{"response":{"docs":[{"id":"dlg_ggpd_1394079499-2023-06-29","title":"City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2022 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2023-06-29"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2022 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1394079499-2023-06-29"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1394079499-2023-06-29"],"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":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"City of Chickamauga Board of Education \r\nWalker County, Georgia \r\nA Component Unit of the City of Chickamauga, Georgia \r\nAnnual Financial Report \r\nFor the Fiscal Year Ended June 30, 2022 \r\n(Including Independent Auditor's Reports) \r\n \r\n City of Chickamauga 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\nStatement of Fiduciary Net Position \r\n \r\nFiduciary Funds \r\n \r\n7 \r\n \r\nH \r\n \r\nStatement of Changes in Fiduciary Net Position \r\n \r\nFiduciary Funds \r\n \r\n8 \r\n \r\nI Notes to the Basic Financial Statements \r\n \r\n10 \r\n \r\nSchedules \r\n \r\nRequired Supplementary Information \r\n \r\n1 Schedule of Proportionate Share of the Net Pension Liability \r\n \r\nTeachers Retirement System of Georgia \r\n \r\n37 \r\n \r\n2 Schedule of Contributions  Teachers Retirement System of Georgia \r\n \r\n38 \r\n \r\n3 Schedule of Proportionate Share of the Net Pension Liability \r\n \r\nPublic School Employees Retirement System of Georgia \r\n \r\n39 \r\n \r\n4 Schedule of Proportionate Share of the Net OPEB Liability \r\n \r\nSchool OPEB Fund \r\n \r\n40 \r\n \r\n Required Supplementary Information (Continued) \r\n \r\n5 Schedule of Contributions  School OPEB Fund \r\n \r\n41 \r\n \r\n6 Notes to the Required Supplementary Information \r\n \r\n42 \r\n \r\n7 Schedule of Revenues, Expenditures and Changes in Fund \r\n \r\nBalances - Budget and Actual General Fund \r\n \r\n43 \r\n \r\nSupplementary Information \r\n \r\n8 Schedule of Expenditures of Federal Awards \r\n \r\n44 \r\n \r\n9 Schedule of State Revenue \r\n \r\n46 \r\n \r\n10 Schedule of Approved Local Option Sales Tax Projects \r\n \r\n48 \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\n \r\nIndependent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance \r\n \r\nSection III Auditee's Response to Prior Year Findings and Questioned Costs Summary Schedule of Prior Audit Findings \r\n \r\nSection IV Findings and Questioned Costs Schedule of Findings and Questioned Costs \r\n \r\n Section I Financial \r\n \r\n Greg S. Griffin State Auditor \r\n \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 Ms. Melody Day, Superintendent and Members of the City of Chickamauga Board of Education \r\n \r\nReport on the Audit of the Financial Statements \r\n \r\nDisclaimer of Opinion and Unmodified Opinions \r\n \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Chickamauga Board of Education (School District) as of and for the year ended June 30, 2022, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements collectively comprise the School District's basic financial statements as listed in the table of contents. \r\n \r\nSummary of Opinions \r\n \r\nOpinion Unit Governmental Activities Discretely Presented Component Unit Each Major Fund Fiduciary Activities \r\n \r\nType of Opinion Unmodified Disclaimer Unmodified Unmodified \r\n \r\nDisclaimer of Opinion on Discretely Presented Component Unit \r\n \r\nWe do not express an opinion on the accompanying financial statements of the discretely presented component unit and the respective changes in financial position for the year ended June 30, 2022. Because of the significance of the matter described in the Basis for Disclaimer of Opinion on Discretely Presented Component Unit section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. \r\n \r\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n Unmodified Opinion on Each of the Other Opinion Units \r\nIn our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities 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 Disclaimer of Opinion on Discretely Presented Component Unit \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nBasis for Unmodified Opinions \r\nWe conducted our audit of the financial statements of the governmental activities, each major fund, and fiduciary activities 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. We 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 unmodified 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\nIn preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the School District's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. \r\nAuditor's Responsibilities for the Audit of the Financial Statements \r\nAuditor's Responsibilities for the Audit of the Discretely Presented Component Unit \r\nOur responsibility is to conduct an audit of the School District's financial statements in accordance with GAAS and Government Auditing Standards and to issue an auditor's report. However, because of the matter described in the Basis for Disclaimer of Opinion on Discretely Presented Component Unit section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit. \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. \r\n \r\n Auditor's Responsibilities for the Audit of the Governmental Activities, Each Major Fund, and Fiduciary Activities \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\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 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 \r\n \r\n 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 June 29, 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\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\nJune 29, 2023 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\nINTRODUCTION \r\nThe discussion and analysis of the City of Chickamauga Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2022 and June 30, 2021. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2022 and 2021 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $18.0 million and $15.9 million, respectively, for the fiscal years ended June 30, 2022 and 2021. Of these amounts, $2,443,448 and $1,890,252 respectively, for fiscal years 2022 and 2021 are available for spending at the School District's discretion. \r\n General revenues net of transfers to City Government accounts for $4.6 million in revenue or 29.7% of all revenues. Program specific revenues in the form of charges for services and operating grants and contributions accounted for $11.0 million or 70.3% of total revenues of $15.6 million. \r\n The School District had $13.5 million in expenses related to governmental activities; however, $11.0 million of these expenses were offset by program specific charges for services and operating grants and contributions. General revenues (primarily taxes) net of transfers to City Government totaling $4.6 million was adequate to provide for these programs. \r\n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 4.8 and 3.9 for the fiscal years ended June 30, 2022 and June 30, 2021, respectively. Generally, a ratio greater than 2.0 is considered very financially stable. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\ni \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\nThe fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2022 and 2021, the general fund and the capital projects fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's non-fiduciary assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State laws. The School District's major governmental funds are the general fund and the capital projects fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into, and out of those funds, and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2022 and 2021. \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 \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 \r\n \r\n$ \r\n \r\n7,081,089 \r\n \r\n29,343,828 \r\n \r\n$ 6,057,390 29,922,408 \r\n \r\nTotal Assets \r\n \r\n36,424,917 \r\n \r\n35,979,798 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n3,502,905 1,644,184 \r\n \r\n3,377,231 1,699,852 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n5,147,089 \r\n \r\n5,077,083 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n1,478,138 406,800 \r\n4,509,637 6,571,604 \r\n \r\n1,554,605 508,696 \r\n12,001,496 8,670,867 \r\n \r\nTotal Liabilities \r\n \r\n12,966,179 \r\n \r\n22,735,664 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n6,829,528 3,812,725 \r\n \r\n378,222 2,070,094 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n10,642,253 \r\n \r\n2,448,316 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\n28,848,954 3,247,576 \r\n(14,132,956) \r\n \r\n29,263,672 2,762,573 \r\n(16,153,344) \r\n \r\n$ 17,963,574 $ 15,872,901 \r\n \r\nThe total net position of the School District increased $2.1 million from the prior year. iii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2022 and June 30, 2021. \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 \r\n \r\n$ \r\n \r\n924,975 $ \r\n \r\n10,059,257 \r\n \r\n- \r\n \r\n897,364 8,953,238 \r\n452,421 \r\n \r\nTotal Program Revenues \r\n \r\n10,984,232 \r\n \r\n10,303,023 \r\n \r\nGeneral Revenues: Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers To City Government \r\n \r\n1,931,150 \r\n989,832 43,920 \r\n1,079,966 4,678 \r\n1,297,034 \r\n(698,550) \r\n \r\n1,756,783 \r\n901,503 33,425 \r\n1,524,360 4,483 \r\n1,101,986 \r\n(706,100) \r\n \r\nTotal General Revenues and Transfers to City Government \r\n \r\n4,648,030 \r\n \r\n4,616,440 \r\n \r\nTotal Revenues \r\n \r\n15,632,262 \r\n \r\n14,919,463 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \r\n \r\n7,916,119 \r\n1,130,789 92,050 \r\n180,528 534,776 788,623 235,324 1,538,890 151,249 158,629 \r\n6,946 \r\n34,120 760,066 \r\n13,480 \r\n \r\n9,695,556 \r\n803,120 65,741 \r\n225,942 624,491 1,060,600 288,531 1,566,133 \r\n2,982 181,102 \r\n7,056 \r\n32,337 669,805 \r\n16,111 \r\n \r\nTotal Expenses \r\n \r\n13,541,589 \r\n \r\n15,239,507 \r\n \r\nChange in Net Position \r\n \r\n$ \r\n \r\n2,090,673 $ \r\n \r\n(320,044) \r\n \r\niv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nProgram revenues, in the form of charges for services and operating grants and contributions increased $0.7 million for governmental activities during fiscal year 2022. This increase is largely due to an increase in Elementary and Secondary Emergency Education Relief Fund (ESSER) grants offset by a decrease in Georgia State Financing and Investment Commission (GSFIC) capital outlay grants. Expenses for governmental activities decreased $1.7 million during fiscal year 2022. This decrease is largely due to expenditures associated with appreciation and retention bonuses and capital outlay incurred in fiscal year 2021. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\nInterest on Long-Term Debt \r\n \r\n7,916,119 $ \r\n1,130,789 92,050 \r\n180,528 534,776 788,623 235,324 1,538,890 151,249 158,629 \r\n6,946 \r\n34,120 760,066 \r\n13,480 \r\n \r\n9,695,556 $ \r\n803,120 65,741 \r\n225,942 624,491 1,060,600 288,531 1,566,133 \r\n2,982 181,102 \r\n7,056 \r\n32,337 669,805 \r\n16,111 \r\n \r\n49,705 $ \r\n869,611 1,385 \r\n(14,069) 71,411 267,965 230,133 1,081,304 151,249 (10,848) \r\n6,947 \r\n34,121 (195,037) \r\n13,480 \r\n \r\n2,110,956 \r\n517,897 (16,587) 36,626 150,766 525,978 280,314 1,050,390 \r\n1,975 175,591 \r\n7,056 \r\n32,337 47,074 16,111 \r\n \r\nTotal Expenses \r\n \r\n$ \r\n \r\n13,541,589 $ \r\n \r\n15,239,507 $ \r\n \r\n2,557,357 $ \r\n \r\n4,936,484 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $16.6 million and total expenses and other financing uses of $15.4 million. There was an increase in the fund balance totaling $1.2 million for the governmental funds as a whole. \r\nv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nGeneral Fund Budgeting Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2022 and 2021, the School District amended its general fund budget as needed. \r\nFor the general fund, actual revenues and other financing sources of $15.4 million was $0.1 million less than final budget. \r\nThe actual expenditures and other financing uses of $14.5 million was $1.0 million less than final budget. \r\nThe majority of these variances are the result of federal grants. The entire grant award amount, revenue and expenditure, is budgeted. However, many federal grants allow carryover to subsequent years. Therefore, actual expenditures and subsequent revenue drawdowns may not occur in the award year. The majority of these variances can be attributed to the budget philosophy of the School District. Revenue is conservatively estimated, while expenditures are estimated to be higher than anticipated to prepare for the unknown. \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2022 and June 30, 2021, the School District had $29.3 million and $29.9 million, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n417,444 \r\n \r\n224,472 \r\n \r\n25,205,925 \r\n \r\n1,283,692 \r\n \r\n2,212,295 \r\n \r\n$ \r\n \r\n417,444 \r\n \r\n723,596 \r\n \r\n25,871,885 \r\n \r\n1,284,096 \r\n \r\n1,625,387 \r\n \r\nTotal \r\n \r\n$ 29,343,828 $ 29,922,408 \r\n \r\nvi \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\n \r\nDEBT \r\nAt the fiscal year ending June 30, 2022 the School District had $0.4 million in financed purchases. Table 5 summarizes the School District's debt for financed purchases. \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2022 \r\n \r\n2021 \r\n \r\nFinanced Purchases \r\n \r\n$ \r\n \r\n406,800 $ \r\n \r\n508,695 \r\n \r\nCURRENT ISSUES \r\nA significant challenge facing the School District is the uncertainty surrounding the immediate and long-term impacts of the COVID-19 Pandemic. With their being no prior precedence, it is difficult to determine how the economy will continue to react, which has a direct relationship to funding, and the expenses involved in how students are being educated and maintaining the health and safety of all. Fortunately, the School District was able to continue paying all employees their full salaries and benefits during the transition to 100% virtual learning beginning in March 2020 and during school shutdown at the end of fiscal year 2020. The School District offered face-to-face instruction during fiscal year 2021 and 2022. \r\nThe School District is financially challenged by reduction of state revenue appropriations to local School Districts known as \"austerity reductions\". Since the austerity began in fiscal year 2003 and ended in fiscal year 2018, the School District's state funding was reduced a total of $8.3 million. Though the austerity reduction was eliminated in fiscal year 2019, this is still lost funding that will not be recouped. Due to the impact of COVID-19 on the economy, austerity reductions were reinstated in fiscal year 2021. The initial allotment sheet included a reduction in state funding of $0.8 million, but a portion of that was restored and the actual austerity reduction for fiscal year 2021 was only $0.3 million. For fiscal year 2022, the initial allotment sheet included a reduction in state funding of $0.3 million but it was restored in full at midterm. The fiscal year 2023 initial allotment sheet did not include austerity reduction. \r\nApproximately 77.5% of general fund expenditures, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2022. With such personnel heavy expenditures, the School District consistently evaluates how funds can be spent smarter and more effectively to ensure that students receive a quality education from effective personnel. \r\nThe School District's millage rate for fiscal year 2022 was 14.25. The net digest for fiscal year 2022 was $119.6 million, which produced approximately $119,630 per mill. O.C.G.A. 20-2-165 requires a minimum effective millage rate in order for the School District to qualify for equalization purposes. The School District received $1.1 million in equalization funding for fiscal year 2022. The School District's millage rate for fiscal year 2023 will remain at 14.25. It is anticipated pressure will continue to provide local monies to meet mandated educational requirements and operational costs. \r\n \r\nvii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2022 \r\nThe School District entered into a Strategic Waivers School System (SWSS/IE) Partnership Contract with the State Board of Education with performance accountability provisions of this contract becoming effective fiscal year 2017. The School District intends to use the flexibility provided by the contract to maximize all resources available to provide a quality education to the students of Chickamauga City Schools. An ongoing challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is in the process of exploring new funding formulas. It is uncertain at this point what type of financial impact these changes might have on the School District's finances. The School District believes that it is currently financially sound and by maintaining a healthy general fund reserve that it has positioned itself to face the upcoming challenges and concerns. The School District remains confident in the ability to be good stewards of resources to ensure the tradition of excellence continues for all students. 