 1,098,994.99 $ 5,933.53 \r\n824,908.98 2,064,731.85 \r\n789,080.94 778.00 \r\n35,944.17 56,376.96 \r\n \r\n2,427,309.96 201,183.57 \r\n \r\n$ 4,876,749.42 $ 2,628,493.53 \r\n \r\n$ \r\n \r\n113.14 \r\n \r\n3,229,112.25 \r\n \r\n793.60 \r\n \r\n$ \r\n \r\n3,230,018.99 \r\n \r\n760,311.66 760,311.66 \r\n \r\n533,309.67 \r\n \r\n56,376.96 502,157.40 \r\n87,257.19 467,629.21 \r\n1,113,420.76 \r\n \r\n1,868,181.87 1,868,181.87 \r\n \r\n$ 4,876,749.42 $ 2,628,493.53 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n EXHIBIT \"C\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,167,092.66 $ \r\n \r\n258,303.86 $ 993.83 \r\n \r\n5,951,701.47 5,933.53 \r\n1,026,092.55 2,064,731.85 \r\n789,080.94 1,771.83 \r\n35,944.17 56,376.96 \r\n \r\n$ 2,167,092.66 $ \r\n \r\n259,297.69 $ \r\n \r\n9,931,633.30 \r\n \r\n$ \r\n \r\n2,822.00 $ \r\n \r\n2,935.14 \r\n \r\n3,229,112.25 \r\n \r\n793.60 \r\n \r\n760,311.66 \r\n \r\n2,822.00 \r\n \r\n3,993,152.65 \r\n \r\n533,309.67 \r\n \r\n$ 2,167,092.66 2,167,092.66 \r\n \r\n256,475.69 256,475.69 \r\n \r\n56,376.96 4,793,907.62 \r\n87,257.19 467,629.21 \r\n5,405,170.98 \r\n \r\n$ 2,167,092.66 $ \r\n \r\n259,297.69 $ \r\n \r\n9,931,633.30 \r\n \r\n- 5 - \r\n \r\n TOOMBS 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 in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings 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\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 Bond Premiums, Net of Amortization \r\nTotal Long-Term Liabilities \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 5,405,170.98 \r\n \r\n$ 1,144,872.40 25,794,235.93 2,512,318.64 35,255,427.37 4,638,505.27 -10,279,166.39 \r\n \r\n59,066,193.22 \r\n \r\n-17,949,934.00 -4,848,839.04 \r\n \r\n533,309.67 \r\n \r\n$ -13,400,000.00 -64,062.43 \r\n-584,036.19 \r\n \r\n-14,048,098.62 \r\n \r\n$ 28,157,802.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2015 \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 Services \r\nInterest \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\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\n$ 5,274,624.69 154,285.19 $ \r\n17,088,389.86 5,551,195.12 184,923.51 6,632.72 499,087.84 \r\n \r\n2,476,361.40 \r\n6,904.13 35,134.97 \r\n \r\n28,759,138.93 \r\n \r\n2,518,400.50 \r\n \r\n19,088,307.19 \r\n875,058.20 1,143,521.15 \r\n348,520.28 262,097.52 1,180,005.76 279,353.55 1,548,364.27 1,192,728.96 \r\n570.31 120,050.49 125,281.22 2,140,522.49 \r\n \r\n1,187.50 1,229.02 \r\n12,050,832.12 \r\n \r\n28,304,381.39 454,757.54 \r\n \r\n12,053,248.64 -9,534,848.14 \r\n \r\n454,757.54 658,663.22 \r\n \r\n-2,166,475.00 -2,166,475.00 -11,701,323.14 13,569,505.01 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,113,420.76 $ 1,868,181.87 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n EXHIBIT \"E\" \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 5,274,624.69 \r\n \r\n2,630,646.59 \r\n \r\n17,088,389.86 \r\n \r\n5,551,195.12 \r\n \r\n184,923.51 \r\n \r\n$ \r\n \r\n252.00 $ \r\n \r\n130.55 \r\n \r\n13,919.40 \r\n \r\n362,400.63 \r\n \r\n896,623.44 \r\n \r\n252.00 \r\n \r\n362,531.18 \r\n \r\n31,640,322.61 \r\n \r\n386,475.00 386,475.00 -386,223.00 \r\n2,166,475.00 \r\n2,166,475.00 1,780,252.00 \r\n386,840.66 \r\n \r\n186,355.84 44.72 \r\n12,000.00 36,666.63 \r\n30.00 32,770.20 \r\n267,867.39 94,663.79 \r\n \r\n19,274,663.03 \r\n875,058.20 1,143,565.87 \r\n348,520.28 274,097.52 1,216,672.39 280,571.05 1,582,363.49 1,192,728.96 \r\n570.31 120,050.49 125,281.22 2,140,522.49 12,050,832.12 \r\n386,475.00 \r\n41,011,972.42 \r\n-9,371,649.81 \r\n \r\n94,663.79 161,811.90 \r\n \r\n2,166,475.00 -2,166,475.00 \r\n0.00 \r\n-9,371,649.81 \r\n14,776,820.79 \r\n \r\n$ 2,167,092.66 $ \r\n \r\n256,475.69 $ 5,405,170.98 \r\n \r\n- 9 - \r\n \r\n TOOMBS 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\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. The net effect of these adjustments are: \r\nAmortization of Bond Premium Pension Expense \r\nTotal Additional Expenditures \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -9,371,649.81 \r\n \r\n$ 12,249,003.62 -861,427.95 \r\n \r\n11,387,575.67 \r\n \r\n-19,869.25 \r\n \r\n-41,862.53 \r\n \r\n$ \r\n \r\n85,468.68 \r\n \r\n841,880.96 \r\n \r\n927,349.64 \r\n \r\n$ 2,881,543.72 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 10 - \r\n \r\n ASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nTOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2015 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n101,653.96 \r\n \r\n$ \r\n \r\n101,653.96 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS 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 Toombs 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\nBLENDED COMPONENT UNIT \r\nThe Southeastern Early College and Career Academy (Charter School) is a jointly authorized start-up charter school pursuant to the Official Code of Georgia (O.C.G.A) 20-2-2060 et seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the Toombs County Board of Education, the Treutlen County Board of Education, the Montgomery County Board of Education, the Vidalia City Board of Education and the State Board of Education to serve students in grade 9 through 12. The Charter School's mission is to ensure a viable 21st century workforce for these counties and is a partner with Southeastern Technical College and will utilize a dual-enrollment model to integrate traditional high school academic courses with career, technical and agricultural education courses. The Charter School shall function as an extension of each student's Home High School. The financial statements of the Charter School have been reported as a Special Revenue Fund. \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 Toombs 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 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\n- 13 - \r\n \r\n TOOMBS 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 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) 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 (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 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 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, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted 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\n \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nRESTATEMENT OF PRIOR YEAR NET POSITION \r\nFor fiscal year 2015, the School District made several prior period adjustments due to the adoption of GASB Statement No. 68 and GASB Statement No. 71, as described in \"New Accounting Pronouncements\" below, which require the restatement of the June 30, 2014, Net Position in Governmental Activities. The result is a decrease in Net Position at July 1, 2014 of $23,640,654.00. This change is in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2014, as previously reported \r\nPrior Period adjustment - Implementation of GASB 68: Net Pension Liability (measurement date) \r\nTRS Deferred Outflows - School District's contribution made during fiscal year 2014 \r\nTRS \r\n \r\n$ 48,916,912.49 -25,420,635.00 1,779,981.00 \r\n \r\nNet Position, July 1, 2014, as restated \r\n \r\n$ 25,276,258.49 \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. The adoption of this statement has a significant impact on the School District's financial statements. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \r\nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination arrangements in which they engage and for disposals of government operations. The School District did not have any activities of this type during the fiscal year and the adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions. The adoption of this statement has a significant impact on the School District's financial statements. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \r\n \r\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nCASH AND CASH EQUIVALENTS \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\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\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 local government investment pool (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\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 Toombs County Board of Commissioners adopted the property tax levy for the 2014 tax digest year (calendar year) on September 25, 2014 (levy date) based on property values as of January 1, 2014. Taxes were due on December 20, 2014 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2014 tax digest are reported as revenue in the governmental funds for fiscal year 2015. The Toombs County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2015, for maintenance and operations amounted to $4,932,716.95. \r\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nThe tax millage rate levied for the 2014 tax year (calendar year) for the Toombs County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.956 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $331,340.89 during fiscal year ended June 30, 2015. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,476,361.40 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 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\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\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 Land Improvements Buildings and Improvements Equipment Buses \r\n \r\nAny amount \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\nN/A 20 to 80 years up to 80 years \r\n5 to 25 years 8 to 14 years \r\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \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\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\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of net position and/or the balance sheet will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. Under the full accrual method of accounting, the School District has reported deferred outflows of resources related to a defined benefit pension plan, as discussed in Note 15  Retirement Plans. \r\nIn addition to liabilities, the statement of net position and/or the balance sheet will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. Under the full accrual method of accounting, the School District has reported deferred inflows of resources related to a defined benefit pension plan, as discussed in Note 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 reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and this amount is deferred and will be recognized as an inflow of resources in the period in which the amount become available. \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. 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\nFor purposes of measuring the Net Pension Liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers' Retirement System of Georgia (TRS), the Public School Employees Retirement System (PSERS) and additions to/deductions from TRS/PSERS's fiduciary net position have been determined on the same basis as they are reported by TRS/PSERS's. 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- 18 - \r\n \r\n TOOMBS 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\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, Charter School contract, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted Net Position - Unrestricted Net Position is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of Net Investment of Capital Assets and Restricted Net Position. Included in the net deficit reported is the School District's Net Pension liability of $17,949,934.00 which is required for financial reporting. \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 have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2015, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service Charter School Contract \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n56,376.96 \r\n \r\n$ 502,157.40 1,868,181.87 2,167,092.66 256,475.69 \r\n \r\n4,793,907.62 \r\n \r\n87,257.19 467,629.21 \r\n \r\nFund Balance, June 30, 2015 \r\n \r\n$ 5,405,170.98 \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 of not less than 1% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal yearend 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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 yearend. \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10 percent of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee Schedule 4  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\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, 2015, the School District had deposits with a carrying amount of $6,059,288.96, which includes $5,933.53 in Certificates of Deposit that are reported as Investments, and a bank balance of $7,948,725.98. The bank balances insured by Federal depository insurance were $449,092.68. \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nThe amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2015, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n7,499,633.30 \r\n \r\nTotal \r\n \r\n$ 7,499,633.30 \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\n \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\nNOTE 6: CAPITAL ASSETS \r\n \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 Construction in Progress \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$ 1,144,872.40 13,953,853.95 $ 11,980,998.98 $ \r\n \r\n$ 1,144,872.40 140,617.00 25,794,235.93 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n15,098,726.35 11,980,998.98 \r\n \r\n140,617.00 26,939,108.33 \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\n34,977,612.47 4,731,788.53 2,512,318.64 \r\n5,822,620.51 2,754,409.10 1,044,929.58 \r\n \r\n277,814.90 130,806.74 \r\n464,808.90 323,452.23 \r\n73,166.82 \r\n \r\n224,090.00 \r\n \r\n35,255,427.37 4,638,505.27 2,512,318.64 \r\n \r\n204,220.75 \r\n \r\n6,287,429.41 2,873,640.58 1,118,096.40 \r\n \r\nTotal Capital Assets, Being Depreciated, Net 32,599,760.45 \r\n \r\n-452,806.31 \r\n \r\n19,869.25 32,127,084.89 \r\n \r\nGovernmental Activity Capital Assets - Net $ 47,698,486.80 $ 11,528,192.67 $ 160,486.25 $ 59,066,193.22 \r\n \r\n- 22 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services Enterprise Operations \r\n \r\n$ \r\n \r\n2,432.61 \r\n \r\n3,244.20 \r\n \r\n16,731.05 \r\n \r\n1,435.71 \r\n \r\n20,348.62 \r\n \r\n2,044.80 \r\n \r\n156,742.24 \r\n \r\n187,918.90 \r\n \r\nEXHIBIT \"H \" $ 416,754.56 \r\n390,898.13 39,721.00 14,054.26 \r\n \r\n$ \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2015, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ \r\n \r\n2,166,475.00 \r\n \r\n861,427.95 \r\n \r\nTransfers are used to move Education Special Purpose Local Option Sales Tax (ESPLOST) revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the payment of principal and interest on general long-term debt. \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 automobiles. 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 \r\n- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nflood 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. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims 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\n2014 $ 2015 $ \r\n \r\n0.00 $ 5,889.00 $ \r\n \r\n5,889.00 $ 1,630.00 $ \r\n \r\n0.00 $ 7,519.00 $ \r\n \r\n5,889.00 0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general worker's compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2 million. The Trust covers the first $1 million of each Employer's liability claim with Safety National providing additional Employers Liability limits up to a $2 million per occurrence maximum. Safety National Casualty Company also provides $2 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Athletic Director Driver's Education Teacher \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\nNOTE 9: LONG-TERM LIABILITIES GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nEXHIBIT \"H \" \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2013A General Government - Series 2013B \r\n \r\n3.00 - 4.00% $ 1.15 - 2.10% \r\n \r\n9,255,000.00 4,145,000.00 \r\n \r\n$ 13,400,000.00 \r\n \r\nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2015, were as follows: \r\n \r\nG.O. Bonds Bond Premiums Amortized \r\n \r\nBalance July 1, 2014 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2015 \r\n \r\nDue Within One Year \r\n \r\n$ 13,400,000.00 $ 669,504.87 \r\n \r\n0.00 $ \r\n \r\n$ 13,400,000.00 $ 1,780,000.00 \r\n \r\n85,468.68 \r\n \r\n584,036.19 \r\n \r\n85,468.68 \r\n \r\n$ 14,069,504.87 $ \r\n \r\n0.00 $ \r\n \r\n85,468.68 $ 13,984,036.19 $ 1,865,468.68 \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\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2016 2017 2018 2019 2020 2021 - 2022 \r\n \r\n$ \r\n \r\n1,780,000.00 $ \r\n \r\n1,815,000.00 \r\n \r\n1,855,000.00 \r\n \r\n1,900,000.00 \r\n \r\n1,955,000.00 \r\n \r\n4,095,000.00 \r\n \r\n386,475.00 \r\n \r\n$ \r\n \r\n366,005.00 \r\n \r\n335,150.00 \r\n \r\n284,450.00 \r\n \r\n222,450.00 \r\n \r\n247,000.00 \r\n \r\n85,468.68 85,468.68 85,468.68 85,468.68 85,468.68 156,692.