{"response":{"docs":[{"id":"dlg_ggpd_1391081290-2025-01-06","title":"Annual financial report, fiscal year 2024, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report.","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2025-01-06"],"dcterms_description":["Began with: Fiscal year 2021.","Report year covers fiscal year.","May have supplement: Salaries and travel reimbursement (Towns County Board of Education, Ga.)","Fiscal year 2021; title from PDF cover (Georgia Government Publications database, viewed July 24, 2023).","Fiscal year 2022 (Georgia Government Publications database, viewed July 24, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Georgia : Georgia Department of Audits \u0026 Accounts, [2022?]-"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Towns County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Towns County--Auditing--Periodicals.","Education--Georgia--Towns County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Annual financial report, fiscal year 2024, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1391081290-2025-01-06"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1391081290-2025-01-06"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2024 \nTowns County Board of Education \nHiawassee, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Towns County Board of Education \n \nTable of Contents \n \nSection I Financial \nIndependent Auditor's Report \n \nRequired Supplementary Information \n \nManagement's Discussion and Analysis \n \ni \n \nExhibits \n \nBasic Financial Statements \n \nGovernment-Wide Financial Statements \n \nA \n \nStatement of Net Position \n \n1 \n \nB \n \nStatement of Activities \n \n2 \n \nFund Financial Statements \n \nC \n \nBalance Sheet \n \nGovernmental Funds \n \n3 \n \nD \n \nReconciliation of the Governmental Funds Balance Sheet \n \nto the Statement of Net Position \n \n4 \n \nE \n \nStatement of Revenues, Expenditures and Changes in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG \n \nNotes to the Basic Financial Statements \n \n8 \n \nSchedules \n \nRequired Supplementary Information \n \n1 Schedule of Proportionate Share of the Net Pension Liability \n \nTeachers Retirement System of Georgia \n \n33 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n34 \n \n3 Schedule of Proportionate Share of the Net Pension Liability \n \nPublic School Employees Retirement System of Georgia \n \n35 \n \n Required Supplementary Information (Continued) \n \n4 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n36 \n \n5 Schedule of Contributions  School OPEB Fund \n \n37 \n \n6 Notes to the Required Supplementary Information \n \n38 \n \n7 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n39 \n \nSupplementary Information \n \n8 Schedule of Expenditures of Federal Awards \n \n40 \n \n9 Schedule of State Revenue \n \n42 \n \n10 Schedule of Approved Local Option Sales Tax Projects \n \n44 \n \nSection II \nCompliance and Internal Control Reports \nIndependent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards \n \nIndependent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance \n \nSection III Auditee's Response to Prior Year Findings and Questioned Costs \nSummary Schedule of Prior Audit Findings \n \nSection IV Findings and Questioned Costs \nSchedule of Findings and Questioned Costs \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2024, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or \n \n historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. \nSupplementary Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated January 6, 2025 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nGreg S. Griffin State Auditor \nJanuary 6, 2025 \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nINTRODUCTION \nThe Towns County Board of Education's (School District) financial statements for the fiscal year ended June 30, 2024 includes a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2024 are as follows: \nOn the government-wide financial statements: \n The School District's net position at June 30, 2024 was $7.6 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation/amortization) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2024 of $7.6 million represented a modest decrease of almost $335,000 when compared to the prior year. \n The School District had almost $22.4 million in expenses relating to governmental activities; about $8.7 million of the $22.4 million in expenses were offset by program specific charges for services, grants and contributions. The general revenues (primarily property and sales taxes) and special items of almost $13.4 million were not quite adequate to provide for these programs. Net unrestricted net position from prior years was used to provide the required supplemental funding for these expenses. \n As stated above, general revenues and special items accounted for almost $13.4 million or about 60.7% of all revenues totaling just over $22.0 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place.) \ni \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nSource of Revenues \n \nGeneral Revenue Property Taxes 38.0% General Revenue Sales Taxes 19.4% \n \nProgram Revenues 39.3% \n \nGeneral Revenue All Other 3.3% \n \nOn the fund financial statements: \n Among major funds, the general fund had $21.3 million in revenues and almost $21.2 million in combined expenditures, other financing sources (uses) and special items. The general fund balance of $9.8 million at June 30, 2024 increased roughly $98,000 from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \nThe government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `governmental funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Towns County School District, the general fund and capital projects fund are all considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \n \nii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nGovernment-Wide Statements \nSince Towns County School District has no operations that have been classified as \"Business Activities\", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the governmentwide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all of the School District's assets, deferred outflows, liabilities and deferred inflows. These accounts use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate/amortized capital assets and intangible right-to-use assets  Report long-term debt, including pension and post-employment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the accrual \nbasis of accounting  Allocate net position as follows: \no Net Investment in capital assets o Restricted net position is amounts with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detailed information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \nThe School District has one kind of fund as discussed below: \nGovernmental Funds  The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which \niii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nmeasures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position- as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \nIn the case of the Towns County School District, assets, deferred outflows of resources exceeded liabilities and deferred inflows of resources by $ 7.6 million at June 30, 2024. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $7.6 million of net position, almost $1.2 million was restricted for continuation of various state and federal programs, and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \nIn addition, the School District had $20.6 million (net of related debt) invested in capital assets and intangible right-to-use assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \niv \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nBecause of the restrictions on net position as discussed above, the School District had an unrestricted (deficit) of $14.1 million at June 30, 2024. The reader should remember this deficit includes pension related charges recorded because of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB Statement No. 68; and also includes charges recorded because of GASB Statement No. 75, Accounting and Financial reporting for Post-employment Benefits Other than Pensions. The School District believes it is also meaningful to view the School District's Net Position in the following manner: \n \nNet Position associated with pension obligations \n \n$ (11,646,424) \n \nNet position associated with post-employment benefits other than pension obligations \n \n(12,521,641) \n \nNet position exclusive of pension obligations and post-employment benefits \n \n31,816,608 \n \nNet position, June 30, 2024 \n \n$ \n \n7,648,543 \n \nThe above analysis reflects, despite pension obligations and post-employment benefits, the School District's net position is a positive $7.6 million and management believes the School District's financial position is sound. \n \nv \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \n \nTable 1 Net Position \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 \n \nAssets Current and Other Assets Capital Assets, Net \n \n$ \n \n13,364,653 $ 12,817,999 \n \n20,864,761 \n \n20,550,081 \n \nTotal Assets \n \n34,229,414 \n \n33,368,080 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \n \n5,520,181 2,788,346 \n \n8,944,496 2,723,429 \n \nTotal Deferred Outflows of Recourses \n \n8,308,527 \n \n11,667,925 \n \nTotal Assets and Deferred Outflows of Resources \n \n42,537,941 \n \n45,036,005 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities NE Pension Liability Net OPEB Liability \n \n2,210,268 202,537 \n16,800,800 10,332,354 \n \n1,822,723 219,699 \n18,746,696 9,690,065 \n \nTotal Liabilities \n \n29,545,959 \n \n30,479,183 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \n \n365,805 4,977,633 \n \n371,822 6,201,581 \n \nTotal Deferred Inflows of Resources \n \n5,343,438 \n \n6,573,403 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n34,889,397 \n \n37,052,586 \n \nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n20,635,040 1,157,468 \n(14,143,964) \n \n20,456,324 1,011,363 \n(13,484,268) \n \nTotal Net Position \n \n$ \n \n7,648,544 $ \n \n7,983,419 \n \nvi \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nIn connection with the unrestricted deficit at June 30, 2024 as shown above, management presents the following additional information: \n \nTotal unrestricted net position (deficit) \n \n$ (14,143,964) \n \nUnrestricted deficit in net position resulting from recognition of net pension obligations \n \n11,646,424 \n \nUnrestricted deficit in net position resulting from recognition of post-employment benefits other than pension obligations \n \n12,521,641 \n \nUnrestricted net position, exclusive of the net pension obligation and post-employment benefits effect \n \n$ 10,024,101 \n \nThe above analysis shows that the recognition of liabilities for pension obligations and post-employment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \n \nvii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \nTotal Program Revenues \nGeneral Revenues: Property Taxes Sales Taxes Investment Earnings Miscellaneous \nSpecial Items Gain (Loss) on Disposal of Capital Assets Repayment on Prior Year Property Taxes \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 \n \n$ \n \n280,355 $ 299,561 \n \n8,029,021 \n \n7,474,968 \n \n352,440 \n \n77,220 \n \n8,661,816 \n \n7,851,749 \n \n8,380,371 4,267,764 \n409,081 510,558 \n6,629 (196,681) \n \n7,994,948 3,329,546 \n215,794 420,616 \n(29,087) - \n \nTotal General Revenues and Special Items \nTotal Revenues and Special Items \nProgram Expenses: Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \nTotal Expenses \nChange in Net Position \n \n13,377,722 22,039,538 \n \n11,931,817 19,783,566 \n \n13,636,584 11,847,139 \n \n1,943,772 320,775 373,942 490,482 \n1,028,576 267,082 \n2,036,026 979,628 679 135,911 \n \n1,732,086 256,250 372,535 442,328 982,077 249,107 \n1,757,291 790,480 1,197 93,132 \n \n193,440 956,346 \n5,391 5,780 \n \n147,378 21,738 \n986,576 1,651 \n \n22,374,414 19,680,965 \n \n$ \n \n(334,876) $ 102,601 \n \nviii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services, charges for services, and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \nTable 3 Cost of Services \n \nTotal Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 \n \nNet Cost of Services \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 \n \nInstruction Support Services \nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \n \n$ 13,636,584 \n1,943,772 320,775 373,942 490,482 \n1,028,576 267,082 \n2,036,026 979,628 679 135,911 \n193,440 5,391 \n956,346 5,780 \n \n11,847,139 \n1,732,086 256,250 372,535 442,328 982,077 249,107 \n1,757,291 790,480 1,197 93,132 \n147,378 21,738 \n986,576 1,651 \n \n9,192,553 \n1,667,768 187,285 188,837 134,346 457,518 72,573 \n1,122,126 322,514 91,562 \n110,432 5,391 \n153,913 5,780 \n \n7,534,221 \n1,435,165 94,148 \n210,385 40,554 \n461,188 69,823 \n1,097,749 425,336 92,955 \n70,423 21,738 273,880 \n1,651 \n \nTotal Expenses \n \n$ 22,374,414 $ 19,680,965 $ 13,712,598 $ 11,829,216 \n \nThe overall School District expenses increased almost $2.7 million from the prior year while the net costs of providing those services increased by about $1.9 million. The variance in increased expenses versus program revenues falling short of covering those increased expenses was primarily caused by a net increase in pension and OPEB expenses of almost $683,000 as compared to the prior year. The pension and OPEB benefits expense for both fiscal years was calculated by professional actuaries. \n \nix \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \nThe chart below shows a functional summary of the expenses made by the School District during fiscal year 2024. The percentages are rounded to one decimal place. \nGovernmental Activities -- Cost of Services \n \nInstructional 60.9% \n \nSupport Services \n33.9% \n \nInterest on Debt 0.0% \n \nAll Others \n0.9% Food Services \n4.3% \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $22.1 million and total expenditures of almost $21.9 million in fiscal year 2024. Additionally, the School District was required to refund about $197,000 to the Towns County Tax Commissioner due to overpayments of property taxes in prior years. Total governmental fund balances of almost $10.6 million at June 30, 2024, increased roughly $98,000 from the prior year. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal year 2024, the School District amended its general fund budget as needed. \nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues of $21.3 million exceeded the final budgeted revenues by about $1.8 million. The primary reason total revenues exceeded the total budget is the fact that property taxes exceeded the budget by about $1.3 million. \nThe general fund's final actual expenditures of $20.8 million were less than the final budget by just over $950,000. Most of these savings came in the functions of instruction and student transportation. \nx \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nThese under expenditure indicates the School District did a responsible job in managing taxpayer funds during the fiscal year. \n \nCAPITAL ASSETS, INTANGIBLE RIGHT-TO-USE ASSETS, AND LONG-TERM LIABILITIES \n \nCapital Assets and Intangible Right-to-Use Assets \n \nAt fiscal year ended June 30, 2024, the School District had just over $20.5 million invested in capital assets, net of accumulated depreciation/amortization, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and instructional, food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \nTable 4 Capital Assets at June 30 (Net of Depreciation/Amortization) \n \nGovernmental Activities \n \nFiscal Year 2024 \n \nFiscal Year 2023 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Equipment \n \n$ \n \n951,265 \n \n429,549 \n \n15,743,401 \n \n1,640,568 \n \n2,041,516 \n \n58,462 \n \n$ \n \n951,265 \n \n- \n \n16,112,892 \n \n1,215,515 \n \n2,185,484 \n \n84,925 \n \nTotal \n \n$ 20,864,761 \n \n$ 20,550,081 \n \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nxi \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 \n \nLong Term Liabilities \n \nAt June 30, 2024, the School District had about $202,500 in long-term liabilities outstanding which consisted of about $133,000 in compensated absences and $69,400 in leases. The School District had no bond debt at June 30, 2024. \nTable 5 Change in Long-Term Liabilities \n \nCompensated Absences Leases \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2024 \n \n2023 \n \n$ \n \n133,118 $ \n \n125,942 \n \n69,419 \n \n93,757 \n \n$ \n \n202,537 $ \n \n219,699 \n \nAdditional information about the School District's liabilities can be found in the Notes to the Basic Financial Statements. \n \nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \n \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n \n The School District is financially stable as evidenced by virtually no change in net position from the prior year. The School District's revenues from property taxes increased about $372,000 from the prior year even though the millage rate was reduced from 6.55 mills to 5.995 mills for fiscal year 2024. State funds also increased from the prior year by $826,000. The School District's student enrollment has remained fairly stable, however the School District still plans to construct a new Agricultural facility in the near future estimated to cost about $4.3 million and will be partially funded with state funds of about $1.7 million. \n \n The local economy remained fairly stagnate during fiscal year 2024. The School District's revenues from its local option sales tax for education increased only about $113,000 or about 3% from the prior year. The general fund had an unassigned fund balance of just over $9.2 million at June 30, 2024, which is an increase of about $130,000 from the prior year. \n \n The School District anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. \n \nxii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2024 CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mrs. Myra Underwood, Finance Director for Towns County Board of Education, 67 Lakewood Circle, Suite C, Hiawassee, Georgia 30546. You may also email your questions to Mrs. Underwood at Myra@townscountyschools.org. \nxiii \n \n Towns County Board of Education \n \n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2024 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation/Amortization) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nContinuation of State and Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n10,801,369.96 \n \n1,556,209.95 624,332.35 323,723.16 13,860.84 45,156.67 \n1,380,814.00 19,483,947.00 34,229,413.93 \n \n5,520,181.00 2,788,346.00 8,308,527.00 \n \n101,351.43 1,948,615.38 \n148,943.13 11,359.00 \n16,800,800.00 10,332,354.00 \n26,025.64 176,510.88 29,545,959.46 \n \n365,805.00 4,977,633.00 5,343,438.00 \n \n20,635,039.95 \n \n271,489.18 885,978.61 (14,143,964.27) \n \n$ \n \n7,648,543.47 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2024 \n \nEXHIBIT \"B\" \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services \n \nInterest on Long-Term Debt \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \n13,636,584.52 $ \n1,943,772.45 320,774.77 373,941.61 490,482.01 \n1,028,575.83 267,081.86 \n2,036,025.75 979,628.27 678.68 135,910.97 \n193,439.90 5,391.23 \n956,346.31 5,779.56 \n \n57,889.86 $ \n- \n83,008.00 - \n139,456.68 - \n \n4,386,141.59 $ \n276,004.18 133,489.86 185,104.62 356,136.50 571,057.86 194,509.09 913,899.75 304,674.10 \n678.68 44,348.56 \n662,976.70 - \n \n- $ \n352,440.00 - \n- \n \n(9,192,553.07) \n(1,667,768.27) (187,284.91) (188,836.99) (134,345.51) (457,517.97) (72,572.77) \n(1,122,126.00) (322,514.17) (91,562.41) \n(110,431.90) (5,391.23) \n(153,912.93) (5,779.56) \n \nTotal Governmental Activities \n \n$ \n \n22,374,413.72 $ \n \n280,354.54 $ \n \n8,029,021.49 $ \n \n352,440.00 \n \n(13,712,597.69) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Local Option Sales Tax Other Sales Tax Investment Earnings Miscellaneous \nSpecial Items Gain on Disposal of Capital Assets Repayment of Prior Year Taxes Total General Revenues and Special Items \n \n8,380,371.29 \n825,314.06 3,338,567.28 \n103,882.89 409,081.08 510,558.48 \n6,628.50 (196,680.92) 13,377,722.66 \n \nChange in Net Position \n \n(334,875.03) \n \nNet Position - Beginning of Year \n \n7,983,418.50 \n \nNet Position - End of Year \n \n$ \n \n7,648,543.47 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n ASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories Prepaid Items \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \nFUND BALANCES Nonspendable Restricted Committed Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nTOWNS COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2024 \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nEXHIBIT \"C\" TOTAL \n \n$ \n \n10,203,980.23 $ \n \n1,253,251.93 624,332.35 323,723.16 13,860.84 45,156.67 \n \n$ \n \n12,464,305.18 $ \n \n597,389.73 $ \n302,958.02 - \n900,347.75 $ \n \n10,801,369.96 \n1,556,209.95 624,332.35 323,723.16 13,860.84 45,156.67 \n13,364,652.93 \n \n$ \n \n86,982.29 $ \n \n1,948,615.38 \n \n- \n \n- \n \n2,035,597.67 \n \n14,369.14 $ - \n148,943.13 11,359.00 \n174,671.27 \n \n101,351.43 1,948,615.38 \n148,943.13 11,359.00 \n2,210,268.94 \n \n598,041.82 \n \n- \n \n598,041.82 \n \n59,017.51 257,628.34 307,157.72 9,206,862.12 9,830,665.69 \n \n725,676.48 \n725,676.48 \n \n59,017.51 983,304.82 307,157.72 9,206,862.12 10,556,342.17 \n \n$ \n \n12,464,305.18 $ \n \n900,347.75 $ \n \n13,364,652.93 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2024 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Construction in progress Buildings and improvements Equipment Land improvements Right-to-use assets Accumulated depreciation and amortization \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. Lease liability payable Compensated absences payable \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n10,556,342.17 \n \n$ \n \n951,265.00 \n \n429,549.00 \n \n22,507,404.00 \n \n3,199,997.00 \n \n3,972,357.00 \n \n105,852.00 \n \n(10,301,663.00) \n \n20,864,761.00 \n \n$ \n \n(16,800,800.00) \n \n(10,332,354.00) \n \n(27,133,154.00) \n \n$ \n \n5,154,376.00 \n \n(2,189,287.00) \n \n2,965,089.00 598,041.82 \n \n$ \n \n(69,418.92) \n \n(133,117.60) \n \n(202,536.52) \n \n$ \n \n7,648,543.47 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2024 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Sale of Capital Assets Transfers In Transfers Out Total Other Financing Sources (Uses) \nSPECIAL ITEM Towns County Tax Commissioner Overpayment of Property Taxes \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n8,318,791.87 $ \n \n3,442,450.17 \n \n5,545,606.41 \n \n2,789,480.08 \n \n280,354.54 \n \n384,028.13 \n \n510,558.48 \n \n21,271,269.68 \n \n- $ 825,314.06 \n25,052.95 850,367.01 \n \n8,318,791.87 4,267,764.23 5,545,606.41 2,789,480.08 \n280,354.54 409,081.08 510,558.48 22,121,636.69 \n \n12,128,565.74 \n1,823,424.00 306,191.77 373,527.61 455,506.55 949,556.82 247,473.86 \n1,938,469.31 1,251,013.00 \n678.68 135,910.97 193,439.90 \n5,391.23 961,457.81 \n30,955.00 \n24,337.92 5,779.56 \n20,831,679.73 439,589.95 \n \n227,158.50 \n14,101.45 2.46 - \n147,170.08 176,671.00 \n7,274.48 446,836.40 \n1,019,214.37 (168,847.36) \n \n12,355,724.24 \n1,837,525.45 306,191.77 373,527.61 455,509.01 949,556.82 247,473.86 \n2,085,639.39 1,427,684.00 \n678.68 135,910.97 193,439.90 \n5,391.23 968,732.29 477,791.40 \n24,337.92 5,779.56 \n21,850,894.10 270,742.59 \n \n23,467.50 - \n(168,464.79) (144,997.29) \n \n168,464.79 \n168,464.79 \n \n23,467.50 168,464.79 (168,464.79) \n23,467.50 \n \n(196,680.92) \n \n97,911.74 \n \n9,732,753.95 \n \n$ \n \n9,830,665.69 $ \n \n(382.57) 726,059.05 725,676.48 $ \n \n(196,680.92) 97,529.17 \n10,458,813.00 10,556,342.17 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2024 \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense - buildings Depreciation expense - equipment Depreciation expense - land improvements Depreciation expense - right-to-use equipment \nIn the Statement of Activities, only the loss on the sale or disposal of the capital assets equipment is reported, whereas in the governmental funds, the entire proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balances by the carrying value of the capital assets sold or disposed of. \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Unavailable property taxes June 30, 2023 June 30, 2024 \nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences June 30, 2023 June 30, 2024 \nRepayment of long-term debt is reported as expenditures in the governmental funds but repayment reduces long-term liabilities in the Statement of Net Position Lease liability payments \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n$ \n \n1,113,048.00 \n \n(424,359.00) \n \n(161,879.00) \n \n(168,828.00) \n \n(26,463.00) \n \n$ \n \n(536,462.40) \n \n598,041.82 \n \n$ \n \n(1,472,402.00) \n \n646,576.00 \n \n$ \n \n125,942.06 \n \n(133,117.60) \n \n$ \n \nEXHIBIT \"F\" 97,529.17 \n331,519.00 (16,839.00) 61,579.42 \n(825,826.00) (7,175.54) 24,337.92 \n(334,875.03) \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Towns County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBasis of Presentation \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGovernment-Wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \n1. Net investment in capital assets consists of the School District's total investment in capital \nassets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \n2. Restricted net position consists of resources for which the School District is legally or \ncontractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n- 7 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements \nThe fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \nBasis of Accounting \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except leases and compensated absences, which are \n \n- 8 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nrecognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNew Accounting Pronouncements \nIn fiscal year 2024, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 100, Accounting Changes and Error Corrections. The objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent and comparable information for making decisions or assessing accountability. The adoption of this statement did not have a material impact on the School District's financial statements. This statement will be applied prospectively. \nCash and Cash Equivalents \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nReceivables \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nInventories \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \n- 9 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nPrepaid Items \n \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \n \nCapital Assets \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \n \nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \n \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand Land Improvements Buildings Buildings Improvements Equipment Intangible Assets \n \nAll \n \nN/A \n \n$ \n \n20,000.00 \n \n10 to 60 years \n \n$ \n \n100,000.00 \n \n10 to 60 years \n \n$ \n \n5,000.00 \n \n10 to 60 years \n \n$ \n \n10,000.00 \n \n8 to 25 years \n \n$ \n \n100,000.00 \n \nIndividually determined \n \nIntangible Right-To-Use Assets \nLeases, as a lessee, are included as intangible right-to-use assets and lease obligations on the Statement of Net Position. An intangible right-to-use asset represents the School District's right to use an underlying asset for the lease term. Lease obligations represent the School District's liability to make lease payments arising from the lease agreement. Intangible right-to-use assets and lease obligations are recognized based on the present value of lease payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease liability. Intangible rightto-use assets are amortized using a straight-line basis over the shorter of the lease term or useful life of the underlying asset. \n \n- 10 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nCapitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows: \nCapitalization Policy \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings \n \n$ \n \nBuilding Improvements \n \n$ \n \nEquipment \n \n$ \n \nSoftware \n \n$ \n \nAll 20,000.00 100,000.00 \n5,000.00 10,000.00 100,000.00 \n \nLeases as Lessee \nThe School District is a lessee for noncancellable leases of copiers and printers owned by third parties. \nAt the commencement of a lease, the School District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The right-to-use lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the lease term. \nKey estimates and judgments related to leases include how the School District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments: \nThe lease term includes the noncancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments the School District will make over the lease term. \nThe School District monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and lease liability if certain changes occur that are expected to significantly affect the amount of the lease liability. \nLease assets are reported with other capital assets and lease liabilities are reported with current and long-term debt on the Statement of Net Position. \nDeferred Outflows/Inflows of Resources \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \n \n- 11 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nCompensated Absences \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. \nSick leave may vest with the employee in certain situations. Incentive pay is defined as any sick leave earned that is not eligible to be used in calculating an employee's retirement benefits. Employees are eligible to be paid incentive pay up to a maximum of 60 days. These payments are made at a rate of $50.00 per day for certified employees and $6.25 per hour for classified employees. \nIncentive pay benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal year-end. \nLong-Term Liabilities \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. \nPensions \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPost-Employment Benefits Other than Pensions (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nFund Balances \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \n \n- 12 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \nUse of Estimates \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \nProperty Taxes \nThe Towns County Board of Commissioners adopted the property tax levy for the 2023 tax digest year (calendar year) on October 26, 2023 (levy date) based on property values as of January 1, 2023. Taxes were due on January 10, 2024 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2023 tax digest are reported as revenue in the governmental funds for fiscal year 2024. The Towns County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2024, for maintenance and operations amounted to $8,318,791.87. \nThe tax millage rate levied for the 2023 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n5.995 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in the property taxes shown above, amounted to $1,021,626.56 during fiscal year ended June 30, 2024. \n- 13 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nSales Taxes \nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $3,338,567.28 and was recorded in the general fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $825,314.06 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The current authorization expires March 31, 2029. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \nThe Superintendent is authorized by the Board to approve adjustments as long as they do not exceed the aggregate level of expenditures for any fund. Any position or expenditure not previously approved in the annual budget that exceeds the aggregate level shall require Board approval. 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 the approval by the Board. \nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during fiscal year under review. \nNOTE 4: DEPOSITS \nCollateralization of Deposits \nO.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the \n \n- 14 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \ndeduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCategorization of Deposits \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2024, School District had deposits with a carrying amount of $10,801,369.96 and a bank balance of $11,457,334.32. The bank balances insured by Federal depository insurance were $500,000.00. \nAt June 30, 2024, $10,957,334.32 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Fund (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \n \n- 15 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \nNOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS \nThe following is a summary of changes in the capital assets and intangible right-to-use assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nBalances July 1, 2023 \n \nIncreases \n \nDecreases \n \nBalances June 30, 2024 \n \n$ \n \n951,265.00 $ \n \n- $ \n \n- \n \n429,549.00 \n \n- $ - \n \n951,265.00 429,549.00 \n \nTotal Capital Assets Not Being Depreciated \n \n951,265.00 \n \n429,549.00 \n \n- \n \n1,380,814.00 \n \nCapital Assets, Being Depreciated/Amortized Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Assets - Equipment \nLess Accumulated Depreciation/Amortization: Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Assets - Equipment \n \n22,452,536.00 2,929,348.00 3,947,497.00 105,852.00 \n6,339,644.00 1,713,833.00 1,762,013.00 \n20,927.00 \n \n54,868.00 603,771.00 \n24,860.00 - \n424,359.00 161,879.00 168,828.00 \n26,463.00 \n \n333,122.00 \n- \n316,283.00 \n- \n \n22,507,404.00 3,199,997.00 3,972,357.00 105,852.00 \n6,764,003.00 1,559,429.00 1,930,841.00 \n47,390.00 \n \nTotal Capital Assets, Being Depreciated/Amortized, Net \n \n19,598,816.00 \n \n(98,030.00) \n \n16,839.00 \n \n19,483,947.00 \n \nGovernmental Activities Capital Assets - Net \n \n$ 20,550,081.00 $ 331,519.00 $ 16,839.00 $ 20,864,761.00 \n \n- 16 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nCurrent year depreciation and amortization expense by function is as follows: \n \nDepreciation \n \nAmortization \n \nTotal \n \nInstruction \n \n$ \n \nSupport Services \n \nEducational Media Services \n \nSchool Administration \n \nMainetnance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n604,329.00 $ \n2,294.00 2,887.00 23,794.00 108,142.00 13,620.00 \n \n26,463.00 $ \n- \n \n630,792.00 \n2,294.00 2,887.00 23,794.00 108,142.00 13,620.00 \n \n$ \n \n755,066.00 $ \n \n26,463.00 $ \n \n781,529.00 \n \nNOTE 6: INTERFUND TRANSFERS \n \nInterfund transfers for the year ended June 30, 2024, consisted of the following: \n \nTransfers to \n \nTransfers From General Fund \n \nCapital Projects Fund \n \n$ 168,464.79 \n \nTransfers are used to move property tax revenues collected by the general fund to capital projects fund as supplemental funding source for capital construction projects. \n \nNOTE 7: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2023 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions June 30, 2024 \n \nDue Within One Year \n \nLeases \n \n$ \n \nCompensated Absences (1) \n \n93,756.84 $ 125,942.06 \n \n- $ 82,414.35 \n \n24,337.92 $ 75,238.81 \n \n69,418.92 $ 133,117.60 \n \n26,025.64 - \n \n$ 219,698.90 $ 82,414.35 $ 99,576.73 $ \n \n202,536.52 $ \n \n26,025.64 \n \n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \nLeases \nThe School District has acquired various copiers and printers under the provisions of various contracts that convey control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as leases for accounting purposes. \n \n- 17 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2024: \nGovernmental Activities \n \nEquipment \n \n$ \n \nLess: Accumulated Amortization \n \n105,852.00 47,390.00 \n \n$ \n \n58,462.00 \n \nLeases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nLease MMSA29914270 Lease MLA32761360 \n \n5.00% 7.50% \n \n2/1/2022 6/1/2023 \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \n1/1/2026 $ 5/1/2027 \n \n30,780.42 $ 75,071.82 \n \n12,869.37 56,549.55 \n \n$ \n \nThe following is a schedule of total lease payments: \nFiscal Year Ended June 30: \n \nPrincipal \n \n105,852.24 $ Interest \n \n69,418.92 \n \n2025 2026 2027 \n \n$ \n \n26,025.64 $ \n \n24,274.98 \n \n19,118.30 \n \n4,091.84 2,312.95 \n724.38 \n \nTotal Principal and Interest \n \n$ \n \n69,418.92 $ \n \n7,129.17 \n \nCompensated Absences \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \n \nNOTE 8: RISK MANAGEMENT \n \nInsurance \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \n \nGeorgia School Boards Association Risk Management Fund \nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber \n \n- 18 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nrisk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \n \nWorkers' Compensation \n \nGeorgia School Boards Association Workers' Compensation Fund \n \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000.00 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \n \nUnemployment Compensation \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and the related liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has paid no unemployment compensation claims during the last two fiscal years. \n \nSurety Bond \n \nThe School District purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n50,000.00 \n \n- 19 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2024: \n \nNonspendable \n \nInventories \n \n$ \n \nPrepaid Assets \n \nRestricted \n \nContinuation of State Programs \n \n$ \n \nContinuation of Federal Programs \n \nCapital Projects \n \nCommitted \n \nSchool Activity Accounts \n \nUnassigned \n \n13,860.84 45,156.67 $ \n1,603.25 256,025.09 725,676.48 \n \n59,017.51 \n983,304.82 307,157.72 9,206,862.12 \n \nFund Balance, June 30, 2024 \n \n$ \n \n10,556,342.17 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \n \nNOTE 10: SIGNIFICANT COMMITMENTS \n \nCommitments under Construction Contracts \n \nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2024. \n \nProject \n \nUnearned Executed Contracts (1) \n \nExpenditures through \nJune 30, 2024 (2) \n \nNew Agricultural Facility \n \n$ \n \n4,143,717.56 $ \n \n429,664.56 \n \n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \n \nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \nFederal Grants \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \n- 20 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGeorgia School Personnel Post-Employment Health Benefit Fund \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $379,998.00 for the year ended June 30, 2024. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2024, the School District reported a liability of $10,332,354.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2023. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2022. An expected total OPEB liability as of June 30, 2023 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2023. At June 30, 2023, the School District's proportion was 0.094330%, which was a decrease of 0.003518% from its proportion measured as of June 30, 2022. \n \n- 21 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nFor the year ended June 30, 2024, the School District recognized OPEB expense of ($266,578.00). At June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n301,171.00 $ 2,967,573.00 \n \nChanges of assumptions \n \n1,877,186.00 \n \n1,290,354.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n6,199.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n223,792.00 \n \n719,706.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n379,998.00 \n \n- \n \nTotal \n \n$ 2,788,346.00 $ 4,977,633.00 \n \nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2025 2026 2027 2028 2029 Thereafter \n \n$ \n \n(798,214.00) \n \n$ \n \n(684,999.00) \n \n$ \n \n(766,190.00) \n \n$ \n \n(329,390.00) \n \n$ \n \n3,902.00 \n \n$ \n \n5,606.00 \n \n- 22 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2022 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2023: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nHealthcare cost trend rate \n \n7.00% \n \nUltimate trend rate \n \n4.50% \n \nYear of Ultimate trend rate \n \n2032 \n \nThe Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows: \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General \nEmployee Mortality Table, with no adjustment, with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Postretirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 104% for males and 99% for females) with the MP-2019 Projection scale applied generationally. \nThe actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \n- 23 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2022 valuation were based on a review of recent plan experience done concurrently with the June 30, 2022 valuation. \n \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTarget Allocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n1.50% 9.40% \n \nTotal \n \n100.00% \n \n* Net of inflation \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 3.68% was used as the discount rate, as compared with last year's rate of 3.57%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (3.65% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2128. \n \n- 24 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.68%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.68%) or 1-percentage-point higher (4.68%) than the current discount rate: \n \n1% Decrease (2.68%) \n \nCurrent Discount Rate (3.68%) \n \n1% Increase (4.68%) \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ \n \n11,712,200.00 $ \n \n10,332,354.00 $ \n \n9,170,232.00 \n \nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share \n \nof the Net OPEB liability \n \n$ \n \n8,899,953.00 $ \n \n10,332,354.00 $ \n \n12,098,195.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 13: RETIREMENT PLANS \n \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \n \nTeachers Retirement System of Georgia (TRS) \n \nPlan Description: All teachers of the School District as defined in O.C.G.A. 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \n \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and \n \n- 25 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \ncompensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. 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 2024. The School District's contractually required contribution rate for the year ended June 30, 2024 was 19.98% of annual School District payroll, of which 19.62% of payroll was required from the School District and 0.36% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,756,972.00 and $32,785.70 from the School District and the State, respectively. \nPublic School Employees Retirement System (PSERS) \nPlan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \nBenefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $16.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $36,118.00. \n \n- 26 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \nAt June 30, 2024, the School District reported a liability of $16,800,800 for its proportionate share of the net pension liability for TRS. \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n$ 16,800,800.00 323,882.00 \n \nTotal \n \n$ 17,124,682.00 \n \nThe net pension liability for TRS was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected total pension liability as of June 30, 2023 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2023. \nAt June 30, 2023, the School District's TRS proportion was 0.056905%, which was a decrease of 0.000827% from its proportion measured as of June 30, 2022. \nAt June 30, 2024, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $215,816.00. \nThe PSERS net pension liability was measured as of June 30, 2023. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2022. An expected total pension liability as of June 30, 2023 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2023. \nFor the year ended June 30, 2024, the School District recognized pension expense of $3,305,701.00 for TRS, $38,952.00 for PSERS and revenue of $76,327.00 for TRS and $38,952.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n \n- 27 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nAt June 30, 2024, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual experience \n \n$ 853,122.00 $ 69,466.00 \n \nChanges of assumptions \n \n1,728,442.00 \n \n- \n \nNet difference between projected and actual earnings \n \non pension plan investments \n \n1,181,645.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n- \n \n296,339.00 \n \nSchool District contributions subsequent to the measurement date \n \n1,756,972.00 \n \n- \n \nTotal \n \n$ 5,520,181.00 $ 365,805.00 \n \nThe School District contributions subsequent to the measurement date for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \n2025 2026 2027 2028 \n \n$ \n \n969,245.00 \n \n$ \n \n617,294.00 \n \n$ 2,242,540.00 \n \n$ \n \n(431,675.00) \n \n- 28 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total pension liability as of June 30, 2023 was determined by an actuarial valuation as of June 30, 2022, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, average, including inflation \n \nInvestment rate of return \n \n6.90%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases \n \n1.50% semi-annually \n \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n \nThe actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \n \nPublic School Employees Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases Investment rate of return \nPost-retirement benefit increases \n \nN/A \n7.00%, net of pension plan investment expense, including inflation 1.50% semi-annually \n \n- 29 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Membership Table \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nService Retirees \n \nGeneral Healthy Below- Male: +2; Female: +2 Median Annuitant \n \nMale: 101%; Female: 103% \n \nDisability Retirees General Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Contingent Survivors \n \nMale: +2; Female: +2 \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTRS/PSERS Target \nAllocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 46.30% \n1.20% 12.30% \n5.20% 5.00% \n \n0.90% 9.40% 13.40% 9.40% 11.40% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total PSERS pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \n- 30 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2024 \n \nEXHIBIT \"G\" \n \nSensitivity of the School District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 6.90%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (5.90%) \n \nCurrent Discount Rate (6.90%) \n \n1% Increase (7.90%) \n \nSchool District's proportionate share of \n \nthe net pension liability \n \n$ \n \n26,564,019.00 $ \n \n16,800,800.00 $ \n \n8,827,817.00 \n \nPension Plan Fiduciary Net Position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \n \nNOTE 14: SPECIAL ITEMS \n \nDuring fiscal year 2024, the School District sold or otherwise disposed certain capital assets. These items were removed from the capital assets records at their net carrying values and combined with the proceeds received resulted in a net gain of $6,628.50. This amount is reflected as a net gain on disposal of capital assets and is reported as a special item on Exhibit B of this report. \n \nDuring fiscal year 2024, the Towns County Tax Commissioner notified the School District that it had overpaid property taxes in the amount of $196,680.92 to the School District in prior years. During fiscal year 2024, the School District refunded $188,530.53 to the Tax Commissioner and recorded the remaining $8,150.39 as accounts payable to be refunded in fiscal year 2025. \n \n- 31 - \n \n (This page left intentionally blank) \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.056905% $ 16,800,800.00 $ 0.057732% $ 18,746,696.00 $ 0.058243% $ 5,151,205.00 $ 0.059588% $ 14,434,546.00 $ 0.060230% $ 12,951,079.00 $ 0.060334% $ 11,199,283.00 $ 0.059298% $ 11,020,716.00 $ 0.059138% $ 12,200,829.00 $ 0.061321% $ 9,335,513.00 $ 0.064451% $ 8,142,534.00 $ \n \n323,882.00 $ 17,124,682.00 $ 8,435,302.52 347,125.00 $ 19,093,821.00 $ 7,951,530.89 \n96,226.00 $ 5,247,431.00 $ 7,719,448.95 265,010.00 $ 14,699,556.00 $ 7,823,587.60 238,680.00 $ 13,189,759.00 $ 7,486,814.56 142,000.00 $ 11,341,283.00 $ 7,277,264.22 161,506.00 $ 11,182,222.00 $ 6,915,146.60 207,343.00 $ 12,408,172.00 $ 6,600,638.78 151,936.00 $ 9,487,449.00 $ 6,603,774.14 123,431.00 $ 8,265,965.00 $ 6,674,890.70 \n \n199.17% 235.76% \n66.73% 184.50% 172.99% 153.89% 159.37% 184.84% 141.37% 121.99% \n \n76.29% 72.85% 92.03% 77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \n \n- 33 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2024 \n \n$ \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n1,756,972.00 $ 1,657,555.00 $ 1,547,124.00 $ 1,444,342.00 $ 1,624,090.00 $ 1,536,231.00 $ 1,206,536.00 $ \n971,856.00 $ 925,672.00 $ 854,546.01 $ \n \n1,756,972.00 $ 1,657,555.00 $ 1,547,124.00 $ 1,444,342.00 $ 1,624,090.00 $ 1,536,231.00 $ 1,206,536.00 $ \n971,856.00 $ 925,672.00 $ 854,546.01 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n8,955,170.41 8,435,302.52 7,951,530.89 7,719,448.95 7,823,587.60 7,486,814.56 7,277,264.22 6,915,146.60 6,600,638.78 6,603,774.14 \n \n19.62% 19.65% 19.46% 18.71% 20.76% 20.52% 16.58% 14.05% 14.02% 12.94% \n \n- 34 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n215,816.00 $ 283,401.00 $ \n28,128.00 $ 198,138.00 $ 190,880.00 $ 171,802.00 $ 159,287.00 $ 200,056.00 $ 131,772.00 $ 110,827.00 $ \n \n215,816.00 $ 283,401.00 $ \n28,128.00 $ 198,138.00 $ 190,880.00 $ 171,802.00 $ 159,287.00 $ 200,056.00 $ 131,772.00 $ 110,827.00 $ \n \n519,587.49 490,680.80 439,645.75 493,172.88 480,380.96 481,151.68 480,506.73 438,416.25 369,299.00 331,400.00 \n \nN/A \n \n85.67% \n \nN/A \n \n81.21% \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \n \nN/A \n \n85.02% \n \nN/A \n \n85.26% \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \n \n- 35 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"4\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate \nshare of the NOL associated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position \nas a percentage of \nthe total OPEB liability \n \n2024 2023 2022 2021 2020 2019 2018 \n \n0.094330% $ 10,332,354.00 $ 0.097848% $ 9,690,065.00 $ 0.096689% $ 10,472,219.00 $ 0.098155% $ 14,416,684.00 $ 0.101776% $ 12,490,099.00 $ 0.100676% $ 12,795,611.00 $ 0.094939% $ 13,338,891.00 $ \n \n- \n \n$ 10,332,354.00 $ 8,219,828.62 \n \n- \n \n$ 9,690,065.00 $ 7,827,078.36 \n \n- \n \n$ 10,472,219.00 $ 7,642,280.06 \n \n- \n \n$ 14,416,684.00 $ 7,765,958.08 \n \n- \n \n$ 12,490,099.00 $ 7,563,365.36 \n \n- \n \n$ 12,795,611.00 $ 7,392,102.60 \n \n- \n \n$ 13,338,891.00 $ 6,909,485.92 \n \n125.70% 123.80% 137.03% 185.64% 165.14% 173.10% 193.05% \n \n6.05% 6.17% 6.14% 3.99% 4.63% 2.93% 1.61% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 36 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"5\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2024 \n \n$ \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n379,998.00 $ 362,645.00 $ 353,792.00 $ 359,667.00 $ 331,938.00 $ 548,135.00 $ 521,790.00 $ 495,023.00 $ \n \n379,998.00 $ 362,645.00 $ 353,792.00 $ 359,667.00 $ 331,938.00 $ 548,135.00 $ 521,790.00 $ 495,023.00 $ \n \n- \n \n$ \n \n8,850,416.43 \n \n- \n \n$ \n \n8,219,828.62 \n \n- \n \n$ \n \n7,827,078.36 \n \n- \n \n$ \n \n7,642,280.06 \n \n- \n \n$ \n \n7,765,958.08 \n \n- \n \n$ \n \n7,563,365.36 \n \n- \n \n$ \n \n7,392,102.60 \n \n- \n \n$ \n \n6,909,485.92 \n \n4.29% 4.41% 4.52% 4.71% 4.27% 7.25% 7.06% 7.16% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 37 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%. \nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2022 valuation: The tobacco use assumption and aging factors were revised. \nJune 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, to 2.22% as of June 30, 2020, to 2.20% as of June 30, 2021, to 3.57% as of June 30, 2022, and to 3.68% as of June 30, 2023. \n- 38 - \n \n TOWNS COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"7\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operation Community Services Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES(USES) Sale of Capital Assets Other Sources Other Uses Total Other Financing Sources (Uses) \nSPECIAL ITEM Repayment of Prior Year Taxes \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n7,000,000.00 $ \n \n7,000,000.00 $ \n \n8,318,791.87 $ \n \n2,900,000.00 \n \n3,600,000.00 \n \n3,442,450.17 \n \n5,185,069.00 \n \n5,439,527.00 \n \n5,545,606.41 \n \n2,534,555.00 \n \n2,800,717.00 \n \n2,789,480.08 \n \n150,000.00 \n \n150,000.00 \n \n280,354.54 \n \n200,000.00 \n \n300,000.00 \n \n384,028.13 \n \n200,000.00 \n \n200,000.00 \n \n510,558.48 \n \n18,169,624.00 \n \n19,490,244.00 \n \n21,271,269.68 \n \n1,318,791.87 (157,549.83) 106,079.41 \n(11,236.92) 130,354.54 \n84,028.13 310,558.48 1,781,025.68 \n \n12,305,976.00 \n1,933,125.00 263,712.00 439,372.00 483,474.00 \n1,036,870.00 274,119.00 \n2,077,896.00 1,480,262.00 \n3,500.00 15,000.00 \n985,683.00 - \n21,298,989.00 (3,129,365.00) \n \n12,434,004.00 \n1,945,387.00 313,045.00 442,602.00 481,011.00 \n1,046,559.00 276,272.00 \n1,956,005.00 1,597,487.00 \n1,173.00 242,309.00 \n1,005,297.00 43,000.00 \n21,784,151.00 (2,293,907.00) \n \n12,128,565.74 \n1,823,424.00 306,191.77 373,527.61 455,506.55 949,556.82 247,473.86 \n1,938,469.31 1,251,013.00 \n678.68 135,910.97 193,439.90 \n5,391.23 961,457.81 \n30,955.00 \n24,337.92 5,779.56 \n20,831,679.73 439,589.95 \n \n188,120.00 (188,120.00) \n- \n \n339,730.00 (1,939,730.00) (1,600,000.00) \n \n23,467.50 - \n(168,464.79) (144,997.29) \n \n- \n \n- \n \n(3,129,365.00) \n \n(3,893,907.00) \n \n9,673,337.28 \n \n9,673,337.28 \n \n12,316.62 \n \n(1,058.93) \n \n$ \n \n6,556,288.90 $ \n \n5,778,371.35 $ \n \n(196,680.92) 97,911.74 \n9,732,753.95 - \n9,830,665.69 $ \n \n305,438.26 \n121,963.00 6,853.23 \n69,074.39 25,504.45 97,002.18 28,798.14 17,535.69 346,474.00 \n494.32 106,398.03 (193,439.90) \n(5,391.23) 43,839.19 12,045.00 \n(24,337.92) (5,779.56) \n952,471.27 2,733,496.95 \n23,467.50 (339,730.00) 1,771,265.21 1,455,002.71 \n(196,680.92) \n3,991,818.74 \n59,416.67 \n1,058.93 \n4,052,294.34 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $356,840.13 and $374,531.35, respectively. \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. See notes to the basic financial statements. \n \n- 39 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of \nChild Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program COVID-19 - National School Lunch Program Total Child Nutrition Cluster \nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \nOther Programs Pass-Through From Georgia Department of Education Food Services Local Food for Schools Cooperative Agreement Program State Administrative Expenses for Child Nutrition Total U. S. Department of Agriculture \nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural and Low-Income School Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 10.555 \n \n245GA324N1199 $ 245GA324N1199 225GA324N1099 \n \n167,292.02 534,775.02 \n29,891.39 731,958.43 \n \n10.665 \n \n468 Forest \n \n27,107.81 \n \n10.185 10.560 \n \nAM23CPLFS000C018 245GA904N2533 \n \n4,175.68 4,161.33 767,403.25 \n \n84.425D 84.425U 84.425W \n \nS425D210012 S425U210012 S425W210011 \n \n12,174.00 \n1,105,352.09 \n22,416.30 1,139,942.39 \n \n84.027A 84.027A 84.173A \n \nH027A210073 H027A220073 H173A220081 \n \n84.048A 84.358B 84.424A 84.367A 84.367A 84.010A 84.010A \n \nV048A230010 S358F230010 S424A230011 S367A220001 S367A230001 S010A220010 S010A230010 \n \n29,727.00 251,255.70 \n6,126.00 287,108.70 \n27,695.00 31,837.00 100,000.00 13,077.17 36,416.35 32,982.00 340,379.18 582,386.70 2,009,437.79 \n \n- 40 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Head Start Cluster Pass-Through From Ninth District Opportunity, Inc. Head Start \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.600 \n \n04CH0104150200 $ \n \n166,341.67 2,943,182.71 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Towns County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \nNote 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \nNote 3. Indirect Cost Rate The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \nNote 4. Transfers Between Programs Funds totaling $24,730.00 were transferred from the Student Academic Enrichment program (ALN 84.424A) and expended in the Title I Grants to the Local Education Agencies program (ALN 84.010A) during Fiscal Year 2024. \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2024 \nAGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Sparsity Other State Programs Career, Technical and Agricultural Education (CTEA) Dyslexia Services Grant Food Services Hygiene Products Math and Science Supplements One Time Adjustment Preschool Disability Services Pupil Transportation - State Bonds School Security Grant Teachers Retirement Vocational Supervisor Office of the State Treasurer Public School Employees Retirement CONTRACT Human Resources, Georgia Department of Family Connections \nSee notes to the basic financial statements. \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n118,830.98 \n \n234,229.00 7,745.00 \n562,422.00 64,844.00 \n270,360.00 21,491.00 \n498,891.00 401,041.00 196,735.00 983,017.00 \n59,207.00 (433.00) \n35,615.00 20,438.00 82,546.00 25,813.00 12,823.00 \n516.00 \n250,367.00 255,583.00 135,064.00 \n \n224,003.00 45,414.00 \n122,699.00 \n64,358.00 2,120.00 \n22,592.00 523.00 \n13,376.73 131,413.00 \n50,900.00 352,440.00 150,000.00 \n32,785.70 7,219.00 \n36,118.00 \n \n52,500.00 \n \n$ \n \n5,545,606.41 \n \n- 42 - \n \n (This page left intentionally blank) \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Remodeling, renovating, modifying, furnishing, and equipping schools buildings, classrooms, instructional and support space, kitchens, auditoriums, and other facilities (including physical education/athletic facilities) at existing School District facilities; \n(2) Acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \n(3) Acquiring and installing energy savings equipment and technology; \n(4) Acquiring and/or improving land for School District facilities; \n(5) Acquiring books, digital resources, and other media for the School District; \n(6) Purchasing school buses or other vehicles; and \n(7) Payment of expenses incident to accomplishing the foregoing. Subtotal 2016 Projects \nSPLOST 2024 (1) Adding to, remodeling, renovating, improving, and equipping existing schools buildings, properties, and facilities including, but not limited to, stadium improvements, flooring, paving, HVAC, and bleachers; \n(2) Acquiring property, both real and personal; acquiring, constructing, and equipping new school building and facilities; \n(3) Acquiring instructional and administrative technology improvements; \n(4) Acquiring band instruments; \n(5) Acquiring school buses and other vehicles, transportation and maintenance equipment; \n(6) Acquiring instructional equipment to include textbooks, vocational, physical education, and fine arts equipment; \n(7) Acquiring real property; and \n(8) Acquiring safety and security technology and improvements. Subtotal 2024 Projects \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n4,000,000.00 $ \n \n11,418,563.00 \n \n6/30/2025 \n \n1,000,000.00 2,000,000.00 \n- \n900,000.00 500,000.00 100,000.00 8,500,000.00 \n \n2,500,000.00 500,000.00 10,000.00 \n900,000.00 500,000.00 \n90,000.00 15,918,563.00 \n \n6/30/2025 6/30/2025 6/30/2025 \n6/30/2025 6/30/2025 6/30/2025 \n \n5,000,000.00 \n \n5,000,000.00 \n \n5,000,000.00 1,500,000.00 \n100,000.00 \n \n5,000,000.00 1,500,000.00 \n100,000.00 \n \n500,000.00 \n \n500,000.00 \n \n1,000,000.00 \n \n1,000,000.00 \n \n900,000.00 15,000,000.00 \n \n$ \n \n23,500,000.00 $ \n \n1,000,000.00 \n1,000,000.00 \n900,000.00 15,000,000.00 30,918,563.00 \n \n6/30/2029 \n6/30/2029 6/30/2029 6/30/2029 \n6/30/2029 \n6/30/2029 6/30/2029 6/30/2029 \n \n- 44 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2024 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Remodeling, renovating, modifying, furnishing, and equipping schools buildings, classrooms, instructional and support space, kitchens, auditoriums, and other facilities (including physical education/athletic facilities) at existing School District facilities; \n(2) Acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \n(3) Acquiring and installing energy savings equipment and technology; \n(4) Acquiring and/or improving land for School District facilities; \n(5) Acquiring books, digital resources, and other media for the School District; \n(6) Purchasing school buses or other vehicles; and \n(7) Payment of expenses incident to accomplishing the foregoing. Subtotal 2016 Projects \nSPLOST 2024 (1) Adding to, remodeling, renovating, improving, and equipping existing schools buildings, properties, and facilities including, but not limited to, stadium improvements, flooring, paving, HVAC, and bleachers; \n(2) Acquiring property, both real and personal; acquiring, constructing, and equipping new school building and facilities; \n(3) Acquiring instructional and administrative technology improvements; \n(4) Acquiring band instruments; \n(5) Acquiring school buses and other vehicles, transportation and maintenance equipment; \n(6) Acquiring instructional equipment to include textbooks, vocational, physical education, and fine arts equipment; \n(7) Acquiring real property; and \n(8) Acquiring safety and security technology and improvements. Subtotal 2024 Projects \nTotal \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n$ \n \n60,425.21 $ 10,490,307.76 $ \n \n- $ \n \n- \n \n326,554.80 \n \n1,932,010.40 \n \n- \n \n- \n \n- \n \n8,150.00 \n \n- \n \n- \n \n- \n \n8,405.00 \n \n- \n \n- \n \n32,637.50 \n \n416,206.45 \n \n- \n \n- \n \n176,671.00 \n \n150,382.24 \n \n- \n \n- \n \n2.46 \n \n0.06 \n \n- \n \n- \n \n596,290.97 \n \n13,005,461.91 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n422,923.40 \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n- \n \n422,923.40 \n \n- \n \n- \n \n- \n \n$ 1,019,214.37 $ 13,005,461.91 $ \n \n- $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Towns 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 \nof the projects. \n \nSee notes to the basic financial statements. \n \n- 45 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \nWe have audited the financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated January 6, 2025. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Report on Compliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \nJanuary 6, 2025 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Towns County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2024. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nIn our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \nReport on Internal Control over Compliance \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance \n \n requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \nJanuary 6, 2025 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n TOWNS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2024 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS \nNo matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \nNo matters were reported. \n \n Section IV Findings and Questioned Costs \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2024 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities and Each Major Fund \n \nInternal control over financial reporting:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal control over major programs:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Numbers Assistance Listing Program or Cluster Title \n \n10.553, 10.555 \n \nChild Nutrition Cluster \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nUnmodified No \nNone Reported No \nNo None Reported \nUnmodified No \n$750,000.00 Yes \n \nII FINANCIAL STATEMENT FINDINGS No matters were reported. lll FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n "},{"id":"dlg_ggpd_1391081290-2024-01-11","title":"Annual financial report, 2023 June 30, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report.","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2024-01-11"],"dcterms_description":["Began with: Fiscal year 2021.","Report year covers fiscal year.","May have supplement: Salaries and travel reimbursement (Towns County Board of Education, Ga.)","Fiscal year 2021; title from PDF cover (Georgia Government Publications database, viewed July 24, 2023).","Fiscal year 2022 (Georgia Government Publications database, viewed July 24, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Georgia : Georgia Department of Audits \u0026 Accounts, [2022?]-"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["Towns County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Towns County--Auditing--Periodicals.","Education--Georgia--Towns County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Annual financial report, 2023 June 30, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1391081290-2024-01-11"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1391081290-2024-01-11"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":null,"fulltext":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2023 \nTowns County Board of Education \nHiawassee, Georgia \nIncluding Independent Auditor's Report \nGreg S. Griffin | State Auditor \n \n Towns County Board of Education \n \nTable of Contents \n \nSection I Financial \nIndependent Auditor's Report \n \nRequired Supplementary Information \n \nManagement's Discussion and Analysis \n \ni \n \nExhibits \n \nBasic Financial Statements \n \nGovernment-Wide Financial Statements \n \nA \n \nStatement of Net Position \n \n1 \n \nB \n \nStatement of Activities \n \n2 \n \nFund Financial Statements \n \nC \n \nBalance Sheet \n \nGovernmental Funds \n \n3 \n \nD \n \nReconciliation of the Governmental Funds Balance Sheet \n \nto the Statement of Net Position \n \n4 \n \nE \n \nStatement of Revenues, Expenditures and Changes in Fund Balances \n \nGovernmental Funds \n \n5 \n \nF \n \nReconciliation of the Governmental Funds Statement of \n \nRevenues, Expenditures and Changes in Fund Balances \n \nto the Statement of Activities \n \n6 \n \nG Notes to the Basic Financial Statements \n \n8 \n \nSchedules \n \nRequired Supplementary Information \n \n1 Schedule of Proportionate Share of the Net Pension Liability \n \nTeachers Retirement System of Georgia \n \n33 \n \n2 Schedule of Contributions  Teachers Retirement System of Georgia \n \n34 \n \n3 Schedule of Proportionate Share of the Net Pension Liability \n \nPublic School Employees Retirement System of Georgia \n \n35 \n \n4 Schedule of Proportionate Share of the Net OPEB Liability \n \nSchool OPEB Fund \n \n36 \n \n5 Schedule of Contributions  School OPEB Fund \n \n37 \n \n6 Notes to the Required Supplementary Information \n \n38 \n \n7 Schedule of Revenues, Expenditures and Changes in Fund \n \nBalances - Budget and Actual General Fund \n \n39 \n \n Supplementary Information \n \n8 Schedule of Expenditures of Federal Awards \n \n40 \n \n9 Schedule of State Revenue \n \n42 \n \n10 Schedule of Approved Local Option Sales Tax Projects \n \n44 \n \nSection II \nCompliance and Internal Control Reports \nIndependent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards \nIndependent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance \n \nSection III Auditee's Response to Prior Year Findings and Questioned Costs Summary Schedule of Prior Audit Findings \n \nSection IV Findings and Questioned Costs Schedule of Findings and Questioned Costs \n \n Section I Financial \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \nReport on the Audit of the Financial Statements \nOpinions \nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \nBasis for Opinions \nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \nResponsibilities of Management for the Financial Statements \nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \nAuditor's Responsibilities for the Audit of the Financial Statements \nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \nRequired Supplementary Information \nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or \n \n historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. \nSupplementary Information \nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \nThe supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \nOther Reporting Required by Government Auditing Standards \nIn accordance with Government Auditing Standards, we have also issued our report dated January 11, 2024 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \nRespectfully submitted, \nGreg S. Griffin State Auditor \nJanuary 11, 2024 \n \n (This page left intentionally blank) \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nINTRODUCTION \nThe Towns County Board of Education's (School District) financial statements for the fiscal year ended June 30, 2023 includes a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \nFINANCIAL HIGHLIGHTS \nKey financial highlights for fiscal year 2023 are as follows: \nOn the government-wide financial statements: \n The School District's net position at June 30, 2023 was almost $8.0 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation/amortization) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2023 of $8.0 million represented a very modest increase of almost $103,000 when compared to the prior year. \n The School District had almost $19.7 million in expenses relating to governmental activities; almost $7.9 million of the $19.7 million in expenses were offset by program specific charges for services, grants and contributions. The general revenues (primarily property and sales taxes) and special item of over $11.9 million were adequate to provide for these programs. \n As stated above, general revenues and special item accounted for over $11.9 million or about 60.3% of all revenues totaling $19.8 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place). \n \nSource of Revenues \n \nGeneral Revenue Property Taxes 40.5% \nGeneral Revenue Sales Taxes 16.8% \n \nProgram Revenues 39.6% \n \nGeneral Revenue All Other 3.1% \n \ni \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nOn the fund financial statements: \n Among major funds, the general fund had $19.7 million in revenues and over $18.4 million in expenditures. The general fund balance of $9.7 million at June 30, 2023 increased roughly $1.3 million from the prior year. \nOVERVIEW OF THE FINANCIAL STATEMENTS \nThese financial statements consist of three parts: management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \nThe government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `governmental funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Towns County School District, the general fund and capital projects fund are considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. \nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \nGovernment-Wide Statements \nSince Towns County School District has no operations that have been classified as \"business activities\", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provide the basis for answering this question. These financial statements include all of the School District's assets, deferred outflows, liabilities and deferred inflows. These accounts use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \nii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \n Capitalize current outlays for capital assets  Depreciate/amortized capital assets and intangible right-to-use assets  Report long-term debt, including pension and post-employment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the accrual \nbasis of accounting  Allocate net position as follows: \no Net Investment in Capital Assets o Restricted net position for amounts with constraints placed on the use by external sources \nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use. \nFund Financial Statements \nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detailed information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \nThe School District has one kind of fund as discussed below: \nGovernmental Funds  The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \nNet position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position  as measured in the Statement of Activities  are one indicator of whether its financial health is improving or deteriorating. \niii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nHowever, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \n \nIn the case of the Towns County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by almost $8.0 million at June 30, 2023. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $8.0 million of net position, over $1.0 million was restricted for continuation of various state and federal programs, and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \n \nIn addition, the School District had almost $20.5 million (net of related debt) invested in capital assets and intangible right-to-use assets (e.g., land, buildings, and equipment). The School District uses these capital assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \n \nBecause of the restrictions on net position as discussed above, the School District had an unrestricted (deficit) of about $13.5 million at June 30, 2023. The reader should remember this deficit includes pension related charges recorded because of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB 68; and also includes charges recorded because of GASB Statement No. 75, Accounting and Financial Reporting for Post-employment Benefits Other than Pensions. The School District believes it is also meaningful to view the School District's net position in the following manner: \n \nNet Position associated with pension obligations \n \n$ \n \n(10,174,022) \n \nNet position associated with postemployment benefits other than \n \n(13,168,217) \n \nNet position exclusive of pension obligations and postemployment benefits \n \n31,325,658 \n \nNet position, June 30, 2023 \n \n$ \n \n7,983,419 \n \nThe above analysis reflects, despite pension obligations and postemployment benefits, the School District's net position is a positive $8.0 million and management believes the School District's financial position is sound. \n \niv \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \n \nTable 1 Net Position \n \nAssets Current and Other Assets Capital Assets, Net \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \n$ \n \n12,817,999 $ \n \n11,943,032 \n \n20,550,081 \n \n20,872,956 \n \nTotal Assets \n \n33,368,080 \n \n32,815,988 \n \nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \n \n8,944,496 2,723,429 \n \n3,813,413 2,778,516 \n \nTotal Deferred Outflows of Resources \n \n11,667,925 \n \n6,591,929 \n \nTotal Assets and Deferred Outflows of Resources \n \n45,036,005 \n \n39,407,917 \n \nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \n \n1,822,723 219,699 \n18,746,696 9,690,065 \n \n1,715,742 157,034 \n5,151,205 10,472,219 \n \nTotal Liabilities \n \n30,479,183 \n \n17,496,200 \n \nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \n \n371,822 6,201,581 \n \n7,823,939 6,206,960 \n \nTotal Deferred Inflows of Resources \n \n6,573,403 \n \n14,030,899 \n \nTotal Liabilities and Deferred Inflows of Resources \n \n37,052,586 \n \n31,527,099 \n \nNet Position \n \nNet Investment in Capital Assets Restricted Unrestricted (Deficit) \n \n20,456,324 1,011,363 \n(13,484,268) \n \n20,828,169 1,736,285 \n(14,683,636) \n \nTotal Net Position \n \n$ \n \n7,983,419 $ \n \n7,880,818 \n \nv \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nIn connection with the unrestricted deficit at June 30, 2023 as shown above, management presents the following additional information: \n \nTotal unrestricted net position (deficit) \nUnrestricted deficit in net position resulting from recognition of net pension obligations \n \n$ \n \n(13,484,268) \n \n10,174,022 \n \nUnrestricted deficit in net position resulting from recognition of postemployment benefits other than pension obligations \n \n13,168,217 \n \nUnrestricted net position, exclusive of the net pension obligation and postemployment benefits effect \n \n$ \n \n9,857,971 \n \nThe above analysis shows that the recognition of liabilities for pension obligations and post-employment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \n \nvi \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \n \nTable 2 Change in Net Position \n \nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues \nGeneral Revenues: Property Taxes Sales Taxes Investment Earnings Miscellaneous \nSpecial Item Loss on Disposal of Capital Assets \nTotal General Revenues and Special Item Total Revenues and Special Item \nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt Total Expenses \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \n$ \n \n299,561 $ \n \n150,219 \n \n7,474,968 \n \n7,901,739 \n \n77,220 \n \n- \n \n7,851,749 \n \n8,051,958 \n \n7,994,948 3,329,546 \n215,794 420,616 \n(29,087) 11,931,817 19,783,566 \n \n7,619,917 3,162,951 \n9,903 455,571 \n(321,163) 10,927,179 18,979,137 \n \n11,847,139 \n1,732,086 256,250 372,535 442,328 982,077 249,107 \n1,757,291 790,480 1,197 93,132 \n147,378 21,738 \n986,576 1,651 \n19,680,965 \n \n10,213,453 \n1,240,420 213,936 245,039 353,224 799,143 191,990 \n1,624,798 822,702 86,714 \n119,505 12,923 \n771,935 1,823 \n16,697,605 \n \nIncrease in Net Position \n \n$ \n \n102,601 $ \n \n2,281,532 \n \nvii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nCost of Providing Services \n \nThe Statement of Activities shows the cost of program services, charges for services, and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \n \nTable 3 Cost of Services \n \nTotal Cost of Services \n \nFiscal Year 2023 \n \nFiscal Year 2022 \n \nNet Cost of Services \n \nFiscal Year 2023 \n \nFiscal Year 2022 \n \nInstruction \n \n$ 11,847,139 $ \n \nSupport Services \n \nPupil Services \n \n1,732,086 \n \nImprovement of Instructional Services \n \n256,250 \n \nEducational Media Services \n \n372,535 \n \nGeneral Administration \n \n442,328 \n \nSchool Administration \n \n982,077 \n \nBusiness Administration \n \n249,107 \n \nMaintenance and Operation of Plant \n \n1,757,291 \n \nStudent Transportation Services \n \n790,480 \n \nCentral Support Services \n \n1,197 \n \nOther Support Services \n \n93,132 \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \n147,378 \n \nCommunity Services \n \n21,738 \n \nFood Services \n \n986,576 \n \nInterest on Long-Term Debt \n \n1,651 \n \nTotal Expenses \n \n$ 19,680,965 $ \n \n10,213,453 $ \n1,240,420 213,936 245,039 353,224 799,143 191,990 \n1,624,798 822,702 86,714 \n119,505 12,923 \n771,935 1,823 \n16,697,605 $ \n \n7,534,221 $ \n1,435,165 94,148 \n210,385 40,554 \n461,188 69,823 \n1,097,749 425,336 92,955 \n70,423 21,738 273,880 \n1,651 \n11,829,216 $ \n \n5,677,656 \n979,909 94,841 80,341 \n(103,954) 285,138 \n18,164 1,044,701 \n555,081 - \n86,496 \n62,273 12,923 (149,746) \n1,823 \n8,645,646 \n \nThe overall School District expenses increased by almost $3.0 million from the prior year while the net costs of providing those services increased by about $3.2 million. Both the increase in expenses and net costs of providing services from the prior year is primarily attributable to a net increase in pension and OPEB benefits expense in fiscal year 2023 of $2.2 million. The pension and OPEB benefits expense for both fiscal years was calculated by professional actuaries. \n \nviii \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \nThe chart below shows a functional summary of the expenses made by the School District during fiscal year 2023. The percentages are rounded to one decimal place. \n \nGovernmental Activities - Cost of Services \nInstructional 60.2% \n \nSupport Services \n33.9% \n \nInterest on Debt 0.0% \n \nAll Others Food Service0.s9% \n5.0% \n \nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $19.7 million and total expenditures of almost $19.1 million in fiscal year 2023. Total governmental fund balances of almost $10.5 million at June 30, 2023, increased roughly $720,000 from the prior year. \nGeneral Fund Budget Highlights \nThe School District's budget is prepared according to Georgia law. The most significant budgeted fund is the general fund. During the course of fiscal year 2023, the School District amended its general fund budget as needed. \nThe School District's budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \nFor the general fund, the final actual revenues of $19.7 million exceeded the final budgeted revenues by about $863,000. While revenues for property taxes and sales taxes both exceeded the budgeted amount by about $1.2 million and $0.8 million, respectively, actual federal revenues were $1.4 million under the budgeted amount. The primary reason federal revenues were less than budget is the fact the School District included several ESSER grants in the final budget that will be expended in fiscal year 2024 within its fiscal year 2023 budget. \n \nix \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nThe general fund's final actual expenditures of $18.4 million were less than the final budget by just over $2.1 million. The functions experiencing significant expenditures less than the final budget were instruction by $1.2 million, general administration by $234,000 and maintenance and operation by about $353,000. \n \nCAPITAL ASSETS, INTANGIBLE RIGHT-TO-USE ASSETS AND LONG-TERM LIABILITIES \n \nCapital Assets and Intangible Right-to-Use Assets \n \nAt fiscal year ended June 30, 2023, the School District had over $20.5 million invested in capital assets, net of accumulated depreciation and amortization, all in governmental activities. These assets are made up of a broad range of items including buildings and improvements, land, land improvements, instructional food service, transportation and maintenance equipment, and intangible right-to-use equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \n \nTable 4 Capital Assets at June 30 (Net of Depreciation/Amortization) \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \nLand Construction in Progress Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Equipment \n \n$ \n \n951,265 $ \n \n951,265 \n \n- \n \n128,335 \n \n16,112,892 \n \n16,328,236 \n \n1,215,515 \n \n1,084,016 \n \n2,185,484 \n \n2,328,191 \n \n84,925 \n \n52,913 \n \nTotal \n \n$ 20,550,081 $ 20,872,956 \n \nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \n \nx \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 \n \nLong-Term Liabilities \n \nAt June 30, 2023, the School District had about $220,000 in long-term liabilities outstanding which consisted of about $126,000 in compensated absences and about $94,000 in leases. The School District had no bond debt at June 30, 2023 \n \nTable 5 Change in Long-Term Liabilities \n \nGovernmental Activities \n \nFiscal Year \n \nFiscal Year \n \n2023 \n \n2022 \n \nCompensated Absences Leases \nTotal Long-Term Liabilities \n \n$ \n \n125,942 $ \n \n112,247 \n \n93,757 \n \n44,787 \n \n$ \n \n219,699 $ \n \n157,034 \n \nAdditional information about the School District's liabilities can be found in the Notes to the Basic Financial Statements. \nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \n The School District is financially stable as evidenced by virtually no change in net position from the prior year. The School District's revenues from property taxes, on the fund level, increased about $400,000 from the prior year even though the millage rate was reduced from 6.863 mills to 6.55 mills for fiscal year 2023. The School District's student enrollment has remained fairly stable, however the School District does plan to construct a new agricultural facility in the near future estimated to cost about $2.4 million and will be partially funded with state funds of about $1.7 million. \n The local economy continued to show only modest improvement during fiscal year 2023. The School District's revenues from its local option sales tax for education increased only about $166,000 from the prior year, while the School District's revenues from federal funds decreased about $240,000 or about 8% from the prior year. The decrease in federal funds was mainly due to a reduced amount of COVID-19 assistance provided by the federal government. The general fund had an unassigned fund balance of almost $9.1 million at June 30, 2023, which is an increase of about $1.3 million from the prior year. \n The School District anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. \n \nxi \n \n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2023 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 Mrs. Myra Underwood, Finance Director for Towns County Board of Education, 67 Lakewood Circle, Suite C, Hiawassee, Georgia 30546. You may also email your questions to Mrs. Underwood at myra@townscountyschools.org. \nxii \n \n Towns County Board of Education \n \n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2023 \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation/Amortization) \nTotal Assets \nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Outflows of Resources \nLIABILITIES Accounts Payable Salaries and Benefits Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \nDue Within One Year Due in More Than One Year \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \nTotal Deferred Inflows of Resources \nNET POSITION Net Investment in Capital Assets Restricted for \nContinuation of State and Federal Programs Capital Projects Unrestricted (Deficit) \nTotal Net Position \n \nEXHIBIT \"A\" \n \nGOVERNMENTAL ACTIVITIES \n \n$ \n \n10,651,108.03 \n \n1,263,332.62 481,689.77 347,531.77 14,919.77 59,416.67 951,265.00 \n19,598,816.00 33,368,079.63 \n \n8,944,496.00 2,723,429.00 11,667,925.00 \n \n41,514.21 1,781,209.02 18,746,696.00 9,690,065.00 \n24,337.92 195,360.98 30,479,183.13 \n \n371,822.00 6,201,581.00 6,573,403.00 \n \n20,456,324.16 \n \n285,303.76 726,059.05 (13,484,268.47) \n \n$ \n \n7,983,418.50 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 1 - \n \n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"B\" \n \nEXPENSES \n \nCHARGES FOR SERVICES \n \nPROGRAM REVENUES OPERATING GRANTS AND \nCONTRIBUTIONS \n \nCAPITAL GRANTS AND CONTRIBUTIONS \n \nNET (EXPENSES) REVENUES \nAND CHANGES IN NET POSITION \n \nGOVERNMENTAL ACTIVITIES \n \nInstruction \n \n$ \n \nSupport Services \n \nPupil Services \n \nImprovement of Instructional Services \n \nEducational Media Services \n \nGeneral Administration \n \nSchool Administration \n \nBusiness Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nCentral Support Services \n \nOther Support Services \n \nOperations of Non-Instructional Services \n \nEnterprise Operations \n \nCommunity Services \n \nFood Services \n \nInterest on Long-Term Debt \n \n11,847,138.67 $ \n1,732,085.84 256,249.62 372,534.93 442,327.91 982,076.84 249,106.55 \n1,757,290.68 790,480.03 1,197.54 93,132.52 \n147,378.50 21,737.92 \n986,576.08 1,651.45 \n \n66,213.17 $ \n- \n76,954.95 - \n156,392.36 - \n \n4,246,704.58 $ \n296,921.07 162,101.53 162,150.00 401,774.10 520,889.21 179,283.80 659,542.13 287,923.52 \n1,197.54 177.53 \n556,303.45 - \n \n- $ \n77,220.00 - \n- \n \n(7,534,220.92) \n(1,435,164.77) (94,148.09) \n(210,384.93) (40,553.81) \n(461,187.63) (69,822.75) \n(1,097,748.55) (425,336.51) (92,954.99) \n(70,423.55) (21,737.92) (273,880.27) \n(1,651.45) \n \nTotal Governmental Activities \n \n$ \n \n19,680,965.08 $ \n \n299,560.48 $ \n \n7,474,968.46 $ \n \n77,220.00 \n \n(11,829,216.14) \n \nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax Local Option Sales Tax Other Sales Tax Investment Earnings Miscellaneous \nSpecial Item Loss on Disposal of Capital Assets Total General Revenues and Special Item \n \n7,994,948.29 \n5.68 3,242,254.85 \n87,285.15 215,794.46 420,615.69 \n(29,087.00) 11,931,817.12 \n \nChange in Net Position \n \n102,600.98 \n \nNet Position - Beginning of Year \n \n7,880,817.52 \n \nNet Position - End of Year \n \n$ \n \n7,983,418.50 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 2 - \n \n TOWNS COUNTY BOARD OF EDUCATION BALANCE SHEET \nGOVERNMENTAL FUNDS JUNE 30, 2023 \n \nEXHIBIT \"C\" \n \nASSETS Cash and Cash Equivalents Accounts Receivable, Net \nTaxes State Government Federal Government Inventories Prepaid Items \nTotal Assets \nLIABILITIES Accounts Payable Salaries and Benefits Payable \nTotal Liabilities \nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \nFUND BALANCES Nonspendable Restricted Committed Unassigned \nTotal Fund Balances \nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n9,925,048.98 $ \n \n1,263,332.62 481,689.77 347,531.77 14,919.77 59,416.67 \n \n$ \n \n12,091,939.58 $ \n \n726,059.05 $ \n- \n726,059.05 $ \n \n10,651,108.03 \n1,263,332.62 481,689.77 347,531.77 14,919.77 59,416.67 \n12,817,998.63 \n \n$ \n \n41,514.21 $ \n \n1,781,209.02 \n \n1,822,723.23 \n \n- $ - \n \n41,514.21 1,781,209.02 1,822,723.23 \n \n536,462.40 \n \n- \n \n536,462.40 \n \n74,336.44 270,383.99 314,771.94 9,073,261.58 9,732,753.95 \n \n726,059.05 \n726,059.05 \n \n74,336.44 996,443.04 314,771.94 9,073,261.58 10,458,813.00 \n \n$ \n \n12,091,939.58 $ \n \n726,059.05 $ \n \n12,817,998.63 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 3 - \n \n TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \nTO THE STATEMENT OF NET POSITION JUNE 30, 2023 \n \nEXHIBIT \"D\" \n \nTotal fund balances - governmental funds (Exhibit \"C\") \nAmounts reported for governmental activities in the Statement of Net Position are different because: \nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Land Buildings and improvements Equipment Land improvements Right-to-use assets Accumulated depreciation/amortization \nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability \nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB \nTaxes that are not available to pay for current period expenditures are deferred in the funds. \nLong-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Lease liability payable Compensated absences payable \nNet position of governmental activities (Exhibit \"A\") \n \n$ \n \n10,458,813.00 \n \n$ \n \n951,265.00 \n \n22,452,536.00 \n \n2,929,348.00 \n \n3,947,497.00 \n \n105,852.00 \n \n(9,836,417.00) \n \n20,550,081.00 \n \n$ \n \n(18,746,696.00) \n \n(9,690,065.00) \n \n(28,436,761.00) \n \n$ \n \n8,572,674.00 \n \n(3,478,152.00) \n \n5,094,522.00 536,462.40 \n \n$ \n \n(93,756.84) \n \n(125,942.06) \n \n(219,698.90) \n \n$ \n \n7,983,418.50 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 4 - \n \n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2023 \n \nEXHIBIT \"E\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \nRevenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Lease Liability Proceeds \nNet Change in Fund Balances \nFund Balances - Beginning \nFund Balances - Ending \n \nGENERAL FUND \n \nCAPITAL PROJECTS \nFUND \n \nTOTAL \n \n$ \n \n7,947,059.85 $ \n \n3,329,540.00 \n \n4,719,399.73 \n \n2,771,931.73 \n \n299,560.48 \n \n198,185.45 \n \n420,615.69 \n \n19,686,292.93 \n \n- $ 5.68 17,609.01 17,614.69 \n \n7,947,059.85 3,329,545.68 4,719,399.73 2,771,931.73 \n299,560.48 215,794.46 420,615.69 19,703,907.62 \n \n10,960,712.11 \n1,708,027.84 246,122.62 295,400.60 424,120.85 940,938.15 238,346.55 \n1,627,618.84 841,128.49 1,197.54 93,132.52 147,378.50 21,737.92 826,382.75 42,174.10 \n26,101.80 1,651.45 \n18,442,172.63 \n1,244,120.30 \n \n75,071.82 \n \n1,319,192.12 \n \n8,413,561.83 \n \n$ \n \n9,732,753.95 $ \n \n- \n97,673.33 0.06 205,249.74 140,346.24 173,439.78 - \n616,709.15 \n(599,094.46) \n \n10,960,712.11 \n1,708,027.84 246,122.62 393,073.93 424,120.91 940,938.15 238,346.55 \n1,832,868.58 981,474.73 1,197.54 93,132.52 147,378.50 21,737.92 999,822.53 42,174.10 \n26,101.80 1,651.45 \n19,058,881.78 \n645,025.84 \n \n(599,094.46) 1,325,153.51 \n726,059.05 $ \n \n75,071.82 720,097.66 9,738,715.34 10,458,813.00 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 5 - \n \n TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2023 \n \nEXHIBIT \"F\" \n \nNet change in fund balances total governmental funds (Exhibit \"E\") \nAmounts reported for governmental activities in the Statement of Activities are different because: \nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. Capital outlay Depreciation expense - buildings Depreciation expense - equipment Depreciation expense - land improvements Amortization expense - right-to-use equipment \nIn the Statement of Activities, only the loss on the sale or disposal of the capital assets equipment is reported, whereas in the governmental funds, the entire proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balances by the carrying value of the capital assets sold or disposed of. \nProceeds received from leases are reported as liabilities in the Statement of Activities whereas in the governmental funds these proceeds are reported as other financing sources. Right-to-use equipment \nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Unavailable property taxes June 30, 2022 June 30, 2023 \nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Compensated absences June 30, 2022 June 30, 2023 \nRepayment of long-term debt is reported as expenditures in the governmental funds but repayment reduces long-term liabilities in the Statement of Net Position Lease liability payments \nChange in net position of governmental activities (Exhibit \"B\") \n \n$ \n \n720,097.66 \n \n$ \n \n444,852.00 \n \n(420,937.00) \n \n(124,306.00) \n \n(167,707.00) \n \n(25,690.00) \n \n(293,788.00) \n \n(29,087.00) (75,071.82) \n \n$ \n \n(488,573.96) \n \n536,462.40 \n \n47,888.44 \n \n$ \n \n(1,012,291.00) \n \n732,446.00 \n \n(279,845.00) \n \n$ \n \n112,246.96 \n \n(125,942.06) \n \n(13,695.10) \n \n26,101.80 \n \n$ \n \n102,600.98 \n \nThe notes to the basic financial statements are an integral part of this statement. \n \n- 6 - \n \n (This page left intentionally blank) \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \nReporting Entity \nThe Towns County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \nBasis of Presentation \nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \nGovernment-Wide Statements: \nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \nThe Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \n- 8 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \nFund Financial Statements \nThe fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \nThe School District reports the following major governmental funds: \n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \nBasis of Accounting \nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for leases and compensated absences, which are \n \n- 9 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nrecognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under leases are reported as other financing sources. \nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \nNew Accounting Pronouncements \nIn fiscal year 2023, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement defines subscription-based information technology arrangements and provides uniform guidance for accounting and financial reporting for transactions that meet that definition. Under this statement, a government is required to recognize a subscription liability and an intangible right-to-use asset for contracts that meet the definition of a subscription-based information technology arrangement. The adoption of this statement did not have an impact on the School District's financial statements. \nCash and Cash Equivalents \nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \nReceivables \nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \nInventories \nFood Inventories \nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \n \n- 10 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nPrepaid Items \n \nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \n \nCapital Assets \n \nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \n \nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \n \nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \n \nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \n \nCapitalization Policy \n \nEstimated Useful Life \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings \n \n$ \n \nBuilding Improvements \n \n$ \n \nEquipment \n \n$ \n \nIntangible Assets \n \n$ \n \nAll 20,000.00 100,000.00 \n5,000.00 10,000.00 100,000.00 \n \nN/A 10 to 60 years 10 to 60 years 10 to 60 years \n8 to 25 years Individually determined \n \nDuring the fiscal year, management increased their capital asset policy for equipment from $5,000.00 to $10,000.00. Management also changed the estimated useful life for equipment from 8 to 50 years to 8 to 25 years. The changes in the capitalization threshold and estimated useful lives do not have a material or significant impact on the financial statements. \n \nIntangible Right-To-Use Assets \n \nLeases, as a lessee, are included as intangible right-to-use assets and lease obligations on the Statement of Net Position. An intangible right-to-use asset represents the School District's right to use an underlying asset for the lease term. Lease obligations represent the School District's liability to make lease payments arising from the lease agreement. Intangible right-to-use assets and lease obligations are recognized based on the present value of lease payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease liability. Intangible rightto-use assets are amortized using a straight-line basis over the shorter of the lease term or useful life of the underlying asset. \n- 11 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nCapitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows: \nCapitalization Policy \n \nLand \n \nLand Improvements \n \n$ \n \nBuildings \n \n$ \n \nBuilding Improvements $ \n \nEquipment \n \n$ \n \nSoftware \n \n$ \n \nAll 20,000.00 \n100,000.00 5,000.00 \n10,000.00 100,000.00 \n \nLeases as Lessee \nThe School District is a lessee for non-cancellable leases of various copiers and printers owned by 3rd parties. \nAt the commencement of a lease, the School District initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The right-to-use lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on the straight-line basis over the shorter of the useful life of the asset or the lease term. \nKey estimates and judgments related to leases include how the School District determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments: \nThe lease term includes the non-cancellable period of the lease. Lease payments included in the measurement of the lease liability are composed of fixed payments the School District will make over the lease term. \nThe School District monitors changes in circumstances that would require a remeasurement of its lease and will re-measure the lease asset and lease liability if certain changes occur that are expected to significantly affect the amount of the lease liability. \nLease assets are reported with other capital assets and lease liabilities are reported with current and long-term debt on the Statement of Net Position. \n \nDeferred Outflows/Inflows of Resources \nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \n \n- 12 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nCompensated Absences \nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. \nSick leave may vest with the employee in certain situations. Incentive pay is defined as any sick leave earned that is not eligible to be used in calculating an employee's retirement benefits. Employees are eligible to be paid incentive pay up to a maximum of 60 days. These payments are made at a rate of $50.00 per day for certified employees and $6.25 per hour for classified employees. \nIncentive pay benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal year-end. \nLong-Term Liabilities \nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. \nIn the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources of the current period. \nPensions \nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nPost-Employment Benefits Other than Pensions (OPEB) \nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \nFund Balances \nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \nThe School District's fund balances are classified as follows: \nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \n \n- 13 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \n \nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \n \nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \n \nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \n \nUse of Estimates \n \nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \n \nProperty Taxes \n \nThe Towns County Board of Commissioners adopted the property tax levy for the 2022 tax digest year (calendar year) on October 20, 2022 (levy date) based on property values as of January 1, 2022. Taxes were due on January 10, 2023 (lien date).Taxes collected within the current fiscal year or within 60 days after year-end on the 2022 tax digest are reported as revenue in the governmental funds for fiscal year 2023. The Towns County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2023, for maintenance and operations amounted to $7,947,059.85. \n \nThe tax millage rate levied for the 2022 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \n \nSchool Operations \n \n6.55 mills \n \nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in property taxes shown above, amounted to $968,335.91 during fiscal year ended June 30, 2023. \nSales Taxes \nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $3,329,540.00 and was recorded in the general fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \n \n- 14 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund level reporting level, during the year amounted to $5.68 and is to be used for capital outlay for educational purposes. The sales tax referendum under which this tax was collected expired September 30, 2020. \nNOTE 3: BUDGETARY DATA \nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts and the Governor's Office of Highway Safety Grant, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. \nThe Superintendent is authorized by the Board to approve adjustments as long as they do not exceed the aggregate level of expenditures for any fund. Any position or expenditure not previously approved in the annual budget that exceeds the aggregate level shall require Board approval. 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 the approval by the Board. \nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \nNOTE 4: DEPOSITS \nCollateralization of Deposits \nO.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \nAcceptable security for deposits consists of any one of or any combination of the following: \n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, - 15 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \nCategorization of Deposits \nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2023, the School District had deposits with a carrying amount of $10,651,108.03, and a bank balance of $11,139,664.81. The bank balances insured by Federal depository insurance were $500,000.00. \nAt June 30, 2023, $10,639,664.81 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrant. The program lists the types of eligible criteria. The OST approves authorized custodians. \nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \n \n- 16 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS \n \nThe following is a summary of changes in the capital assets and intangible right-to-use assets for governmental activities during the fiscal year: \n \nGovernmental Activities Capital Assets, \nNot Being Depreciated: Land Construction in Progress \n \nBalances July 1, 2022 \n \nIncreases \n \nDecreases \n \nTransfers \n \nBalances June 30, 2023 \n \n$ 951,265.00 $ \n \n- $ \n \n128,335.00 \n \n46,205.00 \n \n- $ \n \n- $ 951,265.00 \n \n- \n \n(174,540.00) \n \n- \n \nTotal Capital Assets Not Being Depreciated \n \n1,079,600.00 \n \n46,205.00 \n \n- \n \n(174,540.00) \n \n951,265.00 \n \nCapital Assets, Being Depreciated/Amortized Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Assets - Equipment \nLess Accumulated Depreciation/Amortization: Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Assets - Equipment \n \n22,246,943.00 2,689,954.00 3,922,497.00 100,064.00 \n \n31,053.00 267,522.00 \n25,000.00 75,072.00 \n \n28,128.00 \n69,284.00 \n \n174,540.00 - \n \n22,452,536.00 2,929,348.00 3,947,497.00 105,852.00 \n \n5,918,707.00 1,605,938.00 1,594,306.00 \n47,151.00 \n \n420,937.00 124,306.00 167,707.00 \n25,690.00 \n \n16,411.00 \n51,914.00 \n \n- \n \n6,339,644.00 \n \n- \n \n1,713,833.00 \n \n- \n \n1,762,013.00 \n \n- \n \n20,927.00 \n \nTotal Capital Assets, Being Depreciated/Amortized, Net \n \n19,793,356.00 (339,993.00) \n \n29,087.00 174,540.00 19,598,816.00 \n \nGovernmental Activities Capital Assets - Net \n \n$ 20,872,956.00 $ (293,788.00) $ 29,087.00 $ \n \n- $ 20,550,081.00 \n \nCurrent year depreciation and amortization expense by function is as follows: \n \nDepreciation \n \nAmortization \n \nTotal \n \nInstruction \n \n$ \n \nSupport Services \n \nEducational Media Services \n \nSchool Administration \n \nMaintenance and Operation of Plant \n \nStudent Transportation Services \n \nFood Services \n \n$ \n \n601,169.00 $ \n1,147.00 2,887.00 18,364.00 75,751.00 13,632.00 \n712,950.00 $ \n \n25,690.00 $ \n- \n25,690.00 $ \n \n626,859.00 \n1,147.00 2,887.00 18,364.00 75,751.00 13,632.00 \n738,640.00 \n \n- 17 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 6: LONG-TERM LIABILITIES \n \nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \n \nBalance July 1, 2022 \n \nGovernmental Activities \n \nBalance \n \nAdditions \n \nDeductions June 30, 2023 \n \nDue Within One Year \n \nLeases Compensated Absences (1) \n \n$ 44,786.82 $ 75,071.82 $ 26,101.80 $ 93,756.84 $ 24,337.92 \n \n112,246.96 \n \n92,077.62 \n \n78,382.52 \n \n125,942.06 \n \n- \n \n$ 157,033.78 $ 167,149.44 $ 104,484.32 $ 219,698.90 $ 24,337.92 \n \n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \nLeases \nThe School District has acquired various copiers and printers under the provisions of various contracts that convey control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as leases for accounting purposes. \nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2023: \nGovernmental Activities \n \nEquipment Less: Accumulated Amortizaion \n \n$ \n \n105,852.00 \n \n20,927.00 \n \n$ \n \n84,925.00 \n \nDuring the current fiscal year, the School District entered into a lease agreement as lessee for the rightto-use copiers and printers at a cost of $75,071.82. This transaction qualifies as a lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. \nLeases currently outstanding are as follows: \n \nPurpose \n \nInterest Rates \n \nIssue Date \n \nMaturity Date \n \nAmount Issued \n \nAmount Outstanding \n \nLease MMSA29914270 Lease MLA32761360 \n \n5.00% 7.50% \n \n2/1/2022 6/1/2023 \n \n1/1/2026 $ 5/1/2027 \n \n30,780.42 $ 75,071.82 \n \n20,488.90 73,267.94 \n \n$ \n \n105,852.24 $ \n \n93,756.84 \n \n- 18 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nThe following is a schedule of total lease payments: \n \nFiscal Year Ended June 30: \n \nPrincipal \n \nInterest \n \n2024 2025 2026 2027 \n \n$ \n \n24,337.92 $ \n \n26,025.64 \n \n24,274.98 \n \n19,118.30 \n \n5,779.56 4,091.84 2,312.95 \n724.38 \n \nTotal Principal and Interest $ \n \n93,756.84 $ \n \n12,908.73 \n \nCompensated Absences \nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \nNOTE 7: RISK MANAGEMENT \nInsurance \nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \nGeorgia School Boards Association Risk Management Fund \nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \nWorkers' Compensation \nGeorgia School Boards Association Workers' Compensation Fund \nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \n- 19 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nUnemployment Compensation \n \nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures with the related liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any unemployment claims in the last two fiscal years. \n \nSurety Bond \n \nThe School District purchased a surety bond to provide additional insurance coverage as follows: \n \nPosition Covered \n \nAmount \n \nSuperintendent \n \n$ \n \n50,000.00 \n \nNOTE 8: FUND BALANCE CLASSIFICATION DETAILS \n \nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2023: \n \nNonspendable \n \nInventories \n \n$ \n \nPrepaid Assets \n \nRestricted \n \nContinuation of State Programs $ \n \nContinuation of Federal Programs \n \nCapital Projects \n \nCommitted \n \nSchool Activity Accounts \n \nUnassigned \n \n14,919.77 59,416.67 $ \n2,252.87 268,131.12 726,059.05 \n \n74,336.44 \n996,443.04 314,771.94 9,073,261.58 \n \nFund Balance, June 30, 2023 \n \n$ \n \n10,458,813.00 \n \nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \nNOTE 9: SIGNIFICANT CONTINGENT LIABILITIES \n \nFederal Grants \nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \n \n- 20 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nNOTE 10: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \nGeorgia School Personnel Post-Employment Health Benefit Fund \nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $362,645.00 for the year ended June 30, 2023. Active employees are not required to contribute to the School OPEB Fund. \nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \nAt June 30, 2023, the School District reported a liability of $9,690,065.