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 City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nviii \r\n \r\n City of Chickamauga Board of Education \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2022 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Restricted Assets Cash and Investments with Fiscal Agent or Trustee 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 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 Federal Programs Capital Projects Gordon Lee Charitable Trust Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nCOMPONENT UNIT \r\nGORDON LEE CHARITABLE TRUST DECEMBER 31, 2021 \r\n \r\n$ \r\n \r\n5,476,065.67 $ \r\n \r\n- \r\n \r\n134,826.85 \r\n \r\n- \r\n \r\n1,090,105.07 \r\n \r\n- \r\n \r\n341,954.93 \r\n \r\n- \r\n \r\n12,122.00 \r\n \r\n- \r\n \r\n26,013.99 \r\n \r\n- \r\n \r\n641,915.79 28,701,912.54 36,424,916.84 \r\n \r\n5,151,064.47 - \r\n5,151,064.47 \r\n \r\n3,502,905.49 \r\n \r\n- \r\n \r\n1,644,184.00 \r\n \r\n- \r\n \r\n5,147,089.49 \r\n \r\n- \r\n \r\n7,982.51 \r\n \r\n- \r\n \r\n1,384,536.74 \r\n \r\n- \r\n \r\n66,883.82 \r\n \r\n- \r\n \r\n18,735.00 \r\n \r\n- \r\n \r\n4,509,637.00 \r\n \r\n- \r\n \r\n6,571,604.00 \r\n \r\n- \r\n \r\n104,595.81 \r\n \r\n- \r\n \r\n302,203.92 \r\n \r\n- \r\n \r\n12,966,178.80 \r\n \r\n- \r\n \r\n6,829,528.00 \r\n \r\n- \r\n \r\n3,812,725.00 \r\n \r\n- \r\n \r\n10,642,253.00 \r\n \r\n- \r\n \r\n28,848,954.78 \r\n \r\n- \r\n \r\n256,991.05 2,699,099.97 \r\n291,484.89 (14,132,956.16) \r\n \r\n5,151,064.47 - \r\n \r\n$ \r\n \r\n17,963,574.53 $ \r\n \r\n5,151,064.47 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2022 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL 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 Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \r\nTotal Governmental Activities \r\nComponent Unit Gordon Lee Charitable Trust \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\n \r\nAND CHANGES IN NET POSITION \r\n \r\nPRIMARY \r\n \r\nCOMPONENT \r\n \r\nGOVERNMENT \r\n \r\nUNIT \r\n \r\nGORDON LEE \r\n \r\nGOVERNMENTAL CHARITABLE TRUST \r\n \r\nACTIVITIES \r\n \r\nDECEMBER 31, 2021 \r\n \r\n$ \r\n \r\n7,916,118.64 $ \r\n \r\n1,130,788.61 92,049.65 \r\n180,528.15 534,776.19 788,623.00 235,323.74 1,538,889.50 151,249.06 158,628.86 \r\n6,946.50 \r\n \r\n34,120.55 760,066.14 \r\n13,480.43 \r\n \r\n$ \r\n \r\n13,541,589.02 $ \r\n \r\n870,921.23 $ \r\n- \r\n54,053.33 \r\n- \r\n924,974.56 $ \r\n \r\n6,995,492.11 $ \r\n \r\n(49,705.30) \r\n \r\n261,177.40 90,664.68 \r\n194,596.85 463,365.48 520,657.76 \r\n5,190.64 457,585.62 \r\n169,476.60 \r\n- \r\n \r\n(869,611.21) (1,384.97) 14,068.70 (71,410.71) \r\n(267,965.24) (230,133.10) (1,081,303.88) (151,249.06) \r\n10,847.74 (6,946.50) \r\n \r\n901,049.86 \r\n- \r\n \r\n(34,120.55) 195,037.05 (13,480.43) \r\n \r\n10,059,257.00 \r\n \r\n(2,557,357.46) \r\n \r\n$ \r\n \r\n243,050.32 \r\n \r\n$ \r\n \r\n(243,050.32) \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers to City Government Total General Revenues and Transfers to City Government \r\n \r\n1,931,149.92 \r\n989,832.02 43,919.80 \r\n1,079,966.00 4,678.45 \r\n1,297,034.47 (698,550.00) 4,648,030.66 \r\n \r\nChange in Net Position \r\n \r\n2,090,673.20 \r\n \r\nNet Position - Beginning of Year \r\n \r\n15,872,901.33 \r\n \r\nNet Position - End of Year \r\n \r\n$ 17,963,574.53 $ \r\n \r\n533,108.65 \r\n533,108.65 290,058.33 4,861,006.14 5,151,064.47 \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 Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes \r\nFUND BALANCES Nonspendable Restricted Committed Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\nCITY OF CHICKAMAUGA 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\n2,954,983.70 $ \r\n \r\n2,521,081.97 $ \r\n \r\n5,476,065.67 \r\n \r\n39,227.85 1,090,105.07 \r\n341,954.93 12,122.00 26,013.99 \r\n \r\n95,599.00 - \r\n \r\n134,826.85 1,090,105.07 \r\n341,954.93 12,122.00 26,013.99 \r\n \r\n$ \r\n \r\n4,464,407.54 $ \r\n \r\n2,616,680.97 $ \r\n \r\n7,081,088.51 \r\n \r\n$ \r\n \r\n5,527.51 $ \r\n \r\n1,384,536.74 \r\n \r\n63,684.00 \r\n \r\n18,735.00 \r\n \r\n1,472,483.25 \r\n \r\n2,455.00 $ - \r\n3,199.82 - \r\n5,654.82 \r\n \r\n7,982.51 1,384,536.74 \r\n66,883.82 18,735.00 1,478,138.07 \r\n \r\n29,847.98 \r\n \r\n- \r\n \r\n29,847.98 \r\n \r\n26,013.99 522,461.95 690,932.90 430,752.00 1,291,915.47 2,962,076.31 \r\n \r\n2,611,026.15 \r\n2,611,026.15 \r\n \r\n26,013.99 3,133,488.10 \r\n690,932.90 430,752.00 1,291,915.47 5,573,102.46 \r\n \r\n$ \r\n \r\n4,464,407.54 $ \r\n \r\n2,616,680.97 $ \r\n \r\n7,081,088.51 \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 CITY OF CHICKAMAUGA 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 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. Financed purchases payable \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n5,573,102.46 \r\n \r\n$ \r\n \r\n417,443.93 \r\n \r\n224,471.86 \r\n \r\n31,818,340.84 \r\n \r\n2,500,124.28 \r\n \r\n3,637,734.50 \r\n \r\n(9,254,287.08) \r\n \r\n29,343,828.33 \r\n \r\n$ \r\n \r\n(4,509,637.00) \r\n \r\n(6,571,604.00) \r\n \r\n(11,081,241.00) \r\n \r\n$ \r\n \r\n(3,326,622.51) \r\n \r\n(2,168,541.00) \r\n \r\n(5,495,163.51) 29,847.98 \r\n \r\n(406,799.73) \r\n \r\n$ \r\n \r\n17,963,574.53 \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 CITY OF CHICKAMAUGA 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 Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Transfers To City Government Total Other Financing Sources (Uses) Net 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\n1,948,863.37 $ \r\n \r\n43,919.80 \r\n \r\n9,148,514.02 \r\n \r\n2,026,028.12 \r\n \r\n924,974.56 \r\n \r\n1,290.92 \r\n \r\n1,297,034.47 \r\n \r\n15,390,625.26 \r\n \r\n- $ 989,832.02 \r\n3,387.53 993,219.55 \r\n \r\n1,948,863.37 1,033,751.82 9,148,514.02 2,026,028.12 \r\n924,974.56 4,678.45 \r\n1,297,034.47 16,383,844.81 \r\n \r\n8,256,567.12 \r\n1,201,557.82 93,384.98 \r\n204,882.08 576,421.46 925,481.98 273,364.15 1,486,829.78 \r\n56,309.54 176,146.83 \r\n6,946.50 34,120.55 752,627.12 187,350.00 \r\n101,895.57 13,480.43 \r\n14,347,365.91 1,043,259.35 \r\n \r\n- \r\n172,278.98 \r\n172,278.98 820,940.57 \r\n \r\n8,256,567.12 \r\n1,201,557.82 93,384.98 204,882.08 576,421.46 925,481.98 273,364.15 \r\n1,486,829.78 56,309.54 176,146.83 6,946.50 34,120.55 752,627.12 359,628.98 \r\n101,895.57 13,480.43 14,519,644.89 1,864,199.92 \r\n \r\n(172,278.98) \r\n(172,278.98) 870,980.37 \r\n \r\n172,278.98 - \r\n(698,550.00) (526,271.02) 294,669.55 \r\n \r\n172,278.98 (172,278.98) (698,550.00) (698,550.00) 1,165,649.92 \r\n \r\n2,091,095.94 \r\n \r\n2,316,356.60 \r\n \r\n4,407,452.54 \r\n \r\n$ \r\n \r\n2,962,076.31 $ \r\n \r\n2,611,026.15 $ \r\n \r\n5,573,102.46 \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 CITY OF CHICKAMAUGA 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 \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nGeorgia State Financing and Investment Commission grants reported in the funds in the prior year but not received in the current year. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Financed purchase payments \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\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n1,165,649.92 \r\n \r\n$ \r\n \r\n496,903.08 \r\n \r\n(1,052,694.70) \r\n \r\n(555,791.62) (22,788.00) (17,713.45) (47,771.00) \r\n \r\n101,895.57 \r\n \r\n$ \r\n \r\n1,166,227.78 \r\n \r\n300,964.00 \r\n \r\n1,467,191.78 \r\n \r\n$ \r\n \r\n2,090,673.20 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2022 \r\nASSETS Cash and Cash Equivalents \r\nNET POSITION Restricted \r\nIndividuals, Organizations, and Other Governments \r\n \r\nEXHIBIT \"G\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n19,867.50 \r\n \r\n$ \r\n \r\n19,867.50 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ADDITIONS Contributions Donors \r\nDEDUCTIONS Other Deductions \r\nChange in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nCITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2022 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n3,865.00 \r\n \r\n4,065.00 \r\n \r\n(200.00) \r\n \r\n20,067.50 \r\n \r\n$ \r\n \r\n19,867.50 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nReporting Entity \r\nThe City of Chickamauga 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 not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the School District is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nDiscretely Presented Component Unit \r\nThe Gordon Lee Charitable Trust (Trust) was created for the benefit of the City of Chickamauga Board of Education with four separate charitable purposes identified as follows: (1) the Gordon Lee book fund; (2) Gordon Lee Librarian's salary fund; (3) the Gordon Lee High School building fund; and (4) the Gordon Lee High School endowment fund. The financial statements of the Gordon Lee Charitable Trust have not been audited and we were not engaged to audit their financial statements as part of our audit of the City of Chickamauga Board of Education. The Trust's financial activities are included in the School District's financial statements as a discretely presented component unit. See Note 14: Component Unit. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBasis of Presentation \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGovernment-Wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\nThe School District reports the following fiduciary fund type: \r\n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBasis of Accounting \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers 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 principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under 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. 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 adoption of this statement did not have an impact on the School District's financial statements. \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCash and Cash Equivalents \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nReceivables \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nInventories \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCapital Assets \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements \r\n \r\n$ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nDeferred Outflows/Inflows of Resources \r\n \r\nAll 5,000.00 5,000.00 5,000.00 100,000.00 \r\n \r\nN/A 15 to 80 years 15 to 80 years \r\n5 to 25 years 15 to 80 years \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\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\nPensions \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\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\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\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\n \r\nUse of Estimates \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\nProperty Taxes \r\n \r\nThe City of Chickamauga adopted the property tax levy for the 2021 tax digest year (calendar year) on September 16, 2021 (levy date) based on property values as of January 1, 2021. Taxes were due on December 20, 2021 (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 City of Chickamauga Clerk bills and collects the property taxes for the School District 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 $1,815,050.24. \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\n14.25 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $133,813.13 during fiscal year ended June 30, 2022. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSales Taxes \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $989,832.02 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects associated with issuance of Education Special Purpose Local Option Sales Tax (ESPLOST). In fiscal year 2022, the School District provided $698,550.00 of ESPLOST proceeds to the City Government for debt services on general obligation debt. \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 is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCollateralization of Deposits \r\nO.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCategorization of Deposits \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2022, the School District had deposits with a carrying amount of $4,037,212.41, and a bank balance of $4,491,464.93. The bank balances insured by Federal depository insurance were $275,943.70. \r\nAt June 30, 2022, $4,215,521.23 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying values of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 5,476,065.67 19,867.50 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,495,933.17 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n1,458,720.76 \r\n \r\nTotal carrying value of deposits - June 30, 2022 \r\n \r\n$ 4,037,212.41 \r\n \r\nCategorization of Cash Equivalents \r\nThe School District reported cash equivalents of $1,458,720.76 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2022 was 43 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, \r\nNot Being Depreciated: Land Construction in Progress \r\n \r\nBalances July 1, 2021 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2022 \r\n \r\n$ \r\n \r\n417,443.93 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n417,443.93 \r\n \r\n723,596.38 \r\n \r\n379,604.98 \r\n \r\n878,729.50 \r\n \r\n224,471.86 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,141,040.31 \r\n \r\n379,604.98 \r\n \r\n878,729.50 \r\n \r\n641,915.79 \r\n \r\nCapital Assets, Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n31,801,113.71 2,583,859.99 2,859,508.00 \r\n \r\n17,227.13 200,573.97 778,226.50 \r\n \r\n284,309.68 \r\n- \r\n \r\n31,818,340.84 2,500,124.28 3,637,734.50 \r\n \r\n5,929,228.47 1,299,764.32 1,234,121.27 \r\n \r\n683,187.52 178,189.40 191,317.78 \r\n \r\n261,521.68 \r\n- \r\n \r\n6,612,415.99 1,216,432.04 1,425,439.05 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n28,781,367.64 \r\n \r\n(56,667.10) \r\n \r\n22,788.00 \r\n \r\n28,701,912.54 \r\n \r\nGovernmental Activities Capital Assets - Net \r\n \r\n$ 29,922,407.95 $ 322,937.88 $ 901,517.50 $ 29,343,828.33 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \r\n \r\n$ \r\n \r\n19,664.51 \r\n \r\n174,907.24 \r\n \r\n77,158.30 \r\n \r\n15,063.74 \r\n \r\n$ 724,689.33 \r\n286,793.79 41,211.58 \r\n \r\n$ 1,052,694.70 \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: INTERFUND TRANSFERS \r\n \r\nInterfund Transfers \r\n \r\nInterfund transfers for the year ended June 30, 2022, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From General Fund \r\n \r\nCapital Projects Fund \r\n \r\n$ 172,278.98 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to capital projects fund as a supplemental funding source for capital construction projects. \r\nTransfer to City Government \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects. Payment of the principal and interest on the series 2016A bonds will be secured by and payable first from the Education Special Purpose Local Option Sales Tax (ESPLOST) and then, if and to the extent necessary, from the general fund of the City Government or the School District or from ad valorem taxes to be levied by the City Government. Payment of the principal and interest on the series 2016B bonds will be secured by and payable from ad valorem taxes to be levied by the City Government. In fiscal year 2022, the School District transferred $698,550.00 of ESPLOST proceeds to the City Government for debt services on said general obligation debt. \r\nThe School District has pledged the following estimated proceeds in the future years to the City Government for debt service on said general obligation debt: \r\nFiscal Year Ended June 30: \r\n \r\n2023 2024 2025 2026 2027 2028 - 2032 2033 \r\n \r\n$ \r\n \r\n699,550.00 \r\n \r\n297,100.00 \r\n \r\n295,425.00 \r\n \r\n298,525.00 \r\n \r\n296,400.00 \r\n \r\n1,452,652.00 \r\n \r\n294,976.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n3,634,628.00 \r\n \r\n- 20 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \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, 2021 \r\n \r\nGovernmental Activities Balance \r\nAdditions Deductions June 30, 2022 \r\n \r\nDue Within One Year \r\n \r\nFinanced Purchases \r\n \r\n$ 508,695.30 $ \r\n \r\n- $ 101,895.57 $ 406,799.73 $ 104,595.81 \r\n \r\nObligations Under Financed Purchases \r\nThe School District has acquired eight buses under the provisions of various long-term agreements classified as financed purchases for accounting purposes. Payments on the agreements shall be made from the School District's general fund. \r\nIf sufficient funds are not appropriated to make payments required under this agreement for the original term or any renewal term, this agreement shall terminate at the end of the then current original term or renewal term, and the School District shall not be obligated to make payments under this agreement beyond the then current term, and all of the School District's right, title and interest in and to the equipment shall terminate at the end of the then current term. If such a non-appropriation occurs, the School District shall, no later than the end of the then-current term, return the equipment to a location in the continental United States specified by the lessor, freight and insurance prepaid by the School District, and in the condition in which it is required to be maintained hereunder. \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n721,712.00 180,428.00 \r\n \r\n$ \r\n \r\n541,284.00 \r\n \r\nDebt currently outstanding is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nBuses \r\n \r\n2.65% 1/15/2020 2/15/2025 $ 721,712.00 $ 406,799.73 \r\n \r\nThe following is a schedule of total finance purchase payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2023 2024 2025 \r\n \r\n$ \r\n \r\n104,595.81 $ \r\n \r\n107,367.60 \r\n \r\n194,836.32 \r\n \r\n10,780.19 8,008.40 5,163.68 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n406,799.73 $ \r\n \r\n23,952.27 \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \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\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 liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2021 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n512.50 \r\n \r\n$ \r\n \r\n512.50 \r\n \r\n$ \r\n \r\n- \r\n \r\n2022 $ \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- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSurety Bond \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ 10,000.00 $ 10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2022: \r\n \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ \r\n \r\n26,013.99 \r\n \r\nRestricted \r\n \r\nContinuation of Federal Programs \r\n \r\n$ \r\n \r\n230,977.06 \r\n \r\nCapital Projects \r\n \r\n2,611,026.15 \r\n \r\nGordon Lee Trust \r\n \r\n291,484.89 \r\n \r\n3,133,488.10 \r\n \r\nCommitted \r\n \r\nSchool Activity Accounts \r\n \r\n$ \r\n \r\n618,589.64 \r\n \r\nFuture Debt Payments - Computers \r\n \r\n72,343.26 \r\n \r\n690,932.90 \r\n \r\nAssigned \r\n \r\nFuture Debt Payments \r\n \r\n430,752.00 \r\n \r\nUnassigned \r\n \r\n1,291,915.47 \r\n \r\nFund Balance, June 30, 2022 \r\n \r\n$ 5,573,102.46 \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, 2022: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2022 (2) \r\n \r\nChickamauga Elementary School HVAC Gym Renovations and 3 Outdoor Classroom Pavilions \r\n \r\n$ 451,430.44 $ \r\n \r\n217,016.86 \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\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFederal Grants \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGeorgia School Personnel Post-Employment Health Benefit Fund \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit 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 $221,604.00 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 $6,571,604.00 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 0.060675%, which was an increase of 0.001640% from its proportion measured as of June 30, 2020. \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFor the year ended June 30, 2022, the School District recognized OPEB expense of ($79,360.00). At June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 3,000,574.00 \r\n \r\nChanges of assumptions \r\n \r\n1,203,362.00 \r\n \r\n536,239.00 \r\n \r\nNet difference between projected and actual earnings on OPEB plan investments \r\n \r\n- \r\n \r\n10,420.