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n13,400,000.00 $ \r\n \r\n1,841,530.00 \r\n \r\n$ \r\n \r\n584,036.19 \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $56,695.00 for retirement contributions paid on the School District's behalf by the following State Agency. \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 $56,695.00 \r\nFunds paid on behalf of the School District are reported in governmental funds. See Note 15 Retirement Plans for the State support related to the Net Pension Liability. \r\n \r\n- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2015, together with funding available: \r\n \r\nProject New Toombs County High School \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n$ \r\n \r\n693,877.18 $ \r\n \r\n407,368.80 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \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\nNOTE 13: SUBSEQUENT EVENTS \r\nIn the subsequent fiscal year, the Toombs County Board of Education authorized a tax anticipation note (TAN) through Peoples Bank of Lyons in an amount up to $1,000,000.00 to be used between November 12, 2015 and December 31, 2015 for the purpose of meeting payroll and other financial obligations until such time as local tax collections are received. On November 19, 2015 a draw on the TAN line of credit in the principal amount of $899,091.15 was made. The Board repaid the amount in full on December 1, 2015. On December 15, 2015 a draw on the TAN line of credit in the principal amount of $996,834.00 was made. The Board repaid the amount in full on December 31, 2015. \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 Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community \r\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nHealth 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, 2015: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2014  June 30, 2015 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2014  June 30, 2015 \r\n \r\n$596.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2015 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2,898,874.30 \r\n \r\n$ \r\n \r\n2,782,781.84 \r\n \r\n$ \r\n \r\n2,635,038.17 \r\n \r\nNOTE 15: RETIREMENT PLANS \r\nToombs 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 School District as defined in 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 47-3-63 are provided pension through the Teachers' Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers' Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \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 \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nof 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\n \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 6.00% of their annual pay during fiscal year 2015. The school district's contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual school district payroll. \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\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n1,949,407.96 \r\n \r\n$ \r\n \r\n1,769,253.39 \r\n \r\n$ \r\n \r\n1,696,148.79 \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 $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. \r\n \r\n- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension \r\n \r\nAt June 30, 2015, the School District reported a liability of $17,949,934.00 for its proportionate share of the Net Pension Liability for TRS. \r\n \r\nThe Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The School District's proportion of the Net Pension Liability was based on contributions to TRS during the fiscal year ended June 30, 2014. \r\n \r\nAt June 30, 2014, the School District's TRS proportion was 0.142080%, which was a decrease of 0.003807% from its proportion measured as of June 30, 2013. \r\n \r\nAt June 30, 2015, the School District did not have a PSERS liability for a proportionate share of the Net Pension Liability because of a Special Funding Situation with the State of Georgia, which is responsible for the Net Pension Liability of the plan. The amount of the State's proportionate share of the Net Pension Liability associated with the School District is $224,650.00. \r\n \r\nThe PSERS Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The State's proportion of the Net Pension Liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2014. \r\n \r\nFor the year ended June 30, 2015, the School District recognized pension expense of $1,107,527.00 for TRS and $19,509.00 for PSERS and revenue of $19,509.00 for PSERS. The revenue is support provided by the State of Georgia. \r\n \r\nAt June 30, 2015, the School District reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: \r\n \r\nTRS \r\n \r\nDeferred Outflows of Deferred Inflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n$ \r\n \r\n6,257,727.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n540,520.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n$ \r\n \r\n1,949,407.96 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n1,949,407.96 $ \r\n \r\n6,798,247.00 \r\n \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nToombs County Board of Education contributions subsequent to the measurement date of June 30, 2014 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the Net Pension Liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2016 2017 2018 2019 2020 \r\n \r\n$ \r\n \r\n-1,687,277.00 \r\n \r\n$ \r\n \r\n-1,687,277.00 \r\n \r\n$ \r\n \r\n-1,687,277.00 \r\n \r\n$ \r\n \r\n-1,687,278.00 \r\n \r\n$ \r\n \r\n-49,138.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013, using the following actuarial assumptions, applied to all periods included in the measurement: \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\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 Investment rate of return \r\n \r\nN/A \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\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 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 \r\n \r\n- 30 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"H \" \r\n \r\nby weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and 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* Rates shown are net of the 3.00% assumed rate of inflation \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\nDiscount rate: The discount rate used to measure the total TRS 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 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\nSensitivity of the Toombs County Board of Education's proportionate share of the Net Pension Liability to changes in the discount rate: The following presents the School District's proportionate share of the \r\nNet Pension Liability calculated using the discount rate of 7.50 %, as well as what the School District's \r\nproportionate share of the Net Pension Liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \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 \r\n \r\nPension Liability \r\n \r\n$ \r\n \r\n33,079,320.00 $ \r\n \r\n17,949,934.00 $ \r\n \r\n5,491,199.00 \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 and PSERS financial report which is publically available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS 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 0.142080% $ 17,949,934.00 $ 14,407,600.89 \r\n124.59% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. Schedule includes all significant plans and funds administered by Toombs County Board of Education. \r\n- 33 - \r\n \r\n TOOMBS 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\n$ 1,949,407.96 $ 1,769,253.39 \r\n \r\n$ 1,949,407.96 $ 1,769,253.39 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ 14,824,395.13 $ 14,407,600.89 \r\n \r\n13.15% \r\n \r\n12.28% \r\n \r\nThis schedule is intended to show information for ten years. Due to the retention policy of the Toombs County Board of Education, the School District is only able to display seven years of information. \r\n- 34 - \r\n \r\n SCHEDULE \"2\" \r\n \r\n2013 \r\n \r\n2012 \r\n \r\n2011 \r\n \r\n2010 \r\n \r\n2009 \r\n \r\n$ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ 1,505,834.98 \r\n \r\n$ 1,696,148.79 $ 1,525,068.38 $ 1,551,972.13 $ 1,549,155.71 $ 1,505,834.98 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ 14,865,458.28 $ 14,835,295.52 $ 15,097,005.15 $ 15,905,089.42 $ 16,226,670.04 \r\n \r\n11.41% \r\n \r\n10.28% \r\n \r\n10.28% \r\n \r\n9.74% \r\n \r\n9.28% \r\n \r\n- 35 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"3\" \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 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\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\n- 36 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"4\" \r\n \r\nREVENUES \r\n \r\nProperty Taxes \r\n \r\n$ \r\n \r\nSales Taxes \r\n \r\nState Funds \r\n \r\nFederal Funds \r\n \r\nCharges for Services \r\n \r\nInvestment Earnings \r\n \r\nMiscellaneous \r\n \r\nTotal Revenues \r\n \r\nEXPENDITURES \r\n \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\n \r\nTotal Expenditures \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\nFund Balances - Beginning \r\n \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\n5,164,671.58 $ \r\n16,765,393.01 5,518,176.60 71,700.00 1,285.00 370,966.00 \r\n27,892,192.19 \r\n \r\n5,257,039.58 $ \r\n17,072,985.17 6,401,720.19 71,700.00 1,285.00 830,883.00 \r\n29,635,612.94 \r\n \r\n18,865,257.92 \r\n1,203,915.61 1,325,774.81 \r\n377,364.56 360,477.27 1,411,339.89 585,295.35 1,562,131.96 1,346,862.74 \r\n12,206.91 235,883.10 \r\n2,000,596.39 \r\n29,287,106.51 \r\n-1,394,914.32 \r\n755,159.87 \r\n \r\n19,380,194.77 \r\n1,028,284.20 1,363,342.66 \r\n350,217.56 321,386.27 1,178,360.97 600,488.35 1,606,556.18 1,229,195.74 \r\n1,565.91 128,040.10 \r\n2,000,596.39 \r\n29,188,229.10 \r\n447,383.84 \r\n755,159.87 \r\n-7,567.79 \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n5,274,624.69 $ 154,285.19 \r\n17,088,389.86 5,551,195.12 184,923.51 6,632.72 499,087.84 \r\n \r\n17,585.11 154,285.19 \r\n15,404.69 -850,525.07 113,223.51 \r\n5,347.72 -331,795.16 \r\n \r\n28,759,138.93 \r\n \r\n-876,474.01 \r\n \r\n19,088,307.19 \r\n875,058.20 1,143,521.15 \r\n348,520.28 262,097.52 1,180,005.76 279,353.55 1,548,364.27 1,192,728.96 \r\n570.31 120,050.49 125,281.22 2,140,522.49 \r\n28,304,381.39 \r\n454,757.54 \r\n658,663.22 \r\n \r\n291,887.58 \r\n153,226.00 219,821.51 \r\n1,697.28 59,288.75 -1,644.79 321,134.80 58,191.91 36,466.78 \r\n995.60 7,989.61 -125,281.22 -139,926.10 \r\n883,847.71 \r\n7,373.70 \r\n-96,496.65 \r\n7,567.79 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n-639,754.45 $ \r\n \r\n1,194,975.92 $ \r\n \r\n1,113,420.76 $ \r\n \r\n-81,555.16 \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 $399,635.14 and $394,796.80, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"5\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 \r\n \r\n* \r\n \r\n10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n$ 2,054,489.18 (1) \r\n \r\n2,054,489.18 \r\n \r\n10.558 \r\n \r\nN/A \r\n \r\n10.582 \r\n \r\nN/A \r\n \r\n(2) \r\n(2) 2,054,489.18 \r\n \r\n84.027 \r\n \r\nN/A \r\n \r\n84.173 \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\n84.011 \r\n \r\nN/A \r\n \r\n84.358 \r\n \r\nN/A \r\n \r\n84.371 \r\n \r\nN/A \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n84.287 \r\n \r\nN/A \r\n \r\n698,803.28 27,220.07 \r\n726,023.35 \r\n80.65 48,833.93 37,166.93 171,844.52 310,196.69 54,289.06 258,386.76 1,631,276.44 335,368.50 \r\n2,847,443.48 \r\n3,573,466.83 \r\n \r\nTotal Expenditures of Federal Awards N/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 $90,596.89. \r\n(2) Expenditures for the funds earned on Child and Adult Care Food Program ($12,287.12), Fresh Fruit and Vegetables Program ($72,117.72) and the School Breakfast Program ($426,091.89) were not maintained separately and are included in the 2015 National School Lunch Program. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Toombs County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\n$ 5,627,956.01 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n TOOMBS 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 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 Categorical Grants Pupil Transportation Regular Nursing Services Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Vocational Supervisors Education Equalization Funding Grant Vocational Education Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teacher of the Year Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nSCHEDULE \"6\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n670,195.50 \r\n \r\n952,696.00 223,408.00 2,162,210.00 437,622.00 1,045,785.00 239,389.00 1,884,093.00 1,613,881.00 581,369.00 2,499,266.00 225,872.00 127,361.00 135,328.00 364,791.00 334,525.00 102,190.00 \r\n57,821.00 1,502.00 \r\n517,012.00 783,759.00 774,292.00 \r\n462,307.00 55,502.00 \r\n151,609.00 -1,367,830.00 \r\n13,068.00 1,728,492.00 \r\n44,316.00 \r\n50,083.00 27,285.11 54,261.00 77,220.00 \r\n1,014.25 \r\n56,695.00 \r\n$ 17,088,389.86 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"7\" \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) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nSPLOST #2 \r\n \r\ni. Develop, construct, and furnish a new Lyons Upper Elementary School (3rd - 5th grades) to accommodate approximately 600 students \r\n \r\n$ 9,481,500.00 $ 9,610,075.15 $ \r\n \r\n43,280.67 $ 9,539,015.90 \r\n \r\nii. Modification/Renovation of Lyons Primary School \r\n \r\n255,000.00 \r\n \r\n126,605.85 \r\n \r\n90,246.21 \r\n \r\niii. Repair and/or replacement of the Toombs Central Roof \r\n \r\n157,500.00 \r\n \r\n157,319.00 \r\n \r\n157,319.00 $ \r\n \r\n157,319.00 \r\n \r\niv. Purchase of Additional Buses for the School System \r\n \r\n610,000.00 \r\n \r\n657,434.00 \r\n \r\n657,434.00 \r\n \r\n657,434.00 \r\n \r\nSPLOST #2 Totals \r\n \r\n10,504,000.00 \r\n \r\n10,551,434.00 \r\n \r\n43,280.67 \r\n \r\n10,444,015.11 \r\n \r\n814,753.00 \r\n \r\nSPLOST #3 \r\n \r\ni. Constructing and equipping a new or replacement Toombs County High School \r\n \r\n9,800,000.00 \r\n \r\n10,226,865.13 \r\n \r\n2,174,688.35 \r\n \r\n8,052,176.78 \r\n \r\n10,226,865.13 \r\n \r\nii. Constructing and equipping a new or replacement Toombs Central School \r\n \r\n7,650,000.00 \r\n \r\n7,000,000.00 \r\n \r\niii. Constructing additions to and/or renovating, modifying, and equipping the existing Toombs County High School for further instructional use \r\n \r\n2,000,000.00 \r\n \r\n1,000,000.00 \r\n \r\niv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\n \r\n310,000.00 \r\n \r\n810,000.00 \r\n \r\n27,781.49 \r\n \r\n187,443.43 \r\n \r\n215,224.92 \r\n \r\nSPLOST #3 Totals \r\n \r\n19,760,000.00 \r\n \r\n19,036,865.13 \r\n \r\n2,202,469.84 \r\n \r\n8,239,620.21 \r\n \r\n10,442,090.05 \r\n \r\nSPLOST #4 \r\n \r\ni. Retiring, at a maximum amount of $13,400,000.00, previously incurred general obligation debt of the Toombs County School District \r\n \r\n9,305,000.00 \r\n \r\n9,305,000.00 \r\n \r\nii. Constructing and equipping two (new) or replacement schools, specifically: Toombs County High School and Toombs Central School \r\n \r\n2,035,000.00 \r\n \r\n28,596,447.33 \r\n \r\n9,806,310.65 \r\n \r\n6,010,312.46 \r\n \r\niii. Modifying and equipping the existing Toombs County High School for further instructional use \r\n \r\n3,000,000.00 \r\n \r\n3,000,000.00 \r\n \r\niv. Purchasing School buses \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\nv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\nSPLOST #4 Totals \r\n \r\n15,340,000.00 \r\n \r\n41,901,447.33 \r\n \r\n9,806,310.65 \r\n \r\n6,010,312.46 \r\n \r\nTOTAL OF ALL SPLOST PROJECTS \r\n \r\n$ 45,604,000.00 $ 71,489,746.46 $ 12,052,061.16 $ 24,693,947.78 $ 11,256,843.05 \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n12/31/2016 12/31/2016 \r\nCompleted Completed \r\nCompleted (5) (5) \r\nCompleted \r\n5/1/2020 12/31/2017 6/30/2020 6/30/2020 \r\n6/30/2020 \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 \r\n(2) The School District's current estimate of total cost for the project(s). Includes all cost from project inception to completion. \r\n \r\n(3) The voters of Toombs 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\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n215,781.88 \r\n \r\nCurrent Year Total \r\n \r\n386,475.00 \r\n \r\n$ \r\n \r\n602,256.88 \r\n \r\n(5) The projects are underfunded as of June 30, 2015 and the School District has included these projects in SPLOST #4. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 40 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2015 \r\n \r\nSCHEDULE \"8\" \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 English Speakers of Other Languages (ESOL) \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\n1,044,392.00 $ 918,755.84 $ \r\n \r\n1,526.29 $ \r\n \r\n920,282.13 \r\n \r\n248,255.00 \r\n \r\n392,912.24 \r\n \r\n572.08 \r\n \r\n393,484.32 \r\n \r\n2,402,267.00 2,407,137.51 \r\n \r\n19,766.96 \r\n \r\n2,426,904.47 \r\n \r\n500,303.00 \r\n \r\n825,779.91 \r\n \r\n6,587.46 \r\n \r\n832,367.37 \r\n \r\n1,165,525.00 1,445,781.61 \r\n \r\n20,315.39 \r\n \r\n1,466,097.00 \r\n \r\n269,266.00 2,123,051.00 1,799,796.00 \r\n645,542.00 2,775,934.00 \r\n252,889.00 146,778.00 151,942.00 397,451.00 \r\n \r\n414,683.29 2,339,351.81 2,378,692.05 \r\n449,023.04 \r\n216,340.35 654,491.83 1,642,265.75 164,758.86 \r\n48,027.01 258,537.72 151,399.22 244,344.57 430,313.47 \r\n \r\n3,720.34 36,418.72 36,150.99 101,967.65 \r\n119.80 3,215.21 8,722.70 \r\n955.47 33,211.91 \r\n3,470.67 634.30 750.72 \r\n2,413.11 \r\n \r\n418,403.63 2,375,770.53 2,414,843.04 \r\n550,990.69 \r\n216,460.15 657,707.04 1,650,988.45 165,714.33 \r\n81,238.92 262,008.39 152,033.52 245,095.29 432,726.58 \r\n \r\n$ \r\n \r\n13,923,391.00 $ 15,382,596.08 $ 280,519.77 $ 15,663,115.85 \r\n \r\n372,860.00 64,290.00 \r\n \r\n348,445.41 8,041.11 \r\n \r\n74.87 43,527.65 \r\n \r\n348,520.28 51,568.76 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n14,360,541.00 $ 15,739,082.60 $ 324,122.29 $ 16,063,204.89 \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- 41 - \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\nJanuary 6, 2017 \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 Toombs 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 Toombs 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 Toombs County Board of Education's basic financial statements, and have issued our report thereon dated January 6, 2017. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Toombs 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 Toombs County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Toombs County Board of Education'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\n \r\n2015YB-30 \r\n \r\n (This page left intentionally blank) \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2015-001, that we consider to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Toombs 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 Toombs County Board of Education in a separate letter dated January 6, 2017. \r\nToombs County Board of Education's Response to Finding \r\nToombs County Board of Education's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Toombs 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: jw 2015YB-30 \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\nJanuary 6, 2017 \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 Toombs 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 Toombs 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. Toombs 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 Toombs 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 Toombs County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\n \r\n2015SA-10 \r\n \r\n (This page left intentionally blank) \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 Toombs County Board of Education's compliance. \r\nOpinion on Each Major Federal Program \r\nIn our opinion, the Toombs 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 Toombs 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 Toombs 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 Toombs 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: jw 2015SA-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 TOOMBS 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-7381-13-01 FS 2014-001 \r\n \r\nUnresolved  See Corrective Action/Responses Unresolved  See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\nCash and Cash Equivalents Revenues/Receivables/Receipts Inadequate Internal Control Procedures over Central Office Finding Control Number: FS-7381-13-01 \r\nThe Board is working to implement the recommendations of the Department of Audits. Procedures are being set up to strengthen the controls over the Cash and Revenue procedures. \r\nCash and Cash Equivalents Revenues/Receivables/Receipts Inadequate Internal Control Procedures over Central Office Finding Control Number: FS 2014-001 \r\nThe Board is working to implement the recommendations of the Department of Audits. Procedures are being set up to strengthen the controls over the Cash and Revenue procedures. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \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 TOOMBS 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; 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\nNo \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: \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 TOOMBS 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 Categories: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInadequate Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency None FS-7381-13-01 and FS 2014-001 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for 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: Cash and Cash Equivalents The following deficiencies were noted during a review of bank reconciliations: \r\n Seven bank accounts' reconciliations were not performed and/or reviewed in a timely manner throughout the year. \r\n Three of the 30 bank reconciliations reviewed for various months did not indicate a date of when they were prepared and/or reviewed. \r\n \r\nRevenues/Receivables/Receipts Seven of the twelve nonmajor governmental fund receipts tested were not recorded or deposited in a timely manner. \r\n \r\nCause: In discussing this issue with management, they stated a former employee completed these bank reconciliations incorrectly and the bank reconciliation procedures were not being properly performed. In addition, receipt procedures were not being followed consistently. \r\n \r\nEffect or Potential Effect: The lack of adequate controls over cash and receipts increases the risk of theft, fraud, or misuse of School District resources that may result in errors and/or irregularities not being detected in a timely manner. \r\n \r\nRecommendation: The School District should implement procedures to ensure that all bank reconciliations are performed and reviewed in a timely manner, the reviews are documented, all reconciling items are properly addressed in a timely manner, and all receipts are recorded and deposited in a timely manner. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: The Toombs County School District has implemented corrective actions to address this finding. Bank reconciliations are now performed by two different personnel within the department, and the overall bank reconciliation process has been revamped to include a subsequent review and approval process performed by the CFO and Superintendent. Once bank reconciliations are performed, the reconciliation, as well as all supporting documentation, is forwarded first to the CFO for review and approval and then to the Superintendent for review and approval. Further, the revenue receipting \r\n-2- \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS process has been modified so that one specific employee within the Accounting Deportment is charged with the duty of issuing all receipts and making daily bank deposits. The School District has communicated to all persons from whom payment is received that one designated person has been named as the person who accepts all payments and issues receipts; therefore, having all funds turned into one specific person streamlines the revenue and receipting process to ensure that it is known that receipts have been received in the office and a bank deposit is necessary. The accounting clerk makes, at minimum, daily bank deposits, regardless of dollar amount, and if funds are subsequently received, a second or multiple bank deposits are made when necessary. Contact Person: Stephanie Smith Telephone: 912-526-3141 Ext. 2120 Email: stephanie.smith@toombs.k12.ga.us III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3- \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2014-belec-p-btext","title":"Toombs County Board of Education, Lyons, 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":["2016-05-31"],"dcterms_description":["Annual financial report for the Toombs 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":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS 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 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 6 8 10 11 13 \r\n29 30 31 32 35 \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS 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\nMay 31, 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 Toombs 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 Toombs 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 \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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\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 Toombs 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 Toombs County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. \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 pages 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 Toombs County Board of Education's basic financial statements. The \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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 Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 31, 2016, on our consideration of the Toombs 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 Toombs 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 50-624. \r\nRespectfully submitted, \r\n \r\nGSG:cb 2014ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS 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 Other Inventories 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 Contracts Payable Retainages Payable Deposits and Unearned 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 Capital Projects Charter School Contract Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n16,566,792.58 \r\n \r\n5,845.20 \r\n \r\n1,097,122.43 1,965,410.07 \r\n891,062.43 46,479.60 64,857.11 \r\n15,098,726.35 32,599,760.45 \r\n \r\n68,336,056.22 \r\n \r\n34,684.74 2,784,348.32 \r\n325.53 64,062.43 1,318,093.03 1,144,307.81 \r\n3,817.00 \r\n85,468.68 13,984,036.19 \r\n19,419,143.73 \r\n \r\n41,392,148.10 \r\n \r\n564,801.43 322,778.23 6,055,590.35 161,811.90 419,782.48 \r\n \r\n$ \r\n \r\n48,916,912.49 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2014 \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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \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$ 17,813,811.20 \r\n923,691.91 1,049,265.68 \r\n367,549.37 321,170.48 1,308,008.20 500,855.01 1,669,925.64 1,233,959.93 \r\n8,525.41 174,310.34 \r\n112,735.06 $ 2,131,813.74 \r\n279,844.31 \r\n$ 27,895,466.28 $ \r\n \r\n127,950.28 74,986.55 \r\n202,936.83 \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\n12,999,366.64 $ \r\n \r\n2,101,636.19 $ \r\n \r\n-2,712,808.37 \r\n \r\n353,802.06 860,268.15 379,610.00 576,634.41 829,392.00 \r\n2,924.30 911,931.24 642,859.89 \r\n220.48 166,067.13 \r\n \r\n4,649.23 19,550.07 78,843.47 \r\n5,570.81 92,880.29 \r\n7,934.19 702,943.74 \r\n77,220.00 \r\n \r\n-565,240.62 -169,447.46 \r\n90,904.10 261,034.74 -385,735.91 -489,996.52 -55,050.66 -513,880.04 \r\n-8,304.93 -8,243.21 \r\n \r\n1,963,057.27 \r\n \r\n75,016.02 184,850.19 \r\n \r\n90,231.24 91,080.27 -279,844.31 \r\n \r\n$ \r\n \r\n19,686,133.57 $ \r\n \r\n3,351,094.20 \r\n \r\n-4,655,301.68 \r\n \r\n5,425,864.38 7,307.07 \r\n2,415,703.64 34,431.98 \r\n1,226,750.00 21,109.61 \r\n912,381.00 \r\n10,043,547.68 \r\n5,388,246.00 \r\n43,528,666.49 \r\n \r\n$ \r\n \r\n48,916,912.49 \r\n \r\n- 3 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\n$ 203,398.03 $ 15,814,741.99 $ 5,845.20 \r\n \r\n879,958.57 1,965,410.07 \r\n891,062.43 46,479.60 64,857.11 \r\n \r\n217,163.86 \r\n \r\n$ 4,057,011.01 $ 16,031,905.85 $ \r\n \r\n386,840.66 386,840.66 \r\n \r\n$ \r\n \r\n34,684.74 \r\n \r\n2,784,348.32 \r\n \r\n325.53 \r\n \r\n$ \r\n \r\n3,817.00 \r\n \r\n1,318,093.03 1,144,307.81 \r\n \r\n2,823,175.59 \r\n \r\n2,462,400.84 \r\n \r\n575,172.20 \r\n \r\n64,857.11 532,311.96 \r\n61,494.15 \r\n658,663.22 \r\n \r\n13,569,505.01 $ 13,569,505.01 \r\n \r\n386,840.66 386,840.66 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 4,057,011.01 $ 16,031,905.85 $ \r\n \r\n386,840.66 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n EXHIBIT \"C\" \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n161,811.90 $ 16,566,792.58 \r\n \r\n5,845.20 \r\n \r\n1,097,122.43 1,965,410.07 \r\n891,062.43 46,479.60 64,857.11 \r\n \r\n$ \r\n \r\n161,811.90 $ 20,637,569.42 \r\n \r\n$ \r\n \r\n34,684.74 \r\n \r\n2,784,348.32 \r\n \r\n325.53 \r\n \r\n1,318,093.03 \r\n \r\n1,144,307.81 \r\n \r\n3,817.00 \r\n \r\n5,285,576.43 \r\n \r\n575,172.20 \r\n \r\n64,857.11 \r\n \r\n$ \r\n \r\n161,811.90 14,650,469.53 \r\n \r\n61,494.15 \r\n \r\n161,811.90 14,776,820.79 \r\n \r\n$ \r\n \r\n161,811.90 $ 20,637,569.42 \r\n \r\n- 5 - \r\n \r\n TOOMBS 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 as assets in governmental funds. These assets consist of: \r\nLand Construction in Progress 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 governmental funds. \r\nProperty Taxes \r\nSome liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. These liabilities at year-end consist of: \r\nBonds Payable Accrued Interest Payable Unamortized Bond Premiums \r\nTotal \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n14,776,820.79 \r\n \r\n$ \r\n \r\n1,144,872.40 \r\n \r\n13,953,853.95 \r\n \r\n2,512,318.64 \r\n \r\n34,977,612.47 \r\n \r\n4,731,788.53 \r\n \r\n-9,621,959.19 \r\n \r\n47,698,486.80 \r\n \r\n575,172.20 \r\n \r\n$ \r\n \r\n-13,400,000.00 \r\n \r\n-64,062.43 \r\n \r\n-669,504.87 \r\n \r\n-14,133,567.30 \r\n \r\n$ \r\n \r\n48,916,912.49 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 \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\nInterest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\n$ \r\n \r\n5,051,341.61 \r\n \r\n34,431.98 $ \r\n \r\n2,415,703.64 \r\n \r\n15,794,240.96 \r\n \r\n3,273,874.20 \r\n \r\n5,195,862.61 \r\n \r\n202,936.83 \r\n \r\n4,365.64 \r\n \r\n16,306.85 $ \r\n \r\n572,249.98 \r\n \r\n0.01 \r\n \r\n26,855,429.61 \r\n \r\n5,705,884.70 \r\n \r\n365.65 0.01 \r\n365.66 \r\n \r\n17,251,356.98 \r\n922,828.03 1,047,270.48 \r\n343,486.53 280,135.35 1,293,337.14 307,108.36 1,534,745.04 1,439,718.58 \r\n8,525.41 174,310.34 101,383.41 2,121,159.41 \r\n \r\n249,251.51 30,866.07 \r\n12,194,838.32 \r\n \r\n26,825,365.06 30,064.55 \r\n \r\n12,474,955.90 -6,769,071.20 \r\n \r\n243,347.00 \r\n243,347.00 273,411.55 385,251.67 \r\n \r\n12,797,743.12 726,484.00 -243,347.00 \r\n13,280,880.12 6,511,808.92 7,057,696.09 \r\n \r\n215,781.88 215,781.88 -215,416.22 \r\n602,256.88 \r\n602,256.88 386,840.66 \r\n0.00 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n658,663.22 $ \r\n \r\n13,569,505.01 $ \r\n \r\n386,840.66 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n EXHIBIT \"E\" \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n5,051,341.61 \r\n \r\n2,450,135.62 \r\n \r\n19,068,115.16 \r\n \r\n5,195,862.61 \r\n \r\n202,936.83 \r\n \r\n$ \r\n \r\n71.47 \r\n \r\n21,109.61 \r\n \r\n340,131.00 \r\n \r\n912,381.00 \r\n \r\n340,202.47 \r\n \r\n32,901,882.44 \r\n \r\n262,497.96 660.35 \r\n12,000.00 40,000.00 24,424.41 \r\n1,246.00 \r\n340,828.72 -626.25 \r\n \r\n17,513,854.94 \r\n922,828.03 1,047,930.83 \r\n343,486.53 292,135.35 1,333,337.14 556,359.87 1,590,035.52 1,440,964.58 \r\n8,525.41 174,310.34 101,383.41 2,121,159.41 12,194,838.32 \r\n215,781.88 \r\n39,856,931.56 \r\n-6,955,049.12 \r\n \r\n-626.25 162,438.15 \r\n \r\n13,400,000.00 726,484.00 243,347.00 -243,347.00 \r\n14,126,484.00 \r\n7,171,434.88 \r\n7,605,385.91 \r\n \r\n$ \r\n \r\n161,811.90 $ \r\n \r\n14,776,820.79 \r\n \r\n- 9 - \r\n \r\n TOOMBS 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\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Position. In the current period, proceeds were received from: \r\nGeneral Obligation Bonds Issued, Including a Premium of $726,484.00 \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \r\nAmortization of Bond Premiums \r\nInterest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid. \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n7,171,434.88 \r\n \r\n$ \r\n \r\n12,812,291.42 \r\n \r\n-843,742.84 \r\n \r\n11,968,548.58 381,829.84 \r\n \r\n-14,126,484.00 \r\n \r\n56,979.13 -64,062.43 \r\n \r\n$ \r\n \r\n5,388,246.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2014 \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\n93,022.49 \r\n \r\n$ \r\n \r\n93,022.49 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 11 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS 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 Toombs 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\nBLENDED COMPONENT UNIT \r\nThe Southeastern Early College and Career Academy (Charter School) is a jointly authorized start-up charter school pursuant to Official Code of Georgia (O.C.G.A.) 20-2-2060 et seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the Toombs County Board of Education, the Treutlen County Board of Education, the Montgomery County Board of Education, the Vidalia City Board of Education and the State Board of Education to serve students in grade 9 through 12. The Charter School's mission is to ensure a viable 21st century workforce for these counties and is a partner with Southeastern Technical College and will utilize a dual-enrollment model to integrate traditional high school academic courses with career, technical and agricultural education courses. The Charter School shall function as an extension of each students' Home High School. The financial statements of the Charter School have been reported as a special revenue fund. \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 Toombs 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 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\n \r\n- 13 - \r\n \r\n TOOMBS 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), 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 (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 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, grants, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. \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 which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, 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\n \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \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 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. \r\nFUTURE ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2015, the School District will adopt Governmental Account Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement in fiscal year 2015 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 proportionate share of the TRS plan's collective net pension liability is estimated to be $17.9 million at June 30, 2015. \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 local government investment pool (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\n \r\n- 15 - \r\n \r\n TOOMBS 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 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\n \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\nPROPERTY TAXES \r\nThe Toombs County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on October 15, 2013 (levy date) based on property values as of January 1, 2013. Taxes were due on December 20, 2013 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2013 tax digest are reported as revenue in the governmental funds for fiscal year 2014. The Toombs 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 $4,797,165.09. \r\nThe tax millage rate levied for the 2013 tax year (calendar year) for the Toombs County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n13.956 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $246,869.45 during fiscal year ended June 30, 2014. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,415,703.64 and is to be used for capital outlay for educational purposes. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \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\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 \r\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nthe 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\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\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements \r\n \r\n$ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nBuses \r\n \r\n$ \r\n \r\nInfrastructure \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\nSoftware \r\n \r\n$ \r\n \r\nEasements \r\n \r\n$ \r\n \r\nPatents, Trademarks, Copyrights $ \r\n \r\nAny amount 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 \r\n \r\nN/A 20 to 80 years up to 80 years \r\n5 to 25 years 8 to 14 years \r\n25 years \r\n \r\n150,000.00 Evaluated case by case 150,000.00 Evaluated case by case 150,000.00 Evaluated case by case \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\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\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \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 did not have any items that qualified for reporting in this category for the year ended June 30, 2014. \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 in the period in which the amounts become available. \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\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \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. 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 continuation of Federal Programs, Charter School contract, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted Net Position - Unrestricted Net Position 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. \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- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2014, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service Charter School Contract \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n64,857.11 \r\n \r\n$ \r\n \r\n499,944.32 \r\n \r\n13,569,505.01 \r\n \r\n386,840.66 \r\n \r\n161,811.90 14,618,101.89 \r\n \r\n82,418.85 11,442.94 \r\n \r\nFund Balance, June 30, 2014 \r\n \r\n$ 14,776,820.79 \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 of not less than 1% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10 percent of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee 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\nNOTE 4: DEPOSITS \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, 2014, the School District had deposits with a carrying amount of $16,665,660.27, which includes $5,845.20 in Certificates of Deposit that are reported as Investments, and a bank balance of $18,199,799.26. The bank balances insured by Federal depository insurance were $1,070,462.16. \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 \r\nCategory 3 \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2014, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n17,129,337.00 \r\n \r\nTotal \r\n \r\n$ 17,129,337.00 \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\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances \r\n \r\nJuly 1, 2013 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2014 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,144,872.40 1,830,341.30 $ 12,165,458.95 $ \r\n \r\n$ 1,144,872.40 \r\n \r\n41,946.30 \r\n \r\n13,953,853.95 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n2,975,213.70 12,165,458.95 \r\n \r\n41,946.30 \r\n \r\n15,098,726.35 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n34,699,973.97 4,416,413.26 2,512,318.64 \r\n \r\n277,638.50 411,140.27 \r\n \r\n95,765.00 \r\n \r\n34,977,612.47 4,731,788.53 2,512,318.64 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n5,368,629.59 2,535,279.38 \r\n970,072.38 \r\n \r\n453,990.92 314,894.72 \r\n74,857.20 \r\n \r\n95,765.00 \r\n \r\n5,822,620.51 2,754,409.10 1,044,929.58 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n32,754,724.52 \r\n \r\n-154,964.07 \r\n \r\n0.00 \r\n \r\n32,599,760.45 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 35,729,938.22 $ 12,010,494.88 $ \r\n \r\n41,946.30 $ 47,698,486.80 \r\n \r\n- 21 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nEXHIBIT \"H\" \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nImprovements 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\nFood Services \r\n \r\nEnterprise Operations \r\n \r\n$ \r\n1,198.20 3,244.20 16,731.05 1,435.71 20,348.62 2,044.80 148,866.27 179,424.39 \r\n$ \r\n \r\n416,036.59 \r\n373,293.24 38,668.37 15,744.64 \r\n843,742.84 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2014, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nGeneral Fund \r\n \r\n$ \r\n \r\n243,347.00 \r\n \r\nTransfers are used to move Education Special Purpose Local Option Sales Tax revenues collected by the District-wide Capital Projects Fund to the General Fund for the purchase of buses. \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 automobiles. 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. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based \r\n- 22 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\non known claims and prior experience. 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\n2013 $ 2014 $ \r\n \r\n11,405.27 $ 0.00 $ \r\n \r\n0.00 $ 5,889.00 $ \r\n \r\n11,405.27 $ 0.00 $ \r\n \r\n0.00 5,889.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general worker's compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2 million. The Trust covers the first $1 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2 million per occurrence maximum. Safety National Casualty Company also provides $2 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\nSuperintendent Each Athletic Director Each Drivers Education Teacher All Employees \r\n \r\nAmount \r\n \r\n$ \r\n \r\n5 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 0 ,0 0 0 .0 0 \r\n \r\nNOTE 9: LONG-TERM LIABILITIES GENERAL OBLIGATION DEBT OUTSTANDING \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\nGeneral Government - Series 2013A General Government - Series 2013B \r\n \r\nInterest Rates \r\n \r\n3.00 - 4.00% \r\n \r\n$ \r\n \r\n1.15 - 2.10% \r\n \r\n$ \r\n \r\nAmount \r\n9,255,000.00 4,145,000.00 13,400,000.00 \r\n \r\n- 23 - \r\n \r\n TOOMBS 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 Balance \r\n \r\nDeductions \r\n \r\nJune 30, 2014 \r\n \r\nDue Within One Year \r\n \r\nG.O. Bonds \r\n \r\n$ \r\n \r\nBond Premiums Amortized \r\n \r\n0.00 $ 13,400,000.00 $ \r\n \r\n0.00 \r\n \r\n726,484.00 \r\n \r\n0.00 $ 13,400,000.00 $ \r\n \r\n56,979.13 \r\n \r\n669,504.87 \r\n \r\n0.00 85,468.68 \r\n \r\n$ \r\n \r\n0.00 $ 14,126,484.00 $ \r\n \r\n56,979.13 $ 14,069,504.87 $ \r\n \r\n85,468.68 \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\nUnamortized Bond Premium \r\n \r\n2015 2016 2017 2018 2019 2020 - 2024 \r\n \r\n$ $ 1,780,000.00 \r\n1,815,000.00 1,855,000.00 1,900,000.00 6,050,000.00 \r\n \r\n386,475.00 $ 386,475.00 366,005.00 335,150.00 284,450.00 469,450.00 \r\n \r\n85,468.68 85,468.68 85,468.68 85,468.68 85,468.68 242,161.47 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 13,400,000.00 $ 2,228,005.00 $ 669,504.87 \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $1,336,747.00 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 $1,280,004.00 \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 $56,743.00 \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\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2014, together with funding available: \r\n \r\nProject \r\n \r\nUnearned \r\n \r\nFunding Available \r\n \r\nExecuted Contracts \r\n \r\nFrom State \r\n \r\nNew Toombs County High School $ 12,076,230.92 $ \r\n \r\n407,368.80 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \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: 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 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. \r\n \r\n- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \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, 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 \r\nFor non-certificated school personnel: \r\n \r\n$945.00 per member per month \r\n \r\nJuly 1, 2013  June 30,2014 \r\n \r\n$596.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,782,781.84 $ 2,635,038.17 $ 2,709,355.53 \r\n \r\nNOTE 14: RETIREMENT PLANS \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\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\n- 26 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \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, 2014, were 6.00% of annual salary. Employer contributions required for fiscal year 2014 were 12.28% of annual salary as required by the June 30, 2011, actuarial valuation. \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\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ 1,769,253.39 $ 1,696,148.79 $ 1,525,068.38 \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 TOOMBS 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\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nTransfers In \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$ 7,118,355.16 $ 5,051,341.61 $ -2,067,013.55 \r\n \r\n34,431.98 \r\n \r\n34,431.98 \r\n \r\n$ 13,607,922.00 \r\n \r\n14,449,832.89 \r\n \r\n15,794,240.96 \r\n \r\n1,344,408.07 \r\n \r\n1,779,000.00 \r\n \r\n6,227,585.32 \r\n \r\n5,195,862.61 \r\n \r\n-1,031,722.71 \r\n \r\n66,350.00 \r\n \r\n66,350.00 \r\n \r\n202,936.83 \r\n \r\n136,586.83 \r\n \r\n2,300.00 \r\n \r\n5,175.00 \r\n \r\n4,365.64 \r\n \r\n-809.36 \r\n \r\n854,055.00 \r\n \r\n572,249.98 \r\n \r\n-281,805.02 \r\n \r\n15,455,572.00 \r\n \r\n28,721,353.37 \r\n \r\n26,855,429.61 \r\n \r\n-1,865,923.76 \r\n \r\n19,312,542.92 \r\n1,031,729.08 1,156,467.86 \r\n343,172.65 330,803.63 1,340,196.08 591,997.19 1,508,335.56 1,191,499.87 \r\n12,166.92 198,553.91 \r\n1,898,650.65 \r\n28,916,116.32 \r\n-13,460,544.32 \r\n \r\n18,288,089.08 \r\n955,119.08 1,382,727.43 \r\n355,338.65 330,075.63 1,277,923.08 453,613.19 1,535,230.56 1,432,789.54 \r\n8,326.92 235,286.46 \r\n1,898,650.65 \r\n28,153,170.27 \r\n568,183.10 \r\n \r\n17,251,356.98 \r\n922,828.03 1,047,270.48 \r\n343,486.53 280,135.35 1,293,337.14 307,108.36 1,534,745.04 1,439,718.58 \r\n8,525.41 174,310.34 101,383.41 2,121,159.41 \r\n26,825,365.06 \r\n30,064.55 \r\n \r\n1,036,732.10 \r\n32,291.05 335,456.95 \r\n11,852.12 49,940.28 -15,414.06 146,504.83 \r\n485.52 -6,929.04 \r\n-198.49 60,976.12 -101,383.41 -222,508.76 \r\n1,327,805.21 \r\n-538,118.55 \r\n \r\n243,347.00 \r\n \r\n243,347.00 \r\n \r\nNet Change in Fund Balances Fund Balances - Beginning \r\nAdjustments \r\n \r\n-13,460,544.32 398,285.37 \r\n \r\n568,183.10 398,285.37 \r\n-8,517.98 \r\n \r\n273,411.55 385,251.67 \r\n \r\n-294,771.55 -13,033.70 8,517.98 \r\n \r\nFund Balances - Ending \r\n \r\n$ -13,062,258.95 $ \r\n \r\n957,950.49 $ \r\n \r\n658,663.22 $ -299,287.27 \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 $347,108.88 and $339,853.71, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n(2) 2,048,193.15 (1) \r\n2,048,193.15 \r\n \r\n10.558 \r\n \r\nN/A \r\n \r\n10.582 \r\n \r\nN/A \r\n \r\n(2) (2) 2,048,193.15 \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\n84.011 \r\n \r\nN/A \r\n \r\n84.358 \r\n \r\nN/A \r\n \r\n84.371 \r\n \r\nN/A \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n84.287 \r\n \r\nN/A \r\n \r\n705,951.65 27,895.86 \r\n733,847.51 \r\n14,586.21 39,362.00 37,259.42 185,370.51 321,719.69 55,633.82 32,052.53 1,521,156.28 366,711.05 \r\n2,573,851.51 \r\n3,307,699.02 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,355,892.17 \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 $139,126.75. \r\n(2) Expenditures for the funds earned on Child and Adult Care Food Program ($11,393.05), Fresh Fruit and Vegetables Program ($52,984.69) and the School Breakfast Program ($405,327.51) were not maintained seperately and are included in the 2014 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 Toombs 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- 30 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \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 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 DCH Direct Payment Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n670,799.13 \r\n \r\n$ \r\n \r\n670,799.13 \r\n \r\n835,919.00 207,681.00 2,179,137.00 481,721.00 1,063,935.00 257,772.00 2,053,851.00 1,665,425.00 578,418.00 2,483,165.00 229,083.00 163,561.00 143,448.00 319,681.00 340,194.00 105,013.00 \r\n65,286.00 1,498.00 \r\n475,490.00 743,792.00 789,340.00 \r\n41,156.00 -2,127,639.00 \r\n456,388.00 56,968.00 \r\n1,226,750.00 \r\n42,237.00 17,292.65 45,526.18 77,220.00 47,390.00 \r\n \r\n835,919.00 207,681.00 2,179,137.00 481,721.00 1,063,935.00 257,772.00 2,053,851.00 1,665,425.00 578,418.00 2,483,165.00 229,083.00 163,561.00 143,448.00 319,681.00 340,194.00 105,013.00 \r\n65,286.00 1,498.00 \r\n475,490.00 743,792.00 789,340.00 \r\n41,156.00 -2,127,639.00 \r\n456,388.00 56,968.00 \r\n1,226,750.00 \r\n42,237.00 17,292.65 45,526.18 77,220.00 47,390.00 \r\n \r\n$ 3,273,874.20 \r\n \r\n3,273,874.20 \r\n \r\n56,743.00 \r\n \r\n56,743.00 \r\n \r\n$ 15,794,240.96 $ 3,273,874.20 $ 19,068,115.16 \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 $1,280,004.00 are included as part of the Quality Basic Education revenue allotments above. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n TOOMBS 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\nSPLOST PROJECT \r\nSPLOST #1: \r\ni. Acquisition, Construction, and Equipping of new Toombs County Middle School \r\nii. Renovations of Toombs County High School \r\nSPLOST #1 Totals \r\nSPLOST #2: \r\ni. Develop, construct, and furnish a new Lyons Upper Elementary School (3rd - 5th grades) to accommodate approximately 600 students \r\nii. Modification/Renovation of Lyons Primary School \r\niii. Repair and/or replacement of the Toombs Central Roof \r\niv. Purchase of Additional Buses for the School System \r\nSPLOST #2 Totals \r\nSPLOST #3: \r\ni. Constructing and equipping a new or replacement Toombs County High School \r\nii. Constructing and equipping a new or replacement Toombs Central School \r\niii. Constructing additions to and/or renovating, modifying, and equipping the existing Toombs County High school for further instructional use \r\niv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\nTotal SPLOST #3 \r\nSPLOST #4: i. Retiring, at a maximum amount of $13,400,000.00, previously incurred general obligation debt of the Toombs County School District \r\nii. Constructing and equipping two (new) or replacement schools, specifically: Toombs County High School and Toombs Central School \r\niii. Modifying and equipping the existing Toombs County High School for further instructional use \r\niv. Purchasing School buses \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3)(4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 6,203,000.00 $ 13,683,339.62 $ \r\n \r\n1,127.40 $ 13,677,212.22 $ 13,678,339.62 \r\n \r\n675,000.00 6,878,000.00 \r\n \r\n935,812.23 14,619,151.85 \r\n \r\n1,127.40 \r\n \r\n935,812.23 14,613,024.45 \r\n \r\n935,812.23 14,614,151.85 \r\n \r\nCompleted Completed \r\n \r\n9,481,500.00 \r\n \r\n9,610,075.15 \r\n \r\n24,528.25 \r\n \r\n9,514,487.65 \r\n \r\n255,000.00 \r\n \r\n126,605.85 \r\n \r\n19,089.13 \r\n \r\n71,157.08 \r\n \r\n157,500.00 \r\n \r\n157,319.00 \r\n \r\n157,319.00 \r\n \r\n610,000.00 10,504,000.00 \r\n \r\n657,434.00 10,551,434.00 \r\n \r\n$243,347.00 286,964.38 \r\n \r\n414,087.00 10,157,050.73 \r\n \r\n157,319.00 \r\n657,434.00 814,753.00 \r\n \r\n9,800,000.00 25,813,000.00 \r\n \r\n6,402,300.69 \r\n \r\n1,649,876.09 \r\n \r\n7,650,000.00 \r\n \r\n7,000,000.00 \r\n \r\n2,000,000.00 \r\n \r\n1,000,000.00 \r\n \r\n6/30/2016 6/30/2016 Completed Completed \r\n6/30/2015 12/31/2017 \r\n12/31/2017 \r\n \r\n310,000.00 19,760,000.00 \r\n \r\n810,000.00 34,623,000.00 \r\n \r\n17,597.97 6,419,898.66 \r\n \r\n169,845.46 1,819,721.55 \r\n \r\n9,305,000.00 \r\n \r\n9,305,000.00 \r\n \r\n2,035,000.00 \r\n \r\n6,010,312.46 \r\n \r\n6,010,312.46 \r\n \r\n3,000,000.00 500,000.00 \r\n \r\n3,000,000.00 500,000.00 \r\n \r\n12/31/2017 \r\n5/1/2020 12/31/2017 6/30/2020 6/30/2020 \r\n \r\n- 32 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"4\" \r\n \r\nSPLOST PROJECT \r\nv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\nTotal SPLOST #4 \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4) \r\n \r\nAMOUNT EXPENDED \r\nIN PRIOR YEARS (3)(4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n500,000.00 15,340,000.00 \r\n \r\n500,000.00 19,315,312.46 \r\n \r\n6,010,312.46 \r\n \r\n6/30/2020 \r\n \r\nTOTAL OF ALL SPLOST PROJECTS \r\n \r\n$ 52,482,000.00 $ 79,108,898.31 $ 12,718,302.90 $ 26,589,796.73 $ 15,428,904.85 \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 \r\n(2) The School District's current estimate of total cost for the projects. Includes all costs from project inception to completion. \r\n \r\n(3) The voters of Toombs County approved the imposition of a 1% sales tax to fund the above projects Amounts expended for these projects may include sales tax proceeds, state, local property taxes, and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n0.00 \r\n \r\nCurrent Year \r\n \r\n215,781.88 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n215,781.88 \r\n \r\nSee notes to the basis financial statements. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (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 English Speakers of Other Languages (ESOL) \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\n955,507.00 $ \r\n \r\n880,064.17 $ \r\n \r\n355.04 $ \r\n \r\n880,419.21 \r\n \r\n247,944.00 \r\n \r\n393,868.34 \r\n \r\n393,868.34 \r\n \r\n2,396,531.00 \r\n \r\n2,237,917.57 \r\n \r\n21,359.12 \r\n \r\n2,259,276.69 \r\n \r\n585,560.00 \r\n \r\n750,761.91 \r\n \r\n11,622.42 \r\n \r\n762,384.33 \r\n \r\n1,185,210.00 \r\n \r\n1,254,381.78 \r\n \r\n10,063.35 \r\n \r\n1,264,445.13 \r\n \r\n288,810.00 2,301,582.00 1,837,655.00 \r\n641,325.00 2,761,456.00 \r\n264,239.00 178,789.00 161,350.00 348,789.00 \r\n \r\n390,427.95 2,106,476.56 2,105,318.90 \r\n322,667.87 \r\n172,355.63 589,519.22 1,409,092.97 170,626.53 \r\n79,853.52 262,950.58 161,079.50 200,500.47 445,100.42 \r\n \r\n1,733.85 38,899.86 56,895.20 111,046.93 \r\n381.32 3,379.23 36,678.74 \r\n790.51 \r\n1,109.53 808.43 \r\n2,765.89 794.62 \r\n \r\n392,161.80 2,145,376.42 2,162,214.10 \r\n433,714.80 \r\n172,736.95 592,898.45 1,445,771.71 171,417.04 \r\n79,853.52 264,060.11 161,887.93 203,266.36 445,895.04 \r\n \r\n14,154,747.00 \r\n \r\n13,932,963.89 \r\n \r\n298,684.04 \r\n \r\n14,231,647.93 \r\n \r\n380,024.00 72,759.00 \r\n \r\n355,486.53 4,681.75 \r\n \r\n37,479.59 \r\n \r\n355,486.53 42,161.34 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n14,607,530.00 $ \r\n \r\n14,293,132.17 $ \r\n \r\n336,163.63 $ \r\n \r\n14,629,295.80 \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- 35 - \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\nMay 31, 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 Toombs 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 Toombs 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 Toombs County Board of Education's basic financial statements, and have issued our report thereon dated May 31, 2016. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Toombs 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 Toombs County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Toombs County Board of Education'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 \r\n2014YB-30 \r\n \r\n (This page left intentionally blank) \r\n \r\n may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS-2014001 that we consider to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Toombs 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 Toombs County Board of Education in a separate letter dated May 31, 2016. \r\nToombs County Board of Education's Response to Finding \r\nToombs County Board of Education's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Toombs 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:cb 2014YB-30 \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\nMay 31, 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 Toombs 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 Toombs 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. Toombs 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 Toombs 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 Toombs County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\n \r\n2014SA-10 \r\n \r\n (This page left intentionally blank) \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 Toombs County Board of Education's compliance. \r\nOpinion on Each Major Federal Program \r\nIn our opinion, the Toombs 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 Toombs 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 Toombs 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 Toombs 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:cb 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 TOOMBS 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-7381-13-01 FS-7381-13-02 FS-7381-13-03 \r\n \r\nPartially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS Inadequate Internal Controls Procedures over bank reconciliation Finding Control Number: FS-7381-13-01 \r\n \r\nManagement has made changes to personnel and their duties. In addition, they established a prescribed protocol for how these duties are to be performed and a timeline for completion in an effort to strengthen the internal control procedures surrounding the bank reconciliation process. Corrective action was implemented immediately, and no further corrective action is deemed necessary. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7381-13-01 \r\n \r\nPreviously Reported Corrective Action Implemented \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 TOOMBS 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\nNo \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: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 84.027, 84.173 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies 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 TOOMBS 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 Control Category: \r\nInternal Control Impact: \r\n \r\nInadequate Internal Control Procedures over Central Office Cash and Cash Equivalents Revenues/Receivables/Receipts Significant Deficiency \r\n \r\nDescription: This is a repeat finding (FS-7381-13-01) from the year ended June 30, 2013. The accounting procedures of the School District were insufficient to provide for 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: Cash and Cash Equivalents The following deficiencies were noted during a review of bank reconciliations: \r\n Five bank accounts' reconciliations were not performed and/or reviewed in a timely manner throughout the year. \r\n Nine of the fourteen year-end bank reconciliations did not indicate a date of when they were prepared and/or reviewed. \r\n \r\nRevenues/Receivables/Receipts  Five of the nine nonmajor governmental fund receipts tested were not recorded or deposited in a timely manner. \r\n \r\nCause: In discussing this issue with management, they stated a former employee completed these bank reconciliations incorrectly and the bank reconciliation procedures were not being properly performed. In addition, receipt procedures were not being followed consistently. \r\n \r\nEffect or Potential Effect: The lack of adequate controls over cash and receipts increases the risk of theft, fraud, or misuse of School District resources that may result in errors and/or irregularities not being detected in a timely manner. \r\n \r\nRecommendation: The School District should implement procedures to ensure that all bank reconciliations are performed and reviewed in a timely manner, the reviews are documented, all reconciling items are properly addressed in a timely manner, and all receipts are recorded and deposited in a timely manner. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: The Toombs County School District has implemented corrective actions to address this finding. Since Fiscal Year 2014, the time period of this audit, there has been significant personnel changes in the Accounting Department, and with the new personnel changes has come a re-distribution of job duties, including the performance of bank reconciliations, to the new personnel within the department. Bank reconciliations are now performed by two different personnel within the \r\n \r\n- 2 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS department, and the overall bank reconciliation process has been revamped to include a subsequent review and approval process performed by the CFO and Superintendent. Once bank reconciliations are performed, the reconciliation, as well as all supporting documentation, is forwarded first to the CFO for review and approval and then to the Superintendent for review and approval. Further, the revenue receipting process has been modified so that one specific employee within the Accounting Department is charged with the duty of issuing all receipts and making daily bank deposits. No receipts are held overnight in the office undeposited; rather, if receipts are received after regular banking hours, a night deposit is utilized. The School District has well communicated to all persons from whom payment is received that one designated person has been named as the person who accepts all payments and issues receipts; therefore, having all funds turned into one specific person streamlines the revenue and receipting process to ensure that it is known that receipts have been received in the office and a bank deposit is necessary. The accounting clerk makes, at minimum, daily bank deposits, regardless of dollar amount, and if funds are subsequently received, a second or multiple bank deposits are made when necessary. Estimated Corrective Action Date: Corrective Action Implemented December 2015 Contact Person: Crystal Blocker Telephone: (912)-526-3141 Ext. 2120 Fax: (912)-526-3291 Email: blockerc@toombs.k12.ga.us \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 3 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2012-h2013-belec-p-btext","title":"Toombs County Board of Education, Lyons, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Toombs County, 32.12172, -82.33129"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2012-h2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":null},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2011-h2012-belec-p-btext","title":"Toombs County Board of Education, Lyons, 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, Toombs County, 32.12172, -82.33129"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2012-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009; ceased with: Fiscal year ended June 30, 2020.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed July 21, 2023).","Fiscal year ended June 30, 2020 (online surrogate) (Georgia Government Publications database, viewed July 21, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \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 ASSETS \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 ASSETS \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 ASSETS \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 \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 \r\n23 24 26 \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 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\n27 29 \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 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 \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\nJune 13, 2013 \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 Toombs County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \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 Toombs 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 Toombs County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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. \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 Toombs 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. \r\nManagement has omitted Management's Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an \r\n2012ARL-11 \r\n \r\n  essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 13, 2013, on our consideration of the Toombs 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. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 23 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Toombs 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. \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 2012ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable \r\nTotal Liabilities NET ASSETS Invested in Capital Assets Restricted for Continuation of Federal Programs Capital Projects Bus Replacement Charter School Contract Unrestricted Total Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n7,896,069.09 \r\n \r\n5,601.08 \r\n \r\n651,037.54 1,934,802.53 \r\n711,573.55 151,421.22 \r\n70,208.01 1,404,180.03 32,480,122.86 \r\n \r\n$ 45,305,015.91 \r\n \r\n$ \r\n \r\n51,603.79 \r\n \r\n3,192,542.23 \r\n \r\n$ \r\n \r\n3,244,146.02 \r\n \r\n$ 33,884,302.89 \r\n685,544.29 5,799,125.16 \r\n78,701.51 113,397.86 1,499,798.18 \r\n$ 42,060,869.89 \r\n \r\n$ 45,305,015.91 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2012 \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 \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n18,599,701.49 \r\n \r\n916,789.52 1,151,608.83 \r\n377,046.71 122,437.50 1,422,412.11 298,325.42 1,560,336.14 1,226,670.04 \r\n7,617.16 183,637.63 \r\n \r\n94,433.50 $ 1,817,961.68 \r\n \r\n$ \r\n \r\n27,778,977.73 $ \r\n \r\n89,313.40 269,043.28 \r\n358,356.68 \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 ASSETS \r\n \r\n$ \r\n \r\n12,582,621.49 \r\n \r\n410,415.74 1,062,778.49 \r\n360,385.01 527,506.73 836,010.21 \r\n22,706.99 948,689.92 $ 625,096.48 \r\n780.56 181,008.54 \r\n \r\n1,576,863.96 \r\n \r\n$ \r\n \r\n19,134,864.12 $ \r\n \r\n$ \r\n266,500.28 228,731.00 \r\n495,231.28 $ \r\n \r\n-6,017,080.00 \r\n-506,373.78 -88,830.34 -16,661.70 405,069.23 \r\n-586,401.90 -275,618.43 -345,145.94 -372,842.56 \r\n-6,836.60 -2,629.09 \r\n-5,120.10 27,945.56 \r\n-7,790,525.65 \r\n \r\n$ \r\n \r\n3,621,918.99 \r\n \r\n7,268.99 \r\n \r\n2,461,950.83 47,696.33 \r\n1,363,517.00 16,142.65 \r\n882,826.64 \r\n \r\n$ \r\n \r\n8,401,321.43 \r\n \r\n$ \r\n \r\n610,795.78 \r\n \r\n41,450,074.11 \r\n \r\n$ \r\n \r\n42,060,869.89 \r\n \r\n- 3 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2012 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,197,116.27 $ 5,630,229.15 $ 5,601.08 \r\n \r\n436,079.83 1,934,802.53 \r\n711,573.55 103,421.22 \r\n70,208.01 \r\n \r\n214,957.71 \r\n \r\n68,723.67 $ \r\n \r\n7,896,069.09 5,601.08 \r\n \r\n48,000.00 \r\n \r\n651,037.54 1,934,802.53 \r\n711,573.55 151,421.22 \r\n70,208.01 \r\n \r\n$ 5,458,802.49 $ 5,845,186.86 $ \r\n \r\n116,723.67 $ 11,420,713.02 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n48,277.98 \r\n \r\n3,192,542.23 \r\n \r\n308,189.65 \r\n \r\n$ 3,549,009.86 \r\n \r\n$ \r\n \r\n3,325.81 $ \r\n \r\n51,603.79 \r\n \r\n3,192,542.23 \r\n \r\n308,189.65 \r\n \r\n$ \r\n \r\n3,325.81 $ 3,552,335.67 \r\n \r\n$ \r\n \r\n70,208.01 \r\n \r\n694,037.79 $ 5,799,125.16 $ \r\n \r\n82,148.97 \r\n \r\n46,061.70 \r\n \r\n1,063,397.86 \r\n \r\n$ 1,909,792.63 $ 5,845,186.86 $ \r\n \r\n$ 113,397.86 \r\n \r\n70,208.01 6,606,560.81 \r\n128,210.67 1,063,397.86 \r\n \r\n113,397.86 $ 7,868,377.35 \r\n \r\n$ 5,458,802.49 $ 5,845,186.86 $ \r\n \r\n116,723.67 $ 11,420,713.02 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \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 Assets 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 Construction in Progress Land Improvements Buildings Equipment Infrastructure Accumulated Depreciation \r\nTotal Capital Assets \r\nProperty taxes that are not available to pay for current period expenditures are deferred in the funds. \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 7,868,377.35 \r\n \r\n$ 1,144,872.40 259,307.63 \r\n1,685,507.23 34,296,195.37 \r\n3,758,331.86 826,811.41 \r\n-8,086,723.01 \r\n \r\n33,884,302.89 \r\n \r\n308,189.65 \r\n \r\n$ 42,060,869.89 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \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 \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\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nNONMAJOR GOVERNMENTAL \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,647,185.64 47,696.33 $ \r\n15,754,041.18 4,973,070.94 358,356.68 8,038.62 467,764.52 \r\n \r\n2,461,950.83 \r\n7,966.18 $ 91,093.65 \r\n \r\n$ 25,256,153.91 $ 2,561,010.66 \r\n \r\n$ \r\n137.85 323,968.47 324,106.32 $ \r\n \r\n3,647,185.64 2,509,647.16 15,754,041.18 4,973,070.94 \r\n358,356.68 16,142.65 \r\n882,826.64 \r\n28,141,270.89 \r\n \r\n$ 17,976,219.52 \r\n \r\n$ \r\n \r\n915,218.99 1,153,714.51 \r\n359,647.43 120,941.68 1,355,830.55 306,394.99 1,508,263.33 $ 1,273,908.11 \r\n7,617.16 183,101.16 \r\n74,262.55 1,780,904.89 \r\n \r\n7,438.55 439,684.76 \r\n \r\n$ 27,016,024.87 $ \r\n \r\n447,123.31 $ \r\n \r\n$ -1,759,870.96 $ 2,113,887.35 $ \r\n \r\n231,119.78 $ 333.00 50.00 \r\n45,434.88 2,327.95 2,288.50 \r\n281,554.11 $ 42,552.21 $ \r\n \r\n18,207,339.30 \r\n915,551.99 1,153,764.51 \r\n359,647.43 120,941.68 1,401,265.43 306,394.99 1,518,029.83 1,276,196.61 \r\n7,617.16 183,101.16 \r\n74,262.55 1,780,904.89 \r\n439,684.76 \r\n27,744,702.29 \r\n396,568.60 \r\n \r\n$ 1,715,978.69 $ -1,715,978.69 \r\n \r\n$ 1,715,978.69 $ -1,715,978.69 \r\n \r\n$ \r\n \r\n-43,892.27 $ \r\n \r\n397,908.66 $ \r\n \r\n1,953,684.90 \r\n \r\n5,447,278.20 \r\n \r\n$ \r\n$ 42,552.21 $ 70,845.65 \r\n \r\n1,715,978.69 -1,715,978.69 \r\n0.00 396,568.60 7,471,808.75 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,909,792.63 $ 5,845,186.86 $ 113,397.86 $ \r\n \r\n7,868,377.35 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n TOOMBS 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, 2012 \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\nCapital Assets purchased with Universal Service Fund (e-rate) proceeds are not reported in Governmental Funds. However, in the Statement of Activities, the e-rate proceeds are shown as Capital Grants and Contributions. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n396,568.60 \r\n \r\n$ \r\n \r\n724,580.14 \r\n \r\n-758,855.58 \r\n \r\n-34,275.44 \r\n \r\n266,500.28 -17,997.66 \r\n \r\n$ \r\n \r\n610,795.78 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2012 \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\n79,103.85 \r\n \r\n$ \r\n \r\n79,103.85 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Toombs 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\nBLENDED COMPONENT UNIT \r\nThe Southeastern Early College \u0026 Career Academy (Charter School) is a jointly authorized start-up charter school pursuant to Official Code of Georgia (O.C.G.A.) 20-2-2060 et seq., the Charter Schools Act of 1998. The Charter is an agreement entered into by and between the Toombs County Board of Education, the Treutlen County Board of Education, the Montgomery County Board of Education, the Vidalia City Board of Education and the State Board of Education to serve students in grade 9 through 12. The Charter School's mission is to ensure a viable 21st century workforce for these counties and is a partner with Southeastern Technical College and will utilize a dual-enrollment model to integrate traditional high school academic courses with career, technical and agricultural education courses. The Charter School shall function as an extension of each students' Home High School. The financial statements of the Charter School have been reported as a special revenue fund. \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 Toombs County Board of Education. \r\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. \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. 