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2022. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2021. An expected total OPEB liability as of June 30, 2022 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2022. At June 30, 2022, the School District's proportion was 0.097848%, which was an increase of 0.001159% from its proportion measured as of June 30, 2021. \n \n- 21 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nFor the year ended June 30, 2023, the School District recognized OPEB expense of ($369,801.00). At June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \n \nOPEB Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ \n \n386,785.00 $ 3,808,489.00 \n \nChanges of assumptions \n \n1,475,817.00 \n \n1,959,829.00 \n \nNet difference between projected and actual \n \nearnings on OPEB plan investments \n \n59,107.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n439,075.00 \n \n433,263.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n362,645.00 \n \n- \n \nTotal \n \n$ 2,723,429.00 $ 6,201,581.00 \n \nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \n \nYear Ended June 30: \n \nOPEB \n \n2024 2025 2026 2027 2028 2029 \n \n$ (1,001,120.00) \n \n$ (860,715.00) \n \n$ (740,154.00) \n \n$ (826,147.00) \n \n$ (374,991.00) \n \n$ \n \n(37,670.00) \n \n- 22 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total OPEB liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2022: \n \nOPEB: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, including inflation \n \nLong-term expected rate of return \n \n7.00%, compounded annually, net of investment expense, and including inflation \n \nHealthcare cost trend rate Pre-Medicare Eligible Medicare Eligible \nUltimate trend rate Pre-Medicare Eligible Medicare Eligible \nYear of Ultimate trend rate \n \n6.50% 5.00% \n4.50% 4.50% \n \nPre-Medicare Eligible \n \n2029 \n \nMedicare Eligible \n \n2023 \n \nThe Plan currently uses mortality tables that vary by age, gender, and health status (i.e. disabled or not disabled) as follows: \n \n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \n \n- 23 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 Projection scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 101% for males and 103% for females) with the MP-2019 Projection scale applied generationally. Postretirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projection scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjusted 104% for males and 99% for females) with the MP-2019 Projection scale applied generationally. \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation which was changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \n \nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2021 valuation were based on a review of recent plan experience done concurrently with the June 30, 2021 valuation. \n \nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \n \nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTarget Allocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Equities \n \n30.00% 70.00% \n \n2.00% 9.40% \n \nTotal \n \n100.00% \n \n* Net of inflation \n \n- 24 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nDiscount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 3.57% was used as the discount rate, as compared with last year's rate of 2.20%. The plan's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, the municipal bond rate as used for the long-term rate of return was applied to all periods of projected benefit payments to determine total OPEB liability. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (3.54% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employers will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2128. \nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.57%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.57%) or 1-percentage-point higher (4.57%) than the current discount rate: \n \n1% Decrease (2.57%) \n \nCurrent Discount Rate (3.57%) \n \n1% Increase (4.57%) \n \nSchool District's proportionate share of \n \nthe Net OPEB liability \n \n$ \n \n10,960,628.00 $ \n \n9,690,065.00 $ \n \n8,613,208.00 \n \nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \n \n1% Decrease \n \nCurrent Healthcare Cost Trend Rate \n \n1% Increase \n \nSchool District's proportionate share of \n \nthe Net OPEB liability \n \n$ \n \n8,349,150.00 $ \n \n9,690,065.00 $ \n \n11,338,045.00 \n \nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \n \nNOTE 11: RETIREMENT PLANS \nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \n \nTeachers Retirement System of Georgia (TRS) \nPlan Description: All teachers of the School District as defined in O.C.G.A. 47-3-60 and certain other support personnel as defined by O.C.G.A. 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title47 of the O.C.G.A. assigns the \n \n- 25 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nauthority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2023. The School District's contractually required contribution rate for the year ended June 30, 2023 was 19.98% of annual School District payroll, of which 19.65% of payroll was required from the School District and 0.33% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,657,555.00 and $31,386.64 from the School District and the State, respectively. \nPublic School Employees Retirement System (PSERS) \nPlan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \nBenefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \nUpon retirement, the member will receive a monthly benefit of $15.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined \n \n- 26 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nand paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \n \nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $36,118.00. \nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \n \nAt June 30, 2023, the School District reported a liability of $18,746,696.00 for its proportionate share of the net pension liability for TRS. \n \nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \n \nSchool District's proportionate share of the net pension liability \n \n$ 18,746,696.00 \n \nState of Georgia's proportionate share of the net pension liability associated with the School District \n \n347,125.00 \n \nTotal \n \n$ 19,093,821.00 \n \nThe net pension liability for TRS was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2022. \nAt June 30, 2022, the School District's TRS proportion was 0.057732%, which was a decrease of 0.000511% from its proportion measured as of June 30, 2021. \nAt June 30, 2023, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net PSERS pension liability associated with the School District is $283,401.00. \nThe PSERS net pension liability was measured as of June 30, 2022. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2021. An expected total pension liability as of June 30, 2022 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, 2022. \nFor the year ended June 30, 2023, the School District recognized pension expense of $2,726,989.00 for TRS and $71,219.00 for PSERS and revenue of $57,143.00 for TRS and $71,219.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \n- 27 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nAt June 30, 2023, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \n \nTRS Deferred Outflows of Resources \n \nDeferred Inflows of Resources \n \nDifferences between expected and actual \n \nexperience \n \n$ 778,180.00 $ \n \n97,581.00 \n \nChanges of assumptions \n \n2,821,976.00 \n \n- \n \nNet difference between projected and \n \nactual earnings on pension plan \n \ninvestments \n \n3,683,192.00 \n \n- \n \nChanges in proportion and differences between School District contributions and proportionate share of contributions \n \n3,593.00 \n \n274,241.00 \n \nSchool District contributions subsequent to \n \nthe measurement date \n \n1,657,555.00 \n \n- \n \nTotal \n \n$ 8,944,496.00 $ 371,822.00 \n \nThe School District contributions subsequent to the measurement date for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \n \nYear Ended June 30: \n \nTRS \n \n2024 2025 2026 2027 \n \n$ 1,842,374.00 $ 1,379,911.00 $ 1,022,335.00 $ 2,670,499.00 \n \n- 28 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nActuarial Assumptions: The total pension liability as of June 30, 2022 was determined by an actuarial valuation as of June 30, 2021, using the following actuarial assumptions, applied to all periods included in the measurement: \n \nTeachers Retirement System: \n \nInflation \n \n2.50% \n \nSalary increases \n \n3.00%  8.75%, average, including inflation \n \nInvestment rate of return \n \n6.90%, net of pension plan investment expense, including inflation \n \nPost-retirement benefit increases 1.50% semi-annually \nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement immortality rates was assumed using the MP-2019 Projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018, with the exception of the investment rate of return and payroll growth assumption. \n \nPublic School Employees Retirement System: \n \nInflation Salary increases Investment rate of return \nPost-retirement benefit increases \n \n2.50% N/A 7.00%,net of pension plan investment expense, including inflation 1.50% semi-annually \n \n- 29 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \nMortality rates are as follows: \n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \n \nParticipant Type Service Retirees \n \nMembership Table \nGeneral Healthy BelowMedian Annuitant \n \nSet Forward (+)/ Setback (-) Adjustment to Rates \n \nMale: +2; Female: +2 \n \nMale: 101%; Female: 103% \n \nDisability Retirees \n \nGeneral Disabled \n \nMale: -3; Female: 0 \n \nMale: 103%; Female: 106% \n \nBeneficiaries \n \nGeneral Below-Median Contingent Survivors \n \nMale: +2; Female: +2 \n \nMale: 104%; Female: 99% \n \nThe actuarial assumptions used in the June 30, 2021 valuation were based on the results of an actuarial experience study for the period July 1, 2014  June 30, 2019. \n \nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \n \nAsset Class \n \nTRS/PSERS Target \nAllocation \n \nLong-Term Expected Real Rate of Return* \n \nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \n \n30.00% 46.30% \n1.20% 12.30% \n5.20% 5.00% \n \n0.20% 9.40% 13.40% 9.40% 11.40% 10.50% \n \nTotal \n \n100.00% \n \n* Rates shown are net of inflation \nDiscount Rate: The discount rate used to measure the total TRS pension liability was 6.90%. The discount rate used to measure the total PSERS pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plans' fiduciary net position were projected to be \n \n- 30 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \nJUNE 30, 2023 \n \nEXHIBIT \"G\" \n \navailable to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \nSensitivity of the School District's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 6.90%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.90%) or 1-percentage-point higher (7.90%) than the current rate: \n \nTeachers Retirement System: \n \n1% Decrease (5.90%) \n \nCurrent Discount Rate (6.90%) \n \n1% Increase (7.90%) \n \nSchool District's proportionate share of the \n \nnet pension liability \n \n$ \n \n28,282,556.00 $ \n \n18,746,696.00 $ 10,959,405.00 \n \nPension Plan Fiduciary Net Position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \n \nNOTE 12: SPECIAL ITEM \nDuring fiscal year 2023, the School District sold or otherwise disposed of certain capital assets. These items were removed from the capital assets records at their net carrying values and resulted in a net loss of $29,087.00. This amount is reflected as a net loss on disposal of capital assets and is reported as a special item on Exhibit B of this report. \n \n- 31 - \n \n (This page left intentionally blank) \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"1\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion \nof the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a percentage \nof the total pension liability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.057732% $ 18,746,696.00 $ 0.058243% $ 5,151,205.00 $ 0.059588% $ 14,434,546.00 $ 0.060230% $ 12,951,079.00 $ 0.060334% $ 11,199,283.00 $ 0.059298% $ 11,020,716.00 $ 0.059138% $ 12,200,829.00 $ 0.061321% $ 9,335,513.00 $ 0.064451% $ 8,142,534.00 $ \n \n347,125.00 $ 19,093,821.00 $ 7,951,530.89 96,226.00 $ 5,247,431.00 $ 7,719,448.95 \n265,010.00 $ 14,699,556.00 $ 7,823,587.60 238,680.00 $ 13,189,759.00 $ 7,486,814.56 142,000.00 $ 11,341,283.00 $ 7,277,264.22 161,506.00 $ 11,182,222.00 $ 6,915,146.60 207,343.00 $ 12,408,172.00 $ 6,600,638.78 151,936.00 $ 9,487,449.00 $ 6,603,774.14 123,431.00 $ 8,265,965.00 $ 6,674,890.70 \n \n235.76% 66.73% \n184.50% 172.99% 153.89% 159.37% 184.84% 141.37% 121.99% \n \n72.85% 92.03% 77.01% 78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 33 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"2\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered payroll \n \nContribution as a percentage of covered \npayroll \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n2016 \n \n$ \n \n2015 \n \n$ \n \n1,657,555.00 $ 1,547,124.00 $ 1,444,342.00 $ 1,624,090.00 $ 1,536,231.00 $ 1,206,536.00 $ \n971,856.00 $ 925,672.00 $ 854,546.01 $ \n \n1,657,555.00 $ 1,547,124.00 $ 1,444,342.00 $ 1,624,090.00 $ 1,536,231.00 $ 1,206,536.00 $ \n971,856.00 $ 925,672.00 $ 854,546.01 $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n8,435,302.52 7,951,530.89 7,719,448.95 7,823,587.60 7,486,814.56 7,277,264.22 6,915,146.60 6,600,638.78 6,603,774.14 \n \n19.65% 19.46% 18.71% 20.76% 20.52% 16.58% 14.05% 14.02% 12.94% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 34 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \n \nSCHEDULE \"3\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net Pension Liability (NPL) \n \nSchool District's proportionate share \nof the NPL \n \nState of Georgia's proportionate share \nof the NPL associated with the \nSchool District \n \nTotal \n \nSchool District's covered payroll \n \nSchool District's proportionate share of the NPL as a percentage of its covered payroll \n \nPlan fiduciary net position as a \npercentage of the total pension \nliability \n \n2023 2022 2021 2020 2019 2018 2017 2016 2015 \n \n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n- \n \n$ \n \n283,401.00 $ 28,128.00 $ \n198,138.00 $ 190,880.00 $ 171,802.00 $ 159,287.00 $ 200,056.00 $ 131,772.00 $ 110,827.00 $ \n \n283,401.00 $ 28,128.00 $ \n198,138.00 $ 190,880.00 $ 171,802.00 $ 159,287.00 $ 200,056.00 $ 131,772.00 $ 110,827.00 $ \n \n490,680.80 439,645.75 493,172.88 480,380.96 481,151.68 480,506.73 438,416.25 369,299.00 331,400.00 \n \nN/A \n \n81.21% \n \nN/A \n \n98.00% \n \nN/A \n \n84.45% \n \nN/A \n \n85.02% \n \nN/A \n \n85.26% \n \nN/A \n \n85.69% \n \nN/A \n \n81.00% \n \nN/A \n \n87.00% \n \nN/A \n \n88.29% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 35 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \nSCHOOL OPEB FUND \n \nSCHEDULE \"4\" \n \nFor the Year Ended \nJune 30 \n \nSchool District's proportion of the Net OPEB Liability (NOL) \n \nSchool District's proportionate share \nof the NOL \n \nState of Georgia's proportionate \nshare of the NOL associated with the School District \n \nTotal \n \nSchool District's covered-employee \npayroll \n \nSchool District's proportionate share of the NOL as a percentage of its coveredemployee payroll \n \nPlan fiduciary net position \nas a percentage of the total OPEB \nliability \n \n2023 2022 2021 2020 2019 2018 \n \n0.097848% $ 9,690,065.00 $ 0.096689% $ 10,472,219.00 $ 0.098155% $ 14,416,684.00 $ 0.101776% $ 12,490,099.00 $ 0.100676% $ 12,795,611.00 $ 0.094939% $ 13,338,891.00 $ \n \n- \n \n$ 9,690,065.00 $ 7,827,078.36 \n \n- \n \n$ 10,472,219.00 $ 7,642,280.06 \n \n- \n \n$ 14,416,684.00 $ 7,765,958.08 \n \n- \n \n$ 12,490,099.00 $ 7,563,365.36 \n \n- \n \n$ 12,795,611.00 $ 7,392,102.60 \n \n- \n \n$ 13,338,891.00 $ 6,909,485.92 \n \n123.80% 137.03% 185.64% 165.14% 173.10% 193.05% \n \n6.17% 6.14% 3.99% 4.63% 2.93% 1.61% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 36 - \n \n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \n \nSCHEDULE \"5\" \n \nFor the Year Ended June 30 \n \nContractually required contribution \n \nContributions in relation to the contractually required \ncontribution \n \nContribution deficiency (excess) \n \nSchool District's covered-employee \npayroll \n \nContribution as a percentage of \ncovered-employee payroll \n \n2023 \n \n$ \n \n2022 \n \n$ \n \n2021 \n \n$ \n \n2020 \n \n$ \n \n2019 \n \n$ \n \n2018 \n \n$ \n \n2017 \n \n$ \n \n362,645.00 $ 353,792.00 $ 359,667.00 $ 331,938.00 $ 548,135.00 $ 521,790.00 $ 495,023.00 $ \n \n362,645.00 $ 353,792.00 $ 359,667.00 $ 331,938.00 $ 548,135.00 $ 521,790.00 $ 495,023.00 $ \n \n- \n \n$ \n \n8,219,828.62 \n \n- \n \n$ \n \n7,827,078.36 \n \n- \n \n$ \n \n7,642,280.06 \n \n- \n \n$ \n \n7,765,958.08 \n \n- \n \n$ \n \n7,563,365.36 \n \n- \n \n$ \n \n7,392,102.60 \n \n- \n \n$ \n \n6,909,485.92 \n \n4.41% 4.52% 4.71% 4.27% 7.25% 7.06% 7.16% \n \nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \n \n- 37 - \n \n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \nFOR THE YEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"6\" \n \nTeachers Retirement System Change of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \nOn May 11, 2022, the Board adopted recommended changes to the long-term assumed rate of return and payroll growth assumption utilized by the System. The long-term assumed rate of return was changed from 7.25% to 6.90%, and the payroll growth assumption was changed from 3.00% to 2.50%. \nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \nSchool OPEB Fund Changes of benefit terms: There have been no changes in benefit terms. \nChanges in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees' Retirement System's experience study. Approximately 0.10% of employees are members of the Employees' Retirement System. \nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement System's experience study. \nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017, to 3.87% as of June 30, 2018, back to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \n \n- 38 - \n \n TOWNS COUNTY BOARD OF EDUCATION GENERAL FUND \nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"7\" \n \nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures \nExcess of Revenues over (under) Expenditures \nOTHER FINANCING SOURCES (USES) Other Sources Other Uses Proceeds from Lease Liability Total Other Financing Sources (Uses) \nNet Change in Fund Balances \nFund Balances - Beginning \nAdjustments \nFund Balances - Ending \n \nNONAPPROPRIATED BUDGETS \n \nORIGINAL (1) \n \nFINAL (1) \n \nACTUAL AMOUNTS \n \nVARIANCE OVER/UNDER \n \n$ \n \n6,700,000.00 $ \n \n6,700,000.00 $ \n \n7,947,059.85 $ \n \n2,500,000.00 \n \n2,500,000.00 \n \n3,329,540.00 \n \n4,757,500.00 \n \n5,178,180.00 \n \n4,719,399.73 \n \n4,117,007.00 \n \n4,214,780.91 \n \n2,771,931.73 \n \n100,000.00 \n \n100,000.00 \n \n299,560.48 \n \n5,000.00 \n \n5,000.00 \n \n198,185.45 \n \n125,000.00 \n \n125,000.00 \n \n420,615.69 \n \n18,304,507.00 \n \n18,822,960.91 \n \n19,686,292.93 \n \n1,247,059.85 829,540.00 (458,780.27) \n(1,442,849.18) 199,560.48 193,185.45 295,615.69 863,332.02 \n \n11,789,989.00 \n1,715,925.00 256,115.00 309,585.00 845,358.00 \n1,086,791.00 254,379.00 \n1,941,211.00 843,098.00 15,000.00 979,367.00 - \n20,036,818.00 (1,732,311.00) \n \n12,111,481.00 \n1,878,368.00 320,862.00 314,664.00 658,264.00 \n1,094,161.00 254,226.00 \n1,980,421.00 918,165.00 3,500.00 15,000.00 - \n1,015,536.17 22,000.00 \n20,586,648.17 (1,763,687.26) \n \n10,960,712.11 \n1,708,027.84 246,122.62 295,400.60 424,120.85 940,938.15 238,346.55 \n1,627,618.84 841,128.49 1,197.54 93,132.52 147,378.50 21,737.92 826,382.75 42,174.10 \n26,101.80 1,651.45 \n18,442,172.63 1,244,120.30 \n \n161,411.00 (161,411.00) \n- \n \n163,120.00 (163,120.00) \n- \n \n(1,732,311.00) \n \n(1,763,687.26) \n \n8,413,561.83 \n \n8,413,561.83 \n \n14,403.32 \n \n6,277.27 \n \n$ \n \n6,695,654.15 $ \n \n6,656,151.84 $ \n \n75,071.82 75,071.82 \n1,319,192.12 \n8,413,561.83 \n- \n9,732,753.95 $ \n \n1,150,768.89 \n170,340.16 74,739.38 19,263.40 \n234,143.15 153,222.85 \n15,879.45 352,802.16 \n77,036.51 2,302.46 \n(78,132.52) (147,378.50) \n(21,737.92) 189,153.42 (20,174.10) \n(26,101.80) (1,651.45) \n2,144,475.54 3,007,807.56 \n(163,120.00) 163,120.00 \n75,071.82 75,071.82 \n3,082,879.38 \n- \n(6,277.27) \n3,076,602.11 \n \nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \n \n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of certain funds reported as a part of the general fund. The actual revenues and expenditures of those funds for fiscal year 2023 are as follows: \n \nRevenues \n \nExpenditures \n \nSchool Activity Funds Governor's Office of Highway Safety \n \n$ \n \n367,750.41 $ \n \n316,036.60 \n \n500.00 \n \n500.00 \n \n$ \n \n368,250.41 $ \n \n316,536.60 \n \nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \n \nSee notes to the basic financial statements. \n \n- 39 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of \nChild Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program COVID-19 - National School Lunch Program Total Child Nutrition Cluster \nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition Total U. S. Department of Agriculture \nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund \nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States COVID-19 - American Rescue Plan - Grants to States Preschool Grants COVID-19 - American Rescue Plan - Preschool Total Special Education Cluster \nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural and Low-Income School Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n10.553 10.555 10.555 \n \n235GA324N1199 $ 235GA324N1199 225GA324N1099 \n \n120,903.30 603,570.47 \n38,323.17 762,796.94 \n \n10.665 \n \n468 Forest \n \n28,346.81 \n \n10.560 \n \n225GA904N2533 \n \n1,067.24 792,210.99 \n \n84.425D 84.425D \n84.425U \n84.425W \n \nS425D200012 S425D210012 \nS425U210012 \nS425W210011 \n \n1,273.86 479,860.00 \n944,000.63 \n16,483.19 1,441,617.68 \n \n84.027A 84.027A 84.027X 84.173A 84.173X \n \nH027A210073 H027A220073 H027X210073 H173A220081 H173X210081 \n \n84.048A 84.358B 84.367A 84.367A 84.010A 84.010A \n \nV048A220010 S358F220010 S367A210001 S367A220001 S010A210010-21A S010A220010 \n \n73,339.41 201,699.26 \n6,627.00 6,172.00 1,656.47 289,494.14 \n26,897.90 3,550.00 607.00 \n34,791.66 19,795.00 299,393.59 385,035.15 2,116,146.97 \n \n- 40 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"8\" \n \nFUNDING AGENCY PROGRAM/GRANT \nHealth and Human Services, U. S. Department of Head Start Cluster Pass-Through From Ninth District Opportunity, Inc. Head Start \nTransportation, U. S. Department of Highway Safety Cluster Pass-Through From Department of Public Safety State and Community Highway Safety \nTotal Expenditures of Federal Awards \n \nASSISTANCE LISTING NUMBER \n \nPASSTHROUGH \nENTITY ID \nNUMBER \n \nEXPENDITURES IN PERIOD \n \n93.600 \n \n04CH0104150200 \n \n147,761.31 \n \n20.600 \n \nSADD402TSP029 $ \n \n500.00 3,056,619.27 \n \nNotes to the Schedule of Expenditures of Federal Awards \nNote 1. Basis of Presentation \nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Towns County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \nNote 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \nNote 3. Indirect Cost Rate \nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \nNote 4. Transfers Between Programs Funds totaling $23,120.00 were transferred from the Student Support and Academic Enrichment program (ALN 84.424) and expended in the Title 1 Grants to Local Education Agencies (ALN 84.010) during Fiscal Year 2023. \n \nSee notes to the basic financial statements. \n \n- 41 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2023 \nAGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-Term Adjustment Hold-Harmless One Time QBE Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Sparsity Vocational Supervisors Other State Programs Career, Technical and Agricultural Education Program Food Services Hygiene Products Preschool Disability Services Pupil Transportation - State Bonds Teachers Retirement Office of the State Treasurer Public School Employees Retirement CONTRACT Human Resources, Georgia Department of Family Connections \n \nSCHEDULE \"9\" \n \nGOVERNMENTAL FUND TYPE GENERAL FUND \n \n$ \n \n93,007.09 \n \n232,331.00 21,461.00 \n497,428.00 47,383.00 \n201,382.00 27,959.00 \n413,150.00 370,743.00 179,678.00 736,077.00 \n33,245.00 2,422.00 \n34,621.00 18,933.00 71,206.00 22,535.00 11,850.00 \n495.00 \n227,899.00 229,232.00 134,101.00 \n78,302.00 331,380.00 \n \n210,631.00 45,946.00 \n117,807.00 7,167.00 \n60,514.00 27,036.00 \n726.00 35,528.00 77,220.00 31,386.64 \n36,118.00 \n \n52,500.00 \n \n$ \n \n4,719,399.73 \n \nSee notes to the basic financial statements. \n \n- 42 - \n \n (This page left intentionally blank) \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Remodeling, renovating, modifying, furnishing, and equipping school buildings, classrooms, instructional and support space, kitchens, auditoriums, and other facilities (including physical education/athletic facilities) at existing School District facilities; \n(2) Acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \n(3) Acquiring and installing energy savings equipment and technology; \n(4) Acquiring and/or improving land for School District facilities; \n(5) Acquiring books, digital resources, and other media for School District; \n(6) Purchasing school buses or other vehicles; and \n(7) Payment of expenses incident to accomplishing the foregoing. \nTotal \n \nORIGINAL ESTIMATED \nCOST (1) \n \nCURRENT ESTIMATED COSTS (2) \n \nESTIMATED COMPLETION \nDATE \n \n$ \n \n4,000,000.00 $ \n \n11,418,563.00 \n \n6/30/2024 \n \n1,000,000.00 \n \n2,000,000.00 \n \n2,000,000.00 \n \n1,000,000.00 \n \n- \n \n10,000.00 \n \n900,000.00 \n \n900,000.00 \n \n500,000.00 \n \n500,000.00 \n \n100,000.00 \n \n90,000.00 \n \n$ \n \n8,500,000.00 $ \n \n15,918,563.00 \n \n6/30/2024 6/30/2024 6/30/2024 6/30/2024 6/30/2024 6/30/2024 \n \n- 44 - \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \nYEAR ENDED JUNE 30, 2023 \n \nSCHEDULE \"10\" \n \nPROJECT SPLOST 2016 (1) Remodeling, renovating, modifying, furnishing, and equipping school buildings, classrooms, instructional and support space, kitchens, auditoriums, and other facilities (including physical education/athletic facilities) at existing School District facilities; \n(2) Acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \n(3) Acquiring and installing energy savings equipment and technology; \n(4) Acquiring and/or improving land for School District facilities; \n(5) Acquiring books, digital resources, and other media for School District; \n(6) Purchasing school buses or other vehicles; and \n(7) Payment of expenses incident to accomplishing the foregoing. \nTotal \n \nAMOUNT EXPENDED IN CURRENT \nYEAR (3) \n \nAMOUNT EXPENDED IN PRIOR YEARS (3) \n \nTOTAL COMPLETION \nCOST \n \nEXCESS PROCEEDS NOT \nEXPENDED \n \n$ 173,786.50 $ 10,316,521.26 $ \n \n- $ \n \n- \n \n275,985.35 \n \n1,656,025.05 \n \n- \n \n- \n \n8,150.00 \n \n- \n \n- \n \n- \n \n8,405.00 \n \n- \n \n- \n \n- \n \n- \n \n416,206.45 \n \n- \n \n- \n \n150,382.24 \n \n- \n \n- \n \n- \n \n0.06 \n \n- \n \n- \n \n- \n \n$ 616,709.15 $ 12,388,752.76 $ \n \n- $ \n \n- \n \n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Towns County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \n \nSee notes to the basic financial statements. \n \n- 45 - \n \n Section II Compliance and Internal Control Reports \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \nWe have audited the financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated January 11, 2024. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \nReport on Internal Control Over Financial Reporting \nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Report on Compliance and Other Matters \nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \nPurpose of this Report \nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \nJanuary 11, 2024 \n \n Greg S. Griffin State Auditor \nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \nand Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \nReport on Compliance for Each Major Federal Program \nOpinion on Each Major Federal Program \nWe have audited the Towns County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2023. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \nIn our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023. \nBasis for Opinion on Each Major Federal Program \nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \n \n Responsibilities of Management for Compliance \nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \nAuditor's Responsibilities for the Audit of Compliance \nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \n Exercise professional judgment and maintain professional skepticism throughout the audit. \n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \n Obtain an understanding of the School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed. \nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \nReport on Internal Control over Compliance \nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance \n \n requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \nOur consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. \nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \nRespectfully submitted, \nGreg S. Griffin State Auditor \nJanuary 11, 2024 \n \n Section III Auditee's Response to Prior Year Findings and Questioned Costs \n \n TOWNS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2023 \nPRIOR YEAR FINANCIAL STATEMENT FINDINGS No matters were reported. \nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \n Section IV Findings and Questioned Costs \n \n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \nYEAR ENDED JUNE 30, 2023 \n \nI SUMMARY OF AUDITOR'S RESULTS \n \nFinancial Statements \n \nType of auditor's report issued: Governmental Activities and Each Major Fund \n \nInternal control over financial reporting:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nNoncompliance material to financial statements noted: \n \nFederal Awards \n \nInternal control over major programs:  Material weakness(es) identified? \n Significant deficiency(ies) identified? \n \nType of auditor's report issued on compliance for major programs: \n \nAll major programs \n \nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \n \nIdentification of major programs: \n \nAssistance Listing Number Assistance Listing Program or Cluster Title \n \n84.425 \n \nEducation Stabilization Fund \n \nDollar threshold used to distinguish between Type A and Type B programs: \n \nAuditee qualified as low-risk auditee? \n \nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \n \nUnmodified No \nNone Reported No \nNo None Reported \nUnmodified No \n$750,000.00 Yes \n \n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt7-b2022-belec-p-btext","title":"Annual financial report, 2022 June 30, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2023-02-08"],"dcterms_description":["Annual financial report for the Towns 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":["Towns County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Towns County--Auditing--Periodicals.","Education--Georgia--Towns County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Annual financial report, 2022 June 30, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt7-b2022-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt7-b2022-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":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2022 \r\nTowns County Board of Education \r\nHiawassee, Georgia \r\nIncluding Independent Auditor's Report \r\nGreg S. Griffin | State Auditor \r\n \r\n Towns County Board of Education \r\n \r\nTable of Contents \r\n \r\nSection I \r\n \r\nFinancial Independent Auditor's Report \r\n \r\nRequired Supplementary Information \r\n \r\nManagement's Discussion and Analysis \r\n \r\ni \r\n \r\nExhibits \r\n \r\nBasic Financial Statements \r\n \r\nGovernment-Wide Financial Statements \r\n \r\nA \r\n \r\nStatement of Net Position \r\n \r\n1 \r\n \r\nB \r\n \r\nStatement of Activities \r\n \r\n2 \r\n \r\nFund Financial Statements \r\n \r\nC \r\n \r\nBalance Sheet \r\n \r\nGovernmental Funds \r\n \r\n3 \r\n \r\nD \r\n \r\nReconciliation of the Governmental Funds Balance Sheet \r\n \r\nto the Statement of Net Position \r\n \r\n4 \r\n \r\nE \r\n \r\nStatement of Revenues, Expenditures and Changes in Fund Balances \r\n \r\nGovernmental Funds \r\n \r\n5 \r\n \r\nF \r\n \r\nReconciliation of the Governmental Funds Statement of \r\n \r\nRevenues, Expenditures and Changes in Fund Balances \r\n \r\nto the Statement of Activities \r\n \r\n6 \r\n \r\nG \r\n \r\nNotes to the Basic Financial Statements \r\n \r\n8 \r\n \r\nSchedules \r\n \r\nRequired Supplementary Information \r\n \r\n1 Schedule of Proportionate Share of the Net Pension Liability \r\n \r\nTeachers Retirement System of Georgia \r\n \r\n33 \r\n \r\n2 Schedule of Contributions  Teachers Retirement System of Georgia \r\n \r\n34 \r\n \r\n3 Schedule of Proportionate Share of the Net Pension Liability Public \r\n \r\nSchool Employees Retirement System of Georgia \r\n \r\n35 \r\n \r\n4 Schedule of Proportionate Share of the Net OPEB Liability \r\n \r\nSchool OPEB Fund \r\n \r\n36 \r\n \r\n5 Schedule of Contributions  School OPEB Fund \r\n \r\n37 \r\n \r\n6 Notes to the Required Supplementary Information \r\n \r\n38 \r\n \r\n Towns County Board of Education \r\n \r\nTable of Contents \r\n \r\nSection I \r\n \r\nSchedules \r\n \r\nRequired Supplementary Information (Continued) \r\n \r\n7 Schedule of Revenues, Expenditures and Changes in Fund \r\n \r\nBalances - Budget and Actual General Fund \r\n \r\n39 \r\n \r\nSupplementary Information \r\n \r\n8 Schedule of Expenditures of Federal Awards \r\n \r\n40 \r\n \r\n9 Schedule of State Revenue \r\n \r\n42 \r\n \r\n10 Schedule of Approved Local Option Sales Tax Projects \r\n \r\n44 \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 Section 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 State Auditor \r\nINDEPENDENT AUDITOR'S REPORT \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 Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \r\nReport on the Audit of the Financial Statements \r\nOpinions \r\nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District) as of and for the year ended June 30, 2022, 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\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the School District as of June 30, 2022, 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\nBasis for Opinions \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. \r\nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nResponsibilities of Management for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \r\nAuditor's Responsibilities for the Audit of the Financial Statements \r\nOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. \r\nIn performing an audit in accordance with GAAS and Government Auditing Standards, we: \r\n Exercise professional judgment and maintain professional skepticism throughout the audit. \r\n Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. \r\n Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, no such opinion is expressed. \r\n Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. \r\n Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for a reasonable period of time. \r\nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2022, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. The School District restated beginning balances for the effect of GASB Statement No. 87. Our opinions are not modified with respect to this matter. \r\n \r\n Required 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient appropriate evidence to express an opinion or provide any assurance. \r\nSupplementary 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 supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 8, 2023 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\n \r\n A copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. Respectfully submitted, \r\nGreg S. Griffin State Auditor \r\nFebruary 8, 2023 \r\n \r\n (This page left intentionally blank) \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\nINTRODUCTION \r\nThe Towns County Board of Education's (School District) financial statements for the fiscal year ended June 30, 2022 includes a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2022 are as follows: \r\nOn the government-wide financial statements: \r\n The School District's net position at June 30, 2022 was almost $7.9 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation/amortization) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2022 of $7.9 million represented an increase of about $2.3 million when compared to the prior year. The primary reasons for the increase in net position were twofold: (1) actuarial estimates used in the financial statements for fiscal year 2022 resulted in a favorable impact on net position of about $1.7 million and (2) an increase of over $1.4 million in operating grants and contributions during fiscal year 2022 as compared to fiscal year 2021. \r\n The School District had almost $16.7 million in expenses relating to governmental activities; almost $8.1 million of the $16.7 million in expenses were offset by program specific charges for services and operating grants and contributions. However, general revenues (primarily property and sales taxes) and special item of almost $11.0 million were adequate to provide for these programs. \r\n As stated above, general revenues and special item accounted for almost $11.0 million or about 57.6% of all revenues and special item totaling $19.0 million. Program specific revenues in the form of charges for services and operating grants and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place.) \r\ni \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\nOn the fund financial statements:  Among major funds, the general fund had $19.3 million in revenues and $17.5 million in expenditures. The general fund balance of $8.4 million at June 30, 2022 increased roughly $1.8 million from the prior year, largely due to increases in revenues for local option sales tax revenues, state revenues, and federal revenues. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS These financial statements consists of three parts: management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. The government-wide financial statements include the `Statement of Net Position' and `Statement of Activities'. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. The fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `governmental funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Towns County School District, the general fund and capital projects fund are considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. The 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\nii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\nGovernment-Wide Statements \r\nSince Towns County School District has no operations that have been classified as \"business activities\", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets, deferred outflows, liabilities, and deferred inflows. These accounts use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \r\nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \r\n Capitalize current outlays for capital assets  Depreciated/amortized capital assets and intangible rights-to-use assets  Report long-term debt, including pension and post-employment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the accrual \r\nbasis of accounting  Allocate net position as follows: \r\no Net Investment in Capital Assets o Restricted net position are amounts with constraints placed on the use by external sources \r\nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use. \r\nFund Financial Statements \r\nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \r\nThe School District has one kind of fund as discussed below: \r\nGovernmental Funds  The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government \r\niii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\noperations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nNet position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position - as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \r\nIn the case of the Towns County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $7.9 million at June 30, 2022. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $7.9 million of net position, over $1.7 million was restricted for continuation of various state and federal programs, and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\nIn addition, the School District had $20.9 million (net of related debt) invested in capital assets and intangible right-to-use assets (e.g., land, buildings, and equipment). The School District uses these assets to provide educational services to students within geographic boundaries served by the School District. Because of the very nature and on-going use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \r\nBecause of the restrictions on net position as discussed above, the School District had an unrestricted (deficit) of about $14.7 million at June 30, 2022. The reader should remember this deficit includes pension related charges recorded because of the of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB Statement No. 68; and also includes \r\niv \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\ncharges recorded because of the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Post-Employment Benefits Other than Pensions. The School District believes it is also meaningful to view the School District's net position in the following manner: \r\n \r\nNet Position associated with pension obligations \r\n \r\n$ (9,161,731) \r\n \r\nNet position associated with postemployment benefits other than pension obligations \r\n \r\n(13,900,663) \r\n \r\nNet position exclusive of pension obligations and post-employment benefits \r\n \r\n30,943,212 \r\n \r\nNet position, June 30, 2022 \r\n \r\n$ 7,880,818 \r\n \r\nThe above analysis reflects, despite pension obligations and post-employment benefits, the School District's net position is a positive $7.8 million and management believes the School District's financial position is sound. \r\n \r\nv \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \r\nTable 1 Net Position \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 (1) \r\n \r\n$ 11,943,032 $ 11,039,261 \r\n \r\n20,872,956 \r\n \r\n21,170,070 \r\n \r\nTotal Assets \r\n \r\n32,815,988 \r\n \r\n32,209,331 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n3,813,413 2,778,516 \r\n \r\n3,988,791 3,499,397 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n6,591,929 \r\n \r\n7,488,188 \r\n \r\nTotal Assets and Deferred Outflows of Resources \r\n \r\n39,407,917 \r\n \r\n39,697,519 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n1,715,742 157,034 \r\n5,151,205 10,472,219 \r\n \r\n1,708,148 117,642 \r\n14,434,546 14,416,684 \r\n \r\nTotal Liabilities \r\n \r\n17,496,200 \r\n \r\n30,677,020 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n7,823,939 6,206,960 \r\n \r\n119,695 3,310,041 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n14,030,899 \r\n \r\n3,429,736 \r\n \r\nTotal Liabilities and Deferred Inflows of Resources 31,527,099 \r\n \r\n34,106,756 \r\n \r\nNet Position \r\n \r\nNet Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n20,828,169 1,736,285 (14,683,636) \r\n \r\n21,048,883 2,887,557 (18,345,677) \r\n \r\nTotal Net Position \r\n \r\n$ 7,880,818 $ 5,590,763 \r\n \r\n(1) Fiscal year 2021 balances do not reflect the effects of the restatement of net position. See Note 12 in the Notes to the Basic Financial Statements for more information. \r\n \r\nvi \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nIn connection with the unrestricted deficit as June 30, 2022 as shown above, management presents the following additional information: \r\n \r\nTotal unrestricted net position (deficit) \r\n \r\n$ (14,683,636) \r\n \r\nUnrestricted deficit in net position resulting from recognition of net pension obligations \r\n \r\n9,161,731 \r\n \r\nUnrestricted deficit in net position resulting from recognition of post-employment benefits other than pension obligations \r\n \r\n13,900,663 \r\n \r\nUnrestricted net position, exclusive of the net pension obligation \r\n \r\nand post-employment benefits effect \r\n \r\n$ \r\n \r\n8,378,758 \r\n \r\nThe above analysis shows that the recognition of liabilities for pension obligations and post-employment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \r\n \r\nvii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \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\n2022 \r\n \r\n2021 (1) \r\n \r\n$ \r\n \r\n150,219 $ \r\n \r\n90,398 \r\n \r\n7,901,739 \r\n \r\n6,515,888 \r\n \r\n- \r\n \r\n188,320 \r\n \r\nTotal Program Revenues \r\n \r\n8,051,958 \r\n \r\n6,794,606 \r\n \r\nGeneral Revenues: Property Taxes Sales Taxes Investment Earnings Miscellaneous \r\nSpecial Item Loss on Disposal of Capital Assets \r\n \r\n7,619,917 3,162,951 \r\n9,903 455,571 \r\n(321,163) \r\n \r\n7,356,604 3,523,585 \r\n6,903 361,058 \r\n- \r\n \r\nTotal General Revenues and Special Item \r\n \r\n10,927,179 \r\n \r\n11,248,150 \r\n \r\nTotal Revenues and Special Item \r\n \r\n18,979,137 \r\n \r\n18,042,756 \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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \r\n \r\n10,213,453 \r\n1,240,420 213,936 245,039 353,224 799,143 191,990 \r\n1,624,798 822,702 86,714 \r\n119,505 12,923 \r\n771,935 1,823 \r\n \r\n11,023,194 \r\n1,372,117 181,659 270,708 427,608 \r\n1,007,224 228,375 \r\n1,187,178 744,147 86,299 \r\n120,763 1,692 \r\n688,493 - \r\n \r\nTotal Expenses \r\n \r\n16,697,605 \r\n \r\n17,339,457 \r\n \r\nIncrease in Net Position \r\n \r\n$ 2,281,532 $ \r\n \r\n703,299 \r\n \r\n(1) Fiscal year 2021 balances do not reflect the effects of the restatement of net position. See Note 12 in the Notes to the Basic Financial Statements for more information. \r\n \r\nviii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nCost of Providing Services \r\n \r\nThe Statement of Activities shows the cost of program services, the charges for services, and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \r\nTable 3 Cost of Services \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 (1) \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\nOther Support Services \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\nCommunity Services \r\n \r\nFood Services \r\n \r\nInterest on Long-Term Debt \r\n \r\n10,213,453 $ \r\n1,240,420 213,936 245,039 353,224 799,143 191,990 \r\n1,624,798 822,702 86,714 \r\n119,505 12,923 771,935 1,823 \r\n \r\n11,023,194 $ \r\n1,372,117 181,659 270,708 427,608 \r\n1,007,224 228,375 \r\n1,187,178 744,147 86,299 \r\n120,763 1,692 \r\n688,493 - \r\n \r\nTotal Expenses \r\n \r\n$ 16,697,605 $ 17,339,457 $ \r\n \r\n5,677,656 $ 7,428,789 \r\n \r\n979,909 94,841 80,341 \r\n(103,954) 285,138 \r\n18,164 1,044,701 \r\n555,081 86,496 \r\n \r\n1,182,573 97,967 115,613 111,640 509,770 50,262 741,432 213,516 86,107 \r\n \r\n62,273 12,923 (149,746) 1,823 \r\n \r\n62,563 1,692 (57,073) \r\n- \r\n \r\n8,645,646 $ 10,544,851 \r\n \r\n(1) Fiscal year 2021 balances do not reflect the effects of the restatement of net position. See Note 12 in the Notes to the Basic Financial Statements for more information. \r\nThe overall School District expenses decreased about $0.6 million from the prior year while the net costs of providing those services decreased by almost $1.9 million. The reduction in fiscal year 2022 expenses were primarily the result of actuarial costs for pension and OPEB expenses for fiscal year 2022 being about $3.0 million less than in the prior year. Other expenses rose as expected. The reduction is the net costs of services for fiscal year 2022 of about $1.9 million resulted from the fact that operating grants and contributions increased by about $1.4 million from the prior year. \r\n \r\nix \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 The chart below shows a functional summary of the expenses made by the School District during fiscal year 2022. The percentages are rounded to one decimal place. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS Information about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $19.3 million and total expenditures of $18.5 million in fiscal year 2022. Total governmental fund balances of $9.7 million at June 30, 2022, increased roughly $0.8 million from the prior year. General Fund Budget Highlights The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2022, the School District amended its general fund budget as needed. The School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. For the general fund, the final actual revenues of $19.3 million exceeded the final budgeted revenues by $0.9 million. While revenues for property taxes and sales taxes both exceeded the budgeted amount by about $1.2 million each, actual federal revenues were almost $2.1 million under the budgeted amount. The federal revenues were less than the final budget due to the fact the School District included several Elementary and Secondary School Emergency Relief Fund (ESSER) and American Rescue Plan \r\nx \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nElementary and Secondary School Emergency Relief Fund (ARP ESSER) grants in the final budget that will be expended in fiscal year 2023 and 2024, even though the grant was approved and budgeted for fiscal year 2022. \r\n \r\nThe general fund's final actual expenditures of $17.5 million were less than the final budget by almost $2.8 million. This situation occurred, in part, because expenditure requirements were reduced in certain functions as a result of COVID-19's limited effect on operations. The functions experiencing significant expenditures less than the final budget were instruction by $1.9 million, general administration by almost $0.4 million and maintenance and operation by about $0.4 million. \r\n \r\nCAPITAL ASSETS, INTANGBILE RIGHT-TO USE ASSETS AND LONG-TERM LIABILITIES \r\n \r\nCapital Assets and Intangible Right-to-Use Assets \r\n \r\nAt fiscal year ended June 30, 2022, the School District had $20.9 million invested in capital assets, net of accumulated depreciation and amortization, all in governmental activities. These assets are made up of a broad range of items including buildings and improvements, land, land improvements, instructional food service, transportation and maintenance equipment, and intangible right-to-use equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \r\nTable 4 Capital Assets at June 30 (Net of Depreciation/Amortization) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 (1) \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements Intangible Right-To-Use Equipment \r\nTotal \r\n \r\n$ \r\n \r\n951,265 $ 1,101,858 \r\n \r\n128,335 \r\n \r\n121,187 \r\n \r\n16,328,236 \r\n \r\n16,666,983 \r\n \r\n1,084,016 \r\n \r\n784,644 \r\n \r\n2,328,191 \r\n \r\n2,495,398 \r\n \r\n52,913 \r\n \r\n- \r\n \r\n$ 20,872,956 $ 21,170,070 \r\n \r\n(1) Fiscal year 2021 balances do not reflect the effects of the restatement of net position. See Note 12 in the Notes to the Basic Financial Statements for more information \r\n \r\nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \r\n \r\nxi \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nLong-Term Liabilities \r\n \r\nAt June 30, 2022, the School District had about $157,000 in long-term liabilities outstanding which consisted of about $112,000 compensated absences and $45,000 leases. The School District had no bond debt at June 30, 2022. \r\n \r\nTable 5 Change in Long-Term Liabilities \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 (1) \r\n \r\nCompensated Absences Leases \r\n \r\n$ \r\n \r\n112,247 $ \r\n \r\n117,642 \r\n \r\n44,787 \r\n \r\n- \r\n \r\nTotal Long-Term Liabilities \r\n \r\n$ \r\n \r\n157,034 $ \r\n \r\n117,642 \r\n \r\n(1) Fiscal year 2021 balances do not reflect the effects of the restatement of net position See Note 12 in the Notes to the Basic Financial Statements for more information. \r\n \r\nAdditional information about the School District's liabilities can be found in the Notes to the Basic Financial Statements. \r\nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \r\nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \r\n The School District is financially stable. The School District's revenues from property taxes, on the fund level remained about the same as the prior year even though the millage rate was reduced from 7.346 mills to 6.863 mills for fiscal year 2022. The millage rate change produced over $1.1 million per mill during the year under review compared to $1.0 million per mill in prior year. The School District's student enrollment has remained fairly stable; hence, no new facilities are contemplated in the near future. \r\n The economy has continued to have modest improvement during fiscal year 2022. The School District's revenues from state funds decreased about 6.4% from the prior year and revenues from federal funds increased about 52.6% from the prior year. The increase in federal funds was mainly due to Elementary and Secondary School Emergency Relief Fund (ESSER) and American Rescue Plan Elementary and Secondary School Emergency Relief Fund (ARP ESSER) grants received. The general fund had an unassigned fund balance of over $7.7 million at June 30, 2022, which was an increase of about $1.8 million from the prior year. \r\n \r\nxii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022  The Board anticipates significant financial challenges going forward due to higher health insurance and benefit costs for employees is expected to continue. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizen's taxpayers, investors, and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mrs. Myra Underwood, Finance Director for Towns County Board of Education, 67 Lakewood Circle, Suite C, Hiawassee, Georgia 30546. You may also email your questions to Mrs. Underwood at Myra@townscountyschools.org. \r\nxiii \r\n \r\n Towns County Board of Education \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2022 \r\nASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation/Amortization) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES Accounts Payable Salaries and Benefits 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 Related to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION Net Investment in Capital Assets Restricted for \r\nContinuation of State and Federal Programs 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\n10,009,070.46 \r\n \r\n1,001,666.08 533,675.24 378,777.23 11,200.00 8,642.50 \r\n1,079,600.00 19,793,356.00 32,815,987.51 \r\n \r\n3,813,413.00 2,778,516.00 6,591,929.00 \r\n \r\n101,907.15 1,613,835.06 5,151,205.00 10,472,219.00 \r\n24,297.92 132,735.86 17,496,199.99 \r\n \r\n7,823,939.00 6,206,960.00 14,030,899.00 \r\n \r\n20,828,169.18 \r\n \r\n411,130.75 1,325,153.51 (14,683,635.92) \r\n \r\n$ \r\n \r\n7,880,817.52 \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 GOVERNMENTAL ACTIVITIES 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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \r\nTotal Governmental Activities \r\n \r\nTOWNS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2022 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ \r\n \r\n10,213,453.27 $ \r\n \r\n40,149.78 $ \r\n \r\n1,240,419.52 \r\n \r\n- \r\n \r\n213,935.45 \r\n \r\n- \r\n \r\n245,039.02 \r\n \r\n- \r\n \r\n353,224.13 \r\n \r\n- \r\n \r\n799,143.16 \r\n \r\n- \r\n \r\n191,990.09 \r\n \r\n- \r\n \r\n1,624,798.23 \r\n \r\n- \r\n \r\n822,701.60 \r\n \r\n- \r\n \r\n86,713.93 \r\n \r\n- \r\n \r\n119,504.87 12,922.95 771,935.31 \r\n1,823.03 \r\n \r\n57,231.67 - \r\n52,837.48 - \r\n \r\n$ \r\n \r\n16,697,604.56 $ \r\n \r\n150,218.93 $ \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Local Option Sales Tax Other Sales Tax Investment Earnings Miscellaneous \r\nSpecial Item Loss on Disposal of Capital Assets Total General Revenues and Special Item \r\n \r\nChange in Net Position \r\n \r\nNet Position - Beginning of Year (Restated) \r\n \r\nNet Position - End of Year \r\n \r\n4,495,647.91 $ 260,510.72 119,094.18 164,698.23 457,177.72 514,004.79 173,826.51 580,097.16 267,620.80 217.46 868,843.79 - \r\n7,901,739.27 \r\n$ \r\n \r\n(5,677,655.58) \r\n(979,908.80) (94,841.27) (80,340.79) 103,953.59 \r\n(285,138.37) (18,163.58) \r\n(1,044,701.07) (555,080.80) (86,496.47) \r\n(62,273.20) (12,922.95) 149,745.96 \r\n(1,823.03) \r\n(8,645,646.36) \r\n7,619,916.71 \r\n3,036,599.73 126,351.09 9,902.97 455,571.15 \r\n(321,163.00) 10,927,178.65 \r\n2,281,532.29 \r\n5,599,285.23 \r\n7,880,817.52 \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 ASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \r\nFUND BALANCES Nonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\nTOWNS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2022 \r\n \r\nEXHIBIT \"C\" \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n8,619,743.75 $ \r\n \r\n1,001,666.08 533,675.24 378,777.23 11,200.00 8,642.50 \r\n \r\n$ \r\n \r\n10,553,704.80 $ \r\n \r\n1,389,326.71 $ \r\n- \r\n1,389,326.71 $ \r\n \r\n10,009,070.46 \r\n1,001,666.08 533,675.24 378,777.23 11,200.00 8,642.50 \r\n11,943,031.51 \r\n \r\n$ \r\n \r\n37,733.95 $ \r\n \r\n1,613,835.06 \r\n \r\n1,651,569.01 \r\n \r\n64,173.20 $ - \r\n64,173.20 \r\n \r\n101,907.15 1,613,835.06 1,715,742.21 \r\n \r\n488,573.96 \r\n \r\n- \r\n \r\n488,573.96 \r\n \r\n8,642.50 402,488.25 269,106.24 7,733,324.84 8,413,561.83 \r\n \r\n1,325,153.51 \r\n1,325,153.51 \r\n \r\n8,642.50 1,727,641.76 \r\n269,106.24 7,733,324.84 9,738,715.34 \r\n \r\n$ \r\n \r\n10,553,704.80 $ \r\n \r\n1,389,326.71 $ \r\n \r\n11,943,031.51 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 3 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2022 \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. Land Construction in progress Buildings and improvements Equipment Land improvements Right-to-use assets Accumulated depreciation/amortization \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Net pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. Related to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Lease liability payable Compensated absences payable \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n9,738,715.34 \r\n \r\n$ \r\n \r\n951,265.00 \r\n \r\n128,335.00 \r\n \r\n22,246,943.00 \r\n \r\n2,689,954.00 \r\n \r\n3,922,497.00 \r\n \r\n100,064.00 \r\n \r\n(9,166,102.00) \r\n \r\n20,872,956.00 \r\n \r\n$ \r\n \r\n(5,151,205.00) \r\n \r\n(10,472,219.00) \r\n \r\n(15,623,424.00) \r\n \r\n$ \r\n \r\n(4,010,526.00) \r\n \r\n(3,428,444.00) \r\n \r\n(7,438,970.00) 488,573.96 \r\n \r\n$ \r\n \r\n(44,786.82) \r\n \r\n(112,246.96) \r\n \r\n(157,033.78) \r\n \r\n$ \r\n \r\n7,880,817.52 \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 TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2022 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \r\nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Community Services Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Sale of Capital Assets Lease Liability Proceeds Total 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\nTOTAL \r\n \r\n$ \r\n \r\n7,549,679.09 $ \r\n \r\n3,162,950.82 \r\n \r\n4,945,431.48 \r\n \r\n3,012,905.79 \r\n \r\n150,218.93 \r\n \r\n7,927.40 \r\n \r\n455,571.15 \r\n \r\n19,284,684.66 \r\n \r\n- $ 1,975.57 1,975.57 \r\n \r\n7,549,679.09 3,162,950.82 4,945,431.48 3,012,905.79 \r\n150,218.93 9,902.97 \r\n455,571.15 19,286,660.23 \r\n \r\n10,479,874.09 \r\n1,374,541.84 237,192.45 267,645.02 401,506.13 893,349.74 221,405.09 \r\n1,429,037.99 977,541.29 86,713.93 119,504.87 12,922.95 784,857.27 199,583.44 \r\n20,773.92 1,823.03 \r\n17,508,273.05 1,776,411.61 \r\n \r\n243,367.06 \r\n15,802.97 - \r\n12,089.90 - \r\n308,487.72 930.00 - \r\n6,830.35 427,616.31 \r\n1,015,124.31 (1,013,148.74) \r\n \r\n10,723,241.15 \r\n1,390,344.81 237,192.45 267,645.02 401,506.13 905,439.64 221,405.09 \r\n1,737,525.71 978,471.29 86,713.93 119,504.87 12,922.95 791,687.62 627,199.75 \r\n20,773.92 1,823.03 \r\n18,523,397.36 763,262.87 \r\n \r\n31,895.00 \r\n \r\n- \r\n \r\n30,780.42 \r\n \r\n- \r\n \r\n62,675.42 \r\n \r\n- \r\n \r\n1,839,087.03 \r\n \r\n(1,013,148.74) \r\n \r\n6,574,474.80 \r\n \r\n2,338,302.25 \r\n \r\n$ \r\n \r\n8,413,561.83 $ \r\n \r\n1,325,153.51 $ \r\n \r\n31,895.00 30,780.42 62,675.42 \r\n825,938.29 \r\n8,912,777.05 \r\n9,738,715.34 \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 TOWNS 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, 2022 \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. Capital outlay Depreciation expense - buildings Depreciation expense - equipment Depreciation expense - land improvements Amortization - right-to-use equipment \r\nIn the Statement of Activities, only the loss on the sale or disposal of the capital assets equipment is reported, whereas in the governmental funds, the entire proceeds from the sale increase financial resources. Thus, the change in net position differs from the change in fund balances by the carrying value of the capital assets sold or disposed of. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Unavailable property taxes June 30, 2021 June 30, 2022 \r\nProceeds received from leases are reported as liabilities in the Statement of Activities whereas in the governmental funds, the entire proceeds are reported as other financing sources. Right-to-use equipment \r\nDistrict pension/OPEB contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. Pension expense OPEB expense \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. Compensated absences June 30, 2021 June 30, 2022 \r\nRepayment of long-term debt is reported as expenditures in the governmental funds but repayment reduces long-term liabilities in the Statement of Net Position. Lease for right-to-use equipment \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n825,938.29 \r\n \r\n$ \r\n \r\n690,349.00 \r\n \r\n(416,960.00) \r\n \r\n(72,371.00) \r\n \r\n(167,207.00) \r\n \r\n(21,169.00) \r\n \r\n12,642.00 \r\n \r\n(353,058.00) \r\n \r\n$ \r\n \r\n(418,336.34) \r\n \r\n488,573.96 \r\n \r\n70,237.62 (30,780.42) \r\n \r\n$ \r\n \r\n1,403,719.00 \r\n \r\n326,665.00 \r\n \r\n1,730,384.00 \r\n \r\n$ \r\n \r\n117,641.84 \r\n \r\n(112,246.96) \r\n \r\n5,394.88 \r\n \r\n20,773.92 \r\n \r\n$ \r\n \r\n2,281,532.29 \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 TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nReporting Entity \r\nThe Towns 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. 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 assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\n \r\n- 8 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \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. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \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 is restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\nBasis of Accounting \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property \r\n- 9 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\ntaxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for leases and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under 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 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 2022, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. The primary objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of government's financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. The cumulative effect of GASB Statement No. 87 is described in the restatement note. \r\nCash and Cash Equivalents \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nReceivables \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nInventories \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue \r\n \r\n- 10 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nwhen received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \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 Building Improvements Equipment Intangible Assets \r\n \r\nAll \r\n \r\nN/A \r\n \r\n$ \r\n \r\n20,000.00 \r\n \r\n10 to 60 years \r\n \r\n$ 100,000.00 \r\n \r\n10 to 60 years \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n10 to 60 years \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n8 to 50 years \r\n \r\n$ 100,000.00 Individually determined \r\n \r\nIntangible Right-To-Use Assets \r\n \r\nLeases, as a lessee, are included as intangible right-to-use assets and lease obligations on the Statement of Net Position. An intangible right-to-use asset represents the School District's right to use an underlying asset for the lease term. Lease obligations represent the School District's liability to make lease payments arising from the lease agreement. Intangible right-to-use assets and lease obligations are recognized based on the present value of lease payments over the lease term, where the initial term exceeds 12 months. Residual value guarantees and the value of an option to extend or terminate a lease are reflected to the extent it is reasonably certain to be paid or exercised. Variable payments based on future performance or usage are not included in the measurement of the lease liability. Intangible rightto-use assets are amortized using a straight-line basis over the shorter of the lease term or useful life of the underlying asset. \r\n \r\n- 11 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nCapitalization thresholds of intangible right-to-use assets reported in the government-wide statements are as follows: \r\nCapitalization Policy \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings \r\n \r\n$ \r\n \r\nBuiding Improvements \r\n \r\n$ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nAll 20,000.00 100,000.00 \r\n5,000.00 5,000.00 \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\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 \r\n \r\nIn the School District's government-wide financial statements, outstanding debt is reported as a liability. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt as other financing sources. \r\n \r\nCompensated Absences \r\n \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. \r\nSick leave may best with the employee in certain situations. Inventive pay is defined as any sick leave earned that is not eligible to be used in calculating an employee's retirement benefits. Employees are eligible to be paid incentive pay up to a maximum of 60 days. These payments are made at a rate of $50.00 per day for certified employees and $6.25 per hour for classified employees. \r\nIncentive pay benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal year-end. \r\n \r\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 \r\n- 12 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\non 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\nPost-Employment 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 Post-Employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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\n \r\n- 13 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nProperty Taxes \r\n \r\nThe Towns County Board of Commissioners adopted the property tax levy for the 2021 tax digest year (calendar year) on October 4, 2021 (levy date) based on property values as of January 1, 2021. Taxes were due on January 10, 2022 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2021 tax digest are reported as revenue in the governmental funds for fiscal year 2022. The Towns 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, 2022, for maintenance and operations amounted to $7,549,679.09. \r\n \r\nThe tax millage rate levied for the 2021 tax digest 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\n6.863 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which are included in property taxes shown above, amounted to $920,895.83 during fiscal year ended June 30, 2022. \r\n \r\nSales Taxes \r\n \r\nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $3,162,950.82 and was recorded in the general fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \r\nNOTE 3: BUDGETARY DATA \r\n \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts and Governor's Office of Highway Safety Grant, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A.20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments as long as they do not exceed the aggregate level of expenditures for any fund. Any position or expenditure not previously approved in the annual budget that exceeds the aggregate level shall require Board approval. In such case, the \r\n \r\n- 14 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nexpenditure 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 the 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\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, 2022, the School District had deposits with a carrying amount of $10,009,070.46, and a bank balance of $10,404,172.55. The bank balances insured by Federal depository insurance were $500,000.00. \r\n- 15 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAt June 30, 2022, $9,904,172.55 of the School District's bank balances were exposed to custodial risk. This balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\n- 16 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 5: CAPITAL ASSETS AND INTANGIBLE RIGHT-TO-USE ASSETS \r\nThe following is a summary of changes in the capital assets and intangible right-to-use assets for governmental activities during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, \r\nNot Being Depreciated: Land Construction in Progress \r\n \r\nRestated Balances July 1, 2021 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2022 \r\n \r\n$ 1,101,858.00 $ 199,609.00 $ 350,202.00 $ \r\n \r\n121,187.00 \r\n \r\n7,148.00 \r\n \r\n- \r\n \r\n951,265.00 128,335.00 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,223,045.00 \r\n \r\n206,757.00 \r\n \r\n350,202.00 \r\n \r\n1,079,600.00 \r\n \r\nCapital Assets, Being Depreciated/Amortized: Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Assets - Equipment \r\n \r\n22,168,730.00 2,596,343.00 3,922,497.00 \r\n69,284.00 \r\n \r\n78,213.00 374,599.00 \r\n30,780.00 \r\n \r\n280,988.00 \r\n- \r\n \r\n22,246,943.00 2,689,954.00 3,922,497.00 \r\n100,064.00 \r\n \r\nLess Accumulated Depreciation/Amortization: Buildings and Improvements Equipment Land Improvements Intangible Right-to-Use Assets - Equipment \r\n \r\n5,501,747.00 1,811,699.00 1,427,099.00 \r\n25,982.00 \r\n \r\n416,960.00 72,371.00 167,207.00 21,169.00 \r\n \r\n278,132.00 \r\n- \r\n \r\n5,918,707.00 1,605,938.00 1,594,306.00 \r\n47,151.00 \r\n \r\nTotal Capital Assets, Being Depreciated/Amortized, Net \r\n \r\n19,990,327.00 \r\n \r\n(194,115.00) \r\n \r\n2,856.00 \r\n \r\n19,793,356.00 \r\n \r\nGovernmental Activities Capital Assets - Net \r\n \r\n$ 21,213,372.00 $ 12,642.00 $ 353,058.00 $ 20,872,956.00 \r\n \r\nCurrent year depreciation and amortization expense by function is as follows: \r\n \r\nDepreciation \r\n \r\nAmortization \r\n \r\nTotal \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$ \r\n \r\n594,126.00 $ \r\n2,887.00 11,636.00 33,490.00 14,399.00 \r\n656,538.00 $ \r\n \r\n21,169.00 $ \r\n- \r\n21,169.00 $ \r\n \r\n615,295.00 \r\n2,887.00 11,636.00 33,490.00 14,399.00 \r\n677,707.00 \r\n \r\n- 17 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 6: LONG-TERM LIABILITIES \r\n \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nRestated Balance July 1, 2021 \r\n \r\nGovernmental Activities \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nDue Within June 30, 2021 One Year \r\n \r\nLeases \r\n \r\n$ 34,780.32 $ 30,780.42 $ 20,773.92 $ 44,786.82 $ 24,297.92 \r\n \r\nCompensated Absences (1) \r\n \r\n117,641.84 \r\n \r\n77,150.47 \r\n \r\n82,545.35 \r\n \r\n112,246.96 \r\n \r\n- \r\n \r\n$ 152,422.16 $ 107,930.89 $ 103,319.27 $ 157,033.78 $ 24,297.92 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\nLeases \r\nThe School District has acquired various copiers and printers under the provisions of various contracts that convey control of the right to use another entity's asset for a period of time in an exchange or exchange-like transaction. These contracts are classified as leases for accounting purposes. \r\nThe following is a summary of the carrying values of intangible right-to-use assets under lease at June 30, 2022: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Amortization \r\n \r\n$ \r\n \r\n100,064.00 47,151.00 \r\n52,913.00 \r\n \r\nDuring the current fiscal year, the School District entered into a lease agreement as lessee for the rightto-use copiers and printers at a cost of $30,780.42. Additionally, in a prior year, the School District entered into a different lease for the right-to-use copiers at a cost of $69,284.39. These lease agreements qualify as leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of inception. \r\nLeases currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates Issue Date Maturity Date Amount Issued Amount Outstanding \r\n \r\nLease 103317 Lease MMSA29914270 \r\n \r\n5.00% 5.00% \r\n \r\n7/1/2021 2/1/2022 \r\n \r\n5/31/2023 $ 1/1/2026 \r\n \r\n69,284.39 $ 30,780.42 \r\n \r\n17,049.26 27,737.55 \r\n \r\n$ 100,064.81 $ \r\n \r\n44,786.81 \r\n \r\n- 18 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nThe following is a schedule of total lease payments due in subsequent years: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2023 2024 2025 2026 \r\n \r\n$ \r\n \r\n24,297.92 $ \r\n \r\n7,619.52 \r\n \r\n8,009.35 \r\n \r\n4,860.03 \r\n \r\n1,651.45 851.40 461.57 81.34 \r\n \r\nTotal Principal and Interest $ \r\n \r\n44,786.82 $ \r\n \r\n3,045.76 \r\n \r\nCompensated Absences \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\nNOTE 7: RISK MANAGEMENT \r\nInsurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \r\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' \r\n \r\n- 19 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nCompensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\nUnemployment Compensation \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures with the related liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any unemployment claims in the last two fiscal years. \r\nSurety Bond \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 50,000.00 \r\n \r\nNOTE 8: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2022: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Continuation of State Programs Capital Projects \r\nCommitted School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n8,642.50 \r\n \r\n$ 400,513.87 1,974.38 \r\n1,325,153.51 \r\n \r\n1,727,641.76 \r\n \r\n269,106.24 7,733,324.84 \r\n \r\nFund Balance, June 30, 2022 \r\n \r\n$ 9,738,715.34 \r\n \r\nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 9: 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- 20 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 10: 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 post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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 $353,792.00 for the year ended June 30, 2022. 