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n219,218.00 \r\n \r\n265,492.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n221,604.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,644,184.00 $ 3,812,725.00 \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$ (646,621.00) $ (600,413.00) $ (436,438.00) $ (272,351.00) $ (334,614.00) $ (99,708.00) \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \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 Healthcare cost trend rate \r\n \r\n7.00%, compounded annually, net of investment expense, and including inflation \r\n \r\nPre-Medicare Eligible \r\n \r\n6.75% \r\n \r\nMedicare Eligible \r\n \r\n5.13% \r\n \r\nUltimate trend rate \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 \r\n \r\n2029 \r\n \r\nMedicare Eligible \r\n \r\n2023 \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 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 \r\n \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\ngenerationally. Post-retirement 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 which was 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\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 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 2145. \r\n \r\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate: The following presents the School District's proportionate share of the net OPEB liability 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 \r\n \r\n$ 7,512,818.00 $ \r\n \r\n6,571,604.00 $ 5,783,720.00 \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 net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentagepoint lower or 1-percentage-point higher than the current healthcare cost trend rates: \r\n \r\nSchool District's proportionate share of the Net OPEB liability \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\n$ 5,576,261.00 $ \r\n \r\n6,571,604.00 $ 7,815,862.00 \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\nNOTE 13: RETIREMENT PLANS \r\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTeachers Retirement System of Georgia (TRS) \r\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 \r\n \r\n- 28 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\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. \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 19.58% of payroll was required from the School District and 0.23% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,294,501.49 and $14,840.14 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 was $21,324.00. \r\n \r\n- 29 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2022, the School District reported a liability of $4,509,637.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 4,509,637.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n51,297.00 \r\n \r\nTotal \r\n \r\n$ 4,560,934.00 \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 0.050989%, which was an increase of 0.001445% 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 $17,485.00. \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\nFor the year ended June 30, 2022, the School District recognized pension expense of $129,041.00 for TRS and $184.00 for PSERS and revenue of $661.00 for TRS and $184.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 30 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2022, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\nChanges of assumptions \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n$ 1,076,143.00 $ \r\n \r\n- \r\n \r\n872,826.00 \r\n \r\n- \r\n \r\n- \r\n \r\n6,596,325.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n259,435.00 \r\n \r\n233,203.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n1,294,501.49 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 3,502,905.49 $ 6,829,528.00 \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$ (936,699.00) $ (847,758.00) $ (1,253,529.00) $ (1,583,138.00) \r\n \r\n- 31 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \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 Salary increases Investment rate of return \r\nPost-retirement benefit increases \r\n \r\n2.50% 3.00%  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 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\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% \r\nN/A \r\n7.00%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\n \r\n- 32 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \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 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 (-) \r\n \r\nAdjustment 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 \r\n \r\nGeneral Disabled \r\n \r\nMale: -3; Female: 0 \r\n \r\nMale: 103%; Female: 106% \r\n \r\nBeneficiaries \r\n \r\nGeneral Below-Median Contingent Survivors \r\n \r\nMale: +2; Female: +2 \r\n \r\nMale: 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\n \r\n30.00% 46.30% \r\n1.20% 11.50% \r\n6.00% 5.00% \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\n \r\n(1.50)% 9.20% 13.40% 9.20% 10.40% 10.60% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \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 \r\n- 33 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \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\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.25%) \r\n \r\nCurrent Discount Rate (7.25%) \r\n \r\n1% Increase (8.25%) \r\n \r\n$ 12,147,767.00 $ \r\n \r\n4,509,637.00 $ (1,749,284.00) \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\nNOTE 14: COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) is a legally separate tax-exempt component unit of the City of Chickamauga Board of Education (School District). It originated from the last will and testament of Gordon Lee, a citizen of City of Chickamauga that died in 1927. First Horizon Bank serves as the trustee for the Trust. Mr. Lee's will set forth four separate bequests providing for distribution of specific amounts for charitable purposes, all for the benefit of Gordon Lee High School. The four separate trusts are as follows, Gordon Lee  Book Fund, Gordon Lee  Librarian's Salary Fund, Gordon Lee  High School Building and Gordon Lee  High School Endowment Fund. The School District receives quarterly distributions based on five percent of the December 31st fair market value. These distributions are allocated in the following manner: \r\nBook Fund  0.535% \r\nLibrarian's Salary Fund  0.435% \r\nBuilding Fund  14.7% \r\nEndowment Fund  84.33% \r\nAlthough the School District does not control the timing or amount of the receipts from the Trust, the Trust's resources and income are restricted for the benefit of Gordon Lee High School. Consequently, the Trust is considered a component unit of the School District and is discretely presented in the School District's financial statements. The Trust is operated on a calendar year basis. The balance sheet and trust activity are reported on the Statement of Net Position and Statement of Activities, respectively. During the year ended December 31, 2021, the Trust distributed $243,050.32 to the School District. \r\n \r\n- 34 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2022 \r\n \r\nEXHIBIT \"I\" \r\n \r\nComponent Unit Restricted Assets consist of the following: \r\nFair Market Value December 31, 2021 \r\n \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\nFixed Income Mutual Funds \r\n \r\nEquity Investments \r\n \r\n112,944.46 1,427,892.11 3,610,227.90 \r\n \r\n$ \r\n \r\n5,151,064.47 \r\n \r\nThe Trust was not audited and did not prepare official financial statements. The Trust follows Internal Revenue Code Section 509 for tax filings. Any inquiries or information about the Trust can be obtained from City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nNOTE 15: SUBSEQUENT EVENT: \r\nOn May 16, 2023, General Obligation Sales Tax School Bonds, Series 2023 were sold by the City of Chickamauga (City) in the amount of $2,420,000.00 to advance fund voter approved capital projects for the School District. The School District has pledged its total of receipts and credits received of the Education Special Local Option Sales Tax (ESPLOST) for the payment of said bonds. \r\n \r\n- 35 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE 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 \r\nLiability (NPL) \r\n \r\nSchool District's proportionate share \r\nof the NPL \r\n \r\nState of Georgia's proportionate share of the NPL associated \r\nwith 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 percentage of \r\nthe total pension liability \r\n \r\n2022 2021 2020 2019 2018 2017 2016 2015 \r\n \r\n0.050989% $ 4,509,637.00 $ 0.049544% $ 12,001,496.00 $ 0.050826% $ 10,928,964.00 $ 0.050415% $ 9,358,104.00 $ 0.052910% $ 9,833,486.00 $ 0.052331% $ 10,796,469.00 $ 0.053486% $ 8,142,712.00 $ 0.053783% $ 6,794,773.00 $ \r\n \r\n51,297.00 $ 4,560,934.00 $ 147,039.00 $ 12,148,535.00 $ 132,672.00 $ 11,061,636.00 $ 109,702.00 $ 9,467,806.00 $ 110,583.00 $ 9,944,069.00 $ 125,643.00 $ 10,922,112.00 $ 95,150.00 $ 8,237,862.00 $ 54,198.00 $ 6,848,971.00 $ \r\n \r\n6,708,995.74 6,465,832.76 6,278,074.30 6,072,083.32 6,143,523.50 5,807,063.88 5,711,698.44 5,530,641.43 \r\n \r\n67.22% 185.61% 174.08% 154.12% 160.06% 185.92% 142.56% 122.86% \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- 37 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE 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\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n2022 \r\n \r\n$ \r\n \r\n2021 \r\n \r\n$ \r\n \r\n2020 \r\n \r\n$ \r\n \r\n2019 \r\n \r\n$ \r\n \r\n2018 \r\n \r\n$ \r\n \r\n2017 \r\n \r\n$ \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2013 \r\n \r\n$ \r\n \r\n1,294,501.49 $ 1,264,355.71 $ 1,350,336.21 $ 1,296,389.36 $ 1,008,880.33 $ \r\n866,902.64 $ 819,130.00 $ 742,415.82 $ 671,571.47 $ 618,476.49 $ \r\n \r\n1,294,501.49 $ 1,264,355.71 $ 1,350,336.21 $ 1,296,389.36 $ 1,008,880.33 $ \r\n866,902.64 $ 819,130.00 $ 742,415.82 $ 671,571.47 $ 618,476.49 $ \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\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,609,973.99 6,708,995.74 6,465,832.76 6,278,074.24 6,072,083.32 6,143,523.50 5,807,063.88 5,711,698.44 5,530,641.43 5,482,377.36 \r\n \r\n19.58% 18.85% 20.88% 20.65% 16.62% 14.11% 14.11% 13.00% 12.14% 11.28% \r\n \r\n- 38 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE 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\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\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 liability \r\n \r\n2022 2021 2020 2019 2018 2017 2016 2015 \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\n17,485.00 $ 116,852.00 $ 114,528.00 $ 113,029.00 $ 98,022.00 $ 124,359.00 $ 79,756.00 $ 65,987.00 $ \r\n \r\n17,485.00 $ 116,852.00 $ 114,528.00 $ 113,029.00 $ \r\n98,022.00 $ 124,359.00 $ \r\n79,756.00 $ 65,987.00 $ \r\n \r\n355,869.24 365,546.58 324,673.67 320,079.48 295,654.46 297,155.02 287,438.33 275,204.77 \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- 39 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n \r\nSCHEDULE \"4\" \r\n \r\nFor the Year Ended June 30 \r\n \r\nSchool District's proportion of the \r\nNet OPEB Liability (NOL) \r\n \r\nSchool District's proportionate share \r\nof the NOL \r\n \r\nState of Georgia's proportionate share \r\nof the NOL associated with the \r\nSchool District \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the NOL as a percentage of its covered-employee \r\npayroll \r\n \r\nPlan fiduciary net position as a percentage \r\nof the total OPEB liability \r\n \r\n2022 2021 2020 2019 2018 \r\n \r\n0.060675% $ 0.059035% $ 0.059695% $ 0.060555% $ 0.062750% $ \r\n \r\n6,571,604.00 $ 8,670,867.00 $ 7,325,858.00 $ 7,696,354.00 $ 8,816,350.00 $ \r\n \r\n- \r\n \r\n$ 6,571,604.00 $ 5,978,968.38 \r\n \r\n- \r\n \r\n$ 8,670,867.00 $ 5,524,349.13 \r\n \r\n- \r\n \r\n$ 7,325,858.00 $ 5,350,889.40 \r\n \r\n- \r\n \r\n$ 7,696,354.00 $ 5,165,643.73 \r\n \r\n- \r\n \r\n$ 8,816,350.00 $ 5,252,940.80 \r\n \r\n109.91% 156.96% 136.91% 148.99% 167.84% \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- 40 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\n \r\nSCHEDULE \"5\" \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\n2022 \r\n \r\n$ \r\n \r\n221,604.00 $ \r\n \r\n221,604.00 $ \r\n \r\n- \r\n \r\n2021 \r\n \r\n$ \r\n \r\n225,701.00 $ \r\n \r\n225,701.00 $ \r\n \r\n- \r\n \r\n2020 \r\n \r\n$ \r\n \r\n199,643.00 $ \r\n \r\n199,643.00 $ \r\n \r\n- \r\n \r\n2019 \r\n \r\n$ \r\n \r\n321,500.00 $ \r\n \r\n321,500.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n313,849.00 $ \r\n \r\n313,849.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n327,185.00 $ \r\n \r\n327,185.00 $ \r\n \r\n- \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\n$ \r\n \r\n5,967,972.05 \r\n \r\n$ \r\n \r\n5,978,968.38 \r\n \r\n$ \r\n \r\n5,524,349.13 \r\n \r\n$ \r\n \r\n5,350,889.40 \r\n \r\n$ \r\n \r\n5,165,643.73 \r\n \r\n$ \r\n \r\n5,252,940.80 \r\n \r\n3.71% 3.77% 3.61% 6.01% 6.08% 6.23% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 41 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System Change 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 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 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 Changes 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 two 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% as of June 30, 2019, and to 2.22% as of June 30, 2020. \r\n \r\n- 42 - \r\n \r\n CITY OF CHICKAMAUGA 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 Food Services Operation Enterprise Operations Capital Outlay Debt Service Principal Interest Total Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Other Sources Other Uses 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 \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n1,708,000.00 $ \r\n \r\n1,962,600.00 $ \r\n \r\n1,948,863.37 $ \r\n \r\n- \r\n \r\n- \r\n \r\n43,919.80 \r\n \r\n8,429,076.00 \r\n \r\n9,063,799.00 \r\n \r\n9,148,514.02 \r\n \r\n1,469,026.00 \r\n \r\n2,422,251.00 \r\n \r\n2,026,028.12 \r\n \r\n883,215.00 \r\n \r\n875,648.00 \r\n \r\n924,974.56 \r\n \r\n2,488.00 \r\n \r\n1,470.00 \r\n \r\n1,290.92 \r\n \r\n1,117,239.00 \r\n \r\n1,212,465.00 \r\n \r\n1,297,034.47 \r\n \r\n13,609,044.00 \r\n \r\n15,538,233.00 \r\n \r\n15,390,625.26 \r\n \r\n(13,736.63) 43,919.80 84,715.02 (396,222.88) 49,326.56 \r\n(179.08) 84,569.47 (147,607.74) \r\n \r\n7,767,448.00 \r\n1,142,731.00 88,937.00 \r\n248,222.00 570,462.00 974,045.00 269,129.00 1,451,102.00 188,945.00 160,262.00 \r\n6,947.00 590,000.00 \r\n38,000.00 302,312.00 \r\n13,798,542.00 (189,498.00) \r\n \r\n8,547,787.00 \r\n1,210,767.00 104,051.00 205,904.00 582,784.00 942,493.00 278,906.00 \r\n1,476,465.00 195,380.00 173,498.00 6,947.00 742,885.00 37,000.00 518,400.00 \r\n15,023,267.00 514,966.00 \r\n \r\n8,256,567.12 \r\n1,201,557.82 93,384.98 204,882.08 576,421.46 925,481.98 273,364.15 \r\n1,486,829.78 56,309.54 176,146.83 6,946.50 752,627.12 34,120.55 187,350.00 \r\n101,895.57 13,480.43 14,347,365.91 1,043,259.35 \r\n \r\n5,000.00 (205,000.00) (200,000.00) \r\n \r\n5,117.00 (470,230.00) (465,113.00) \r\n \r\n(172,278.98) (172,278.98) \r\n \r\n(389,498.00) \r\n \r\n49,853.00 \r\n \r\n870,980.37 \r\n \r\n2,344,552.93 \r\n \r\n2,344,552.93 \r\n \r\n2,091,095.94 \r\n \r\n5,896.24 \r\n \r\n4,481.93 \r\n \r\n- \r\n \r\n$ \r\n \r\n1,960,951.17 $ \r\n \r\n2,398,887.86 $ \r\n \r\n2,962,076.31 $ \r\n \r\n291,219.88 \r\n9,209.18 10,666.02 \r\n1,021.92 6,362.54 17,011.02 5,541.85 (10,364.78) 139,070.46 (2,648.83) \r\n0.50 (9,742.12) 2,879.45 331,050.00 \r\n(101,895.57) (13,480.43) 675,901.09 528,293.35 \r\n(5,117.00) 297,951.02 292,834.02 \r\n821,127.37 \r\n(253,456.99) \r\n(4,481.93) \r\n563,188.45 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n CITY OF CHICKAMAUGA 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 COVID-19 - National School Lunch Program Total Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition 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 Total Education Stabilization Fund \r\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 \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States 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\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\n10.553 10.555 10.555 \r\n \r\n225GA324N1199 $ 225GA324N1199 225GA324N1099 \r\n \r\n94,994.55 516,244.71 \r\n51,661.80 662,901.06 \r\n \r\n10.560 \r\n \r\n215GA904N2533 \r\n \r\n3,173.26 666,074.32 \r\n \r\n84.425D 84.425D \r\n84.425U \r\n \r\nS425D200012 S425D210012 \r\nS425U210012 \r\n \r\n8,614.34 209,591.63 \r\n610,838.60 829,044.57 \r\n \r\n84.027A 84.027A 84.027X 84.173A 84.173X \r\n \r\nH027A200073 H027A210073 H027X210073 H173A210081 H173X210081 \r\n \r\n90,111.00 111,122.71 \r\n51,908.00 755.00 \r\n3,352.00 257,248.71 \r\n \r\n84.048A 84.424A 84.367A 84.367A 84.010A 84.010A \r\n \r\nV048A210010 S424A210011 S367A200001 S367A210001 S010A200010-20A S010A210010-21A \r\n$ \r\n \r\n12,381.00 10,942.00 \r\n5,847.00 8,645.17 20,192.00 88,487.00 146,494.17 1,232,787.45 \r\n1,898,861.77 \r\n \r\n- 44 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2022 \r\n \r\nSCHEDULE \"8\" \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 City of Chickamauga 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 \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2022 \r\nAGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Nursing Services One Time QBE Adjustment Education Equalization Funding Grant Other State Programs Computer Science Capacity Grant (CS4GA) Grant Food Services Hygiene Products Preschool Disability Services School Safety Grant Teachers Retirement Vocational Education Office of the State Treasurer Public School Employees Retirement \r\n \r\nSCHEDULE \"9\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n$ \r\n \r\n552,721.00 21,516.00 \r\n1,193,122.00 39,931.00 \r\n573,802.00 29,284.00 \r\n1,032,222.00 949,456.00 384,219.00 861,593.00 342,205.00 56,582.00 75,350.00 10,542.00 171,404.00 55,386.00 26,890.00 916.00 \r\n \r\n413,784.00 455,597.00 349,146.00 \r\n49,138.00 \r\n \r\n45,000.00 252,611.00 1,079,966.00 \r\n \r\n6,998.92 45,334.00 \r\n978.00 5,718.00 4,719.96 14,840.14 26,218.00 \r\n \r\n21,324.00 \r\n \r\n$ \r\n \r\n9,148,514.02 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 46 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA 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 \r\n2017 ESPLOST \r\nAcquisition, construction, and equipping of new educational buildings and facilities; \r\nAcquisition and installation of system-wide security and safety equipment; \r\nAcquisition, installation, and upgrading of system-wide technology and equipment, including computers, text books, and e-books; \r\nRenovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\nAcquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and \r\nAcquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District. \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\n2,000,000.00 $ \r\n \r\n14,603,287.06 \r\n \r\n25,000.00 \r\n \r\n- \r\n \r\nCompleted Completed \r\n \r\n50,000.00 500,000.00 \r\n \r\n5,403,512.94 \r\n \r\nCompleted 12/1/2023 \r\n \r\n125,000.00 \r\n \r\n- \r\n \r\nCompleted \r\n \r\n200,000.00 \r\n \r\n- \r\n \r\n$ \r\n \r\n2,900,000.00 $ \r\n \r\n20,006,800.00 \r\n \r\nCompleted \r\n \r\n- 48 - \r\n \r\n CITY OF CHICKAMAUGA 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 \r\n2017 ESPLOST \r\nAcquisition, construction, and equipping of new educational buildings and facilities; \r\nAcquisition and installation of system-wide security and safety equipment; \r\nAcquisition, installation, and upgrading of system-wide technology and equipment, including computers, text books, and e-books; \r\nRenovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\nAcquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and \r\nAcquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District. \r\nTotal \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ \r\n \r\n- $ \r\n \r\n14,603,287.06 $ \r\n \r\n14,603,287.06 $ \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\n140,157.12 \r\n \r\n4,318,614.66 \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\n140,157.12 $ \r\n \r\n18,921,901.72 $ \r\n \r\n14,603,287.06 $ \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 City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt \r\nincurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include funds over the life sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows: \r\n \r\nPrior Years Current Year \r\n \r\n$ \r\n \r\n298,227.78 \r\n \r\n27,150.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n325,377.78 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 49 - \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 Ms. Melody Day, Superintendent and Members of the City of Chickamauga Board of Education \r\nWe have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Chickamauga Board of Education (School District) as of and for the year ended June 30, 2022, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements collectively comprise the School District's basic financial statements. We have issued our report thereon dated June 29, 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\nOur report disclaims an opinion on the discretely presented component unit. Because of the matter described in the \"Basis for Disclaimer of Opinion\" section of our report on the School District's financial statements, we were not able to obtain sufficient appropriate audit evidence to provide a basis for our opinion on the discretely presented component unit. \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\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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\nReport 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. Additionally, if the scope of our work had been sufficient to enable us to express an opinion on the discretely presented component unit, other instances of noncompliance or other matters may have been identified and reported herein. \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\nJune 29, 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 Ms. Melody Day, Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nOpinion on Each Major Federal Program \r\nWe have audited the City of Chickamauga 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 the 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 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. \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\nJune 29, 2023 \r\n \r\n Section III Auditee's Response to Prior Year Findings and Questioned Costs \r\n \r\n CITY OF CHICKAMAUGA 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 CITY OF CHICKAMAUGA 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 Discretely Presented Component Unit Each Major Fund Fiduciary Activities \r\nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \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\n \r\nIdentification of major programs: \r\n \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: \r\n \r\nAuditee 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 Disclaimer \r\nUnmodified Unmodified \r\nNo None Reported \r\nNo \r\nNo None Reported \r\nUnmodified No \r\n$750,000.00 No \r\n \r\n "},{"id":"dlg_ggpd_1394079499-2022-07-17","title":"City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2021 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2022-07-17"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2021 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1394079499-2022-07-17"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1394079499-2022-07-17"],"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":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"City of Chickamauga Board of Education \r\nWalker County, GA A Component Unit of the City of Chickamauga, GA \r\nAnnual Financial Report \r\nFor the Fiscal Year Ended June 30, 2021 \r\n(Including Independent Auditor's Reports) \r\n \r\n City of Chickamauga Board of Education Table of Contents \r\n \r\nSection I \r\n \r\nFinancial \r\n \r\nIndependent Auditor's Report \r\n \r\nRequired Supplementary Information \r\n \r\nManagement's Discussion and Analysis \r\n \r\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 \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\nStatement of Fiduciary Net Position \r\n \r\nFiduciary Funds \r\n \r\n7 \r\n \r\nH \r\n \r\nStatement of Changes in Fiduciary Net Position \r\n \r\nFiduciary Funds \r\n \r\n8 \r\n \r\nI Notes to the Basic Financial Statements \r\n \r\n10 \r\n \r\nSchedules \r\n \r\nRequired Supplementary Information \r\n \r\n1 Schedule of Proportionate Share of the Net Pension Liability \r\n \r\nTeachers Retirement System of Georgia \r\n \r\n37 \r\n \r\n2 Schedule of Contributions  Teachers Retirement System of Georgia \r\n \r\n38 \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\n39 \r\n \r\n City of Chickamauga Board of Education Table of Contents Section I \r\n \r\nSchedules \r\n \r\nRequired Supplementary Information \r\n \r\n4 Schedule of Proportionate Share of the Net OPEB Liability \r\n \r\nSchool OPEB Fund \r\n \r\n40 \r\n \r\n5 Schedule of Contributions  School OPEB Fund \r\n \r\n41 \r\n \r\n6 Notes to the Required Supplementary Information \r\n \r\n42 \r\n \r\n7 Schedule of Revenues, Expenditures and Changes in Fund \r\n \r\nBalances - Budget and Actual General Fund \r\n \r\n43 \r\n \r\nSupplementary Information \r\n \r\n8 Schedule of Expenditures of Federal Awards \r\n \r\n44 \r\n \r\n9 Schedule of State Revenue \r\n \r\n46 \r\n \r\n10 Schedule of Approved Local Option Sales Tax Projects \r\n \r\n48 \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 \r\n \r\nAuditee's Response to Prior Year Findings and Questioned Costs \r\nSummary Schedule of Prior Year Findings \r\nSection IV Findings and Questioned Costs \r\nSchedule 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 Ms. Melody Day, Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Chickamauga Board of Education (School District), as of and for the year ended June 30, 2021, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements 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. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we do not express an audit opinion on the discretely presented component unit. \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 \r\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n 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\n \r\nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\n \r\nSummary of Opinions \r\n \r\nOpinion Unit Governmental Activities Discretely Presented Component Unit Each Major Fund Fiduciary Activities \r\n \r\nType of Opinion Unmodified Disclaimer Unmodified Unmodified \r\n \r\nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nDisclaimer of Opinion \r\nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. Accordingly, we do not express an opinion on these financial statements. \r\nUnmodified Opinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and fiduciary activities 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 \r\n \r\n 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 accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated June 17, 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\nJune 17, 2022 \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nINTRODUCTION \r\nThe discussion and analysis of the City of Chickamauga Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2021 and June 30, 2020. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2021 and 2020 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $15.9 million and $16.2 million, respectively, for the fiscal years ended June 30, 2021 and 2020. Of these amounts, $1,890,252 and $2,042,703 respectively, for fiscal years 2021 and 2020 are available for spending at the School District's discretion. \r\n General revenues net of transfers to City Government accounts for $4.6 million in revenue or 30.9% of all revenues. Program specific revenues in the form of charges for services and, grants and contributions accounted for $10.3 million or 69.1% of total revenues of $14.9 million. \r\n The School District had $15.2 million in expenses related to governmental activities; however, $10.3 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily taxes) net of transfers to City Government totaling $4.6 million and use of beginning net position were adequate to provide for these programs. \r\n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 3.9 and 4.0 for the fiscal years ended June 30, 2021 and June 30, 2020, respectively. Generally, a ratio greater than 2.0 is considered very financially stable. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts: management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\ni \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nThe fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2021 and 2020, the general fund and the capital projects fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's non-fiduciary assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State laws. The School District's major governmental funds are the general fund and the capital projects fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into, and out of those funds, and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2021 and 2020. \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 \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\n$ \r\n \r\n6,057,390 $ \r\n \r\n5,692,782 \r\n \r\n29,922,408 \r\n \r\n29,937,637 \r\n \r\nTotal Assets \r\n \r\n35,979,798 \r\n \r\n35,630,419 \r\n \r\nDeferred Outflows of Resources Related Defined Benefits Pension Plan Related OPEB Plan \r\n \r\n3,377,231 1,699,852 \r\n \r\n3,114,190 494,459 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n5,077,083 \r\n \r\n3,608,649 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n1,554,605 508,696 \r\n12,001,496 8,670,867 \r\n \r\n1,435,474 607,960 \r\n10,928,964 7,325,858 \r\n \r\nTotal Liabilities \r\n \r\n22,735,664 \r\n \r\n20,298,256 \r\n \r\nDeferred Inflows of Resources Related Defined Benefits Pension Plan Related OPEB Plan \r\n \r\n378,222 2,070,094 \r\n \r\n577,937 2,169,930 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n2,448,316 \r\n \r\n2,747,867 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n29,263,672 2,762,573 \r\n(16,153,344) \r\n \r\n29,249,195 2,295,087 \r\n(15,351,337) \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n15,872,901 $ 16,192,945 \r\n \r\niii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nThe total net position of the School District decreased $0.3 million from the prior year. Table 2 shows the changes in net position for fiscal years ending June 30, 2021 and June 30, 2020. \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\nTotal Program Revenues \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\n$ \r\n \r\n897,364 $ \r\n \r\n8,953,238 \r\n \r\n452,421 \r\n \r\n10,303,023 \r\n \r\n1,024,958 8,481,051 \r\n22,748 \r\n9,528,757 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Tax Grant and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers To City Government \r\nTotal General Revenues and Transfers to City Government \r\n \r\n1,756,783 \r\n \r\n1,761,178 \r\n \r\n901,503 33,425 \r\n1,524,360 4,483 \r\n1,101,986 \r\n(706,100) \r\n4,616,440 \r\n \r\n831,427 24,708 \r\n1,285,821 12,939 \r\n1,057,371 \r\n(705,450) \r\n4,267,994 \r\n \r\nTotal Revenues \r\n \r\n14,919,463 \r\n \r\n13,796,751 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Long-Term Debt \r\nTotal Expenses \r\nChange in Net Position \r\n \r\n9,695,556 \r\n \r\n8,616,602 \r\n \r\n803,120 65,741 \r\n225,942 624,491 1,060,600 288,531 1,566,133 \r\n2,982 181,102 \r\n7,056 \r\n \r\n650,895 76,067 \r\n214,511 586,434 906,056 293,021 1,385,475 839,423 158,581 \r\n7,233 \r\n \r\n32,337 669,805 \r\n16,111 \r\n \r\n25,042 576,506 \r\n1,624 \r\n \r\n15,239,507 \r\n \r\n14,337,470 \r\n \r\n$ \r\n \r\n(320,044) $ (540,719) \r\n \r\niv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $0.8 million for governmental activities during fiscal year 2021. This increase is largely due to an increase in Elementary and Secondary Emergency Education Relief Fund (ESSER) grants and an increase in Georgia State Financing and Investment Commission (GSFIC) capital outlay grants. Expenses for governmental activities increased $0.9 million during fiscal year 2021. This increase is largely due to expenditures associated with the ESSER grants such as appreciation and retention bonuses, personal protection supplies, sanitizing equipment, and remedial and enrichment learning opportunities. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services Interest on Long-Term Debt \r\nTotal Expenses \r\n \r\n$ 9,695,556 $ 8,616,602 $ 2,110,956 $ 1,521,940 \r\n \r\n803,120 65,741 \r\n225,942 624,491 1,060,600 288,531 1,566,133 \r\n2,982 181,102 \r\n7,056 \r\n \r\n650,895 76,067 \r\n214,511 586,434 906,056 293,021 1,385,475 839,423 158,581 \r\n7,233 \r\n \r\n517,897 (16,587) 36,626 150,766 525,978 280,314 1,050,390 \r\n1,975 175,591 \r\n7,056 \r\n \r\n527,020 (689) \r\n28,819 69,411 409,885 293,021 842,692 839,423 158,581 \r\n7,233 \r\n \r\n32,337 669,805 \r\n16,111 \r\n \r\n25,042 576,506 \r\n1,624 \r\n \r\n32,337 47,074 16,111 \r\n \r\n25,043 84,710 \r\n1,624 \r\n \r\n$ 15,239,507 $ 14,337,470 $ 4,936,484 $ 4,808,713 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still be dependent upon tax revenues for governmental activities. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $16.2 million and total expenses and other financing uses of $16.0 million. There was an increase in the fund balance totaling $0.2 million for the governmental funds as a whole. \r\n \r\nv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nGeneral Fund Budgeting Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2021 and 2020, the School District amended its general fund budget as needed. \r\nFor the general fund, actual revenues and other financing sources of $14.2 million was $0.8 million less than final budget. \r\nThe actual expenditures and other financing use of $14.3 million was $0.9 million less than final budget. \r\nThe majority of these variances are the result of federal grants. The entire grant award amount, revenue and expenditure, is budgeted. However, many federal grants allow carryover to subsequent years. Therefore, actual expenditures and subsequent revenue drawdowns may not occur in the award year. \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2021 and June 30, 2020, the School District had $29.9 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nLand Construction in Progress Building and Improvements Equipment Land Improvements \r\nTotal \r\n \r\n$ \r\n \r\n417,444 $ \r\n \r\n417,444 \r\n \r\n723,596 \r\n \r\n819,501 \r\n \r\n25,871,885 \r\n \r\n25,461,990 \r\n \r\n1,284,096 \r\n \r\n1,265,417 \r\n \r\n1,625,387 \r\n \r\n1,973,285 \r\n \r\n$ 29,922,408 $ 29,937,637 \r\n \r\nvi \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 \r\nDEBT \r\nAt the fiscal year ending June 30, 2021, the School District had $0.5 million in capital leases. Table 5 summarizes the School District's debt for capital leases. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2021 \r\n \r\n2020 \r\n \r\nCURRENT ISSUES \r\n \r\nCapital Leases \r\n \r\n$ \r\n \r\n508,695 $ \r\n \r\n607,960 \r\n \r\nOn March 16, 2021, the voters within Walker County approved renewing the ESPLOST. The current educational sales tax expires on June 30, 2022, and, with the renewal, will continue for another five years. The city voters approved for the City of Chickamauga to issue general obligation debt in an amount not to exceed $3.0 million in principal amount for the purpose of to pay a portion of the cost of the capital outlay projects of the School District and to pay capitalized interest on, and the cost of the issuance of, such debt. \r\n \r\nA significant challenge facing the School District is the uncertainty surrounding the immediate and long-term impacts of the COVID-19 Pandemic. With their being no prior precedence, it is difficult to determine how the economy will continue to react, which has a direct relationship to funding, and the expenses involved in how students are being educated and maintaining the health and safety of all. Fortunately, the School District was able to continue paying all employees their full salaries and benefits during the transition to 100% virtual learning beginning in March 2020 and during school shutdown at the end of fiscal year 2020. The School District offered face-to-face instruction during fiscal year 2021 and continues to do so in fiscal year 2022. Furlough days, ESSER funding and fund balance were used in fiscal year 2021 to offset funding cuts while maintaining current staffing levels. \r\n \r\nThe School District is financially challenged by reduction of state revenue appropriations to local School Districts known as \"austerity reductions\". Since the austerity began in fiscal year 2003 and ended in fiscal year 2018, the School District's state funding was reduced a total of $8.3 million. Though the austerity reduction was eliminated in fiscal year 2019, this is still lost funding that will not be recouped. Due to the impact of COVID-19 on the economy, austerity reductions were reinstated in fiscal year 2021. The initial allotment sheet included a reduction in state funding of $0.8 million, but a portion of that was restored and the actual austerity reduction for fiscal year 2021 was only $0.3 million. For fiscal year 2022, the initial allotment sheet included a reduction in state funding of $0.3 million. \r\n \r\nApproximately 80.9% of general fund expenditures, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2021. With such personnel heavy expenditures, it is difficult to offset reductions in state funding. For fiscal year 2021, all employees were furloughed three days to help offset austerity reductions. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that students receive a quality education from effective personnel. \r\n \r\nThe School District's millage rate for fiscal year 2021 was 14.25. The net digest for fiscal year 2021 was $119.3 million, which produced approximately $119,268 per mill. O.C.G.A. 20-2-165 requires a minimum effective millage rate in order for the School District to qualify for equalization purposes. The \r\nvii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2021 School District received $1.5 million in equalization funding for fiscal year 2021. The School District's millage rate for fiscal year 2022 will remain at 14.25. It is anticipated pressure will continue to provide local monies to meet mandated educational requirements and operational costs. The School District entered into a Strategic Waivers School System (SWSS/IE) Partnership Contract with the State Board of Education with performance accountability provisions of this contract becoming effective fiscal year 2017. The School District intends to use the flexibility provided by the contract to maximize all resources available to provide a quality education to the students of Chickamauga City Schools. An ongoing challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is in the process of exploring new funding formulas. It is uncertain at this point what type of financial impact these changes might have on the School District's finances. The School District believes that it is currently financially sound and by maintaining a healthy general fund reserve that it has positioned itself to face the upcoming challenges and concerns. The School District remains confident in the ability to be good stewards of resources to ensure the tradition of excellence continues for all students. 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 City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nviii \r\n \r\n City of Chickamauga Board of Education \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2021 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS Cash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Restricted Assets Cash and Investments with Fiscal Agent or Trustee 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 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 Federal Programs Capital Projects Gordon Lee Charitable Trust Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nCOMPONENT UNIT \r\nGORDON LEE CHARITABLE TRUST DECEMBER 31, 2020 \r\n \r\n$ \r\n \r\n4,488,177.99 $ \r\n \r\n- \r\n \r\n142,915.58 \r\n \r\n- \r\n \r\n1,032,254.86 \r\n \r\n- \r\n \r\n364,966.18 \r\n \r\n- \r\n \r\n7,543.40 \r\n \r\n- \r\n \r\n21,532.06 \r\n \r\n- \r\n \r\n1,141,040.31 28,781,367.64 35,979,798.02 \r\n \r\n4,861,006.14 - \r\n4,861,006.14 \r\n \r\n3,377,230.71 \r\n \r\n- \r\n \r\n1,699,852.00 \r\n \r\n- \r\n \r\n5,077,082.71 \r\n \r\n- \r\n \r\n10,361.22 \r\n \r\n- \r\n \r\n1,394,202.88 \r\n \r\n- \r\n \r\n90,000.00 \r\n \r\n- \r\n \r\n60,041.00 \r\n \r\n- \r\n \r\n12,001,496.00 \r\n \r\n- \r\n \r\n8,670,867.00 \r\n \r\n- \r\n \r\n101,895.57 \r\n \r\n- \r\n \r\n406,799.73 \r\n \r\n- \r\n \r\n22,735,663.40 \r\n \r\n- \r\n \r\n378,222.00 \r\n \r\n- \r\n \r\n2,070,094.00 \r\n \r\n- \r\n \r\n2,448,316.00 \r\n \r\n- \r\n \r\n29,263,671.65 \r\n \r\n89,967.50 2,514,168.60 \r\n158,437.20 (16,153,343.62) \r\n \r\n$ \r\n \r\n15,872,901.33 $ \r\n \r\n- \r\n4,861,006.14 - \r\n4,861,006.14 \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 CITY OF CHICKAMAUGA 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\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nCHARGES FOR GRANTS AND SERVICES CONTRIBUTIONS \r\n \r\nGRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\n \r\nAND CHANGES IN NET POSITION \r\n \r\nPRIMARY \r\n \r\nCOMPONENT \r\n \r\nGOVERNMENT \r\n \r\nUNIT \r\n \r\nGORDON LEE \r\n \r\nGOVERNMENTAL CHARITABLE TRUST \r\n \r\nACTIVITIES \r\n \r\nDECEMBER 31, 2020 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction \r\n \r\n$ 9,695,556.20 $ 806,216.01 $ 6,406,518.53 $ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n803,120.37 \r\n \r\n- \r\n \r\n285,223.20 \r\n \r\nImprovement of Instructional Services \r\n \r\n65,741.02 \r\n \r\n- \r\n \r\n82,328.49 \r\n \r\nEducational Media Services \r\n \r\n225,941.95 \r\n \r\n- \r\n \r\n189,316.12 \r\n \r\nGeneral Administration \r\n \r\n624,490.85 \r\n \r\n- \r\n \r\n465,083.09 \r\n \r\nSchool Administration \r\n \r\n1,060,599.84 \r\n \r\n- \r\n \r\n534,621.50 \r\n \r\nBusiness Administration \r\n \r\n288,530.54 \r\n \r\n- \r\n \r\n8,216.79 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n1,566,132.81 \r\n \r\n- \r\n \r\n467,382.60 \r\n \r\nStudent Transportation Services \r\n \r\n2,981.64 \r\n \r\n- \r\n \r\n1,006.55 \r\n \r\nCentral Support Services \r\n \r\n181,101.60 \r\n \r\n- \r\n \r\n5,387.67 \r\n \r\nOther Support Services \r\n \r\n7,056.50 \r\n \r\n- \r\n \r\n- \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\n32,337.09 \r\n \r\n- \r\n \r\n- \r\n \r\nFood Services \r\n \r\n669,805.35 \r\n \r\n91,148.07 \r\n \r\n508,153.20 \r\n \r\nInterest on Long-Term Debt \r\n \r\n16,110.95 \r\n \r\n- \r\n \r\n- \r\n \r\n371,865.64 $ (2,110,956.02) \r\n \r\n8,641.98 48,360.07 123.16 - \r\n \r\n(517,897.17) 16,587.47 \r\n(36,625.83) (150,765.78) (525,978.34) (280,313.75) (1,050,390.14) \r\n(1,975.09) (175,590.77) \r\n(7,056.50) \r\n \r\n23,430.15 \r\n- \r\n \r\n(32,337.09) (47,073.93) \r\n(16,110.95) \r\n \r\nTotal Governmental Activities \r\n \r\n$ 15,239,506.71 $ 897,364.08 $ 8,953,237.74 $ \r\n \r\n452,421.00 \r\n \r\n(4,936,483.89) \r\n \r\nComponent Unit Gordon Lee Charitable Trust \r\n \r\n$ 232,278.04 \r\n \r\n$ \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers to City Government Total General Revenues and Transfers to City Government \r\n \r\n1,756,782.54 \r\n901,503.33 33,424.93 \r\n1,524,360.00 4,483.26 \r\n1,101,985.84 (706,100.00) 4,616,439.90 \r\n \r\nChange in Net Position \r\n \r\n(320,043.99) \r\n \r\nNet Position - Beginning of Year \r\n \r\n16,192,945.32 \r\n \r\nNet Position - End of Year \r\n \r\n$ 15,872,901.33 $ \r\n \r\n(232,278.04) \r\n447,723.70 447,723.70 215,445.66 4,645,560.48 4,861,006.14 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2021 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS 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 Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Property Taxes Unavailable Revenue - GSFIC \r\nTotal Deferred Inflows of Resources \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\n2,058,173.38 $ \r\n \r\n2,430,004.61 $ \r\n \r\n4,488,177.99 \r\n \r\n58,751.59 1,032,254.86 \r\n364,966.18 7,543.40 21,532.06 \r\n \r\n84,163.99 - \r\n \r\n142,915.58 1,032,254.86 \r\n364,966.18 7,543.40 21,532.06 \r\n \r\n$ \r\n \r\n3,543,221.47 $ \r\n \r\n2,514,168.60 $ \r\n \r\n6,057,390.07 \r\n \r\n$ \r\n \r\n10,361.22 $ \r\n \r\n1,394,202.88 \r\n \r\n- \r\n \r\n- \r\n \r\n1,404,564.10 \r\n \r\n- $ 90,000.00 60,041.00 150,041.00 \r\n \r\n10,361.22 1,394,202.88 \r\n90,000.00 60,041.00 1,554,605.10 \r\n \r\n47,561.43 - \r\n47,561.43 \r\n \r\n47,771.00 47,771.00 \r\n \r\n47,561.43 47,771.00 95,332.43 \r\n \r\n21,532.06 226,872.64 1,205,717.27 636,973.97 2,091,095.94 \r\n \r\n2,316,356.60 \r\n2,316,356.60 \r\n \r\n21,532.06 2,543,229.24 1,205,717.27 \r\n636,973.97 4,407,452.54 \r\n \r\n$ \r\n \r\n3,543,221.47 $ \r\n \r\n2,514,168.60 $ \r\n \r\n6,057,390.07 \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 CITY OF CHICKAMAUGA 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\nGeorgia State Financing and Investment Commission grants that are not available to pay 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. Capital leases payable \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n4,407,452.54 \r\n \r\n$ \r\n \r\n417,443.93 \r\n \r\n723,596.38 \r\n \r\n31,801,113.71 \r\n \r\n2,583,859.99 \r\n \r\n2,859,508.00 \r\n \r\n(8,463,114.06) \r\n \r\n29,922,407.95 \r\n \r\n$ \r\n \r\n(12,001,496.00) \r\n \r\n(8,670,867.00) \r\n \r\n(20,672,363.00) \r\n \r\n$ \r\n \r\n2,999,008.71 \r\n \r\n(370,242.00) \r\n \r\n2,628,766.71 47,561.43 47,771.00 \r\n \r\n(508,695.30) \r\n \r\n$ \r\n \r\n15,872,901.33 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n CITY OF CHICKAMAUGA 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 Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Services Principal Interest Total Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) Transfers In Transfers Out Transfers to City Government 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\n1,741,967.33 $ \r\n \r\n33,424.93 \r\n \r\n9,085,750.31 \r\n \r\n1,379,353.27 \r\n \r\n897,364.08 \r\n \r\n2,583.78 \r\n \r\n1,101,985.84 \r\n \r\n14,242,429.54 \r\n \r\n- $ 948,822.39 406,924.80 \r\n1,899.48 1,357,646.67 \r\n \r\n1,741,967.33 982,247.32 9,492,675.11 1,379,353.27 897,364.08 \r\n4,483.26 1,101,985.84 15,600,076.21 \r\n \r\n8,257,940.10 \r\n760,524.44 65,011.12 \r\n215,424.04 568,413.51 1,009,303.80 270,342.58 1,505,208.56 42,859.99 307,667.95 \r\n7,056.50 32,337.09 596,737.48 \r\n- \r\n99,265.05 16,110.95 \r\n13,754,203.16 488,226.38 \r\n \r\n- \r\n7,257.28 900,031.20 \r\n907,288.48 450,358.19 \r\n \r\n8,257,940.10 \r\n760,524.44 65,011.12 \r\n215,424.04 568,413.51 1,009,303.80 270,342.58 1,512,465.84 42,859.99 307,667.95 \r\n7,056.50 32,337.09 596,737.48 900,031.20 \r\n99,265.05 16,110.95 \r\n14,661,491.64 938,584.57 \r\n \r\n(579,969.66) \r\n(579,969.66) \r\n \r\n579,969.66 - \r\n(706,100.00) (126,130.34) \r\n \r\n579,969.66 (579,969.66) (706,100.00) (706,100.00) \r\n \r\n(91,743.28) \r\n \r\n324,227.85 \r\n \r\n232,484.57 \r\n \r\n2,182,839.22 \r\n \r\n1,992,128.75 \r\n \r\n4,174,967.97 \r\n \r\n$ \r\n \r\n2,091,095.94 $ \r\n \r\n2,316,356.60 $ \r\n \r\n4,407,452.54 \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 CITY OF CHICKAMAUGA 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, 2021 \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 \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Property taxes Sales taxes \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\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Capital lease payments \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\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n232,484.57 \r\n \r\n$ \r\n \r\n1,195,552.98 \r\n \r\n(1,026,782.46) \r\n \r\n$ \r\n \r\n14,815.21 \r\n \r\n(47,319.06) \r\n \r\n168,770.52 (183,999.98) \r\n(32,503.85) 45,496.20 \r\n \r\n99,265.05 \r\n \r\n$ \r\n \r\n(609,776.50) \r\n \r\n(39,780.00) \r\n \r\n(649,556.50) \r\n \r\n$ \r\n \r\n(320,043.99) \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2021 \r\nASSETS Cash and Cash Equivalents NET POSITION Restricted \r\nIndividuals, Organizations, and Other Governments \r\n \r\nEXHIBIT \"G\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n20,067.50 \r\n \r\n$ \r\n \r\n20,067.50 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDCUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2021 \r\nADDITIONS Contributions Donors \r\nDEDUCTIONS Other Deductions Change in Net Position \r\nNet Position - Beginning Net Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n2,634.00 \r\n \r\n2,634.00 \r\n \r\n- \r\n \r\n20,067.50 \r\n \r\n$ \r\n \r\n20,067.50 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nReporting Entity \r\nThe City of Chickamauga 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 not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the School District is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nDiscretely Presented Component Unit \r\nThe Gordon Lee Charitable Trust (Trust) was created for the benefit of the City of Chickamauga Board of Education with four separate charitable purposes identified as follows: (1) the Gordon Lee book fund; (2) Gordon Lee Librarian's salary fund; (3) the Gordon Lee High School building fund; and (4) the Gordon Lee High School endowment fund. The financial statements of the Gordon Lee Charitable Trust have not been audited and we were not engaged to audit their financial statements as part of our audit of the City of Chickamauga Board of Education. The Trust's financial activities are included in the School District's financial statements as a discretely presented component unit. See Note 14: Component Unit. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBasis of Presentation \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGovernment-Wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and 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\nThe School District reports the following fiduciary fund type: \r\n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBasis of Accounting \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers 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 principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \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. First apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNew Accounting Pronouncements \r\nIn fiscal year 2021, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCash and Cash Equivalents \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nReceivables \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nInventories \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCapital Assets \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 5,000.00 5,000.00 5,000.00 100,000.00 \r\n \r\nN/A 15 to 80 years 15 to 80 years 5 to 25 years 15 to 80 years \r\n \r\nDeferred Outflows/Inflows of Resources \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\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\nPensions \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\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\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Balances \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUse of Estimates \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nProperty Taxes \r\nThe City of Chickamauga adopted the property tax levy for the 2020 tax digest year (calendar year) on September 11, 2020 (levy date) based on property values as of January 1, 2020. Taxes were due on December 20, 2020 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2020 tax digest are reported as revenue in the governmental funds for fiscal year 2021. The City of Chickamauga Clerk bills and collects the property taxes for the School District 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 $1,616,290.15. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \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\n14.25 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $125,677.18 during fiscal year ended June 30, 2021. \r\nSales Taxes \r\n \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $948,822.39 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects associated with issuance of Education Special Purpose Local Option Sales Tax (ESPLOST). In fiscal year 2021, the School District provided $706,100.00 of ESPLOST proceeds to the City Government for debt services on general obligation school bonds, series 2016A. \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 is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCollateralization of Deposits \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCategorization of Deposits \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2021, the School District had deposits with a carrying amount of $3,363,532.51, and a bank balance of $4,285,111.80. The bank balances insured by Federal depository insurance were $275,931.12. \r\nAt June 30, 2021, $4,009,180.68 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 4,488,177.99 20,067.50 \r\n \r\nTotal cash and cash equivalents Less: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n4,508,245.49 1,144,712.98 \r\n \r\nTotal carrying value of deposits - June 30, 2021 \r\n \r\n$ 3,363,532.51 \r\n \r\nCategorization of Cash Equivalents \r\nThe School District reported cash equivalents of $1,144,712.98 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2021 was 36 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Annual Comprehensive Financial Report, which is publicly available at https://sao.georgia.gov/statewide-reporting/acfr. \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2020 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2021 \r\n \r\nGovernmental Activities \r\n \r\nCapital Assets, \r\n \r\nNot Being Depreciated: \r\n \r\nLand \r\n \r\n$ \r\n \r\nConstruction in Progress \r\n \r\n417,443.93 $ 819,501.20 \r\n \r\n- $ 879,818.20 \r\n \r\n- $ 975,723.02 \r\n \r\n417,443.93 723,596.38 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n1,236,945.13 \r\n \r\n879,818.20 \r\n \r\n975,723.02 \r\n \r\n1,141,040.31 \r\n \r\nCapital Assets Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n30,728,352.69 2,381,619.21 \r\n3,303,052.00 \r\n5,266,363.02 1,116,201.81 \r\n1,329,766.79 \r\n \r\n1,072,761.02 202,240.78 \r\n16,456.00 \r\n \r\n460,000.00 \r\n \r\n31,801,113.71 2,583,859.99 2,859,508.00 \r\n \r\n662,865.45 183,562.51 180,354.50 \r\n \r\n276,000.02 \r\n \r\n5,929,228.47 1,299,764.32 \r\n1,234,121.27 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n28,700,692.28 \r\n \r\n264,675.34 \r\n \r\n183,999.98 \r\n \r\n28,781,367.64 \r\n \r\nGovernmental Activities Capital Assets - Net \r\n \r\n$ 29,937,637.41 $ 1,144,493.54 $ 1,159,723.00 $ 29,922,407.95 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nGeneral Administration \r\n \r\n$ \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nFood Services \r\n \r\n19,664.51 124,854.32 \r\n77,158.30 2,748.12 \r\n \r\n$ 754,578.43 \r\n224,425.25 47,778.78 \r\n \r\n$ 1,026,782.46 \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: TRANSFERS \r\n \r\nInterfund 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 General Fund \r\n \r\nCapital Projects Fund $ \r\n \r\n579,969.66 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to capital projects fund as a supplemental funding source for capital construction projects. \r\n \r\nTransfer to City Government \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects. Payment of the principal and interest on the series 2016A bonds will be secured by and payable first from the Education Special Purpose Local Option Sales Tax (ESPLOST) and then, if and to the extent necessary, from the general fund of the City Government or the School District or from ad valorem taxes to be levied by the City Government. Payment of the principal and interest on the series 2016B bonds will be secured by and payable from ad valorem taxes to be levied by the City Government. In fiscal year 2021, the School District transferred $706,100.00 of ESPLOST proceeds to the City Government for debt services on said general obligation debt. \r\nThe School District has pledged the following estimated proceeds in the future years to the City Government for debt service on said general obligation debt: \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2022 2023 2024 2025 2026 2027 - 2031 2032 - 2033 \r\n \r\n$ \r\n \r\n697,550.00 \r\n \r\n699,550.00 \r\n \r\n297,100.00 \r\n \r\n295,425.00 \r\n \r\n298,525.00 \r\n \r\n1,464,252.00 \r\n \r\n579,776.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n4,332,178.00 \r\n \r\n- 20 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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\nBalance \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nJune 30, 2021 \r\n \r\nDue Within One Year \r\n \r\nCapital Leases $ 607,960.35 $ \r\n \r\n- $ 99,265.05 $ \r\n \r\n508,695.30 $ 101,895.57 \r\n \r\nCapital Leases \r\nThe School District has acquired buses under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ 721,712.00 \r\n \r\nLess: Accumulated Depreciation \r\n \r\n108,256.80 \r\n \r\n$ 613,455.20 \r\n \r\nCapital leases currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nIssue Date Maturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nBuses \r\n \r\n2.65% \r\n \r\n1/15/2020 \r\n \r\n2/15/2025 $ \r\n \r\n721,712.00 $ 508,695.30 \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2022 2023 2024 2037 - 20240125 \r\n \r\n$ \r\n \r\n101,895.57 $ \r\n \r\n104,595.81 \r\n \r\n107,367.60 \r\n \r\n194,836-.32 \r\n \r\n13,480.43 10,780.19 8,008.40 5,163-.68 \r\n \r\nTotal Principal and Interest $ \r\n \r\n508,695.30 $ \r\n \r\n37,432.70 \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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 liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in \r\nEstimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2020 $ 2021 $ \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\n512.50 \r\n \r\n$ \r\n \r\n512.50 \r\n \r\n$ \r\n \r\n- \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSurety Bond The School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2021: \r\n \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ \r\n \r\n21,532.06 \r\n \r\nRestricted \r\n \r\nContinuation of Federal Programs \r\n \r\n$ \r\n \r\n68,435.44 \r\n \r\nCapital Projects \r\n \r\n2,316,356.60 \r\n \r\nGordon Lee Charitable Trust \r\n \r\n158,437.20 \r\n \r\n2,543,229.24 \r\n \r\nCommitted \r\n \r\nSchool Activity Accounts \r\n \r\n$ \r\n \r\n551,074.38 \r\n \r\nFuture Lease Payments \r\n \r\n654,642.89 \r\n \r\n1,205,717.27 \r\n \r\nUnassigned \r\n \r\n636,973.97 \r\n \r\nFund Balance, June 30, 2021 \r\n \r\n$ \r\n \r\n4,407,452.54 \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\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 10: SIGNIFICANT COMMITMENTS \r\n \r\nCommitments under Construction Contracts \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2021. \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2021 (2) \r\n \r\nGordon Lee High School Turf Replacement $ \r\n \r\n114,734.62 $ \r\n \r\n637,421.38 \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\nOperating Leases \r\n \r\nThe School District leases copiers and computers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases(s) totaled $58,441.43 for governmental activities for the year ended June 30, 2021. The following future minimum lease payments were required under operating leases at June 30, 2021: \r\n \r\nGovernmental \r\n \r\nYear Ending \r\n \r\nActivities \r\n \r\n2022 2023 2024 2025 \r\n \r\n$ \r\n \r\n56,462.40 \r\n \r\n57,459.03 \r\n \r\n42,685.41 \r\n \r\n798.48 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n157,405.32 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFederal Grants \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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 $225,701.00 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 $8,670,867.00 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 0.059035%, which was a decrease of 0.000660% from its proportion measured as of June 30, 2019. \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFor the year ended June 30, 2021, the School District recognized OPEB expense of $265,481.00. At June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB \r\n \r\nDeferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n946,589.00 \r\n \r\nChanges of assumptions \r\n \r\n1,433,969.00 \r\n \r\n771,521.00 \r\n \r\nNet difference between projected and \r\n \r\nactual earnings on OPEB plan investments \r\n \r\n22,600.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n17,582.00 \r\n \r\n351,984.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n225,701.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,699,852.00 $ 2,070,094.00 \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$ (251,284.00) \r\n \r\n$ \r\n \r\n(251,891.00) \r\n \r\n$ (207,013.00) \r\n \r\n$ \r\n \r\n(46,929.00) \r\n \r\n$ \r\n \r\n113,733.00 \r\n \r\n$ \r\n \r\n47,441.00 \r\n \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, including inflation \r\n \r\nLong-term expected rate of return \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nHealthcare cost trend rate \r\n \r\nPre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \r\n \r\n7.00% 5.25% \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 RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n For TRS members: The Pub-2010 Teachers Headcount Weighted Below Median Healthy Retiree Mortality Table projected generationally with MP-2019 projection scale (set forward one year and adjusted 106%) is used for death prior to retirement and for service retirements and beneficiaries. The Pub-2010 Teachers Mortality Table for Disabled Retirees projected generationally with MP-2019 Projection scale (set forward one year and adjusted 106%) is used for disability retirements. For both, rates of improvement were reduced by 20% for all years prior to the ultimate rate. \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\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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 which was 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, 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\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 Equity \r\nTotal \r\n \r\n30.00% 70.00% 100.00% \r\n \r\n0.50% 9.20% \r\n \r\n*Net of Inflation \r\nDiscount Rate: In order to measure the total OPEB liability for the School OPEB, a single equivalent interest rate of 2.22% was used as the discount rate, as compared with last year's rate of 3.58%. 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 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 2118. \r\n \r\n- 28 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the 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\n1% Decrease (1.22%) \r\n \r\nCurrent Discount Rate (2.22%) \r\n \r\n1% Increase (3.22%) \r\n \r\nSchool District's proportionate share of the Net OPEB liability \r\n \r\n$ 10,186,838.00 $ \r\n \r\n8,670,867.00 $ 7,458,513.00 \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 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 share of the Net OPEB liability \r\n \r\n$ 7,219,368.00 $ \r\n \r\n8,670,867.00 $ 10,550,136.00 \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\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTeachers Retirement System of Georgia (TRS) \r\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 \r\n \r\n- 29 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\ndeath 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 18.85% of payroll was required from the School District and 0.21% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,264,355.71 and $14,756.84 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 was $21,646.00. \r\n- 30 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2021, the School District reported a liability of $12,001,496.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 12,001,496.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\nTotal \r\n \r\n147,039.00 $ 12,148,535.00 \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 0.049544%, which was a decrease of 0.001282% 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 $116,852.00. \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 $1,899,515.00 for TRS and $23,515.00 for PSERS and revenue of $25,382.00 for TRS and $23,515.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 31 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2021, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n522,669.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n1,236,168.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n289,058.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n64,980.00 \r\n \r\n378,222.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n1,264,355.71 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ \r\n \r\n3,377,230.71 $ \r\n \r\n378,222.00 \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 2023 2024 2025 \r\n \r\n$ 314,947.00 $ 545,522.00 $ 634,093.00 $ 240,091.00 \r\n \r\n- 32 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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 \r\n \r\n1.50% 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 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\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 \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases \r\n \r\n1.50% 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\n \r\n- 33 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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 period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\n \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset Class \r\n \r\nTRS target allocation \r\n \r\nPSERS target allocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed Income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\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 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\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$ 19,031,508.00 $ \r\n \r\n12,001,496.00 $ 6,238,902.00 \r\n \r\n- 34 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2021 \r\n \r\nEXHIBIT \"I\" \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\nNOTE 14: COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) is a legally separate tax-exempt component unit of the City of Chickamauga Board of Education (School District). It originated from the last will and testament of Gordon Lee, a citizen of City of Chickamauga that died in 1927. First Horizon Bank serves as the trustee for the Trust. Mr. Lee's will set forth four separate bequests providing for distribution of specific amounts for charitable purposes, all for the benefit of Gordon Lee High School. The four separate trusts are as follows, Gordon Lee  Book Fund, Gordon Lee  Librarian's Salary Fund, Gordon Lee  High School Building and Gordon Lee  High School Endowment Fund. The School District receives quarterly distributions based on five percent of the December 31st fair market value. These distributions are allocated in the following manner: \r\nBook Fund  0.535% \r\nLibrarian's Salary Fund  0.435% \r\nBuilding Fund  14.7% \r\nEndowment Fund  84.33% \r\nAlthough the School District does not control the timing or amount of the receipts from the Trust, the Trust's resources and income are restricted for the benefit of Gordon Lee High School. Consequently, the Trust is considered a component unit of the School District and is discretely presented in the School District's financial statements. The Trust is operated on a calendar year basis. The balance sheet and trust activity are reported on the Statement of Net Position and Statement of Activities, respectively. During the year ended December 31, 2020, the Trust distributed $232,278.04 to the School District. \r\nComponent Unit Restricted Assets consist of the following: \r\nFair Market Value December 31, 2020 \r\n \r\nCash and Cash Equivalents \r\n \r\n$ \r\n \r\nFixed Income Mutual Funds \r\n \r\nEquity Investments \r\n \r\n17,873.25 1,271,001.46 3,572,131.43 \r\n \r\n$ \r\n \r\n4,861,006.14 \r\n \r\nThe Trust was not audited and did not prepare official financial statements. The Trust follows Internal Revenue Code Section 509 for tax filings. Any inquiries or information about the Trust can be obtained from City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\n \r\n- 35 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE 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 \r\nof 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 NPL associated with \r\nthe 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 \r\nas a percentage of the total \r\npension liability \r\n \r\n2021 2020 2019 2018 2017 2016 2015 \r\n \r\n0.049544% $ 12,001,496.00 $ 147,039.00 $ 12,148,535.00 $ 6,465,832.76 \r\n \r\n0.050826% $ 10,928,964.00 $ 132,672.00 $ 11,061,636.00 $ 6,278,074.30 \r\n \r\n0.050415% $ 9,358,104.00 $ 109,702.00 $ 9,467,806.00 $ 6,072,083.32 \r\n \r\n0.052910% $ 9,833,486.00 $ \r\n \r\n110,583.00 $ 9,944,069.00 $ 6,143,523.50 \r\n \r\n0.052331% $ 10,796,469.00 $ 125,643.00 $ 10,922,112.00 $ 5,807,063.88 \r\n \r\n0.053486% $ 8,142,712.00 $ \r\n \r\n95,150.00 $ 8,237,862.00 $ 5,711,698.44 \r\n \r\n0.053783% $ 6,794,773.00 $ \r\n \r\n54,198.00 $ 6,848,971.00 $ 5,530,641.43 \r\n \r\n185.61% 174.08% 154.12% 160.06% 185.92% 142.56% 122.86% \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- 37 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \r\nTEACHERS 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\nSchool District's covered payroll \r\n \r\n2021 \r\n \r\n$ \r\n \r\n1,264,355.71 $ \r\n \r\n2020 \r\n \r\n$ \r\n \r\n1,350,336.21 $ \r\n \r\n2019 \r\n \r\n$ \r\n \r\n1,296,389.36 $ \r\n \r\n2018 \r\n \r\n$ \r\n \r\n1,008,880.33 $ \r\n \r\n2017 \r\n \r\n$ \r\n \r\n866,902.64 $ \r\n \r\n2016 \r\n \r\n$ \r\n \r\n819,130.00 $ \r\n \r\n2015 \r\n \r\n$ \r\n \r\n742,415.82 $ \r\n \r\n2014 \r\n \r\n$ \r\n \r\n671,571.47 $ \r\n \r\n2013 \r\n \r\n$ \r\n \r\n618,476.49 $ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n557,755.57 $ \r\n \r\n1,264,355.71 $ 