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. \r\n \r\n- 9 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \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 Special Purpose Local Option Sales Tax (SPLOST) that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \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, 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. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \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\nRESTATEMENT OF PRIOR YEAR FUND BALANCES \r\nFor fiscal year 2012, the School District made a variety of prior period adjustments due to various errors or omissions, which require the restatement of the June 30, 2011, fund balance in the General Fund and Nonmajor Governmental Fund. The result is a decrease in fund balance at July 1, 2011, of the General Fund and increase in fund balance of the Nonmajor Governmental Fund in the amount of $70,845.65. These changes are in accordance with generally accepted accounting principles. \r\n \r\n- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGeneral Fund \r\n \r\nFund Balance, July 1, 2011, as previously reported \r\n \r\n$ \r\n \r\nRecording of Southeastern Early College Academy as a Nonmajor fund \r\n \r\n2,024,530.55 -70,845.62 \r\n \r\nFund Balance, July 1, 2011, as restated \r\n \r\n$ 1,953,684.93 \r\n \r\nNonmajor Governmental Fund \r\n \r\nFund Balance, July 1, 2011, as previously reported \r\n \r\n$ \r\n \r\nRecording of Southeastern Early College Academy as a Nonmajor fund \r\n \r\n0.00 70,845.65 \r\n \r\nFund Balance, July 1, 2011, as restated \r\n \r\n$ \r\n \r\n70,845.65 \r\n \r\nCASH AND CASH EQUIVALENTS \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\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 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: \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\n \r\n- 11 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPROPERTY TAXES \r\nThe Toombs County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on August 31, 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 Toombs County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2012, for maintenance and operations amounted to $3,639,916.65. \r\nThe tax millage rate levied for the 2011 tax year (calendar year) for the Toombs County was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n11.514 m ills \r\n \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,461,950.83 and is to be used for capital outlay for educational purposes (including the purchase of buses). This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years. \r\nINVENTORIES \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\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 TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \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\nC a pita liz a tio n Policy \r\n \r\nEstim ated Useful Life \r\n \r\nLand \r\n \r\nLand Im provem ents \r\n \r\n$ \r\n \r\nBuildings and Im provem ents \r\n \r\n$ \r\n \r\nEquipm ent \r\n \r\n$ \r\n \r\nBuses \r\n \r\n$ \r\n \r\nInfrastructure \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\nSo ftw a re \r\n \r\n$ \r\n \r\nEasem ents \r\n \r\n$ \r\n \r\nPatents, Tradem arks, C opyrights $ \r\n \r\nAny Amount 5 ,0 0 0 .0 0 5 ,0 0 0 .0 0 5 ,0 0 0 .0 0 5 ,0 0 0 .0 0 5 ,0 0 0 .0 0 \r\n1 5 0 ,0 0 0.0 0 1 0 0 ,0 0 0.0 0 1 0 0 ,0 0 0.0 0 \r\n \r\nN/A 20 to 80 years Up to 80 years \r\n5 to 25 years 8 to 14 years \r\n25 years \r\nEvaluated case by case Evaluated case by case Evaluated case by case \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\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\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\nInvested in capital assets - This represents the School District's total investment in capital assets. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal Programs, Charter School contract and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \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\n \r\n- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \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\n \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\nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \r\n \r\nN o nspe nda ble In v e n to rie s \r\nRestricted Bus Replacem ent Capital Projects Charter School Contract Continuation of Federal Program s \r\nAssigned General Fund, Other School Activity Accounts Subsequent Period Expenditures \r\nUnassigned \r\n \r\n$ \r\n \r\n7 0 ,2 0 8 .0 1 \r\n \r\n$ \r\n \r\n7 8 ,7 0 1 .5 1 \r\n \r\n5 ,7 9 9 ,1 2 5 .1 6 \r\n \r\n1 1 3 ,3 9 7 .8 6 \r\n \r\n6 1 5 ,3 3 6 .2 8 \r\n \r\n6 ,6 0 6 ,5 6 0 .8 1 \r\n \r\n$ \r\n \r\n9 ,9 0 5 .3 2 \r\n \r\n7 2 ,2 4 3 .6 5 \r\n \r\n4 6 ,0 6 1 .7 0 \r\n \r\n1 2 8 ,2 1 0 .6 7 1 ,0 6 3 ,3 9 7 .8 6 \r\n \r\nFund Balance, June 30, 2012 \r\n \r\n$ 7,868,377.35 \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 of not less than 1% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year-end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund and function. The legal level of budgetary control was established by the Board at the aggregate fund and 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, \r\n \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nsuch 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\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10 percent of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee 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\nNOTE 4: DEPOSITS \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\n \r\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \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, 2012, the bank balances were $9,341,789.63. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2011 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2012 \r\n \r\nGovernmental Activities Capital Assets, Not B eing Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,144,872.40 379,934.00 $ \r\n \r\n439,684.76 $ \r\n \r\n$ 560,311.13 \r\n \r\n1,144,872.40 259,307.63 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 1,524,806.40 $ \r\n \r\n439,684.76 $ \r\n \r\n560,311.13 $ 1,404,180.03 \r\n \r\nCapital Assets B eing Depreciated B uildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: B uildings and Improvements Equipment Land Improvements \r\n \r\n$ 34,296,195.37 3,673,338.48 $ 1,685,507.23 \r\n \r\n284,895.38 $ 826,811.41 \r\n \r\n$ 199,902.00 \r\n \r\n34,296,195.37 3,758,331.86 2,512,318.64 \r\n \r\n4,490,968.34 2,217,864.87 \r\n818,936.22 \r\n \r\n437,163.74 245,813.43 \r\n75,878.41 \r\n \r\n199,902.00 \r\n \r\n4,928,132.08 2,263,776.30 \r\n894,814.63 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 32,127,271.65 $ \r\n \r\n352,851.21 $ \r\n \r\n0.00 $ 32,480,122.86 \r\n \r\nGovernmental Activity Capital Assets - Net $ 33,652,078.05 $ \r\n \r\n792,535.97 $ \r\n \r\n560,311.13 $ 33,884,302.89 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nIn s tru c tio n \r\n \r\nSupport Services \r\n \r\n$ \r\n \r\nPupil Services \r\n \r\nIm provem ents of Instructional Services \r\n \r\nEducational M edia Services \r\n \r\nGeneral Adm inistration \r\n \r\nSchool Adm inistration \r\n \r\nBusiness Adm inistration \r\n \r\nM aintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nOther Support Services \r\n \r\nFood Services \r\n \r\nEnterprise Operations \r\n \r\n$ \r\n1 ,1 9 8 .2 0 2 ,9 4 0 .8 7 1 6 ,7 3 1 .0 5 1 ,4 3 5 .7 1 2 0 ,3 4 8 .6 2 1 ,3 3 6 .1 3 5 2 ,8 0 4 .1 5 1 8 7 ,2 5 8 .5 1 \r\n5 1 4 .9 0 \r\n \r\n$ \r\n \r\n4 1 6 ,0 6 7 .6 1 \r\n2 8 4 ,5 6 8 .1 4 3 8 ,5 7 2 .6 7 1 9 ,6 4 7 .1 6 \r\n7 5 8 ,8 5 5 .5 8 \r\n \r\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2012, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers F ro m \r\nDistrict-w id e C a pital Projects \r\n \r\nGeneral Fund \r\n \r\n$ 1,715,978.69 \r\n \r\nThe transfer was made to move local funds (originally transferred and assigned to renovate the old Lyons Upper Elementary School (LUES) back in 2004/2005) back to the General Fund. The School District ended up building a new LUES with SPLOST proceeds rather than renovating the old LUES with these local funds. \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 automobiles. The School District has neither significantly reduced coverage for this risk 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. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \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\nClaim s and Changes in Estim ates \r\n \r\nClaim s Paid \r\n \r\nEnd of Year Liability \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n3,442.04 $ 17,156.62 $ \r\n \r\n3,442.04 $ 5,751.35 $ \r\n \r\n0 .0 0 1 1 ,4 0 5 .2 7 \r\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general worker's compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2 million. The Trust covers the first $1 million of each Employers liability claim with Safety National providing additional Employers' Liability limits up to a $2 million per occurrence maximum. Safety National Casualty Company also provides aggregate cover to the Trust with a loss fund percentage of 100%, based on the Fund's annual normal premium, up to a maximum limit of indemnity of aggregate limit of $2 million. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Each Athletic Director Each Drivers Education Teacher All Em ployees \r\n \r\n$ \r\n \r\n3 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n2 ,5 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 0 ,0 0 0 .0 0 \r\n \r\nNOTE 9: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $2,033,458.00 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 $1,997,056.00 \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 $36,402.00 \r\nNOTE 10: 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 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 \r\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nthe 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 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. \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 \"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. \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, 2012: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other \r\neligible participants: \r\n \r\nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \r\n \r\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 \r\n3.958% of covered payroll for May - July coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2011 - August 2011 \r\n \r\n$246.20 per member per month \r\n \r\nSeptember 2011 - June 2012 $296.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nC o ntribute d \r\n \r\nC o ntrib utio n \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2 ,7 0 9 ,3 5 5 .5 3 \r\n \r\n$ \r\n \r\n2 ,5 5 7 ,7 7 7 .2 0 \r\n \r\n$ \r\n \r\n2 ,4 8 5 ,4 0 5 .1 5 \r\n \r\nNOTE 12: RETIREMENT PLANS \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\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\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\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, 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. \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nEmployer 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\nC o ntribute d \r\n \r\nC o ntrib utio n \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n1 ,5 2 5 ,0 6 8 .3 8 \r\n \r\n$ \r\n \r\n1 ,5 5 1 ,9 7 2 .1 3 \r\n \r\n$ \r\n \r\n1 ,5 4 9 ,1 5 5 .7 1 \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- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2012 \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\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nTransfers In \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 (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 3,800,863.21 $ 3,800,863.21 $ 3,647,185.64 $ \r\n \r\n30,296.00 \r\n \r\n30,296.00 \r\n \r\n47,696.33 \r\n \r\n15,855,230.95 \r\n \r\n15,855,230.95 \r\n \r\n15,754,041.18 \r\n \r\n4,371,451.00 \r\n \r\n4,371,451.00 \r\n \r\n4,973,070.94 \r\n \r\n313,700.00 \r\n \r\n313,700.00 \r\n \r\n358,356.68 \r\n \r\n7,500.00 \r\n \r\n7,500.00 \r\n \r\n8,038.62 \r\n \r\n189,780.00 \r\n \r\n189,780.00 \r\n \r\n467,764.52 \r\n \r\n$ 24,568,821.16 $ 24,568,821.16 $ 25,256,153.91 $ \r\n \r\n-153,677.57 17,400.33 \r\n-101,189.77 601,619.94 \r\n44,656.68 538.62 \r\n277,984.52 \r\n687,332.75 \r\n \r\n$ 18,783,871.41 $ 17,768,074.44 $ 17,976,219.52 $ -208,145.08 \r\n \r\n1,005,911.47 884,189.09 342,749.39 345,985.99 \r\n1,340,457.50 364,952.24 \r\n1,569,999.81 1,141,435.23 \r\n10,542.22 136,613.62 \r\n1,764,167.67 \r\n \r\n1,008,997.47 1,439,582.65 \r\n342,749.39 147,520.16 1,322,457.50 236,952.24 1,365,999.81 1,218,749.23 \r\n10,542.22 186,647.86 \r\n1,764,167.67 \r\n \r\n915,218.99 1,153,714.51 \r\n359,647.43 120,941.68 1,355,830.55 306,394.99 1,508,263.33 1,273,908.11 \r\n7,617.16 183,101.16 \r\n74,262.55 1,780,904.89 \r\n \r\n93,778.48 285,868.14 -16,898.04 \r\n26,578.48 -33,373.05 -69,442.75 -142,263.52 -55,158.88 \r\n2,925.06 3,546.70 -74,262.55 -16,737.22 \r\n \r\n$ 27,690,875.64 $ 26,812,440.64 $ 27,016,024.87 $ -203,584.23 \r\n \r\n$ -3,122,054.48 $ -2,243,619.48 $ -1,759,870.96 $ 483,748.52 \r\n \r\n$ -3,122,054.48 $ 2,040,285.53 \r\n \r\n1,700,000.00 -543,619.48 $ \r\n2,040,285.53 10,800.66 \r\n \r\n1,715,978.69 -43,892.27 $ \r\n1,953,684.90 \r\n \r\n15,978.69 499,727.21 -86,600.63 -10,800.66 \r\n \r\n$ -1,081,768.95 $ 1,507,466.71 $ 1,909,792.63 $ 402,325.92 \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 actual revenues ($307,688.88) or expenditures ($39,666.53) of the various principal accounts. \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- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food 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\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 Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Rural Education Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning ARRA - Child Care and Development Block Grant \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 $ 1,737,954.49 (1) \r\n \r\n$ 1,737,954.49 \r\n \r\n10.558 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\n$ 1,737,954.49 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ 615,515.26 \r\n \r\nN/A \r\n \r\n24,139.90 \r\n \r\n$ 639,655.16 \r\n \r\n84.010 \r\n \r\nN/A $ 1,812,431.96 \r\n \r\n84.048 84.410 84.365 84.367 84.011 84.358 84.287 \r\n \r\nN/A $ \r\n \r\n38,634.99 \r\n \r\nN/A \r\n \r\n7,439.00 \r\n \r\nN/A \r\n \r\n22,121.81 \r\n \r\nN/A \r\n \r\n197,782.19 \r\n \r\nN/A \r\n \r\n385,515.67 \r\n \r\nN/A \r\n \r\n70,616.32 \r\n \r\nN/A \r\n \r\n260,131.33 \r\n \r\n$ 982,241.31 \r\n \r\n$ 3,434,328.43 \r\n \r\n93.713 \r\n \r\nN/A $ \r\n \r\n800.00 \r\n \r\n$ 5,173,082.92 \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \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 $153,119.37. \r\n(2) Expenditures for the funds earned on Child and Adult Care Food Program ($13,824.59) and the School Breakfast Program ($333,513.51) were not maintained separately and are included in the 2012 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 Toombs 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- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \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 Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Education Equalization Funding Grant Food Services Nursing Services Vocational Supervisors Other State Programs Amended Formula Adjustment Charter Schools - Facilities Dual Enrollment Funding Health Insurance Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Virtual Schools Grant Vocational Education \r\nOffice of the State Treasurer Public School Employees' Retirement \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n611,854.23 \r\n \r\n711,374.00 293,040.00 1,621,448.00 607,424.00 910,114.00 281,360.00 -50,512.00 1,891,118.00 1,242,188.00 384,120.00 2,068,517.00 242,431.00 109,599.00 132,436.00 209,128.00 290,171.00 \r\n86,671.00 63,204.00 \r\n450,635.00 638,973.00 754,163.00 \r\n446,966.00 1,363,517.00 \r\n50,976.00 58,920.00 \r\n7,047.00 \r\n-2,176,240.00 48,000.00 18,621.00 \r\n1,997,056.00 24,655.06 55,620.00 \r\n228,731.00 125.00 \r\n44,188.89 \r\n36,402.00 \r\n$ 15,754,041.18 \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"4\" \r\n \r\nSPLOST PROJECT \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 #1: \r\n \r\ni. Acquisition, Construction, and Equipping of new Toombs County $ Middle School \r\n \r\n6,203,000.00 $ 14,000,000.00 $ 153,749.43 $ 13,427,157.86 \r\n \r\nii. Renovations of Toombs County High School \r\n \r\n675,000.00 \r\n \r\n975,000.00 153,749.41 \r\n \r\n740,799.51 \r\n \r\nSPLOST #1 Totals \r\n \r\n$ 6,878,000.00 $ 14,975,000.00 $ 307,498.84 $ 14,167,957.37 \r\n \r\nSPLOST #2: \r\n \r\ni. Develop, construct, and furnish a new Lyons Upper Elementary School (3rd - 5th grades) to accommodate approximately 600 students \r\n \r\n$ 9,481,500.00 $ 9,515,020.00 $ \r\n \r\n4,827.03 $ 9,457,020.19 \r\n \r\nii. Modification/Renovation of Lyons Primary School \r\n \r\n255,000.00 \r\n \r\n126,605.85 \r\n \r\n12,612.31 \r\n \r\n5,275.73 \r\n \r\niii. Repair and/or replacement of the Toombs Central Roof \r\n \r\n157,500.00 \r\n \r\n157,319.00 \r\n \r\n157,319.00 $ 157,319.00 \r\n \r\niv. Purchase of Additional Buses for the School System \r\n \r\n610,000.00 \r\n \r\n610,000.00 \r\n \r\n414,087.00 \r\n \r\nSPLOST #2 Totals \r\n \r\n$ 10,504,000.00 $ 10,408,944.85 $ 17,439.34 $ 10,033,701.92 $ 157,319.00 \r\n \r\nSPLOST #3 \r\n \r\ni. Constructing and equipping a new or replacement Toombs County High School \r\n \r\n$ 9,800,000.00 $ 24,750,000.00 \r\n \r\n$ \r\n \r\n259,308.43 \r\n \r\nii. Constructing and equipping a new or replacement Toombs Central School \r\n \r\n7,650,000.00 \r\n \r\n7,000,000.00 \r\n \r\niii. Constructing additions to and/or renovating, modifying, and equipping the existing Toombs County High school for further instructional use \r\n \r\n2,000,000.00 \r\n \r\n1,000,000.00 \r\n \r\niv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\n \r\n310,000.00 \r\n \r\n810,000.00 $ 122,185.13 \r\n \r\nTotal SPLOST #3 \r\n \r\n$ 19,760,000.00 $ 33,560,000.00 $ 122,185.13 $ \r\n \r\n259,308.43 \r\n \r\nESTIMATED COMPLETION \r\nDATE 12/31/2013 12/31/2015 \r\n12/31/2015 12/31/2015 Completed 12/31/2016 \r\n12/31/2013 12/31/2017 \r\n12/31/2014 \r\n12/31/2017 \r\n \r\nTOTAL OF ALL SPLOST PROJECTS \r\n \r\n$ 37,142,000.00 $ 58,943,944.85 $ 447,123.31 $ 24,460,967.72 $ 157,319.00 \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 costs from project inception to completion. \r\n(3) The voters of Toombs County approved the imposition of a 1% sales tax to fund the above projects Amounts expended for these projects may include sales tax proceeds, state, local property taxes, and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \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 English Speakers of Other Languages (ESOL) \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\n786,271.00 $ \r\n \r\n892,153.75 \r\n \r\n$ \r\n \r\n892,153.75 \r\n \r\n324,189.00 \r\n \r\n256,015.67 \r\n \r\n256,015.67 \r\n \r\n1,808,774.00 \r\n \r\n2,615,739.44 $ \r\n \r\n444.47 \r\n \r\n2,616,183.91 \r\n \r\n696,297.00 \r\n \r\n669,596.71 \r\n \r\n669,596.71 \r\n \r\n1,023,216.00 \r\n \r\n1,529,552.14 \r\n \r\n409.88 \r\n \r\n1,529,962.02 \r\n \r\n324,437.00 2,026,292.00 1,387,478.00 \r\n434,330.00 2,314,606.00 \r\n264,332.00 123,198.00 146,134.00 235,413.00 \r\n \r\n387,569.33 2,037,921.78 2,316,946.46 \r\n359,027.41 \r\n147,210.94 747,798.44 1,399,752.89 250,349.86 \r\n34,292.10 403,453.39 \r\n81,459.91 109,472.23 281,434.32 \r\n \r\n6,890.03 10,972.02 75,507.42 \r\n426.94 407.77 \r\n8,056.98 \r\n565.28 176.71 \r\n \r\n387,569.33 2,044,811.81 2,327,918.48 \r\n434,534.83 \r\n147,210.94 747,798.44 1,400,179.83 250,757.63 \r\n34,292.10 411,510.37 \r\n81,459.91 110,037.51 281,611.03 \r\n \r\n$ 11,894,967.00 $ 14,519,746.77 $ 103,857.50 $ 14,623,604.27 \r\n \r\n323,830.00 70,253.00 \r\n \r\n358,357.21 6,030.11 \r\n \r\n608.33 12,476.01 \r\n \r\n358,965.54 18,506.12 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 12,289,050.00 $ 14,884,134.09 $ 116,941.84 $ 15,001,075.93 \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- 29 - \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\nJune 13, 2013 \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 Toombs 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 the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Toombs County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Toombs County Board of Education's basic financial statements and have issued our report thereon dated June 13, 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. \r\nInternal Control Over Financial Reporting \r\nManagement of Toombs County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Toombs 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 Toombs County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Toombs County Board of Education's internal control over financial reporting. \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. \r\n \r\n2012YB-10 \r\n \r\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. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Toombs 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. \r\nThis report is intended solely for the information and use of management, members of the Toombs County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012YB-10 \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\nJune 13, 2013 \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 Toombs County Board of Education \r\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 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited Toombs 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. Toombs 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 Toombs County Board of Education's management. Our responsibility is to express an opinion on Toombs County Board of Education's compliance based on our audit. \r\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 Toombs 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 Toombs County Board of Education's compliance with those requirements. \r\nIn our opinion, the Toombs 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. \r\n \r\n2012SA-10 \r\n \r\n  Internal Control Over Compliance \r\nManagement of Toombs 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 Toombs 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 Toombs 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. \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 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. \r\nThis report is intended solely for the information and use of management, members of the Toombs County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012SA-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  TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2012 \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; Aggregate Remaining Fund Information \r\n \r\nUnqualified \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\nUnqualified \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 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nYes \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-b2010-h2011-belec-p-btext","title":"Toombs County Board of Education, Lyons, 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, Toombs County, 32.12172, -82.33129"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2011-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009; ceased with: Fiscal year ended June 30, 2020.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed July 21, 2023).","Fiscal year ended June 30, 2020 (online surrogate) (Georgia Government Publications database, viewed July 21, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Toombs County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Toombs County--Auditing--Periodicals.","Education--Georgia--Toombs County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Toombs County Board of Education, Lyons, 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-bt6-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt6-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"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"TOOMBS COUNTY BOARD OF EDUCATION \r\nLYONS, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n(Including Independent Auditor's Reports) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \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 ASSETS \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 ASSETS \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 ASSETS \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 \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 \r\n23 24 26 \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 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\n27 29 \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 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 \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  Russell W. Hinton \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\nMarch 2, 2012 \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 Toombs County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \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 Toombs 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 Toombs County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\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. \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 Toombs 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. \r\nThe Toombs County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\n2011ARL-11 \r\n \r\n  In accordance with Government Auditing Standards, we have also issued our report dated March 2, 2012, on our consideration of the Toombs 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. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 23 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, 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. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Toombs 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. \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\nRWH:as 2011ARL-11 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable Deposits and Deferred Revenues \r\nTotal Liabilities NET ASSETS Invested in Capital Assets Restricted for Continuation of Federal Programs Capital Projects Other Unrestricted Total Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n7,268,006.00 \r\n \r\n19,958.22 \r\n \r\n858,956.04 2,072,154.14 \r\n722,810.53 6,184.92 \r\n59,402.66 1,524,806.40 32,127,271.65 \r\n \r\n$ \r\n \r\n44,659,550.56 \r\n \r\n$ \r\n \r\n23,861.26 \r\n \r\n3,184,935.19 \r\n \r\n680.00 \r\n \r\n$ \r\n \r\n3,209,476.45 \r\n \r\n$ \r\n \r\n33,652,078.05 \r\n \r\n620,150.15 3,731,299.51 \r\n247,202.86 3,199,343.54 \r\n \r\n$ \r\n \r\n41,450,074.11 \r\n \r\n$ \r\n \r\n44,659,550.56 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2011 \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 \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n17,994,942.53 \r\n \r\n1,026,896.28 890,271.87 353,907.68 390,606.11 \r\n1,271,182.04 232,963.77 \r\n1,377,913.08 1,074,160.75 \r\n9,028.08 184,951.12 \r\n \r\n115,579.84 $ 1,858,886.23 \r\n \r\n$ \r\n \r\n26,781,289.38 $ \r\n \r\n126,611.30 296,590.11 \r\n423,201.41 \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 ASSETS \r\n \r\n$ \r\n \r\n14,077,421.92 \r\n \r\n427,253.41 842,580.93 373,532.89 721,926.29 923,630.15 \r\n610.51 930,353.72 615,399.68 $ \r\n20.32 184,950.46 \r\n \r\n1,460,054.73 \r\n \r\n$ \r\n \r\n20,557,735.01 $ \r\n \r\n$ 152,584.00 152,584.00 $ \r\n \r\n-3,917,520.61 \r\n-599,642.87 -47,690.94 19,625.21 331,320.18 \r\n-347,551.89 -232,353.26 -447,559.36 -306,177.07 \r\n-9,007.76 -0.66 \r\n11,031.46 -102,241.39 \r\n-5,647,768.96 \r\n \r\n$ \r\n \r\n3,572,433.59 \r\n \r\n8,400.62 \r\n \r\n2,290,734.74 30,636.10 \r\n1,564,709.00 20,819.04 \r\n532,371.87 \r\n \r\n$ \r\n \r\n8,020,104.96 \r\n \r\n$ \r\n \r\n2,372,336.00 \r\n \r\n39,077,738.11 \r\n \r\n$ \r\n \r\n41,450,074.11 \r\n \r\n- 3 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2011 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n2,029,312.57 $ \r\n \r\n19,958.22 \r\n \r\n650,371.27 2,072,154.14 \r\n722,810.53 6,184.92 \r\n59,402.66 \r\n \r\n5,238,693.43 $ 208,584.77 \r\n \r\n7,268,006.00 19,958.22 \r\n858,956.04 2,072,154.14 \r\n722,810.53 6,184.92 \r\n59,402.66 \r\n \r\n$ \r\n \r\n5,560,194.31 $ \r\n \r\n5,447,278.20 $ \r\n \r\n11,007,472.51 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n23,861.26 \r\n \r\n3,184,935.19 \r\n \r\n326,867.31 \r\n \r\n$ \r\n \r\n3,535,663.76 \r\n \r\n$ \r\n \r\n23,861.26 \r\n \r\n3,184,935.19 \r\n \r\n326,867.31 \r\n \r\n$ \r\n \r\n3,535,663.76 \r\n \r\n$ \r\n \r\n59,402.66 \r\n \r\n807,950.35 $ \r\n \r\n125,105.27 \r\n \r\n1,032,072.27 \r\n \r\n$ \r\n \r\n2,024,530.55 $ \r\n \r\n$ 3,731,299.51 1,715,978.69 \r\n5,447,278.20 $ \r\n \r\n59,402.66 4,539,249.86 1,841,083.96 1,032,072.27 \r\n7,471,808.75 \r\n \r\n$ \r\n \r\n5,560,194.31 $ \r\n \r\n5,447,278.20 $ \r\n \r\n11,007,472.51 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \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 Assets 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 Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nProperty taxes that are not available to pay for current period expenditures are deferred in the funds. \r\n \r\n$ 7,471,808.75 \r\n \r\n$ 1,144,872.40 379,934.00 \r\n1,685,507.23 34,296,195.37 \r\n3,673,338.48 -7,527,769.43 \r\n \r\n33,652,078.05 \r\n \r\n326,187.31 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 41,450,074.11 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 \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 \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n3,572,932.72 \r\n \r\n30,636.10 $ \r\n \r\n16,739,471.89 \r\n \r\n5,535,556.12 \r\n \r\n423,201.41 \r\n \r\n13,724.65 \r\n \r\n532,371.87 \r\n \r\n$ \r\n \r\n26,847,894.76 $ \r\n \r\n$ 2,290,734.74 \r\n7,094.39 2,297,829.13 $ \r\n \r\n3,572,932.72 2,321,370.84 16,739,471.89 5,535,556.12 \r\n423,201.41 20,819.04 \r\n532,371.87 \r\n29,145,723.89 \r\n \r\n$ \r\n \r\n17,553,636.30 \r\n \r\n1,025,645.90 898,146.73 336,497.14 389,113.24 \r\n1,250,000.97 231,437.96 \r\n1,355,067.90 $ 1,075,450.26 \r\n9,028.08 188,418.73 \r\n91,925.65 1,817,856.00 \r\n \r\n$ \r\n \r\n26,222,224.86 $ \r\n \r\n$ \r\n \r\n625,669.90 $ \r\n \r\n1,398,860.65 \r\n \r\n$ \r\n1,490.57 \r\n324,195.20 325,685.77 $ 1,972,143.36 $ 3,475,134.84 \r\n \r\n17,553,636.30 \r\n1,025,645.90 898,146.73 336,497.14 389,113.24 \r\n1,250,000.97 231,437.96 \r\n1,356,558.47 1,075,450.26 \r\n9,028.08 188,418.73 \r\n91,925.65 1,817,856.00 \r\n324,195.20 \r\n26,547,910.63 \r\n2,597,813.26 \r\n4,873,995.49 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n2,024,530.55 $ \r\n \r\n5,447,278.20 $ \r\n \r\n7,471,808.75 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n TOOMBS 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, 2011 \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\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 2,597,813.26 \r\n \r\n$ 513,032.22 -744,946.25 \r\n \r\n-231,914.03 7,901.49 -1,464.72 \r\n \r\n$ 2,372,336.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2011 \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\n88,985.58 \r\n \r\n$ \r\n \r\n88,985.58 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Toombs County Board of Education, a public 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 Toombs County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \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 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: \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 Special Purpose Local Option Sales Tax (SPLOST) that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n \r\n- 9 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \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 (governmental and fiduciary) financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \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\nThe State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1  June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \r\n \r\n- 10 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCASH AND CASH EQUIVALENTS Composition 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 Composition 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 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: \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 \r\ngovernment 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\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risk, 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 Toombs County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on July 30, 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 Toombs County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes \r\n- 11 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\ncollected 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 $3,564,532.10. \r\n \r\nThe tax millage rate levied for the 2010 tax year (calendar year) for the Toombs County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n11.514 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $2,290,734.74 and is to be used for capital outlay for educational purposes (including the purchase of buses). This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years. \r\nINVENTORIES \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, (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\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 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\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements and proprietary funds are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Buses Intangible Assets \r\nSoftware Easements Patents, Trademarks, Copyrights \r\n \r\nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 \r\n$ 150,000.00 $ 100,000.00 $ 100,000.00 \r\n \r\n- 12 - \r\n \r\nN/A 20 to 80 years Up to 80 years \r\n5 to 25 years 8 to 14 years \r\nEvaluated case by case Evaluated case by case Evaluated case by case \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \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\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\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\nInvested in capital assets - This represents the School District's total investment in capital assets. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs and capital projects in accordance with restrictions imposed by external third parties. \r\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. \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. Assigned  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 Superintendent, or Chief Financial Officer, 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- 13 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Bus Replacement Capital Projects Continuation of Federal Programs Charter School Contract Continuation of State Programs \r\nAssigned General Fund, Other Local Capital Outlay Programs School Activity Accounts Capital Projects \r\nUnassigned \r\n \r\n$ \r\n \r\n$ \r\n \r\n89,501.51 \r\n \r\n3,731,299.51 \r\n \r\n560,747.49 \r\n \r\n70,845.65 \r\n \r\n86,855.70 \r\n \r\n$ \r\n \r\n9,114.23 \r\n \r\n11,769.74 \r\n \r\n104,221.30 \r\n \r\n1,715,978.69 \r\n \r\nFund Balance, June 30, 2011 \r\n \r\n$ \r\n \r\n59,402.66 \r\n4,539,249.86 \r\n1,841,083.96 1,032,072.27 7,471,808.75 \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 of not less than 1% of annual operating expenditures, not to exceed 15% of the total budget of the subsequent fiscal year, in compliance with Official Code of Georgia Annotated Section 20-2-167(a)5. If the unassigned fund balance at fiscal year end falls below the goal, the School District shall develop a restoration plan to achieve and maintain the minimum fund balance. \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: DEPOSITS \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 \r\nwithin the State of Georgia, \r\n \r\n- 14 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \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 \r\nStates or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or \r\nmunicipalities of the State of Georgia, \r\n5. 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\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the \r\nState of Georgia, and \r\n7. 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 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, 2011, the bank balances were $8,794,837.85. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nNOTE 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 15 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2010 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2011 \r\n \r\n$ 1,144,872.40 \r\n \r\n$ \r\n \r\n64,612.00 $ 315,322.00 \r\n \r\n0.00 $ \r\n \r\n1,144,872.40 379,934.00 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ 1,209,484.40 $ 315,322.00 $ \r\n \r\n0.00 $ 1,524,806.40 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 34,296,195.37 3,628,111.26 $ 1,685,507.23 \r\n \r\n197,710.22 $ \r\n \r\n$ 152,483.00 \r\n \r\n34,296,195.37 3,673,338.48 1,685,507.23 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n4,052,789.09 2,131,274.83 \r\n749,777.54 \r\n \r\n438,179.25 237,608.32 \r\n69,158.68 \r\n \r\n151,018.28 \r\n \r\n4,490,968.34 2,217,864.87 \r\n818,936.22 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 32,675,972.40 $ -547,236.03 $ \r\n \r\n1,464.72 $ 32,127,271.65 \r\n \r\nGovernmental Activity Capital Assets - Net $ 33,885,456.80 $ -231,914.03 $ \r\n \r\n1,464.72 $ 33,652,078.05 \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\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\nOther Support Services \r\n \r\nFood Services \r\n \r\nEnterprise Operations \r\n \r\n$ \r\n1,198.20 2,481.73 16,731.05 1,435.71 20,348.62 1,467.40 38,089.89 173,141.47 \r\n514.90 \r\n \r\n$ \r\n \r\n427,329.31 \r\n255,408.97 39,459.38 22,748.59 \r\n744,946.25 \r\n \r\nNOTE 6: 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\n \r\n- 16 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. 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, and crime risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \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\n2010 $ 2011 $ \r\n \r\n1,980.00 $ 0.00 $ \r\n \r\n6,754.16 $ 3,442.04 $ \r\n \r\n8,734.16 $ 3,442.04 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1,000,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Company with a loss fund percentage of 100%, based on the Fund's annual normal premium, up to a maximum limit of indemnity of aggregate limit of $2,000,000.00. \r\n \r\n- 17 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Each Athletic Director Each Drivers Education Teacher All Employees \r\n \r\n$ \r\n \r\n30,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n2,500.00 \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nNOTE 7: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $54,171.81 in 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 Non-Certificated Personnel In the amount of $36,765.81 \r\n \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 $17,406.00 \r\n \r\nNOTE 8: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed \r\n \r\nby the School District as of June 30, 2011: \r\n \r\nUnearned \r\n \r\nExecuted \r\n \r\nProject \r\n \r\nContracts \r\n \r\nLane Changes for the Middle and High Schools \r\n \r\n$ \r\n \r\n576,864.91 \r\n \r\nThe amount described in this note is not reflected in the basic financial statements. \r\nNOTE 9: 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 10: 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 \r\n \r\n- 18 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nagencies. 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. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \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 \"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. \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, 2011: \r\nFor certificated teachers, librarians and regional educational service agencies: \r\n \r\nJuly 2010 - April 2011 May 2011 - June 2011 \r\n \r\n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \r\n \r\n$162.72 per member per month $218.20 per member per month $246.20 per member per month \r\n \r\nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \r\n \r\nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\n2011 2010 2009 \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,557,777.20 2,485,405.15 1,907,256.72 \r\n \r\n- 19 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 11: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \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, 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. \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\n2011 2010 2009 \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n1,551,972.13 1,549,155.71 1,505,834.98 \r\n \r\n- 20 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \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- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2011 \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\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\n$ \r\n \r\n3,930,863.21 $ \r\n \r\n3,930,863.21 $ \r\n \r\n3,572,932.72 \r\n \r\n37,920.34 \r\n \r\n37,920.34 \r\n \r\n30,636.10 \r\n \r\n16,268,095.95 \r\n \r\n16,268,095.95 \r\n \r\n16,739,471.89 \r\n \r\n5,647,289.00 \r\n \r\n6,244,844.00 \r\n \r\n5,535,556.12 \r\n \r\n337,000.00 \r\n \r\n337,000.00 \r\n \r\n423,201.41 \r\n \r\n26,265.00 \r\n \r\n26,265.00 \r\n \r\n13,724.65 \r\n \r\n904,256.50 \r\n \r\n904,256.50 \r\n \r\n532,371.87 \r\n \r\n$ \r\n \r\n27,151,690.00 $ \r\n \r\n27,749,245.00 $ \r\n \r\n26,847,894.76 \r\n \r\n$ \r\n \r\n18,913,212.69 $ \r\n \r\n19,088,860.09 $ \r\n \r\n17,553,636.30 \r\n \r\n994,401.10 1,127,393.55 \r\n368,477.59 377,059.20 1,293,023.62 357,348.20 1,586,910.48 1,434,223.63 \r\n11,831.24 193,526.82 \r\n1,803,578.40 \r\n \r\n1,190,058.03 1,065,395.55 \r\n368,477.59 462,696.20 1,301,513.02 365,348.20 1,586,930.48 1,462,319.63 \r\n11,531.24 211,562.82 \r\n1,803,578.40 \r\n \r\n1,025,645.90 898,146.73 336,497.14 389,113.24 \r\n1,250,000.97 231,437.96 \r\n1,355,067.90 1,075,450.26 \r\n9,028.08 188,418.73 \r\n91,925.65 1,817,856.00 \r\n \r\n$ \r\n \r\n28,460,986.52 $ \r\n \r\n28,918,271.25 $ \r\n \r\n26,222,224.86 \r\n \r\n$ \r\n \r\n-1,309,296.52 $ \r\n \r\n-1,169,026.25 $ \r\n \r\n625,669.90 \r\n \r\n1,313,544.80 \r\n \r\n1,313,544.80 \r\n \r\n1,398,860.65 \r\n \r\n-89,214.46 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4,248.28 $ \r\n \r\n55,304.09 $ \r\n \r\n2,024,530.55 \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. \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- 23 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2011 \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 Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U.S. Department of Education Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\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 \r\nTotal Title I, Part A Cluster \r\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 Migrant Education - State Grant Program Rural Education Safe and Drug-Free Schools and Communities - State 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\n10.553 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 1,671,393.99 (1) \r\n1,671,393.99 \r\n \r\n10.558 \r\n \r\nN/A $ \r\n \r\n(2) 1,671,393.99 \r\n \r\n84.318 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n6,070.60 \r\n \r\n* 84.391 * 84.392 * 84.027 * 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n379,386.61 43.00 \r\n432,940.15 18,203.01 \r\n830,572.77 \r\n \r\n* 84.389 * 84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n616,762.00 1,414,009.02 \r\n2,030,771.02 \r\n \r\n84.048 * 84.410 \r\n84.365 84.367 84.011 84.358 84.186 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n34,170.63 599,276.00 \r\n24,449.56 209,318.99 310,813.05 \r\n75,887.92 11,670.00 \r\n1,265,586.15 \r\n4,133,000.54 \r\n \r\nTotal Federal Financial Assistance N/A = Not Available \r\n \r\n$ \r\n \r\n5,804,394.53 \r\n \r\n- 24 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2011 \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 $122,181.11. \r\n(2) Expenditures for the funds earned on Child and Adult Care Food Program ($13,478.90) and the School Breakfast Program ($315,420.46) were not maintained separately and are included in the 2011 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 Toombs 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- 25 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \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 Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Health Insurance Math and Science Supplement Preschool Handicapped Program Public Transportation - State School Bonds \r\nOffice of State Treasurer Public School Employees Retirement \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n950,175.51 \r\n \r\n838,018.51 326,986.00 1,912,006.00 909,183.69 1,128,107.00 414,454.00 101,767.00 1,939,427.00 1,608,106.13 487,700.00 2,532,789.00 271,705.86 137,769.00 147,209.00 282,689.81 342,327.00 103,731.00 \r\n66,448.00 \r\n519,072.00 737,221.00 791,441.00 \r\n464,642.00 59,716.00 7,318.00 \r\n1,564,709.00 54,868.00 69,423.20 \r\n-2,314,330.00 \r\n3,601.00 36,765.81 \r\n8,725.37 65,710.00 152,584.00 \r\n17,406.00 \r\n$ 16,739,471.89 \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"4\" \r\n \r\nSPLOST PROJECT \r\nSPLOST #1: \r\ni. Acquisition, Construction, and Equipping of new Toombs County Middle School \r\nii. Renovations of Toombs County High School \r\nSPLOST #1 Totals \r\nSPLOST #2: \r\ni. Develop, construct, and furnish a new Lyons Upper Elementary School (3rd-5th grades) to accommodate approximately 600 students \r\nii. Modification/Renovation of Lyons Primary School \r\niii. Repair and/or replacement of the Toombs Central Roof \r\niv. Purchase of Additional Buses for the School System \r\nSPLOST #2 Totals \r\nSPLOST #3 \r\ni. Constructing and equipping a new or replacement Toombs County High School \r\nii. Constructing and equipping a new or replacement Toombs Central School \r\niii. Constructing additions to and/or renovating, modifying, and equipping the existing Toombs County High School for further instructional use \r\niv. Constructing additions to and/or renovating, modifying, and equipping existing school system facilities and making critical infrastructure improvements to existing facilities \r\nTotal SPLOST #3 \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 \r\nIN PRIOR YEARS (3) \r\n \r\nPROJECT STATUS \r\n \r\n$ 6,203,000.00 $ 13,650,000.00 $ \r\n \r\n60,313.18 $ 13,366,844.68 Ongoing \r\n \r\n675,000.00 \r\n \r\n750,000.00 \r\n \r\n$ 6,878,000.00 $ 14,400,000.00 $ \r\n \r\n61,137.19 \r\n \r\n679,662.32 Ongoing \r\n \r\n121,450.37 $ 14,046,507.00 \r\n \r\n$ 9,481,500.00 $ 9,610,075.15 $ \r\n \r\n4,264.04 $ 9,452,756.15 Ongoing \r\n \r\n255,000.00 \r\n \r\n126,605.85 \r\n \r\n5,275.73 \r\n \r\nOngoing \r\n \r\n157,500.00 \r\n \r\n157,319.00 \r\n \r\n157,319.00 Completed \r\n \r\n610,000.00 \r\n \r\n610,000.00 \r\n \r\n$ 10,504,000.00 $ 10,504,000.00 $ \r\n \r\n414,087.00 Ongoing 9,539.77 $ 10,024,162.15 \r\n \r\n$ 9,800,000.00 $ 9,800,000.00 $ 194,695.63 $ \r\n \r\n64,612.80 Ongoing \r\n \r\n7,650,000.00 \r\n \r\n7,650,000.00 \r\n \r\nNot Yet Begun \r\n \r\n2,000,000.00 \r\n \r\n2,000,000.00 \r\n \r\nNot Yet Begun \r\n \r\n310,000.00 \r\n \r\n310,000.00 \r\n \r\n$ 19,760,000.00 $ 19,760,000.00 $ \r\n \r\n194,695.63 $ \r\n \r\nNot Yet Begun 64,612.80 \r\n \r\nTOTAL OF ALL SPLOST PROJECTS \r\n \r\n$ 37,142,000.00 $ 44,664,000.00 $ 325,685.77 $ 24,135,281.95 \r\n \r\n- 27 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"4\" \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 Toombs County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n TOOMBS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \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 Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \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\n870,326.00 $ \r\n \r\n796,447.83 $ \r\n \r\n2,903.13 $ \r\n \r\n799,350.96 \r\n \r\n360,757.00 \r\n \r\n418,401.72 \r\n \r\n418,401.72 \r\n \r\n2,099,177.00 \r\n \r\n1,922,010.41 \r\n \r\n3,496.41 \r\n \r\n1,925,506.82 \r\n \r\n917,840.00 \r\n \r\n1,065,533.97 \r\n \r\n1,065,533.97 \r\n \r\n1,234,258.00 \r\n \r\n1,281,916.41 \r\n \r\n1,261.23 \r\n \r\n1,283,177.64 \r\n \r\n438,476.00 331,374.00 1,863,096.00 1,618,266.00 537,160.00 2,727,093.00 \r\n270,962.00 148,554.00 160,341.00 285,898.00 \r\n \r\n458,134.32 \r\n1,858,566.38 2,002,511.54 \r\n402,547.99 \r\n121,175.14 713,114.15 1,377,309.76 334,126.32 \r\n58,342.84 261,087.29 \r\n9,474.07 107,118.43 398,462.30 \r\n \r\n8,159.82 12,765.25 29,621.42 \r\n511.00 65.50 \r\n6,532.91 355.10 \r\n \r\n458,134.32 \r\n1,866,726.20 2,015,276.79 \r\n432,169.41 \r\n121,175.14 713,114.15 1,377,820.76 334,191.82 \r\n58,342.84 267,620.20 \r\n9,474.07 107,473.53 398,462.30 \r\n \r\n$ \r\n \r\n13,863,578.00 $ 13,586,280.87 $ \r\n \r\n65,671.77 $ 13,651,952.64 \r\n \r\n373,153.00 72,382.00 \r\n \r\n335,045.25 97.32 \r\n \r\n480.00 11,334.26 \r\n \r\n335,525.25 11,431.58 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n14,309,113.00 $ 13,921,423.44 $ \r\n \r\n77,486.03 $ 13,998,909.47 \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- 29 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Russell W. Hinton \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\nMarch 2, 2012 \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 Toombs 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 the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Toombs County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Toombs County Board of Education's basic financial statements and have issued our report thereon dated March 2, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nManagement of Toombs County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Toombs 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 Toombs County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Toombs County Board of Education's internal control over financial reporting. \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. \r\n \r\n2011YB-10 \r\n \r\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. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Toombs 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. \r\nThis report is intended solely for the information and use of management, members of the Toombs County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:as 2011YB-10 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n  Russell W. Hinton \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\nMarch 2, 2012 \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 Toombs County Board of Education \r\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 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited Toombs 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. Toombs 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 Toombs County Board of Education's management. Our responsibility is to express an opinion on Toombs County Board of Education's compliance based on our audit. \r\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 Toombs 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 Toombs County Board of Education's compliance with those requirements. \r\nIn our opinion, the Toombs 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. \r\n \r\n2011SA-10 \r\n \r\n  Internal Control Over Compliance \r\nManagement of Toombs 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 Toombs 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 Toombs 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. \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 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. \r\nThis report is intended solely for the information and use of management, members of the Toombs County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:as 2011SA-10 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 \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; Aggregate Remaining Fund Information \r\n \r\nUnqualified \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\nUnqualified \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\n84.010, 84.389 84.027, 84.173, 84.391, 84.392 84.410 \r\n \r\nTitle I, Part A Cluster Special Education Cluster Education Jobs Fund \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\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. 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