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, 2022, the School District reported a liability of $10,472,219.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2021. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2020. An expected total OPEB liability as of June 30, 2021 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, 2021. At June 30, 2021, the School District's proportion was 0.096689%, which was a decrease of 0.001466% from its proportion measured as of June 30, 2020. \r\n \r\n- 21 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nFor the year ended June 30, 2022, the School District recognized OPEB expense of $27,127.00. At June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 4,781,582.00 \r\n \r\nChanges of assumptions \r\n \r\n1,917,625.00 \r\n \r\n854,526.00 \r\n \r\nNet difference between projected and actual earnings on OPEB plan investments \r\n \r\n- \r\n \r\n16,606.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n507,099.00 \r\n \r\n554,246.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n353,792.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,778,516.00 $ 6,206,960.00 \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, 2023. 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\n2023 2024 2025 2026 2027 Thereafter \r\n \r\n$ (876,834.00) $ (821,425.00) $ (683,770.00) $ (565,629.00) $ (650,041.00) $ (184,537.00) \r\n \r\n- 22 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nActuarial Assumptions: The total OPEB liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020 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, 2021: \r\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, including inflation \r\n \r\nLong-term expected rate of return \r\n \r\n7.00%, compounded annually, net of investment expense, and including inflation \r\n \r\nHealthcare cost trend rate \r\n \r\nPre-Medicare Eligible Medicare Eligible Ultimate trend rate \r\n \r\n6.75% 5.13% \r\n \r\nPre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \r\n \r\n4.50% 4.50% \r\n \r\nPre-Medicare Eligible Medicare Eligible \r\n \r\n2029 2023 \r\n \r\nMortality rates were based on the Pub-2010 Mortality Tables for Males or Females, as appropriate, as follows: \r\n \r\n For TRS members: Post-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% was used for death prior to retirement. Future improvement in mortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \r\n \r\n- 23 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\n For PSERS members: Pre-retirement mortality rates were based on the Pub-2010 General Employee Mortality Table, with no adjustment, with the MP-2019 Projections scale applied generationally. Post-retirement mortality rates for service retirements were based on the Pub-2010 General Healthy Annuitant Mortality Table (ages set forward one year and adjusted 105% for males and 108% for females) with the MP-2019 Projection scale applied generationally. Post retirement mortality rates for disability retirements were based on the Pub-2010 General Disabled Mortality Table (ages set back three years for males and adjusted 103% for males and 106% for females) with the MP-2019 Projections scaled applied generationally. Postretirement mortality rates for beneficiaries were based on the Pub-2010 General Contingent Survivor Mortality Table (ages set forward two years and adjust 106% for males and 158% for females) with the MP-2019 Project scale applied generationally. \r\n \r\nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation with changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \r\n \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2020 valuation were based on a review of recent plan experience done concurrently with the June 30, 2020 valuation. \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. 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 Equities \r\n \r\n30.00% 70.00% \r\n \r\n0.14% 9.20% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\n \r\n- 24 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nDiscount Rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 2.20% was used as the discount rate, as compared with last year's rate of 2.22%. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation bonds with an average rating of AA or higher (2.16% per the Municipal Bond Index Rate). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the 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 2145. \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 2.20%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.20%) or 1-percentage-point higher (3.20%) than the current discount rate: \r\n \r\n1% Decrease (1.20%) \r\n \r\nCurrent Discount Rate (2.20%) \r\n \r\n1% Increase (3.20%) \r\n \r\nSchool District's proportionate share of the Net OPEB liability $ 11,972,094.00 $ \r\n \r\n10,472,219.00 $ 9,216,681.00 \r\n \r\nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1percentage-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\nSchool District's proportionate share of the Net OPEB liability $ 11,972,094.00 $ \r\n \r\n10,472,219.00 $ 9,216,681.00 \r\n \r\nOPEB Plan Fiduciary Net Position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \r\n \r\nNOTE 11: RETIREMENT PLANS \r\n \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 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 \r\n \r\n- 25 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nauthority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2022. The School District's contractually required contribution rate for the year ended June 30, 2022 was 19.81% of annual School District payroll, of which 19.46% of payroll was required from the School District and 0.35% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,547,124.00 and $28,223.18 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 $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \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 \r\n \r\n- 26 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\npaid 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 $35,541.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2022, the School District reported a liability of $5,151,205.00 for its proportionate share of the net pension liability for TRS. \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 5,151,205.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n96,226.00 \r\n \r\nTotal \r\n \r\n$ 5,247,431.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2020. An expected total pension liability as of June 30, 2021 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, 2021. \r\nAt June 30, 2021, the School District's TRS proportion was 0.058243%, which was a decrease of 0.001345% from its proportion measured as of June 30, 2020. \r\nAt June 30, 2022, 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 $28,128.00. \r\nThe PSERS net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2020. An expected total pension liability as of June 30, 2021 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, 2021. \r\n \r\n- 27 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nFor the year ended June 30, 2022, the School District recognized pension expense of $150,275.00 for TRS and $296.00 for PSERS and revenue of $6,870.00 for TRS and $296.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ 1,229,241.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n996,999.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n7,534,758.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n40,049.00 \r\n \r\n289,181.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n1,547,124.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 3,813,413.00 $ 7,823,939.00 \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, 2023. 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\n2023 2024 2025 2026 \r\n \r\n$ (1,052,375.00) $ (1,070,324.00) $ (1,536,949.00) $ (1,898,002.00) \r\n \r\n- 28 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nActuarial Assumptions: The total pension liability as of June 30, 2021 was determined by an actuarial valuation as of June 30, 2020, 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 Investment rate of return \r\nPost-retirement benefit increases \r\n \r\n3.00%  8.75%, average, including inflation 7.25%, net of pension plan investment expense, including inflation 1.50% semi-annually \r\n \r\nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement immortality rates was assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \r\nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation Salary increases Investment rate of return \r\n \r\n2.50% N/A 7.00%, 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 TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \r\n \r\nMortality rates are as follows: \r\n \r\n The Pub-2010 General Employee Table, with no adjustments, projected generationally with the MP-2019 scale is used for both males and females while in active service. \r\n \r\n The Pub-2010 Family of Tables projected generationally with the MP-2019 Scale and with further adjustments are used for post-retirement mortality assumptions as follows: \r\n \r\nParticipant Type \r\n \r\nMembership Table \r\n \r\nSet Forward (+)/ Setback (-) Adjustment to Rates \r\n \r\nService Retirees \r\n \r\nGeneral Healthy BelowMedian Annuitant \r\n \r\nMale: +2; Female: +2 \r\n \r\nMale: 101%; Female: 103% \r\n \r\nDisability Retirees Beneficiaries \r\n \r\nGeneral Disabled General Below-Median Contingent Survivors \r\n \r\nMale: -3; Female: 0 Male: +2; Female: +2 \r\n \r\nMale: 103%; Female: 106% Male: 104%; Female 99% \r\n \r\nThe actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2014 June 30, 2019. \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 allocation and 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\nLong-term expected real rate of return* \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\nTotal \r\n \r\n30.00% 46.30% \r\n1.20% 11.50% \r\n6.00% 5.00% \r\n100.00% \r\n \r\n(0.80)% 9.30% 13.30% 9.30% 11.30% 10.60% \r\n \r\n30.00% 46.40% \r\n1.10% 11.70% \r\n5.80% 5.00% \r\n100.00% \r\n \r\n(1.50)% 9.20% 13.40% 9.20% 10.40% 10.60% \r\n \r\n* Rates shown are net of inflation. \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 7.00%.The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n- 30 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2022 \r\n \r\nEXHIBIT \"G\" \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 7.25%, 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 the net pension liability $ \r\n \r\n13,875,981.00 $ \r\n \r\n5,151,205.00 $ (1,998,147.00) \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\nNOTE 12: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2022, the School District made prior period adjustments due to the adoption of GASB Statement No. 87, as described in \"New Accounting Pronouncements,\" which requires the restatement of the June 30, 2021 net position in governmental activities. These changes are in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2021 as previously reported \r\n \r\n$ 5,590,763.55 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 87: \r\n \r\n8,521.68 \r\n \r\nNet Position, July 1, 2021, as restated \r\n \r\n$ 5,599,285.23 \r\n \r\nNOTE 13: SPECIAL ITEM \r\nDuring fiscal year 2022, the School District disposed of certain capital assets. These items were removed from the capital asset records at their net carrying values and resulted in a net loss of $321,163.00. This is reported as a special item on Exhibit B of this report. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nSCHEDULE \"1\" \r\n \r\nFor the Year Ended \r\nJune 30 \r\n2022 2021 2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the Net Pension \r\nLiability (NPL) \r\n \r\nSchool District's proportionate share of \r\nthe NPL \r\n \r\nState of Georgia's proportionate share of \r\nthe NPL associated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share \r\nof the NPL as a percentage of its covered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension \r\nliability \r\n \r\n0.058243% $ 0.059588% $ 0.060230% $ 0.060334% $ 0.059298% $ 0.059138% $ 0.061321% $ 0.064451% $ \r\n \r\n5,151,205.00 $ 14,434,546.00 $ 12,951,079.00 $ 11,199,283.00 $ 11,020,716.00 $ 12,200,829.00 $ 9,335,513.00 $ 8,142,534.00 $ \r\n \r\n96,226.00 $ 5,247,431.00 $ 265,010.00 $ 14,699,556.00 $ 238,680.00 $ 13,189,759.00 $ 142,000.00 $ 11,341,283.00 $ 161,506.00 $ 11,182,222.00 $ 207,343.00 $ 12,408,172.00 $ 151,936.00 $ 9,487,449.00 $ 123,431.00 $ 8,265,965.00 $ \r\n \r\n7,719,448.95 7,823,587.60 7,486,814.56 7,277,264.22 6,915,146.60 6,600,638.78 6,603,774.14 6,674,890.70 \r\n \r\n66.73% 184.50% 172.99% 153.89% 159.37% 184.84% 141.37% 121.99% \r\n \r\n92.03% 77.01% 78.56% 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 TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nSCHEDULE \"2\" \r\n \r\nFor the Year Ended June 30 \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\n2021 \r\n \r\n$ \r\n \r\n1,547,124.00 $ \r\n \r\n1,547,124.00 $ \r\n \r\n- \r\n \r\n2021 \r\n \r\n$ \r\n \r\n1,444,342.00 $ \r\n \r\n1,444,342.00 $ \r\n \r\n- \r\n \r\n2020 \r\n \r\n$ \r\n \r\n1,624,090.00 $ \r\n \r\n1,624,090.00 $ \r\n \r\n- \r\n \r\n2019 \r\n \r\n$ \r\n \r\n1,536,231.00 $ \r\n \r\n1,536,231.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n1,206,536.00 $ \r\n \r\n1,206,536.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n971,856.00 $ \r\n \r\n971,856.00 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n925,672.00 $ \r\n \r\n925,672.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n854,546.01 $ \r\n \r\n854,546.01 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n7,951,530.89 \r\n \r\n$ \r\n \r\n7,719,448.95 \r\n \r\n$ \r\n \r\n7,823,587.60 \r\n \r\n$ \r\n \r\n7,486,814.56 \r\n \r\n$ \r\n \r\n7,277,264.22 \r\n \r\n$ \r\n \r\n6,915,146.60 \r\n \r\n$ \r\n \r\n6,600,638.78 \r\n \r\n$ \r\n \r\n6,603,774.14 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n19.46% 18.71% 20.76% 20.52% 16.58% 14.05% 14.02% 12.94% \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 TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\nSCHEDULE \"3\" \r\n \r\nFor the Year Ended \r\nJune 30 \r\n2022 2021 2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the \r\nNet Pension Liability (NPL) \r\n \r\nSchool District's proportionate share \r\nof the NPL \r\n \r\nState of Georgia's proportionate share of \r\nthe NPL associated with the School District \r\n \r\n0.00% $ 0.00% $ 0.00% $ 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\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n28,128.00 $ 198,138.00 $ 190,880.00 $ 171,802.00 $ 159,287.00 $ 200,056.00 $ 131,772.00 $ 110,827.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share \r\nof the NPL as a percentage of its covered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total \r\npension liability \r\n \r\n28,128.00 $ 198,138.00 $ 190,880.00 $ 171,802.00 $ 159,287.00 $ 200,056.00 $ 131,772.00 $ 110,827.00 $ \r\n \r\n439,645.75 493,172.88 480,380.96 481,151.68 480,506.73 438,416.25 369,299.00 331,400.00 \r\n \r\nN/A \r\n \r\n98.00% \r\n \r\nN/A \r\n \r\n84.45% \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- 35 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND \r\n \r\nSCHEDULE \"4\" \r\n \r\nFor the Year Ended \r\nJune 30 \r\n2022 2021 2020 2019 2018 \r\n \r\nSchool District's proportion of the Net OPEB Liability \r\n(NOL) \r\n \r\nSchool District's proportionate share of \r\nthe NOL \r\n \r\nState of Georgia's proportionate share \r\nof the NOL associated with the \r\nSchool District \r\n \r\n0.096689% $ 0.098155% $ 0.101776% $ 0.100676% $ 0.094939% $ \r\n \r\n10,472,219.00 $ 14,416,684.00 $ 12,490,099.00 $ 12,795,611.00 $ 13,338,891.00 $ \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\nTotal \r\n10,472,219.00 14,416,684.00 12,490,099.00 12,795,611.00 13,338,891.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 7,642,280.06 $ 7,765,958.08 $ 7,563,365.36 $ 7,392,102.60 $ 6,909,485.92 \r\n \r\nSchool District's proportionate share \r\nof the NOL as a percentage of its covered-employee \r\npayroll \r\n \r\nPlan fiduciary net position as a percentage of the total OPEB liability \r\n \r\n137.03% 185.64% 165.14% 173.10% 193.05% \r\n \r\n6.14% 3.99% 4.63% 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- 36 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\n \r\nSCHEDULE \"5\" \r\n \r\nFor the Year Ended June 30 \r\n2022 2021 2020 2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\n$ \r\n \r\n353,792.00 \r\n \r\n$ \r\n \r\n359,667.00 \r\n \r\n$ \r\n \r\n331,938.00 \r\n \r\n$ \r\n \r\n548,135.00 \r\n \r\n$ \r\n \r\n521,790.00 \r\n \r\n$ \r\n \r\n495,023.00 \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\n$ \r\n \r\n353,792.00 \r\n \r\n$ \r\n \r\n359,667.00 \r\n \r\n$ \r\n \r\n331,938.00 \r\n \r\n$ \r\n \r\n548,135.00 \r\n \r\n$ \r\n \r\n521,790.00 \r\n \r\n$ \r\n \r\n495,023.00 \r\n \r\nContribution deficiency (excess) \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\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n$ \r\n \r\n7,827,078.36 \r\n \r\n$ \r\n \r\n7,642,280.06 \r\n \r\n$ \r\n \r\n7,765,958.08 \r\n \r\n$ \r\n \r\n7,563,365.36 \r\n \r\n$ \r\n \r\n7,392,102.60 \r\n \r\n$ \r\n \r\n6,909,485.92 \r\n \r\n4.52% 4.71% 4.27% 7.25% 7.06% 7.16% \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 TOWNS COUNTY BOARD OF EDUCATION NOTED TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChange of benefit terms: There have been no changes in benefit terms. \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 RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \r\nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nPublic School Employees Retirement System Changes of benefit terms: There have been no changes in benefit terms. \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 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\nA new funding policy was initially adopted by the Board on March 15, 2018, and most recently amended on December 17, 2020. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation and further reduced from 7.40% to 7.30% for the June 30, 2018 actuarial valuation. \r\nOn December 17, 2020, the Board adopted recommended changes to the economic and demographic assumption utilized by the System based on the experience study prepared for the five-year period ending June 30, 2019. Primary among the changes were the updates to rates or mortality, retirement, disability, and withdrawal. This also included a change to the long-term assumed investment rate of return to 7.00%. These assumption changes are reflected in the calculation of the June 30, 2021 Total Pension Liability. \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: June 30, 2020 valuation: Decremental assumptions were changed to reflect the Employees Retirement Systems experience study. Approximately 0.10% of employees are members of the Employees Retirement System. \r\nJune 30, 2019 valuation: Decremental assumptions were changed to reflect the Teachers Retirement Systems experience study. \r\nJune 30, 2018 valuation: The inflation assumption was lowered from 2.75% to 2.50%. \r\nJune 30, 2017 valuation: The participation assumption, tobacco use assumption and morbidity factors were revised. \r\nJune 30, 2015 valuation: Decremental and underlying inflation assumptions were changed to reflect to Retirement Systems' experience studies. \r\nJune 30, 2012 valuation: A data audit was performed and data collection procedures and assumptions were changed. \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, back to 3.58% of June 30, 2019, and to 2.22% as of June 30, 2020. \r\n \r\n- 38 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \r\nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operation Community Services Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Other Sources Other Uses Sale of Capital Assets Lease Liability Proceeds Total Other Financing Sources (Uses) \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\n6,300,000.00 $ \r\n \r\n6,300,000.00 $ \r\n \r\n7,549,679.09 $ \r\n \r\n1,249,679.09 \r\n \r\n1,975,000.00 \r\n \r\n1,975,000.00 \r\n \r\n3,162,950.82 \r\n \r\n1,187,950.82 \r\n \r\n4,405,724.00 \r\n \r\n4,762,878.00 \r\n \r\n4,945,431.48 \r\n \r\n182,553.48 \r\n \r\n4,423,380.00 \r\n \r\n5,073,903.26 \r\n \r\n3,012,905.79 \r\n \r\n(2,060,997.47) \r\n \r\n100,000.00 \r\n \r\n100,000.00 \r\n \r\n150,218.93 \r\n \r\n50,218.93 \r\n \r\n3,000.00 \r\n \r\n3,000.00 \r\n \r\n7,927.40 \r\n \r\n4,927.40 \r\n \r\n125,000.00 \r\n \r\n125,000.00 \r\n \r\n455,571.15 \r\n \r\n330,571.15 \r\n \r\n17,332,104.00 \r\n \r\n18,339,781.26 \r\n \r\n19,284,684.66 \r\n \r\n944,903.40 \r\n \r\n11,849,419.00 \r\n1,899,276.00 238,004.00 290,748.00 417,555.00 925,689.00 220,559.00 \r\n1,871,382.00 769,500.00 15,000.00 749,688.00 - \r\n19,246,820.00 (1,914,716.00) \r\n \r\n12,361,864.00 \r\n1,578,194.00 287,223.00 305,696.00 781,465.00 974,588.00 229,171.00 \r\n1,835,269.00 1,049,998.00 \r\n15,000.00 - \r\n843,622.26 - \r\n20,262,090.26 (1,922,309.00) \r\n \r\n10,479,874.09 \r\n1,374,541.84 237,192.45 267,645.02 401,506.13 893,349.74 221,405.09 \r\n1,429,037.99 977,541.29 86,713.93 119,504.87 12,922.95 784,857.27 199,583.44 \r\n20,773.92 1,823.03 \r\n17,508,273.05 1,776,411.61 \r\n \r\n100,000.00 (100,000.00) \r\n- \r\n \r\n121,411.00 (121,411.00) \r\n- \r\n \r\n(1,914,716.00) \r\n \r\n(1,922,309.00) \r\n \r\n6,574,654.18 \r\n \r\n6,574,654.18 \r\n \r\n18,451.63 \r\n \r\n1,641.53 \r\n \r\n$ \r\n \r\n4,678,389.81 $ \r\n \r\n4,653,986.71 $ \r\n \r\n31,895.00 30,780.42 62,675.42 \r\n1,839,087.03 \r\n6,574,474.80 \r\n- \r\n8,413,561.83 $ \r\n \r\n1,881,989.91 \r\n203,652.16 50,030.55 38,050.98 \r\n379,958.87 81,238.26 \r\n7,765.91 406,231.01 \r\n72,456.71 15,000.00 (86,713.93) (119,504.87) (12,922.95) 58,764.99 (199,583.44) \r\n(20,773.92) (1,823.03) 2,753,817.21 3,698,720.61 \r\n(121,411.00) 121,411.00 \r\n31,895.00 30,780.42 62,675.42 \r\n3,761,396.03 \r\n(179.38) \r\n(1,641.53) \r\n3,759,575.12 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of certain funds reported as a part of the general fund. The actual revenues and expenditures of those funds for fiscal year 2022 are as follows: \r\n \r\nRevenues \r\n \r\nExpenditures \r\n \r\nSchool Activity Funds \r\n \r\n$ \r\n \r\nGovernor's Office of Highway Safety Grant \r\n \r\n312,121.29 $ 500.00 \r\n \r\n266,220.57 500.00 \r\n \r\n$ \r\n \r\n312,621.29 $ \r\n \r\n266,720.57 \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2022 \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 Pass-Through From Georgia Department of Education Georgia Department of Early Care and Learning COVID-19 - National School Lunch Program Total Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States Total U. S. Department of Agriculture \r\nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund COVID-19 - American Rescue Plan Elementary and Secondary School Emergency Relief Fund - Homeless Children and Youth Total Education Stabilization Fund \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Rural Education Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education \r\n \r\nASSISTANCE LISTING NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n10.555 \r\n \r\n215GA324N1199 $ 215GA324N1199 \r\n225GA324N1099 \r\n \r\n10.665 \r\n \r\n468 Forest \r\n \r\n218,044.01 467,931.87 \r\n37,306.27 723,282.15 \r\n31,386.14 754,668.29 \r\n \r\n84.425D 84.425D \r\n84.425U \r\n84.425W \r\n \r\nS425D200012 S425D210012 \r\nS425U210012 \r\nS425W210011 \r\n \r\n15,144.80 462,762.52 \r\n768,039.45 \r\n8,033.51 1,253,980.28 \r\n \r\n84.027A 84.027A 84.173A \r\n \r\nH027A200073 H027A210073 H173A210081 \r\n \r\n84.048A 84.358B 84.358B 84.424A 84.367A 84.367A 84.010A 84.010A \r\n \r\nV048A210010 S365B200010 S365B210010 S424A200011 S367A200001 S367A210001 S010A200010-20A S010A210010-21A \r\n \r\n34,793.00 222,549.80 \r\n7,062.53 264,405.33 \r\n26,181.00 2,268.00 \r\n40,161.06 22,288.14 12,888.86 40,787.49 16,977.00 263,299.21 424,850.76 1,943,236.37 \r\n \r\n- 40 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nFederal Communications Commission, U.S. Direct COVID-19 - Emergency Connectivity Fund Program \r\nHealth and Human Services, U. S. Department of Head Start Cluster Pass-Through From Ninth District Opportunity, Inc. Head Start \r\nTransportation, U.S. Department of Highway Safety Cluster Pass-Through From Department of Public Safety State and Community Highway Safety \r\nTotal Expenditures of Federal Awards \r\n \r\nASSISTANCE LISTING NUMBER \r\n32.009 \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n99,024.20 \r\n \r\n93.600 \r\n \r\n04CH0104150200 \r\n \r\n150,558.02 \r\n \r\n20.600 \r\n \r\nSADD402TSP029 $ \r\n \r\n500.00 2,947,986.88 \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 Towns County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2022. 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 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. \r\nNote 3. Indirect Cost Rate The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2022 \r\nAGENCY/FUNDING GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Career, Technical and Agricultural Education (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) One-Time QBE Adjustment 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 Sparsity Vocational Supervisors Other State Programs Career, Technical and Agricultural Education Food Services Hygiene Products Math and Science Supplements Preschool Disability Services Teachers Retirement Office of the State Treasurer Public School Employees Retirement CONTRACT Human Resources, Georgia Department of Family Connections \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\n81,172.23 \r\n \r\n272,033.00 21,139.00 \r\n494,275.00 47,551.00 \r\n249,193.00 26,831.00 \r\n453,051.00 432,427.00 149,510.00 899,081.00 \r\n48,446.00 1,278.00 \r\n36,524.00 11,639.00 296,234.00 78,965.00 24,439.00 12,638.00 \r\n505.00 \r\n240,428.00 245,576.00 148,369.00 \r\n25,867.00 \r\n \r\n243,551.07 45,000.00 102,101.00 5,835.00 \r\n64,254.00 36,269.00 \r\n701.00 3,019.00 35,766.00 28,223.18 \r\n35,541.00 \r\n \r\n48,000.00 \r\n \r\n$ \r\n \r\n4,945,431.48 \r\n \r\n- 42 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT SPLOST 2016 (1) Remodeling, renovating, modifying, furnishing, and equipping \r\nschools buildings, classrooms, instructional and support space, kitchens, auditoriums, and other facilities (including physical education/athletic facilities) at existing School District facilities; \r\n(2) acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \r\n(3) acquiring and installing energy savings equipment and technology; \r\n(4) acquiring and/or improving land for School District facilities; \r\n(5) acquiring books, digital resources, and other media for School District; \r\n(6) purchasing school buses or other vehicles; and \r\n(7) payment of expenses incident to accomplishing the foregoing. \r\nTotal \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ \r\n \r\n4,000,000.00 $ \r\n \r\n11,418,563.00 \r\n \r\n6/30/2023 \r\n \r\n1,000,000.00 \r\n \r\n2,000,000.00 \r\n \r\n6/30/2023 \r\n \r\n2,000,000.00 \r\n \r\n1,000,000.00 \r\n \r\n6/30/2023 \r\n \r\n- \r\n \r\n- \r\n \r\n6/30/2023 \r\n \r\n900,000.00 \r\n \r\n900,000.00 \r\n \r\n6/30/2023 \r\n \r\n500,000.00 \r\n \r\n500,000.00 \r\n \r\n6/30/2023 \r\n \r\n100,000.00 \r\n \r\n100,000.00 \r\n \r\n6/30/2023 \r\n \r\n$ \r\n \r\n8,500,000.00 $ \r\n \r\n15,918,563.00 \r\n \r\n- 44 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT SPLOST 2016 (1) Remodeling, renovating, modifying, furnishing, and equipping \r\nschools buildings, classrooms, instructional and support space, kitchens, auditoriums, and other facilities (including physical education/athletic facilities) at existing School District facilities; \r\n(2) acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \r\n(3) acquiring and installing energy savings equipment and technology; \r\n(4) acquiring and/or improving land for School District facilities; \r\n(5) acquiring books, digital resources, and other media for School District; \r\n(6) purchasing school buses or other vehicles; and \r\n(7) payment of expenses incident to accomplishing the foregoing. \r\nTotal \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\n$ \r\n \r\n652,176.84 $ \r\n \r\n9,664,344.42 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n343,767.47 \r\n \r\n1,312,257.58 \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\n19,180.00 \r\n \r\n397,026.45 \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\n1,015,124.31 $ 11,373,628.45 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Towns County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. \r\nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n Section II Compliance and Internal Control Reports \r\n \r\n Greg S. Griffin State Auditor \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 \r\nACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \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 Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \r\nWe have audited the financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District) as of and for the year ended June 30, 2022, 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 February 8, 2023. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \r\nReport on Internal 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 basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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 or significant deficiencies may exist that were not identified. \r\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n Report on 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\nGreg S. Griffin State Auditor \r\nFebruary 8, 2023 \r\n \r\n Greg S. Griffin State Auditor \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nOpinion on Each Major Federal Program \r\nWe have audited the Towns County Board of Education's (School District) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the School District's major federal programs for the year ended June 30, 2022. 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\nIn our opinion, the School District complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022. \r\nBasis for Opinion on Each Major Federal Program \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. \r\nWe are required to be independent of the School District and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the School District's compliance with the compliance requirements referred to above. \r\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n Responsibilities of Management for Compliance \r\nManagement is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School District's federal programs. \r\nAuditor's Responsibilities for the Audit of Compliance \r\nOur objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the School District's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the School District's compliance with the requirements of each major federal program as a whole. \r\nIn performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: \r\n Exercise professional judgment and maintain professional skepticism throughout the audit. \r\n Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding School District's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. \r\n Obtain an understanding of School District's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control over compliance. Accordingly, no such opinion is expressed. \r\nWe are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. \r\nReport on 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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance \r\n \r\n requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. \r\nOur audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. \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\nFebruary 8, 2023 \r\n \r\n Section III Auditee's Response to Prior Year Findings and Questioned Costs \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS YEAR ENDED JUNE 30, 2022 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS 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 TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2022 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issued: Governmental Activities and Each Major Fund \r\n \r\nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness(es) identified?  Significant deficiency(ies) identified? \r\n \r\nType of auditor's report issued on compliance for major programs: \r\n \r\nAll major programs \r\n \r\nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \r\nIdentification of major programs: \r\nAssistance Listing Number Assistance Listing Program or Cluster Title \r\n \r\n84.425 \r\n \r\nEducation Stabilization Fund \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nUnmodified No \r\nNone Reported No \r\nNo None Reported \r\nUnmodified No \r\n$750,000.00 Yes \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bt7-b2021-belec-p-btext","title":"Annual financial report, 2021 June 30, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2022-03-03"],"dcterms_description":["Annual financial report for the Towns 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":["Towns County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Towns County--Auditing--Periodicals.","Education--Georgia--Towns County--Finance--Statistics--Periodicals.","Georgia Government Documents--Serial"],"dcterms_title":["Annual financial report, 2021 June 30, Towns County Board of Education, Hiawassee, Georgia, including independent auditor's report"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt7-b2021-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bt7-b2021-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":"ANNUAL FINANCIAL REPORT  FISCAL YEAR 2021 \r\nTowns County Board of Education \r\nHiawassee, Georgia \r\nIncluding Independent Auditor's Report \r\nKristina A. Turner | Deputy State Auditor Greg S. Griffin | State Auditor \r\n \r\n Towns County Board of Education Table of Contents \r\n \r\nSection I \r\n \r\nFinancial Independent Auditor's Report \r\n \r\nRequired Supplementary Information \r\n \r\nManagement's Discussion and Analysis \r\n \r\ni \r\n \r\nExhibits \r\n \r\nBasic Financial Statements \r\n \r\nGovernment-Wide Financial Statements \r\n \r\nA \r\n \r\nStatement of Net Position \r\n \r\n1 \r\n \r\nB \r\n \r\nStatement of Activities \r\n \r\n2 \r\n \r\nFund Financial Statements \r\n \r\nC \r\n \r\nBalance Sheet \r\n \r\nGovernmental Funds \r\n \r\n3 \r\n \r\nD \r\n \r\nReconciliation of the Governmental Funds Balance Sheet \r\n \r\nto the Statement of Net Position \r\n \r\n4 \r\n \r\nE \r\n \r\nStatement of Revenues, Expenditures and Changes in Fund \r\n \r\nBalances to the Statement of Activities \r\n \r\n5 \r\n \r\nF \r\n \r\nReconciliation of the Governmental Funds Statement of \r\n \r\nRevenues, Expenditures and Changes in Fund Balances \r\n \r\nto the Statement of Activities \r\n \r\n6 \r\n \r\nG Notes to the Basic Financial Statements \r\n \r\n7 \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\n29 \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\n30 \r\n \r\n3 Schedule of Proportionate Share of the Net OPEB Liability \r\n \r\nSchool OPEB Fund \r\n \r\n31 \r\n \r\n4 Schedule of Contributions  Teachers Retirement System of Georgia \r\n \r\n32 \r\n \r\n5 Schedule of Contributions  School OPEB Fund \r\n \r\n33 \r\n \r\n6 Notes to the Required Supplementary Information \r\n \r\n34 \r\n \r\n Towns County Board of Education Table of Contents Section I \r\n \r\nSchedules Required Supplementary Information \r\n \r\n7 Schedule of Revenues, Expenditures and Changes in Fund \r\n \r\nBalances - Budget and Actual General Fund \r\n \r\n36 \r\n \r\nSupplementary Information \r\n \r\n8 Schedule of Expenditures of Federal Awards \r\n \r\n38 \r\n \r\n9 Schedule of State Revenue \r\n \r\n40 \r\n \r\n10 Schedule of Approved Local Option Sales Tax Projects \r\n \r\n42 \r\n \r\nSection II \r\n \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 Section 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 State Auditor \r\nINDEPENDENT AUDITOR'S REPORT \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 Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \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 School District's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \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 and each major fund of the School District as of June 30, 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \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 Other Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 3, 2022 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \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\nGreg S. Griffin State Auditor \r\nMarch 3, 2022 \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nINTRODUCTION \r\nThe Towns County Board of Education's (School District) financial statements for the fiscal year ended June 30, 2021 includes a series of basic financial statements that report financial information for the School District as a whole and its funds. The Statement of Net Position and the Statement of Activities provide financial information about all of the School District's activities and present both a short-term and long-term view of the School District's finances on a global basis. The fund financial statements provide information about all of the School District's funds. Information about these funds, such as the School District's general fund, is important in its own right, but will also give insight into the School District's overall soundness as reported in the Statement of Net Position and the Statement of Activities. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2021 are as follows: \r\nOn the government-wide financial statements: \r\n The School District's net position at June 30, 2021 was almost $5.6 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short- term and long-term, and deferred inflows of resources. The net position at June 30, 2021 of $5.6 million represented an increase of about $0.7 million when compared to the prior year. The $0.7 million increase in net position for fiscal year 2021 was less of an increase in net position than the prior year increase in net position of about $2.5 million primarily because capital grants from the State of Georgia decreased about $1.4 million in fiscal year 2021 as a result of a completed renovation project, and sales tax revenue decreased about $0.7 million as the ESPLOST tax expired on September 30, 2020. \r\n The School District had about $17.3 million in expenses relating to governmental activities; almost $6.8 million of the $17.3 million in expenses were offset by program specific charges for services, grants and contributions. However, general revenues (primarily property and sales taxes) of over $11.2 million were adequate to provide for these programs. \r\n As stated above, general revenues accounted for over $11.2 million or about 62.3% of all revenues totaling $18.0 million. Program specific revenues in the form of charges for services, grants, and contributions accounted for the balance of these revenues. (Percentages in table below have been rounded to one decimal place.) \r\n \r\nGeneral Revenue - \r\nSource of Revenues Property Taxes \r\n40.8% \r\n \r\nProgram Revenues 37.7% \r\n \r\nGeneral Revenue Sales Taxes 19.5% \r\n \r\nGeneral Revenue - All Other 2.0% \r\n \r\ni \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nOn the fund financial statements: \r\n Among major funds, the general fund had $17.4 million in revenues and $15.2 million in expenditures. The general fund balance of almost $6.6 million at June 30, 2021 increased roughly $2.2 million from the prior year, largely due to increases in revenues for property taxes, revenues for local option sales tax and federal revenues. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThese financial statements consists of three parts; management's discussion and analysis (this section), the basic financial statements including notes to the financial statements and 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 School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The `governmental funds' statements disclose how basic services are financed in the short-term as well as what remains for future spending. In the case of the Towns County School District, the general fund and capital projects fund are considered to be major funds. The School District has no funds reported as nonmajor funds as defined by generally accepted accounting principles. \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\nSince Towns County School District has no operations that have been classified as \"business activities\", the government-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader might ask the question, are we in a better financial position now than last year? The `Statement of Net Position' and the `Statement of Activities' provides the basis for answering this question. These financial statements include all School District's assets, deferred outflows, liabilities and deferred inflows. They use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs, student-teacher ratios, and other factors. \r\nii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nWhen analyzing government-wide financial statements, it is important to remember these statements are prepared using an economic resources measurement focus (accrual accounting) and involve the following steps to format the Statement of Net Position: \r\n Capitalize current outlays for capital assets  Depreciate capital assets  Report long-term debt, including pension and postemployment obligations, as a liability  Calculate revenue and expense using the economic resources measurement focus and the accrual \r\nbasis of accounting  Allocate net position as follows: \r\no Net Investment in capital assets. o Restricted net position are amounts with constraints placed on the use by external sources \r\nsuch as creditors, grantors, contributors or laws and regulations. o Unrestricted for no specific use. \r\nFund Financial Statements \r\nThe School District uses many funds or sub-funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about the School District's significant or major funds. As discussed previously, the School District has no nonmajor funds as defined by generally accepted accounting principles. \r\nGovernmental Funds  The School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting which measures cash and all other financial assets that can be readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nNet position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator of the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expenses exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position, is one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position - as measured in the Statement of Activities - are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For this reason, many other nonfinancial factors should be considered in assessing the overall health of the School District. \r\niii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nIn the case of the Towns County School District, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $5.6 million at June 30, 2021. To better understand the School District's actual financial position and ability to deliver services in future periods, it is necessary to review the various components of the net position category. For example, of the $5.6 million of net position, almost $2.9 million was restricted for bus replacement, continuation of various State and Federal programs, and ongoing capital projects. Accordingly, these funds were not available to meet the School District's ongoing obligations to citizens and creditors. \r\n \r\nIn addition, the School District had $21.0 million (net of related debt) invested in capital assets (e.g., land, \r\nbuildings, and equipment). The School District uses these capital assets to provide educational services to \r\nstudents within geographic boundaries served by the School District. Because of the very nature and on- \r\ngoing use of the assets being reported in this component of net position, it must be recognized that this portion of the net position is not available for future spending. \r\n \r\nBecause of the restrictions on net position as discussed above, the School District had an unrestricted \r\ndeficit of about $18.3 million at June 30, 2021. The reader should remember this deficit includes pension related charges recorded because of the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date on Amendment to GASB No. 68; and also includes charges recorded because of the implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The School District believes it is also meaningful to view the \r\nSchool District's Net Position in the following manner: \r\n \r\nNet Position associated with pension obligations \r\n \r\n$ (10,565,450) \r\n \r\nNet position associated with postemployment benefits other than pension obligations \r\n \r\n(14,227,328) \r\n \r\nNet position exclusive of pension obligations and postemployment benefits \r\n \r\n30,383,541 \r\n \r\nNet position, June 30, 2021 \r\n \r\n$ 5,590,763 \r\n \r\nThe above analysis reflects, despite pension obligations and postemployment benefits, the School District's net position is a positive $5.6 million and management believes the School District's financial position is sound. \r\n \r\niv \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nTable 1 provides a summary of the School District's net position for this fiscal year as compared to the prior fiscal year. \r\n \r\nTable 1 Net Position \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year 2021 \r\n \r\nFiscal Year 2020 \r\n \r\n$ 11,039,261 $ 21,170,070 \r\n \r\n8,763,445 21,422,770 \r\n \r\nTotal Assets \r\n \r\n32,209,331 \r\n \r\n30,186,215 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n3,988,791 3,499,397 \r\n \r\n3,719,629 1,721,707 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n7,488,188 \r\n \r\n5,441,336 \r\n \r\nTotal Assets and Deferred Outflow of Resources \r\n \r\n39,697,519 \r\n \r\n35,627,551 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n1,708,148 117,642 \r\n14,434,546 14,416,684 \r\n \r\n1,627,463 120,708 \r\n12,951,079 12,490,099 \r\n \r\nTotal Liabilities \r\n \r\n30,677,020 \r\n \r\n27,189,349 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n119,695 3,310,041 \r\n \r\n431,235 3,119,503 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n3,429,736 \r\n \r\n3,550,738 \r\n \r\nTotal Liabilities and Deferred Inflows of Resources \r\n \r\n34,106,756 \r\n \r\n30,740,087 \r\n \r\nNet Position \r\n \r\nNet Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n21,048,883 2,887,557 \r\n(18,345,677) \r\n \r\n21,422,770 2,250,427 \r\n(18,785,733) \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n5,590,763 $ \r\n \r\n4,887,464 \r\n \r\nv \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nIn connection with the unrestricted deficit at June 30, 2021 as shown above, management presents the following additional information: \r\n \r\nTotal unrestricted net position (deficit) \r\n \r\n$ (18,345,677) \r\n \r\nUnrestricted deficit in net position resulting from recognition of net pension obligations \r\n \r\n10,565,450 \r\n \r\nUnrestricted deficit in net position resulting from recognition of postemployment benefits other than pension obligations \r\n \r\n14,227,328 \r\n \r\nUnrestricted net position, exclusive of the net pension obligation \r\n \r\nand postemployment benefits effect \r\n \r\n$ 6,447,101 \r\n \r\nThe above analysis shows that the recognition of liabilities for pension obligations and postemployment benefits on the financial statements as required by generally accepted accounting principles has had a severe effect on the School District's unrestricted net position. However, despite these obligations, management believes the School District's financial position is sound. \r\n \r\nvi \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nTable 2 below provides a summary of the School District's change in net position as compared to the prior year. \r\nTable 2 \r\nChange 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\n2021 \r\n \r\n2020 \r\n \r\n$ \r\n \r\n90,398 $ \r\n \r\n6,515,888 \r\n \r\n188,320 \r\n \r\n195,990 6,072,010 1,558,973 \r\n \r\nTotal Program Revenues \r\nGeneral Revenues: Property Taxes Sales Taxes Investment Earnings Miscellaneous \r\nSpecial Item Loss of Disposal of Capital Assets \r\n \r\n6,794,606 \r\n7,356,604 3,523,585 \r\n6,903 361,058 \r\n- \r\n \r\n7,826,973 \r\n6,753,656 4,249,113 \r\n4,776 493,049 \r\n(2,355) \r\n \r\nTotal General Revenues and Special Item \r\nTotal Revenues and Special Item \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 Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services \r\nTotal Expenses \r\n \r\n11,248,150 \r\n18,042,756 \r\n11,023,194 \r\n1,372,117 181,659 270,708 427,608 \r\n1,007,224 228,375 \r\n1,187,178 744,147 86,299 \r\n120,763 1,692 \r\n688,493 \r\n17,339,457 \r\n \r\n11,498,239 \r\n19,325,212 \r\n10,499,482 \r\n1,251,464 93,307 \r\n379,285 512,462 983,587 216,596 1,316,933 689,305 \r\n69,121 \r\n107,524 14,123 \r\n762,475 \r\n16,895,664 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n703,299 $ \r\n \r\n2,429,548 \r\n \r\nvii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nCost of Providing Services \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior fiscal year. \r\n \r\nTable 3 Cost of Services \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nInstruction \r\n \r\n$ 11,023,194 $ 10,499,482 $ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n1,372,117 \r\n \r\n1,251,464 \r\n \r\nImprovement of Instructional Services \r\n \r\n181,659 \r\n \r\n93,307 \r\n \r\nEducational Media Services \r\n \r\n270,708 \r\n \r\n379,285 \r\n \r\nGeneral Administration \r\n \r\n427,608 \r\n \r\n512,462 \r\n \r\nSchool Administration \r\n \r\n1,007,224 \r\n \r\n983,587 \r\n \r\nBusiness Administration \r\n \r\n228,375 \r\n \r\n216,596 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n1,187,178 \r\n \r\n1,316,933 \r\n \r\nStudent Transportation Services \r\n \r\n744,147 \r\n \r\n689,305 \r\n \r\nOther Support Services \r\n \r\n86,299 \r\n \r\n69,121 \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\n120,763 \r\n \r\n107,524 \r\n \r\nCommunity Services \r\n \r\n1,692 \r\n \r\n14,123 \r\n \r\nFood Services \r\n \r\n688,493 \r\n \r\n762,475 \r\n \r\n7,428,789 $ \r\n1,182,573 97,967 \r\n115,613 111,640 509,770 \r\n50,262 741,432 213,516 \r\n86,107 \r\n62,563 1,692 \r\n(57,073) \r\n \r\n5,724,449 \r\n1,106,156 2,850 \r\n226,528 122,551 485,164 \r\n55,317 880,218 359,888 \r\n68,901 \r\n33,656 14,122 (11,109) \r\n \r\nTotal Expenses \r\n \r\n$ 17,339,457 $ 16,895,664 $ 10,544,851 $ 9,068,691 \r\n \r\nThe overall School District expenses increased about $0.4 million from the prior year while the net costs of providing those services increased by almost $1.5 million. The disproportionate increase in the net costs of services vs. the increase in expenses was primarily the result of capital grants from the State of Georgia being reduced by about $1.4 million in fiscal year 2021 as the School District completed a major renovation project. \r\n \r\nviii \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nThe chart below shows a functional summary of the expenses made by the School District during fiscal year 2021. The percentages are rounded to one decimal place. \r\nGovernmental Activities -- Cost of Services \r\n \r\nInstructional 63.6% \r\nInterest on Debt 0.0% \r\n \r\nSupport Services \r\n31.8% \r\nAll Others 0.6% \r\nFood Services 4.0% \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\nInformation about the School District's governmental funds is presented starting on Exhibit \"C\" of this report. Governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of almost $18.8 million and total expenditures of $15.8 million in fiscal year 2021. Total governmental fund balances of $8.9 million at June 30, 2021, increased roughly $3.0 million from the prior year. The increase in fund balance was primarily attributable to the fact the School District's revenue from property taxes increased by $0.8 million and expenditures decreased by $2.1 million as compared to the prior year. \r\nGeneral Fund Budget Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal year 2021, the School District amended its general fund budget as needed. \r\nThe School District budget is adopted at the aggregate level and maintained at the program, function, object, and site levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\n \r\nix \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nFor the general fund, the final actual revenues of $17.4 million exceeded the final budgeted revenues by $1.7 million. The primary reason revenues exceeded the budget was property taxes exceeded the final budget by about $1.2 million, and sales tax revenues exceeded the final budgeted amount by $0.8 million coupled with the fact Federal revenues fell short of the budgeted amount by about $0.8 million. The Federal revenues were less than the final budget due to the fact the School District deferred expenditures of the ESSR II grant until fiscal year 2022, even though the grant was approved and budgeted for fiscal year 2021. \r\n \r\nThe general fund's final actual expenditures of over $15.2 million were less than the final budget by almost $2.4 million. This situation occurred, in part, because expenditure requirements were reduced in certain functions as a result of Covid-19 having a limiting effect on operations. The functions experiencing significant expenditures less than the final budget were instruction by $0.6 million; pupil services by $0.7 million; and maintenance and operation by about $0.8 million. \r\n \r\nCAPITAL ASSETS AND LONG-TERM LIABILITES \r\n \r\nCapital Assets \r\n \r\nAt fiscal year ended June 30, 2021, the School District had $21.2 million invested in capital assets, net of accumulated depreciation, all in governmental activities. These assets are made up of a broad range of items including buildings; land; land improvements; and instructional food service, transportation and maintenance equipment. Table 4 reflects a summary of these balances, net of accumulated depreciation and amortization, as compared to the prior fiscal year. \r\n \r\nTable 4 Capital Assets at June 30 \r\n(Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nLand \r\n \r\n$ \r\n \r\nConstruction in Progress \r\n \r\nBuildings and Improvements \r\n \r\nEquipment \r\n \r\nLand Improvements \r\n \r\n1,101,858 $ 121,187 \r\n16,666,983 784,644 \r\n2,495,398 \r\n \r\n1,101,858 - \r\n17,076,777 833,763 \r\n2,410,372 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n21,170,070 $ 21,422,770 \r\n \r\nAdditional information about the School District's capital assets can be found in the Notes to the Basic Financial Statements. \r\n \r\nx \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nLong-Term Liabilities \r\n \r\nAt June 30, 2021, the School District had almost $118,000 in total long-term liabilities outstanding which consisted of compensated absences. The School District had no bond debt at June 30, 2021. \r\n \r\nTable 5 Change in Long-Term Liabilities \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year 2021 \r\n \r\nFiscal Year 2020 \r\n \r\nCompensated Absences \r\n \r\n$ 117,642 $ 120,708 \r\n \r\nAdditional information about the School District's long-term liabilities can be found in the Notes to the Basic Financial Statements. \r\nFACTORS BEARING ON THE SCHOOL DISTRICT'S FUTURE \r\nCurrently known circumstances that are expected to have a significant effect on financial position or results of operations in future years are as follows: \r\n The School District is financially stable. The School District's operating millage for fiscal year 2021 was 7.346 which was a slight decrease from the prior year. This millage rate produced over $1.0 million per mill. The School District's student enrollment has remained fairly stable hence no new facilities are contemplated in the near future. \r\n The economy has continued to improve from the prior year. The School District's governmental funds total revenues from property taxes increased about 12.6% from the prior year, despite a decrease in the millage rate. Additionally, general fund revenues from local option sales taxes for education increased by 29.7% from the prior year. The general fund had an unassigned fund balance of almost $5.9 million at June 30, 2021, which is an increase of about $1.8 million from the prior year. \r\n The Board anticipates significant financial challenges going forward due to expected continued higher health insurance and benefit costs for employees. In spite of these challenges, the School District will continue to be a good steward of tax dollars while providing a quality educational opportunity. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizen's taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mrs. Myra Underwood, Finance Director for Towns County Board of Education, 67 Lakewood Circle, Suite C, Hiawassee, Georgia 30546. You may also email your questions to Mrs. Underwood at Myra@townscountyschools.org. \r\n \r\nxi \r\n \r\n Towns County Board of Education \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021 \r\nASSETS Cash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue in More Than One Year Total Liabilities \r\nDEFERRED INFLOWS OF RESOURCES Related to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION Net Investment in Capital Assets Restricted for \r\nBus Replacement Continuation of State and Federal Programs 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\n9,408,455.24 \r\n \r\n935,883.64 525,737.95 162,183.59 \r\n7,000.97 1,223,045.00 19,947,025.00 32,209,331.39 \r\n \r\n3,988,791.00 3,499,397.00 7,488,188.00 \r\n \r\n29,583.01 1,557,377.99 \r\n110,787.00 10,400.00 14,434,546.00 14,416,684.00 \r\n117,641.84 30,677,019.84 \r\n \r\n119,695.00 3,310,041.00 3,429,736.00 \r\n \r\n21,048,883.00 \r\n \r\n154,440.00 273,627.83 2,459,489.25 (18,345,676.53) \r\n \r\n$ \r\n \r\n5,590,763.55 \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 TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2021 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction \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\nOther Support Services \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\nCommunity Services \r\n \r\nFood Services \r\n \r\n11,023,193.98 $ \r\n1,372,117.44 181,658.74 270,707.57 427,607.56 \r\n1,007,223.81 228,375.07 1,187,177.63 744,147.40 86,298.98 \r\n120,763.07 1,692.49 \r\n688,493.41 \r\n \r\n3,964.00 $ \r\n- \r\n58,200.20 - \r\n28,234.28 \r\n \r\n3,557,845.64 $ \r\n189,544.37 83,691.31 \r\n155,094.19 315,967.28 497,309.56 178,112.66 445,295.77 376,191.12 \r\n194.46 \r\n716,641.49 \r\n \r\n32,595.37 $ \r\n143.92 450.19 154,440.00 - \r\n690.52 \r\n \r\n(7,428,788.97) \r\n(1,182,573.07) (97,967.43) (115,613.38) (111,640.28) \r\n(509,770.33) (50,262.41) (741,431.67) (213,516.28) (86,104.52) \r\n(62,562.87) (1,692.49) 57,072.88 \r\n \r\nTotal Governmental Activities \r\n \r\n$ 17,339,457.15 $ \r\n \r\n90,398.48 $ \r\n \r\n6,515,887.85 $ \r\n \r\n188,320.00 \r\n \r\n(10,544,850.82) \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Local Option Sales Tax Other Sales Tax Investment Earnings Miscellaneous Total General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\n7,356,603.95 \r\n \r\n723,538.44 2,675,217.55 \r\n124,829.15 6,903.50 \r\n361,057.91 11,248,150.50 \r\n \r\n703,299.68 \r\n \r\n4,887,463.87 \r\n \r\n$ \r\n \r\n5,590,763.55 \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 TOWNS COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2021 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS Cash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Inventories \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \r\nFUND BALANCES Nonspendable Restricted Committed Unassigned \r\nTotal 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\nTOTAL \r\n \r\n$ \r\n \r\n6,948,965.99 $ \r\n \r\n2,459,489.25 $ \r\n \r\n935,883.64 \r\n \r\n- \r\n \r\n525,737.95 \r\n \r\n- \r\n \r\n162,183.59 \r\n \r\n- \r\n \r\n7,000.97 \r\n \r\n- \r\n \r\n$ \r\n \r\n8,579,772.14 $ \r\n \r\n2,459,489.25 $ \r\n \r\n9,408,455.24 \r\n935,883.64 525,737.95 162,183.59 \r\n7,000.97 \r\n11,039,261.39 \r\n \r\n$ \r\n \r\n29,583.01 $ \r\n \r\n- $ \r\n \r\n29,583.01 \r\n \r\n1,557,377.99 \r\n \r\n- \r\n \r\n1,557,377.99 \r\n \r\n- \r\n \r\n110,787.00 \r\n \r\n110,787.00 \r\n \r\n- \r\n \r\n10,400.00 \r\n \r\n10,400.00 \r\n \r\n1,586,961.00 \r\n \r\n121,187.00 \r\n \r\n1,708,148.00 \r\n \r\n418,336.34 \r\n \r\n- \r\n \r\n418,336.34 \r\n \r\n7,000.97 421,066.86 222,635.52 5,923,771.45 6,574,474.80 \r\n \r\n2,338,302.25 \r\n2,338,302.25 \r\n \r\n7,000.97 2,759,369.11 222,635.52 5,923,771.45 8,912,777.05 \r\n \r\n$ \r\n \r\n8,579,772.14 $ \r\n \r\n2,459,489.25 $ \r\n \r\n11,039,261.39 \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 TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2021 \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. Land 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. Net 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. Related 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 are not due and payable in the current period and therefore are not reported in the funds. Compensated absences payable \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n8,912,777.05 \r\n \r\n$ \r\n \r\n1,101,858.00 \r\n \r\n121,187.00 \r\n \r\n22,168,730.00 \r\n \r\n2,596,343.00 \r\n \r\n3,922,497.00 \r\n \r\n(8,740,545.00) \r\n \r\n21,170,070.00 \r\n \r\n$ \r\n \r\n(14,434,546.00) \r\n \r\n(14,416,684.00) \r\n \r\n(28,851,230.00) \r\n \r\n$ \r\n \r\n3,869,096.00 \r\n \r\n189,356.00 \r\n \r\n4,058,452.00 418,336.34 \r\n \r\n(117,641.84) \r\n \r\n$ \r\n \r\n5,590,763.55 \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 TOWNS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2021 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \r\nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Community Services Food Services Operation Capital Outlay Total Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Total 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\nTOTAL \r\n \r\n$ \r\n \r\n7,531,614.87 $ \r\n \r\n2,800,046.70 \r\n \r\n4,668,119.05 \r\n \r\n1,974,585.80 \r\n \r\n90,398.48 \r\n \r\n4,866.88 \r\n \r\n361,057.91 \r\n \r\n17,430,689.69 \r\n \r\n- $ 723,538.44 614,074.00 \r\n2,036.62 1,339,649.06 \r\n \r\n7,531,614.87 3,523,585.14 5,282,193.05 1,974,585.80 \r\n90,398.48 6,903.50 \r\n361,057.91 18,770,338.75 \r\n \r\n9,499,331.93 \r\n1,283,392.81 193,404.74 254,721.57 359,275.04 902,388.06 209,317.07 \r\n1,051,584.65 630,246.85 \r\n86,298.98 120,763.07 \r\n1,692.49 651,568.87 \r\n15,243,986.13 2,186,703.56 \r\n \r\n41,265.98 \r\n2,524.17 - \r\n10,778.52 8,822.09 \r\n98,397.80 \r\n6,014.00 - \r\n31,700.46 376,512.87 576,015.89 763,633.17 \r\n \r\n9,540,597.91 \r\n1,285,916.98 193,404.74 254,721.57 370,053.56 911,210.15 209,317.07 \r\n1,149,982.45 636,260.85 \r\n86,298.98 120,763.07 \r\n1,692.49 683,269.33 376,512.87 15,820,002.02 2,950,336.73 \r\n \r\n1,380.00 - \r\n1,380.00 \r\n \r\n(1,380.00) (1,380.00) \r\n \r\n2,188,083.56 \r\n \r\n762,253.17 \r\n \r\n4,386,391.24 \r\n \r\n1,576,049.08 \r\n \r\n$ \r\n \r\n6,574,474.80 $ \r\n \r\n2,338,302.25 $ \r\n \r\n1,380.00 (1,380.00) \r\n- \r\n2,950,336.73 \r\n5,962,440.32 \r\n8,912,777.05 \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 TOWNS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2021 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\n \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\n \r\nGovernmental funds report capital outlays as expenditures. However, \r\n \r\nin the Statement of Activities, the cost of capital assets is allocated over \r\n \r\ntheir estimated useful lives as depreciation expense. \r\n \r\nCapital outlay \r\n \r\n$ \r\n \r\nDepreciation expense - buildings \r\n \r\nDepreciation expense - equipment \r\n \r\nDepreciation expense - land improvements \r\n \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\n \r\nDistrict pension contributions are reported as expenditures in the governmental funds when \r\n \r\nmade. However, they are reported as deferred outflows of resources in the Statement \r\n \r\nof Net Position because the reported net pension/OPEB liability is measured a year \r\n \r\nbefore the District's report date. Pension/OPEB expense, which is the change in the net \r\n \r\npension/OPEB liability adjusted for changes in deferred outflows and inflows of \r\n \r\nresources related to pensions/OPEB, is reported in the Statement of Activities. \r\n \r\nPension expense \r\n \r\n$ \r\n \r\nOPEB expense \r\n \r\nGeorgia State Financing and Investment Commission grants recognized in the Statement of Activities that are not available to pay current period expenditures are deferred in the funds. \r\n \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. Compensated absences \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 2,950,336.73 \r\n \r\n426,945.00 (414,979.00) (102,405.00) (162,261.00) \r\n \r\n(252,700.00) \r\n \r\n(175,010.92) \r\n \r\n(902,765.00) (339,433.00) \r\n \r\n(1,242,198.00) \r\n \r\n(580,194.00) \r\n \r\n3,065.87 \r\n \r\n$ \r\n \r\n703,299.68 \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 TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nReporting Entity \r\nThe Towns 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. 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 assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by contracts and retainage payable related to those 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\n \r\n- 7 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \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. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \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\nBasis of Accounting \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \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 certain revenues reported in the governmental funds to be available if they are collected within 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded \r\n \r\n- 8 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nwhen the related fund liability is incurred, except for compensated absences, which are recognized as expenditures to the extent they have matured. 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 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\nCash and Cash Equivalents \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nReceivables \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nInventories \r\n \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\n \r\n- 9 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \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\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 5,000.00 $ 100,000.00 \r\n \r\nN/A 10 to 60 years 10 to 60 years 8 to 50 years Individually determined \r\n \r\nDeferred Outflows/Inflows of Resources \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nCompensated Absences \r\n \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. \r\nSick leave may vest with the employee in certain situations. Incentive pay is defined as any sick leave earned that is not eligible to be used in calculating an employee's retirement benefits. Employees are eligible to be paid incentive pay up to a maximum of 60 days. These payments are made at a rate of $50.00 per day for certified employees and $6.25 per hour for classified employees. \r\nIncentive pay benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal year-end. \r\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- 10 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPost-Employment 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 Post-employment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \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 Towns County Board of Commissioners adopted the property tax levy for the 2020 tax digest year (calendar year) on October 20, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on January 10, 2021 (lien date). Taxes collected within the current fiscal year or within 60 \r\n- 11 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\ndays after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The Towns County Tax 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, 2021, for maintenance and operations amounted to $7,531,614.87. \r\nThe tax millage rate levied for the 2020 tax digest year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n7.346 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, which is included in property taxes as shown above, amounted to $916,341.32 during fiscal year ended June 30, 2021. \r\nSales Taxes \r\nLocal Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $2,675,217.55 and was recorded in the general fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $723,538.44 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization expired on September 30, 2020. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except for the various School Activity Funds and American Rescue Plan Act fund is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A.20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments as long as they do not exceed the aggregate level of expenditures for any fund. Any position or expenditure not previously approved in the annual budget that exceeds the aggregate level shall require Board approval. In such case, the \r\n \r\n- 12 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nexpenditure 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 the 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 fiscal year 2021. \r\nNOTE 4: DEPOSITS \r\n \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, 2021, the School District had deposits with a carrying amount of $9,408,455.24, and a bank balance of $9,806,238.49. The bank balances insured by Federal depository insurance were $500,000.00. \r\n \r\n- 13 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAt June 30, 2021, $9,306,238.49 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2020 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2021 \r\n \r\nGovernmental Activities Capital Assets, \r\nNot Being Depreciated: Land Construction in Progress \r\n \r\n$ 1,101,858.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n121,187.00 \r\n \r\n- $ - \r\n \r\n1,101,858.00 121,187.00 \r\n \r\nTotal Capital Assets, Not Being Depreciated \r\n \r\n1,101,858.00 \r\n \r\n121,187.00 \r\n \r\n- \r\n \r\n1,223,045.00 \r\n \r\nCapital Assets, \r\n \r\nBeing Depreciated \r\n \r\nBuildings and Improvements \r\n \r\n22,163,545.00 \r\n \r\n5,185.00 \r\n \r\n- \r\n \r\n22,168,730.00 \r\n \r\nEquipment \r\n \r\n2,543,057.00 \r\n \r\n53,286.00 \r\n \r\n- \r\n \r\n2,596,343.00 \r\n \r\nLand Improvements \r\n \r\n3,675,210.00 \r\n \r\n247,287.00 \r\n \r\n- \r\n \r\n3,922,497.00 \r\n \r\nLess Accumulated Depreciation: \r\n \r\nBuildings and Improvements \r\n \r\n5,086,768.00 \r\n \r\n414,979.00 \r\n \r\n- \r\n \r\nEquipment \r\n \r\n1,709,294.00 \r\n \r\n102,405.00 \r\n \r\n- \r\n \r\nLand Improvements \r\n \r\n1,264,838.00 \r\n \r\n162,261.00 \r\n \r\n- \r\n \r\n5,501,747.00 1,811,699.00 1,427,099.00 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n20,320,912.00 (373,887.00) \r\n \r\n- \r\n \r\n19,947,025.00 \r\n \r\nGovernmental Activities Capital Assets - Net \r\n \r\n$ 21,422,770.00 $ (252,700.00) $ \r\n \r\n- $ \r\n \r\n21,170,070.00 \r\n \r\n- 14 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nSchool Administration \r\n \r\n$ \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n2,887.00 9,031.00 70,896.00 \r\n \r\n$ \r\n \r\n582,979.00 \r\n \r\n82,814.00 13,852.00 \r\n \r\n$ \r\n \r\n679,645.00 \r\n \r\nNOTE 6: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2021, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From Capital Projects \r\nFund \r\n \r\nGeneral Fund \r\n \r\n$ \r\n \r\n1,380.00 \r\n \r\nTransfers from the capital projects fund were made to move sales tax revenue to the general fund to provide funding for certain expenditures that were eligible under the ESPLOST referendum. \r\n \r\nNOTE 7: LONG-TERM LIABILITIES \r\n \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2020 \r\n \r\nGovernmental Activities \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2021 \r\n \r\nCompensated Absences (1) \r\n \r\n$ 120,707.71 $ 94,878.94 $ 97,944.81 $ \r\n \r\n117,641.84 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\nCompensated Absences \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 15 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 8: RISK MANAGEMENT \r\n \r\nInsurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. \r\nGeorgia School Boards Association Risk Management Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund . The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \r\nWorkers' Compensation \r\n \r\nGeorgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\nUnemployment Compensation \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and the related liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any unemployment claims in the last two fiscal years. \r\nSurety Bond \r\n \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n- 16 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \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, 2021: \r\n \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ \r\n \r\nRestricted \r\n \r\nBus Replacement \r\n \r\n$ 154,440.00 \r\n \r\nContinuation of State Programs \r\n \r\n2,440.38 \r\n \r\nContinuation of Federal Programs \r\n \r\n264,186.48 \r\n \r\nCapital Projects \r\n \r\n2,338,302.25 \r\n \r\nCommitted \r\n \r\nSchool Activity Accounts \r\n \r\nUnassigned \r\n \r\n7,000.97 \r\n2,759,369.11 222,635.52 5,923,771.45 \r\n \r\nFund Balance, June 30, 2021 \r\n \r\n$ 8,912,777.05 \r\n \r\nWhen multiple categories of fund balance are available for an expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \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, 2021. \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2021 (2) \r\n \r\nElementary School Painting \r\n \r\n$ \r\n \r\n120,314.00 $ \r\n \r\n121,187.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year end. \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\n \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- 17 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \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 post-employment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \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 $359,667.00 for the year ended June 30, 2021. 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, 2021, the School District reported a liability of $14,416,684.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2020. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2019. An expected total OPEB liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2020. At June 30, 2020, the School District's proportion was 0.098155%, which was a decrease of 0.003621% from its proportion measured as of June 30, 2019. \r\n \r\n- 18 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nFor the year ended June 30, 2021, the School District recognized OPEB expense of $699,100.00 At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 1,573,854.00 \r\n \r\nChanges of assumptions \r\n \r\n2,384,199.00 \r\n \r\n1,282,775.00 \r\n \r\nNet difference between projected and \r\n \r\nactual earnings on OPEB plan investments \r\n \r\n37,575.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n717,956.00 \r\n \r\n453,412.00 \r\n \r\nSchool District contributions subsequent \r\n \r\nto the measurement date \r\n \r\n359,667.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 3,499,397.00 $ 3,310,041.00 \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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2022 2023 2024 2025 2026 Thereafter \r\n \r\n$ (160,105.00) $ (161,114.00) $ (104,515.00) $ 36,618.00 $ 157,820.00 $ 60,985.00 \r\n \r\n- 19 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2020: \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\n7.00% \r\n \r\nMedicare Eligible \r\n \r\n5.25% \r\n \r\nUltimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n4.50% \r\n \r\nMedicare Eligible \r\n \r\n4.50% \r\n \r\nYear of Ultimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n2029 \r\n \r\nMedicare Eligible \r\n \r\n2023 \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 Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death after service retirement and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for death prior to retirement. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate. \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. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. There is a margin for future morality improvement in the tables used by the plan. \r\n \r\nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2018, with the exception of the assumed annual rate of inflation changed from 2.75% to 2.50%, effective with the June 30, 2018 valuation. \r\n \r\n- 20 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2019 valuation were based on a review of recent plan experience done concurrently with the June 30, 2019 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. 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 Equities \r\nTotal \r\n \r\n30.00% 70.00% \r\n100.00% \r\n \r\n0.50% 9.20% \r\n \r\n*Net 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 2.22% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation bonds with an average rating of AA or higher (2.21% per the Municipal Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the collective net OPEB liability of the participating employers calculated using the discount rate of 2.22%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (1.22%) or 1-percentage-point higher (3.22%) than the current discount rate: \r\n \r\nSchool District's proportionate share of the Net OPEB liability \r\n \r\n1% Decrease (1.22%) \r\n \r\nCurrent Discount Rate (2.22%) \r\n \r\n1% Increase (3.22%) \r\n \r\n$ 16,937,225.00 $ \r\n \r\n14,416,684.00 $ 12,400,955.00 \r\n \r\n- 21 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \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 collective net OPEB liability of the participating employers, as well as what the collective net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentagepoint higher than the current healthcare cost trend rates: \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 \r\n \r\nshare of the Net OPEB liability \r\n \r\n$ \r\n \r\n12,003,338.00 $ \r\n \r\n14,416,684.00 $ \r\n \r\n17,541,265.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \r\n \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\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 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 expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2021. The School District's contractually required contribution rate for the year ended June 30, 2021 was 19.06% of annual School District payroll, of which 18.71% of \r\n \r\n- 22 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\npayroll was required from the School District and 0.35% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,444,342.00 and $27,528.11 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 $15.50, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \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 by the State of Georgia was $32,902.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2021, the School District reported a liability of $14,434,546.00 for its proportionate share of the net pension liability for TRS. \r\n \r\n- 23 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 14,434,546.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\nTotal \r\n \r\n265,010.00 $ 14,699,556.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2020. \r\nAt June 30, 2020, the School District's TRS proportion was 0.059588%, which was a decrease of 0.000642% from its proportion measured as of June 30, 2019. \r\nAt June 30, 2021, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $198,138.00. \r\nThe PSERS net pension liability was measured as of June 30, 2020. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2019. An expected total pension liability as of June 30, 2020 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2020. \r\nFor the year ended June 30, 2021, the School District recognized pension expense of $2,395,288.00 for TRS and $39,872.00 for PSERS and revenue of $48,181.00 for TRS and $39,872.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 24 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAt June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 628,629.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n1,486,775.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n347,658.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n81,387.00 \r\n \r\n119,695.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n1,444,342.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 3,988,791.00 $ 119,695.00 \r\n \r\nThe School District contributions subsequent to the measurement date of are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2022 \r\n \r\n$ \r\n \r\n510,319.00 \r\n \r\n2023 \r\n \r\n$ 809,075.00 \r\n \r\n2024 \r\n \r\n$ \r\n \r\n791,470.00 \r\n \r\n2025 \r\n \r\n$ \r\n \r\n313,890.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2020 was determined by an actuarial valuation as of June 30, 2019, using the following actuarial assumptions, applied to all periods included in the measurement: \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- 25 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPost-retirement mortality rates for service retirements and beneficiaries were based on the Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree mortality table (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. Post-retirement mortality rates for disability retirements were based on the Pub-2010 Teachers Mortality Table for Disabled Retirees (ages set forward one year and adjusted 106%) with the MP-2019 Projection scale applied generationally. The rates of improvement were reduced by 20% for all years prior to the ultimate rate. The Pub-2010 Teachers Headcount Weighted Below Median Employee mortality table with ages set forward one year and adjusted 106% as used for death prior to retirement. Future improvement immortality rates were assumed using the MP-2019 projection scale generationally. These rates of improvement were reduced by 20% for all years prior to the ultimate rate. \r\nThe actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2013  June 30, 2018. \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 Post-retirement benefit increases \r\n \r\n7.30%, net of pension plan investment expense, including inflation 1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 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, 2019 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\nThe long-term expected rate of return on TRS 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 \r\n \r\n- 26 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"G\" \r\n \r\nweighting 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\nTotal \r\n \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n100.00% \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n100.00% \r\n \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\n*Rates shown are net of the 2.75% assumed rate of inflation with the exception of TRS, which assumed a rate of 2.50% rate of inflation. \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 non-employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plans' fiduciary net position were projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \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 7.25%, 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 the net pension liability \r\n \r\n$ 22,889,744.00 $ 14,434,546.00 $ 7,503,708.00 \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- 27 - \r\n \r\n (This page left intentionally blank) \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nSCHEDULE \"1\" \r\n \r\nFor the Year Ended \r\nJune 30 \r\n \r\nSchool District's proportion of the Net Pension Liability (NPL) \r\n \r\nSchool District's proportionate share of the NPL \r\n \r\nState of Georgia's proportionate \r\nshare of the net pension liability associated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the NPL as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a percentage \r\nof the total pension liability \r\n \r\n2021 2020 2019 2018 2017 2016 2015 \r\n \r\n0.059588% $ 14,434,546.00 $ 0.060230% $ 12,951,079.00 $ 0.060334% $ 11,199,283.00 $ 0.059298% $ 11,020,716.00 $ 0.059138% $ 12,200,829.00 $ \r\n0.061321% $ 9,335,513.00 $ 0.064451% $ 8,142,534.00 $ \r\n \r\n265,010.00 238,680.00 142,000.00 161,506.00 207,343.00 \r\n151,936.00 123,431.00 \r\n \r\n$ 14,699,556.00 $ 13,189,759.00 $ 11,341,283.00 $ 11,182,222.00 $ 12,408,172.00 $ 9,487,449.00 $ 8,265,965.00 \r\n \r\n$ 7,823,587.60 $ 7,486,814.56 $ 7,277,264.22 $ 6,915,146.60 $ 6,600,638.78 $ 6,603,774.14 $ 6,674,890.70 \r\n \r\n184.50% 172.99% 153.89% 159.37% 184.84% 141.37% 121.99% \r\n \r\n77.01% 78.56% 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- 29 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\nSCHEDULE \"2\" \r\n \r\nFor the Year Ended \r\nJune 30 \r\n \r\nSchool District's proportion of the Net Pension Liability (NPL) \r\n \r\nSchool District's proportionate share of the \r\nNPL \r\n \r\nState of Georgia's proportionate \r\nshare of the NPL associated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the \r\nNPL as a percentage of \r\nits covered payroll \r\n \r\nPlan fiduciary net position as a percentage \r\nof the total pension liability \r\n \r\n2021 2020 2019 2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n198,138.00 \r\n \r\n$ 198,138.00 $ \r\n \r\n493,172.88 \r\n \r\n- \r\n \r\n$ \r\n \r\n190,880.00 $ 190,880.00 $ 480,380.96 \r\n \r\n- \r\n \r\n$ \r\n \r\n171,802.00 $ 171,802.00 $ \r\n \r\n481,151.68 \r\n \r\n- \r\n \r\n$ \r\n \r\n159,287.00 $ 159,287.00 $ 480,506.73 \r\n \r\n- \r\n \r\n$ \r\n \r\n200,056.00 \r\n \r\n$ 200,056.00 $ \r\n \r\n438,416.25 \r\n \r\n- \r\n \r\n$ \r\n \r\n131,772.00 $ 131,772.00 $ 369,299.00 \r\n \r\n- \r\n \r\n$ \r\n \r\n110,827.00 $ 110,827.00 $ 331,400.00 \r\n \r\nN/A \r\n \r\n84.45% \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- 30 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\nSCHOOL OPEB FUND \r\n \r\nSCHEDULE \"3\" \r\n \r\nFor the Year Ended \r\nJune 30 \r\n \r\nSchool District's proportion of the Net OPEB Liability (NOL) \r\n \r\nSchool District's proportionate share of the NOL \r\n \r\nState of Georgia's proportionate share of the NOL associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\nSchool District's coveredemployee payroll \r\n \r\nSchool District's proportionate share of the NOL as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position \r\nas a percentage of the total OPEB liability \r\n \r\n2021 2020 2019 2018 \r\n \r\n0.098155% $ 14,416,684.00 $ 0.101776% $ 12,490,099.00 $ 0.100676% $ 12,795,611.00 $ 0.094939% $ 13,338,891.00 $ \r\n \r\n- \r\n \r\n$ 14,416,684.00 $ 7,765,958.08 \r\n \r\n- \r\n \r\n$ 12,490,099.00 $ 7,563,365.36 \r\n \r\n- \r\n \r\n$ 12,795,611.00 $ 7,392,102.60 \r\n \r\n- \r\n \r\n$ 13,338,891.00 $ 6,909,485.92 \r\n \r\n185.64% 165.14% 173.10% 193.05% \r\n \r\n3.99% 4.63% 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- 31 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nSCHEDULE \"4\" \r\n \r\nFor the Year Ended June 30 \r\n \r\nContractually required \r\ncontribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2021 \r\n \r\n$ 1,444,342.00 $ \r\n \r\n1,444,342.00 $ \r\n \r\n- \r\n \r\n2020 \r\n \r\n$ 1,624,090.00 $ \r\n \r\n1,624,090.00 $ \r\n \r\n- \r\n \r\n2019 \r\n \r\n$ \r\n \r\n1,536,231.00 $ \r\n \r\n1,536,231.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ 1,206,536.00 $ \r\n \r\n1,206,536.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n971,856.00 $ \r\n \r\n971,856.00 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n925,672.00 $ \r\n \r\n925,672.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n854,546.01 $ \r\n \r\n854,546.01 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n$ \r\n \r\n7,719,448.95 \r\n \r\n$ \r\n \r\n7,823,587.60 \r\n \r\n$ \r\n \r\n7,486,814.56 \r\n \r\n$ \r\n \r\n7,277,264.22 \r\n \r\n$ \r\n \r\n6,915,146.60 \r\n \r\n$ \r\n \r\n6,600,638.78 \r\n \r\n$ \r\n \r\n6,603,774.14 \r\n \r\n18.71% 20.76% 20.52% 16.58% 14.05% 14.02% 12.94% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 32 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\n \r\nSCHEDULE \"5\" \r\n \r\nFor the Year Ended June 30 \r\n \r\nContractually required \r\ncontribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of \r\ncovered-employee payroll \r\n \r\n2021 2020 2019 2018 2017 \r\n \r\n$ \r\n \r\n359,667.00 $ \r\n \r\n$ \r\n \r\n331,938.00 $ \r\n \r\n$ \r\n \r\n548,135.00 $ \r\n \r\n$ \r\n \r\n521,790.00 $ \r\n \r\n$ \r\n \r\n495,023.00 $ \r\n \r\n359,667.00 $ 331,938.00 $ 548,135.00 $ 521,790.00 $ 495,023.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n7,642,280.06 \r\n \r\n- \r\n \r\n$ \r\n \r\n7,765,958.08 \r\n \r\n- \r\n \r\n$ \r\n \r\n7,563,365.36 \r\n \r\n- \r\n \r\n$ \r\n \r\n7,392,102.60 \r\n \r\n- \r\n \r\n$ \r\n \r\n6,909,485.92 \r\n \r\n4.71% 4.27% 7.25% 7.06% 7.16% \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 TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2021 \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 ClcllelCYYlllll 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\nIn 2019 and later, the expectation of retired life mortality was changed to the Pub-2010 Teacher Headcount Weighted Below Median Healthy Retiree mortality table from the RP-2000 Mortality Tables. In 2019, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nPublic School Employees Retirement System \r\nChanges of benefit terms: The member contribution rate was increased from $4.00 to $10.00 per month for members joining the System on or after July 1, 2012. The monthly benefit accrual rate was increased from $14.75 to $15.00 per year of credible service effective July 1, 2017. The monthly benefit accrual was increased from $15.00 to $15.25 per year of credible service effective July 1, 2018. The monthly benefit accrual was increased from $15.25 to $15.50 per year of credible service effective July 1, 2019. A 2% cost-of-living adjustment (COLA) was granted to certain retirees and beneficiaries effective July 2016, another July 2017, and another July 2018. Two 1.5% COLAs were granted to certain retirees and beneficiaries effective July 2019 and January 2020. \r\nChanges of assumptions: JllCClclel the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were YlllCY \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 clYlelllllClClCl 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. The assumed investment rate of return remained at 7.30% for the June 30, 2019 valuation. \r\n \r\n- 34 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"6\" \r\n \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 June 30, 2019 decremental valuation were changed to reflect the Teachers Retirement Systems experience study. \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, to 3.58% as of June 30, 2019, and to 2.22% as of June 30, 2020. \r\n \r\n- 35 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous Total Revenues \r\nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Community Services Food Services Operation Total Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Other Sources Other Uses Total Other Financing Sources (Uses) Net 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$ 6,300,000.00 $ 6,300,000.00 $ \r\n \r\n7,531,614.87 $ \r\n \r\n1,975,000.00 \r\n \r\n1,975,000.00 \r\n \r\n2,800,046.70 \r\n \r\n4,347,994.00 \r\n \r\n4,302,270.00 \r\n \r\n4,668,119.05 \r\n \r\n1,567,628.00 \r\n \r\n2,798,971.11 \r\n \r\n1,974,585.80 \r\n \r\n125,000.00 \r\n \r\n125,000.00 \r\n \r\n90,398.48 \r\n \r\n3,250.00 \r\n \r\n3,250.00 \r\n \r\n4,866.88 \r\n \r\n200,000.00 \r\n \r\n245,000.00 \r\n \r\n361,057.91 \r\n \r\n14,518,872.00 \r\n \r\n15,749,491.11 \r\n \r\n17,430,689.69 \r\n \r\n1,231,614.87 825,046.70 365,849.05 (824,385.31) \r\n(34,601.52) 1,616.88 \r\n116,057.91 1,681,198.58 \r\n \r\n10,007,592.00 \r\n1,199,425.00 110,327.00 287,518.00 541,931.00 916,000.00 218,406.00 \r\n1,548,079.00 771,199.00 15,000.00 755,731.00 \r\n16,371,208.00 \r\n(1,852,336.00) \r\n \r\n10,087,431.00 \r\n2,027,209.00 243,149.00 290,561.50 416,355.00 925,130.50 220,435.00 \r\n1,807,554.00 890,022.00 \r\n15,000.00 - \r\n691,647.11 17,614,494.11 \r\n(1,865,003.00) \r\n \r\n9,499,331.93 \r\n1,283,392.81 193,404.74 254,721.57 359,275.04 902,388.06 209,317.07 \r\n1,051,584.65 630,246.85 \r\n86,298.98 120,763.07 \r\n1,692.49 651,568.87 15,243,986.13 \r\n2,186,703.56 \r\n \r\n588,099.07 \r\n743,816.19 49,744.26 35,839.93 57,079.96 22,742.44 \r\n11,117.93 755,969.35 259,775.15 (71,298.98) (120,763.07) \r\n(1,692.49) 40,078.24 2,370,507.98 \r\n4,051,706.56 \r\n \r\n85,000.00 (85,000.00) \r\n(1,852,336.00) \r\n \r\n85,000.00 (85,000.00) \r\n(1,865,003.00) \r\n \r\n1,380.00 - \r\n1,380.00 2,188,083.56 \r\n \r\n(83,620.00) 85,000.00 \r\n1,380.00 4,053,086.56 \r\n \r\n4,449,922.24 \r\n \r\n4,449,922.24 \r\n \r\n4,386,391.24 \r\n \r\n(63,531.00) \r\n \r\n(39,509.86) \r\n \r\n(7,743.29) \r\n \r\n- \r\n \r\n7,743.29 \r\n \r\n$ \r\n \r\n2,558,076.38 $ \r\n \r\n2,577,175.95 $ 6,574,474.80 $ 3,997,298.85 \r\n \r\n- 36 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"7\" \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) \r\n \r\nOriginal and Final Budget amounts do not include the budgeted revenues or expenditures of certain funds reported as a part of the \r\n \r\ngeneral fund. The actual revenues and expenditures of those funds for fiscal year 2021 are as follows: \r\n \r\nRevenues \r\n \r\nExpenditures \r\n \r\nSchool Activity Funds \r\n \r\n$ \r\n \r\nAmerican Rescue Plan Act - ESSER III \r\n \r\n281,083.36 $ 183,117.25 \r\n \r\n241,155.30 183,117.25 \r\n \r\n$ \r\n \r\n464,200.61 $ \r\n \r\n424,272.55 \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2021 \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 Child Nutrition Discretionary Grants Limited Availability Total Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States Total U. S. Department of Agriculture \r\nEducation, U. S. Department of Education Stabilization Fund Pass-Through From Georgia Department of Education COVID-19 - Elementary and Secondary School Emergency Relief Fund \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Total Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Achievement Program Rural Education Achievement Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Total Other Programs Total U. S. Department of Education \r\n \r\nASSISTANCE LISTING NUMBER \r\n10.553 10.555 10.579 \r\n10.665 \r\n84.425D \r\n84.027A 84.027A 84.173A \r\n84.048A 84.358B 84.358B 84.424A 84.367A 84.367A 84.010A 84.010A \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n215GA324N1199 $ 215GA324N1199 215GA350N8103 \r\n \r\n165,489.40 361,257.35 33,876.00 560,622.75 \r\n \r\n486 Forest \r\n \r\n26,536.67 587,159.42 \r\n \r\nS425D210012 \r\n \r\n427,561.25 \r\n \r\nH027A190073 H027A200073 H173A200081 \r\n \r\n17,759.00 178,176.24 \r\n5,875.00 201,810.24 \r\n \r\nV048A200010 S358B190010 S358B200010 S424A200011 S367A190001 S367A200001 S010A190010 S010A200010 \r\n \r\n24,912.00 2,450.00 16,823.37 25,154.87 4,402.00 30,316.05 59,236.00 262,826.21 426,120.50 1,055,491.99 \r\n \r\n- 38 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nHealth and Human Services, U. S. Department of Other Programs Pass-Through from Ninth District Opportunity, Inc. Head Start Pass-Through from Georgia Department of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse Total U. S. Department of Health and Human Services \r\nTotal Expenditures of Federal Awards \r\n \r\nASSISTANCE LISTING NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n93.600 93.959 \r\n \r\n04CH0104150200 \r\n \r\n187,064.86 \r\n \r\n04CH3459-48-06 $ \r\n \r\n7,191.00 194,255.86 \r\n1,836,907.27 \r\n \r\nNote 1. Basis of Presentation \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Towns County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \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\nNote 4. Donation of Personal Protection Equipment \r\n \r\nIn response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Georgia Emergency Management Agency (GEMA). GEMA, then donated PPE with an estimated fair market value of $23,950.00 to the Towns County Board of Education. This amount is not included in Schedule of Federal Awards and is not subject to audit. Therefore, this amount is not audited. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGRANTS \r\n \r\nBright From the Start: \r\n \r\nGeorgia Department of Early Care and Learning \r\n \r\nPre-Kindergarten Program \r\n \r\n$ \r\n \r\nEducation, Georgia Department of \r\n \r\nQuality Basic Education \r\n \r\nDirect Instructional Cost \r\n \r\nKindergarten Program \r\n \r\nKindergarten Program - Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades - Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades - Early Intervention (4-5) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nCareer, Technical and Agricultural Education (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\nMedia Center Program \r\n \r\n20 Days Additional Instruction \r\n \r\nStaff and Professional Development \r\n \r\nPrincipal Staff and Professional Development \r\n \r\nIndirect Cost \r\n \r\nCentral Administration \r\n \r\nSchool Administration \r\n \r\nFacility Maintenance and Operations \r\n \r\nMid-term Adjustment Hold-Harmless \r\n \r\nAmended Formula Adjustment \r\n \r\nCategorical Grants \r\n \r\nPupil Transportation \r\n \r\nRegular \r\n \r\nBus Replacement \r\n \r\nNursing Services \r\n \r\nSparsity \r\n \r\nVocational Supervisors \r\n \r\nCareer, Technical and Agricultural Education \r\n \r\nOther State Programs \r\n \r\nFood Services \r\n \r\nHygiene Products in Georgia Schools \r\n \r\nMath and Science Supplements \r\n \r\nPreschool Disability Services \r\n \r\nTeachers Retirement \r\n \r\nGeorgia Emergency Management Agency \r\n \r\nDonations to LEA for COVID \r\n \r\nGeorgia State Financing and Investment \r\n \r\nCommission \r\n \r\nReimbursement on Construction Projects \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\n80,286.53 $ \r\n \r\n- $ \r\n \r\n191,826.00 27,557.00 444,731.00 105,826.00 229,090.00 48,790.00 484,308.00 449,333.00 137,489.00 906,625.00 44,647.00 40,265.00 38,399.00 20,722.00 78,266.00 22,299.00 12,591.00 \r\n561.00 \r\n247,201.00 251,998.00 147,270.00 \r\n63,531.00 (190,876.00) \r\n208,469.00 154,440.00 45,000.00 \r\n115,361.00 6,825.00 55,766.00 \r\n14,124.00 404.00 \r\n11,539.00 36,718.00 27,528.11 \r\n28,307.41 \r\n- \r\n \r\n- \r\n- \r\n- \r\n- \r\n- \r\n614,074.00 \r\n \r\nTOTAL \r\n80,286.53 \r\n191,826.00 27,557.00 444,731.00 105,826.00 229,090.00 48,790.00 484,308.00 449,333.00 137,489.00 906,625.00 44,647.00 40,265.00 38,399.00 20,722.00 78,266.00 22,299.00 12,591.00 \r\n561.00 \r\n247,201.00 251,998.00 147,270.00 \r\n63,531.00 (190,876.00) \r\n208,469.00 154,440.00 45,000.00 \r\n115,361.00 6,825.00 55,766.00 \r\n14,124.00 404.00 \r\n11,539.00 36,718.00 27,528.11 \r\n28,307.41 \r\n614,074.00 \r\n- 40 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \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\n32,902.00 \r\n \r\n- \r\n \r\n32,902.00 \r\n \r\n48,000.00 \r\n \r\n$ \r\n \r\n4,668,119.05 $ \r\n \r\n- \r\n \r\n48,000.00 \r\n \r\n614,074.00 $ \r\n \r\n5,282,193.05 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nSPLOST 2016 \r\n \r\n(1) Remodeling, renovating, modifying, furnishing, and \r\n \r\nequipping schools buildings, classrooms, instructional \r\n \r\nand support space, kitchens, auditoriums, and other \r\n \r\nfacilities (including physical education/athletic facilities) \r\n \r\nat existing School District facilities; \r\n \r\n$ \r\n \r\n(2) acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \r\n \r\n(3) acquiring and installing energy savings equipment and technology; \r\n \r\n(4) acquiring and/or improving land for School District facilities; \r\n \r\n(5) acquiring books, digital resources, and other media for School District; \r\n \r\n(6) purchasing school buses or other vehicles; and (7) payment of expenses incident to accomplishing the foregoing. \r\n$ \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n4,000,000.00 $ \r\n1,000,000.00 2,000,000.00 \r\n900,000.00 500,000.00 100,000.00 8,500,000.00 $ \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n11,418,563.00 \r\n2,000,000.00 1,000,000.00 \r\n900,000.00 500,000.00 100,000.00 15,918,563.00 \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n6/30/2022 \r\n6/30/2022 6/30/2022 6/30/2022 6/30/2022 6/30/2022 6/30/2022 \r\n \r\n- 42 - \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nSPLOST 2016 \r\n \r\n(1) Remodeling, renovating, modifying, furnishing, and \r\n \r\nequipping schools buildings, classrooms, instructional \r\n \r\nand support space, kitchens, auditoriums, and other \r\n \r\nfacilities (including physical education/athletic facilities) \r\n \r\nat existing School District facilities; \r\n \r\n$ \r\n \r\n(2) acquiring furnishings, equipment and fixtures for new and existing facilities district-wide including, but not limited to, technology equipment, safety and security equipment, signage, band instruments, and other furnishings; \r\n \r\n(3) acquiring and installing energy savings equipment and technology; \r\n \r\n(4) acquiring and/or improving land for School District facilities; \r\n \r\n(5) acquiring books, digital resources, and other media for School District; \r\n \r\n(6) purchasing school buses or other vehicles; and (7) payment of expenses incident to accomplishing the foregoing. \r\n$ \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n439,515.97 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n102,302.31 \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\n34,197.61 \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\n576,015.89 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Towns County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts \r\nexpended 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- 43 - \r\n \r\n Section II Compliance and Internal Control Reports \r\n \r\n Greg S. Griffin State Auditor \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\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 Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \r\nWe have audited the financial statements of the governmental activities and each major fund of the Towns County Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 3, 2022. We conducted our audit in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. \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 a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the School District's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \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\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \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\nGreg S. Griffin State Auditor \r\nMarch 3, 2022 \r\n \r\n Greg S. Griffin State Auditor \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \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 Dr. Darren Berrong, Superintendent and Members of the Towns County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Towns County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \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\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \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, 2021. \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 a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \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\nMarch 3, 2022 \r\n \r\n Section III Auditee's Response to Prior Year Findings and Questioned Costs \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2021 \r\nPrior Year Financial Statement Findings \r\nNo matters were reported. \r\nPrior Year Federal Award Findings And Questioned Costs \r\nNo matters were reported. \r\n \r\n Section IV Findings and Questioned Costs \r\n \r\n TOWNS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issued: Governmental Activities and Each Major Fund \r\nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \r\nNoncompliance material to financial statements noted: \r\n \r\nUnmodified \r\nNo None Reported \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness(es) identified?  Significant deficiency(ies) identified? \r\n \r\nType of auditor's report issued on compliance for major programs: \r\n \r\nAll major programs \r\n \r\nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \r\n \r\nIdentification of major programs: \r\n \r\nAssistance Listing Numbers Assistance Listing Program or Cluster Title \r\n \r\n10.553, 10.555, 10.579 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo None Reported \r\nUnmodified No \r\n$750,000.00 Yes \r\n \r\nII FINANCIAL STATEMENT FINDINGS No matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "}],"pages":{"current_page":1,"next_page":null,"prev_page":null,"total_pages":1,"limit_value":10,"offset_value":0,"total_count":4,"first_page?":true,"last_page?":true},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":4}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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