1,350,336.21 $ 1,296,389.36 $ 1,008,880.33 $ 866,902.64 $ \r\n819,130.00 $ 742,415.82 $ 671,571.47 $ 618,476.49 $ 557,755.57 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,708,995.74 \r\n \r\n- \r\n \r\n$ \r\n \r\n6,465,832.76 \r\n \r\n- \r\n \r\n$ \r\n \r\n6,278,074.24 \r\n \r\n- \r\n \r\n$ \r\n \r\n6,072,083.32 \r\n \r\n- \r\n \r\n$ \r\n \r\n6,143,523.50 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,807,063.88 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,711,698.44 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,530,641.43 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,482,377.36 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,483,868.24 \r\n \r\nContribution as a percentage of covered payroll \r\n18.85% 20.88% 20.65% 16.62% \r\n14.11% 14.11% 13.00% 12.14% 11.28% 10.17% \r\n \r\n- 38 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE 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\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 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 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\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n116,852.00 $ \r\n \r\n116,852.00 $ 365,546.58 \r\n \r\n- \r\n \r\n$ \r\n \r\n114,528.00 $ \r\n \r\n114,528.00 $ 324,673.67 \r\n \r\n- \r\n \r\n$ \r\n \r\n113,029.00 $ \r\n \r\n113,029.00 $ 320,079.48 \r\n \r\n- \r\n \r\n$ \r\n \r\n98,022.00 $ \r\n \r\n98,022.00 $ 295,654.46 \r\n \r\n- \r\n \r\n$ \r\n \r\n124,359.00 $ \r\n \r\n124,359.00 $ \r\n \r\n297,155.02 \r\n \r\n- \r\n \r\n$ \r\n \r\n79,756.00 $ \r\n \r\n79,756.00 $ 287,438.33 \r\n \r\n- \r\n \r\n$ \r\n \r\n65,897.00 $ \r\n \r\n65,897.00 $ 275,204.77 \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- 39 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n \r\nSCHEDULE \"4\" \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 covered- \r\nemployee payroll \r\n \r\nSchool District's proportionate share of the \r\nNOL as a percentage of \r\nits coveredemployee 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\n0.059035% $ 8,670,867.00 $ 0.059695% $ 7,325,858.00 $ 0.060555% $ 7,696,354.00 $ 0.062750% $ 8,816,350.00 $ \r\n \r\n- \r\n \r\n$ 8,670,867.00 $ 5,524,349.13 \r\n \r\n- \r\n \r\n$ 7,325,858.00 $ 5,350,889.40 \r\n \r\n- \r\n \r\n$ 7,696,354.00 $ 5,165,643.73 \r\n \r\n- \r\n \r\n$ 8,816,350.00 $ 5,252,940.80 \r\n \r\n156.96% 136.91% 148.99% 167.84% \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- 40 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\n \r\nSCHEDULE \"5\" \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 \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of \r\ncovered-employee payroll \r\n \r\n2021 \r\n \r\n$ \r\n \r\n2020 \r\n \r\n$ \r\n \r\n2019 \r\n \r\n$ \r\n \r\n2018 \r\n \r\n$ \r\n \r\n2017 \r\n \r\n$ \r\n \r\n225,701.00 $ 199,643.00 $ 321,500.00 $ 313,849.00 $ 327,185.00 $ \r\n \r\n225,701.00 $ 199,643.00 $ 321,500.00 $ 313,849.00 $ 327,185.00 $ \r\n \r\n- \r\n \r\n$ 5,978,968.38 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,524,349.13 \r\n \r\n- \r\n \r\n$ 5,350,889.40 \r\n \r\n- \r\n \r\n$ \r\n \r\n5,165,643.73 \r\n \r\n- \r\n \r\n$ 5,252,940.80 \r\n \r\n3.77% 3.61% 6.01% 6.08% 6.23% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 41 - \r\n \r\n CITY OF CHICKAMAUGA 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 Changes of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to 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 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: In 2010 and later, the expectation of retired life mortality was changed to the RP-2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP-2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\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\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- 42 - \r\n \r\n CITY OF CHICKAMAUGA 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 \r\n \r\nProperty Taxes \r\n \r\n$ \r\n \r\nSales Taxes \r\n \r\nState Funds \r\n \r\nFederal Funds \r\n \r\nCharges for Services \r\n \r\nInvestment Earnings \r\n \r\nMiscellaneous \r\n \r\nTotal Revenues \r\n \r\nEXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures \r\nExcess of Revenues over (under) Expenditures \r\n \r\nOTHER FINANCING SOURCES (USES) Other Sources Other Uses Total Other Financing Sources (Uses) \r\n \r\nNet Change in Fund Balances \r\n \r\nFund Balances - Beginning \r\n \r\nAdjustments \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\n1,688,000.00 $ - \r\n8,516,200.00 781,001.00 \r\n1,093,100.00 2,410.00 \r\n983,789.00 13,064,500.00 \r\n \r\n1,708,000.00 $ - \r\n8,973,713.00 2,448,288.00 \r\n847,449.00 2,318.00 \r\n1,051,237.00 15,031,005.00 \r\n \r\n8,118,339.00 \r\n689,085.00 83,111.00 \r\n200,417.00 562,941.00 956,631.00 275,848.00 1,403,419.00 204,608.00 158,516.00 \r\n7,057.00 28,000.00 585,000.00 \r\n- \r\n13,272,972.00 (208,472.00) \r\n \r\n8,667,960.00 \r\n804,330.00 83,070.00 219,487.00 578,526.00 985,834.00 273,634.00 \r\n1,472,329.00 192,415.00 212,997.00 7,057.00 28,000.00 563,316.00 468,279.00 \r\n14,557,234.00 473,771.00 \r\n \r\n4,434.00 (332,234.00) (327,800.00) \r\n(536,272.00) \r\n2,182,898.02 \r\n1,319.30 \r\n1,647,945.32 $ \r\n \r\n1,933.00 (711,373.00) (709,440.00) \r\n(235,669.00) \r\n2,182,898.02 \r\n(12,949.47) \r\n1,934,279.55 $ \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n1,741,967.33 $ 33,424.93 \r\n9,085,750.31 1,379,353.27 897,364.08 \r\n2,583.78 1,101,985.84 14,242,429.54 \r\n \r\n33,967.33 33,424.93 112,037.31 (1,068,934.73) 49,915.08 \r\n265.78 50,748.84 (788,575.46) \r\n \r\n8,257,940.10 \r\n760,524.44 65,011.12 \r\n215,424.04 568,413.51 1,009,303.80 270,342.58 1,505,208.56 42,859.99 307,667.95 \r\n7,056.50 32,337.09 596,737.48 \r\n- \r\n99,265.05 16,110.95 \r\n13,754,203.16 488,226.38 \r\n(579,969.66) (579,969.66) \r\n(91,743.28) \r\n2,182,839.22 \r\n- \r\n2,091,095.94 $ \r\n \r\n410,019.90 \r\n43,805.56 18,058.88 4,062.96 10,112.49 (23,469.80) \r\n3,291.42 (32,879.56) 149,555.01 (94,670.95) \r\n0.50 (4,337.09) (33,421.48) 468,279.00 \r\n(99,265.05) (16,110.95) \r\n803,030.84 14,455.38 \r\n(1,933.00) 131,403.34 129,470.34 \r\n143,925.72 \r\n(58.80) \r\n12,949.47 \r\n156,816.39 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n CITY OF CHICKAMAUGA 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 Total Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition 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 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 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\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\n10.553 10.555 \r\n \r\n215GA324N1199 $ 215GA324N1199 \r\n \r\n46,026.01 487,719.83 533,745.84 \r\n \r\n10.560 \r\n \r\n205GA904N2533 \r\n \r\n827.17 534,573.01 \r\n \r\n84.425D 84.425D \r\n84.425U \r\n \r\nS425D200012 S425D210012 \r\nS425U210012 \r\n \r\n109,296.32 273,846.37 \r\n150,024.00 533,166.69 \r\n \r\n84.027A 84.027A 84.173A \r\n \r\nH027A190073 H027A200073 H173A200081 \r\n \r\n107,283.00 118,164.42 4,051.00 \r\n229,498.42 \r\n \r\n84.048A 84.424A 84.367A 84.367A 84.010A 84.010A \r\n \r\nV048A200010 S424A190011 S367A190001 S367A200001 S010A190010 S010A200010-20A \r\n \r\n$ \r\n \r\n13,363.00 10,000.00 \r\n9,016.00 18,154.46 27,281.00 81,607.90 159,422.36 922,087.47 \r\n1,456,660.48 \r\n \r\n- 44 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"8\" \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 City of Chickamauga 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. Donated Personal Protective Equipment \r\nIn response to the COVID-19 pandemic, the federal government donated personal protective equipment (PPE) to Georgia Emergency Management and Homeland Security Agency (GEMA/HS). GEMA/HS, then, donated PPE with an estimated fair market value of $2,589.15 to the City of Chickamauga Board of Education. This amount is not included in the Schedule of Expenditures of Federal Awards and is not subject to audit. Therefore, this amount is unaudited. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2021 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGRANTS \r\n \r\nEducation, Georgia Department of \r\n \r\nQuality Basic Education \r\n \r\nDirect Instructional Cost \r\n \r\nKindergarten Program \r\n \r\n$ \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\nVocational Laboratory (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\nNursing Services \r\n \r\nEducation Equalization Funding Grant \r\n \r\nOther State Programs \r\n \r\nFood Services \r\n \r\nTeachers Retirement \r\n \r\nVocational Education \r\n \r\nGeorgia Emergency Management Agency \r\n \r\nDonations to LEA for COVID \r\n \r\nGeorgia State Financing and Investment Commission \r\n \r\nReimbursement on Construction Projects \r\n \r\nOffice of the State Treasurer \r\n \r\nPublic School Employees Retirement \r\n \r\n$ \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS FUND \r\n \r\n502,763.00 $ 29,363.00 \r\n1,136,079.00 59,043.00 474,792.00 18,957.00 \r\n1,154,508.00 959,180.00 366,300.00 840,072.00 391,458.00 52,685.00 81,037.00 10,618.00 167,886.00 54,479.00 27,056.00 929.00 \r\n415,564.00 456,376.00 350,007.00 123,949.00 (249,842.00) \r\n45,000.00 1,524,360.00 \r\n14,424.00 14,756.84 26,629.00 \r\n15,675.47 \r\n- \r\n21,646.00 \r\n9,085,750.31 $ \r\n \r\n- $ - \r\n- \r\n- \r\n- \r\n- \r\n406,924.80 \r\n- \r\n406,924.80 $ \r\n \r\nTOTAL \r\n502,763.00 29,363.00 \r\n1,136,079.00 59,043.00 474,792.00 18,957.00 \r\n1,154,508.00 959,180.00 366,300.00 840,072.00 391,458.00 52,685.00 81,037.00 10,618.00 167,886.00 54,479.00 27,056.00 929.00 \r\n415,564.00 456,376.00 350,007.00 123,949.00 (249,842.00) \r\n45,000.00 1,524,360.00 \r\n14,424.00 14,756.84 26,629.00 \r\n15,675.47 \r\n406,924.80 \r\n21,646.00 \r\n9,492,675.11 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 46 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA 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\n2017 ESPLOST \r\n(i) Acquisition, construction, and equipping of new educational buildings and facilities; \r\n(ii) Acquisition and installation of system-wide security and safety equipment; \r\n(iii) Acquisition, installation, and upgrading of system-wide technology and equipment, including computers, text books, and e-books; \r\n(iv) Renovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\n(v) Acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and \r\n(vi) Acquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District. \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$ 2,000,000.00 $ 14,603,287.06 \r\n \r\nCompleted \r\n \r\n25,000.00 \r\n \r\n5,000.00 \r\n \r\nDecember 2023 \r\n \r\n50,000.00 \r\n \r\n10,000.00 \r\n \r\nDecember 2023 \r\n \r\n500,000.00 \r\n \r\n4,873,763.00 \r\n \r\nDecember 2023 \r\n \r\n125,000.00 \r\n \r\n25,000.00 \r\n \r\nDecember 2023 \r\n \r\n200,000.00 \r\n \r\n100,000.00 \r\n \r\n$ 2,900,000.00 $ 19,617,050.06 \r\n \r\nDecember 2023 \r\n \r\n- 48 - \r\n \r\n CITY OF CHICKAMAUGA 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\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n2017 ESPLOST \r\n \r\n(i) Acquisition, construction, and equipping of new \r\n \r\neducational buildings and facilities; \r\n \r\n$ \r\n \r\n- $ 14,603,287.06 $ 14,603,287.06 $ \r\n \r\n- \r\n \r\n(ii) Acquisition and installation of system-wide security and safety equipment; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) Acquisition, installation, and upgrading of system-wide \r\n \r\ntechnology and equipment, including computers, \r\n \r\ntext books, and e-books; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) Renovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\n \r\n683,100.48 \r\n \r\n3,635,514.18 \r\n \r\n- \r\n \r\n- \r\n \r\n(v) Acquisition of any property, both real and personal, \r\n \r\nand equipment necessary in connection with the above \r\n \r\ndescribed capital outlay projects, including energy \r\n \r\nmanagement systems, heating and air conditioning \r\n \r\nsystems, lighting, and similar equipment; and \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(vi) Acquisition of real property for future schools, facilities, \r\n \r\nadministrative offices, support services, and other \r\n \r\npurposes of the City of Chickamauga School District. \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ \r\n \r\n683,100.48 $ 18,238,801.24 $ 14,603,287.06 \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 City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt \r\nincurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding as follows: \r\n \r\nPrior Years Current Year Total \r\n \r\n$ \r\n \r\n253,527.78 \r\n \r\n44,700.00 \r\n \r\n$ \r\n \r\n298,227.78 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 49 - \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 Ms. Melody Day, Superintendent and Members of the City of Chickamauga Board of Education \r\nWe have audited the financial statements of the governmental activities, each major fund, and fiduciary activities of the City of Chickamauga 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 June 17, 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\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \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 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\n270 Washington Street, SW, Suite 4-101 Atlanta, Georgia 30334 | Phone (404) 656-2180 \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the 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. Additionally, if the scope of our work had been sufficient to enable us to express an opinion on the discretely presented component unit, instances of noncompliance or other matters may have been identified and reported herein. \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\nJune 17, 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 Ms. Melody Day, Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the City of Chickamauga 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\nJune 17, 2022 \r\n \r\n Section III Auditee's Response to Prior Year Findings and Questioned Costs \r\n \r\n CITY OF CHICKAMAUGA 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 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 CITY OF CHICKAMAUGA 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, Each Major Fund, and Fiduciary Activities Discretely Presented Component Unit \r\nInternal control over financial reporting:  Material weakness(es) identified?  Significant deficiency(ies) identified? \r\nNoncompliance material to financial statements noted: \r\nFederal Awards \r\n \r\nUnmodified Disclaimer \r\nNo None Reported \r\nNo \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 84.425 \r\n \r\nChild Nutrition Cluster Education Stabilization Fund \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 No \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 "},{"id":"dlg_ggpd_1394079499-2021-04-24","title":"City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2020 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1394079499-2021-04-24"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1394079499-2021-04-24"],"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":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nWALKER COUNTY, GEORGIA \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA 4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nPage \r\ni \r\n1 2 \r\n3 4 5 6 7 8 9 \r\n33 34 35 36 37 38 \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND SUPPLEMENTARY INFORMATION 8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n39 40 41 43 \r\n \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements. We were not engaged to audit the financial statements of the discretely presented component unit. These financial statements 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. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we do not express an audit opinion on the discretely presented component unit. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n (This page left intentionally blank) \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nSummary of Opinions \r\n \r\nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Aggregate Remaining Fund Information \r\n \r\nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified \r\n \r\nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \r\n \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nDisclaimer of Opinion \r\n \r\nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. \r\nUnmodified Opinions \r\n \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\n \r\nAs described in Note 2 to the financial statements, in 2020, the City of Chickamauga Board of Education early adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The cumulative effect of GASB Statement No. 84 is described in the restatement note in the Notes to the Basic Financial Statements. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\n \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, \r\n \r\n (This page left intentionally blank) \r\n \r\n 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\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated April 24, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nApril 24, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nINTRODUCTION \r\nThe discussion and analysis of the City of Chickamauga Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2020 and June 30, 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2020 and 2019 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $16.2 million and $16.7 million, respectively, for the fiscal years ended June 30, 2020 and 2019. Of these amounts, $2,042,703 and $1,950,245 respectively, for fiscal years 2020 and 2019 are available for spending at the School District's discretion. \r\n General revenues net of transfers to City Government accounts for $4.3 million in revenue or 30.9% of all revenues. Program specific revenues in the form of charges for services, grants and contributions accounted for $9.5 million or 69.1% of total revenues of $13.8 million. \r\n The School District had $14.3 million in expenses related to governmental activities; however, $9.5 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily taxes) net of transfers to City Government totaling $4.3 million and use of beginning net position were adequate to provide for these programs. \r\n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 4.0 and 4.4 for the fiscal years ended June 30, 2020 and June 30, 2019, respectively. Generally, a ratio greater than 2.0 is considered very financially stable. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts: management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\ni \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nThe fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2020 and 2019, the general fund and the capital projects fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's non-fiduciary assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law. The School District's major governmental funds are the general fund and the capital projects fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into, and out of those funds, and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2020 and 2019. \r\n \r\nTable 1 Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ \r\n \r\n5,692,782 $ \r\n \r\n7,080,920 \r\n \r\n29,937,637 \r\n \r\n28,404,533 \r\n \r\nTotal Assets \r\n \r\n35,630,419 \r\n \r\n35,485,453 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n3,114,190 494,459 \r\n \r\n2,117,938 363,231 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n3,608,649 \r\n \r\n2,481,169 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n1,435,474 607,960 \r\n10,928,964 7,325,858 \r\n \r\n1,602,634 117,881 \r\n9,358,104 7,696,354 \r\n \r\nTotal Liabilities \r\n \r\n20,298,256 \r\n \r\n18,774,973 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n577,937 2,169,930 \r\n \r\n729,816 1,759,842 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n2,747,867 \r\n \r\n2,489,658 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n29,249,195 2,295,087 \r\n(15,351,337) \r\n \r\n27,977,589 3,837,104 \r\n(15,112,702) \r\n \r\nTotal Net Position \r\n \r\n$ 16,192,945 $ 16,701,991 \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \r\n \r\niii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nThe total net position of the School District decreased $0.5 million from the prior year. Table 2 shows the changes in net position for fiscal years ending June 30, 2020 and June 30, 2019. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues \r\n \r\nProgram Revenues: \r\n \r\nCharges for Services \r\n \r\n$ \r\n \r\nOperating Grants and Contributions \r\n \r\nCapital Grants and Contributions \r\n \r\nTotal Program Revenues \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers To City Government \r\n \r\nTotal General Revenues and Transfers to City Government \r\n \r\nTotal Revenues \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\nTotal Expenses \r\n \r\nChange in Net Position \r\n \r\n$ \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\n1,024,958 $ 8,481,051 \r\n22,748 \r\n \r\n1,157,280 8,018,235 1,086,935 \r\n \r\n9,528,757 \r\n \r\n10,262,450 \r\n \r\n1,761,178 \r\n \r\n1,728,973 \r\n \r\n831,427 24,708 \r\n1,285,821 12,939 \r\n1,057,371 \r\n(705,450) \r\n4,267,994 \r\n13,796,751 \r\n \r\n702,908 11,918 \r\n1,202,868 27,229 \r\n1,361,667 \r\n(706,650) \r\n4,328,913 \r\n14,591,363 \r\n \r\n8,616,602 \r\n \r\n8,318,201 \r\n \r\n650,895 76,067 \r\n214,511 586,434 906,056 293,021 1,385,475 839,423 158,581 \r\n7,233 \r\n \r\n335,694 96,294 \r\n178,322 547,515 886,698 237,346 1,147,447 \r\n74,485 6,090 7,988 \r\n \r\n25,042 576,506 \r\n1,624 \r\n \r\n37,876 613,200 \r\n3,948 \r\n \r\n14,337,470 \r\n \r\n12,491,104 \r\n \r\n(540,719) $ 2,100,259 \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the restatement of net position. See note 14 in the Notes to the Basic Financial Statement for additional information. \r\niv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions decreased $0.7 million for governmental activities during fiscal year 2020. This decrease is largely due to a decrease in Georgia State Financing and Investment Commission (GSFIC) capital outlay grants. Expenses for governmental activities increased $1.8 million during fiscal year 2020. This increase is largely due to a new capital bus lease and an increase in salaries. \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nInstruction Support Services: \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 8,616,602 $ 8,318,201 $ 1,521,940 $ \r\n \r\n650,895 76,067 \r\n214,511 586,434 906,056 293,021 1,385,475 839,423 158,581 \r\n7,233 \r\n \r\n335,694 96,294 \r\n178,322 547,515 886,698 237,346 1,147,447 \r\n74,485 6,090 7,988 \r\n \r\n527,020 (689) \r\n28,819 69,411 409,885 293,021 842,692 839,423 158,581 \r\n7,233 \r\n \r\n25,042 576,506 \r\n1,624 \r\n \r\n37,876 613,200 \r\n3,948 \r\n \r\n25,043 84,710 \r\n1,624 \r\n \r\n595,680 \r\n207,322 (7,562) (4,083) 98,268 \r\n410,629 237,346 595,156 \r\n73,490 6,090 \r\n10,997 \r\n37,876 (36,502) \r\n3,948 \r\n \r\nTotal Expenses \r\n \r\n$ 14,337,470 $ 12,491,104 $ \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \r\n \r\n4,808,713 $ \r\n \r\n2,228,655 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $15.8 million and total expenses and other financing uses of $17.1 million. There was a decrease in the fund balance totaling $1.3 million for the governmental funds as a whole. \r\nv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nGeneral Fund Budgeting Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2020 and 2019, the School District amended its general fund budget as needed. \r\nFor the general fund, actual revenues and other financing sources of $14.3 million were approximately the same as final budget. \r\nThe actual expenditures and other financing uses of $14.4 million were $0.2 million less than final budget. \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2020 and June 30, 2019, the School District had $29.9 and $28.4 million, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n417,444 $ \r\n \r\n417,444 \r\n \r\n819,501 \r\n \r\n1,820,370 \r\n \r\n25,461,990 \r\n \r\n23,227,664 \r\n \r\n1,265,417 \r\n \r\n770,630 \r\n \r\n1,973,285 \r\n \r\n2,168,425 \r\n \r\nTotal \r\n \r\n$ 29,937,637 $ 28,404,533 \r\n \r\nThe overall capital assets increased in fiscal year 2020 by $1.5 million primarily due to construction of the new multipurpose building and new capital bus lease. \r\n \r\nDEBT \r\n \r\nAt the fiscal year ending June 30, 2020 the School District had $0.6 million in capital leases. Table 5 summarizes the School District's debt for capital leases. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nCapital Leases \r\n \r\n$ \r\n \r\n607,960 $ \r\n \r\n117,881 \r\n \r\nvi \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nCURRENT ISSUES \r\nIn fiscal year 2020, the School District implemented GASB Statement No. 84 Fiduciary Activities. This change in accounting principle involved reclassifying school clubs and organizations within the principal's accounts from fiduciary funds to governmental funds. Beginning net position and beginning fund balance for the general fund were restated by $31.7 thousand. \r\nA significant challenge facing the School District is the uncertainty surrounding the immediate and long-term impacts of the COVID-19 pandemic. With there being no prior precedent, it is difficult to determine how the economy will continue to react, which has a direct relationship to funding, and the expenses involved in how students are being educated and maintaining the health and safety of all. Fortunately, the School District was able to continue paying all employees their full salaries and benefits during the transition to 100% virtual learning beginning in March 2020 and during school shutdown at the end of fiscal year 2020. Furlough days, CARES Act funding and fund balance are being used in fiscal year 2021 to offset funding cuts while maintaining current staffing levels. \r\nThe School District is financially challenged by reduction of state revenue appropriations to local School Districts known as \"austerity reductions\". Since the austerity began in fiscal year 2003 and ended in fiscal year 2018, the School District's state funding was reduced a total of $8.3 million. Though the austerity reduction was eliminated in fiscal year 2019, this is still lost funding that will not be recouped. Due to the impact of COVID-19 on the economy, austerity reductions were reinstated in fiscal year 2021. The initial allotment sheet included a reduction in state funding of $0.8 million. \r\nApproximately 77.6% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2020. With such personnel heavy expenses, it is difficult to offset reductions in state funding. With the elimination of austerity reduction in fiscal year 2019, the School District authorized the issuance of a one-time pay adjustment of 3% to all permanent employees, meeting and calculated based on certain criteria, paid in November 2018. For fiscal year 2020, the Board approved a $3,000 increase to the salary schedule for certified employees. Classified employees in degree requiring job positions also received a $3,000 increase while the remaining classified employees received a 5% increase. As for fiscal year 2021, all employees are being furloughed three days to help offset austerity reductions. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that students receive a quality education from effective personnel. \r\nThe School District's millage rate for fiscal year 2020 was 14.25. The net digest for fiscal year 2020 was $111.3 million, which produced approximately $111,258 per mill. O.C.G.A. 20-2-165 requires a minimum effective millage rate in order for the School District to qualify for equalization purposes. The School District received $1.3 million in equalization funding for fiscal year 2020. The School District's millage rate for fiscal year 2021 will remain at 14.25. It is anticipated pressure will continue to provide local monies to meet mandated educational requirements and operational costs. \r\nThe School District entered into a Strategic Waivers School System (SWSS/IE) Partnership Contract with the State Board of Education with performance accountability provisions of this contract becoming effective fiscal year 2017. The School District intends to use the flexibility provided by the contract to maximize all resources available to provide a quality education to the students of Chickamauga City Schools. \r\nThe Georgia Department of Education created the Financial Efficiency Star Ratings to provide a measure of a school district's per-pupil spending in relation to the academic achievements of its students. Specifically, the rating is based on a three-year average of per-pupil spending, which is then associated with the district's CCRPI score. Each school district receives a rating ranging from one-half \r\nvii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nstar to five stars; a five-star district can be described as having strong academic outcomes and lower levels of expenditures in comparison with other districts. The School District was pleased to receive a 4.5 rating in the initial year of fiscal year 2015. The School District maintained the 4.5 rating in fiscal year 2016 with Chickamauga Elementary School and Gordon Lee High School receiving a 4.5 rating for their schools and Gordon Lee Middle School receiving a 4.0 rating. For fiscal year 2017, the School District and all three schools received a 4.5 rating. For fiscal year 2018, the School District continued to maintain a 4.5 rating and all three schools received a 4.0 rating. For fiscal year 2019, the School District continued to maintain a 4.5 rating with Chickamauga Elementary School and Gordon Lee Middle School receiving a 4.5 rating for their schools and Gordon Lee High School receiving a 4.0 rating. Due to the pandemic, the state is not calculating the School District's CCRPI score. Therefore, financial efficiency star ratings will not be available for fiscal year 2020. However, the School District remains confident in the ability to be good stewards of resources to ensure the tradition of excellence continues for all our students. \r\nFiscal year 2019 began with the selection of a contractor to begin construction on a new middle/high multipurpose building. The architect's original estimate was $2.3 million with $0.6 million provided by state funds. The School District's local share, owner's cost, and owner's upgrades will be funded by the recently passed ESPLOST, recently passed issuance of general obligation bonds by the City Government, and local committed funds. The project was completed November 2019 with a final capital outlay project certification construction cost of $2.7 million. \r\nAn ongoing challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is in the process of exploring new funding formulas. It is uncertain at this point what type of financial impact these changes might have on the School District's finances. \r\nThe School District believes that it is currently financially sound and by maintaining a healthy general fund reserve that it has positioned itself to face the upcoming challenges and concerns. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nviii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET POSITION JUNE 30, 2020 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories Restricted Assets Cash and Investments with Fiscal Agent or Trustee Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Gordon Lee Charitable Trust Unrestricted (Deficit) \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nCOMPONENT UNIT \r\nGORDON LEE CHARITABLE TRUST DECEMBER 31, 2019 \r\n \r\n$ \r\n \r\n4,194,806.32 $ \r\n \r\n197,266.81 1,087,257.83 \r\n99,885.71 79,083.48 34,481.53 \r\n \r\n1,236,945.13 28,700,692.28 \r\n \r\n35,630,419.09 \r\n \r\n- \r\n- \r\n4,645,560.48 - \r\n4,645,560.48 \r\n \r\n3,114,190.21 \r\n \r\n- \r\n \r\n494,459.00 \r\n \r\n- \r\n \r\n3,608,649.21 \r\n \r\n- \r\n \r\n3,615.10 \r\n \r\n- \r\n \r\n1,352,396.73 \r\n \r\n- \r\n \r\n76,981.80 \r\n \r\n- \r\n \r\n2,480.00 \r\n \r\n- \r\n \r\n10,928,964.00 \r\n \r\n- \r\n \r\n7,325,858.00 \r\n \r\n- \r\n \r\n99,265.05 \r\n \r\n- \r\n \r\n508,695.30 \r\n \r\n- \r\n \r\n20,298,255.98 \r\n \r\n- \r\n \r\n577,937.00 \r\n \r\n- \r\n \r\n2,169,930.00 \r\n \r\n- \r\n \r\n2,747,867.00 \r\n \r\n- \r\n \r\n29,249,195.26 \r\n88,598.18 2,122,204.41 \r\n84,284.16 (15,351,336.69) \r\n \r\n- \r\n4,645,560.48 - \r\n \r\nTotal Net Position \r\n \r\n$ 16,192,945.32 $ \r\n \r\n4,645,560.48 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\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\n \r\nAND CHANGES IN NET POSITION \r\n \r\nPRIMARY \r\n \r\nCOMPONENT \r\n \r\nGOVERNMENT \r\n \r\nUNIT \r\n \r\nGORDON LEE \r\n \r\nGOVERNMENTAL \r\n \r\nCHARITABLE TRUST \r\n \r\nACTIVITIES \r\n \r\nDECEMBER 31, 2019 \r\n \r\n$ 8,616,602.34 $ 735,294.83 $ 6,359,367.20 $ \r\n \r\n650,894.60 76,066.94 \r\n214,511.23 586,434.11 906,056.41 293,021.02 1,385,474.75 839,422.52 158,581.37 \r\n7,232.50 \r\n \r\n- \r\n \r\n123,874.43 \r\n \r\n- \r\n \r\n76,755.89 \r\n \r\n- \r\n \r\n185,692.00 \r\n \r\n- \r\n \r\n517,022.84 \r\n \r\n- \r\n \r\n496,171.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n542,783.30 \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\n25,042.47 576,505.64 \r\n1,624.35 \r\n \r\n289,663.34 \r\n- \r\n \r\n179,384.30 \r\n- \r\n \r\n$ 14,337,470.25 $ 1,024,958.17 $ 8,481,050.96 $ \r\n \r\n- $ (1,521,940.31) \r\n \r\n- \r\n \r\n(527,020.17) \r\n \r\n- \r\n \r\n688.95 \r\n \r\n- \r\n \r\n(28,819.23) \r\n \r\n- \r\n \r\n(69,411.27) \r\n \r\n- \r\n \r\n(409,885.41) \r\n \r\n- \r\n \r\n(293,021.02) \r\n \r\n- \r\n \r\n(842,691.45) \r\n \r\n- \r\n \r\n(839,422.52) \r\n \r\n- \r\n \r\n(158,581.37) \r\n \r\n- \r\n \r\n(7,232.50) \r\n \r\n22,748.00 \r\n- \r\n \r\n(25,042.47) (84,710.00) \r\n(1,624.35) \r\n \r\n22,748.00 \r\n \r\n(4,808,713.12) \r\n \r\nComponent Unit Gordon Lee Charitable Trust \r\n \r\n$ \r\n \r\n201,449.66 \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers to City Government \r\n \r\nTotal General Revenues and Transfers to City Government \r\n \r\nChange in Net Position \r\n \r\nNet Position - Beginning of Year - Restated \r\n \r\n$ \r\n \r\n(201,449.66) \r\n \r\n1,761,178.30 \r\n831,427.01 24,708.46 \r\n1,285,821.00 12,938.63 \r\n1,057,370.67 (705,450.00) \r\n4,267,994.07 \r\n(540,719.05) \r\n16,733,664.37 \r\n \r\n845,078.67 \r\n845,078.67 643,629.01 4,001,931.47 \r\n \r\nNet Position - End of Year \r\n \r\n$ 16,192,945.32 $ \r\n \r\n4,645,560.48 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,271,721.04 $ 1,923,085.28 $ 4,194,806.32 \r\n \r\n80,388.68 1,008,516.83 \r\n99,885.71 79,083.48 34,481.53 \r\n \r\n116,878.13 78,741.00 - \r\n \r\n197,266.81 1,087,257.83 \r\n99,885.71 79,083.48 34,481.53 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Georgia State Financing and Investment Commission Unavailable Revenue - Property Taxes Unavailable Revenue - Special Purpose Local Option Sales Tax \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 3,574,077.27 $ 2,118,704.41 $ 5,692,781.68 \r\n \r\n$ \r\n \r\n3,615.10 $ \r\n \r\n1,352,396.73 \r\n \r\n- \r\n \r\n2,480.00 \r\n \r\n1,358,491.83 \r\n \r\n- $ 76,981.80 - \r\n \r\n3,615.10 1,352,396.73 \r\n76,981.80 2,480.00 \r\n \r\n76,981.80 \r\n \r\n1,435,473.63 \r\n \r\n32,746.22 \r\n- \r\n32,746.22 \r\n \r\n2,274.80 - \r\n47,319.06 \r\n49,593.86 \r\n \r\n2,274.80 32,746.22 47,319.06 \r\n82,340.08 \r\n \r\n34,481.53 138,400.81 1,198,689.74 811,267.14 \r\n2,182,839.22 \r\n \r\n1,992,128.75 \r\n- \r\n1,992,128.75 \r\n \r\n34,481.53 2,130,529.56 1,198,689.74 \r\n811,267.14 \r\n4,174,967.97 \r\n \r\n$ 3,574,077.27 $ 2,118,704.41 $ 5,692,781.68 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2020 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nGeorgia State Financing and Investment Commission grants that are not available to pay 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. \r\nCapital leases payable \r\n \r\n$ \r\n \r\n4,174,967.97 \r\n \r\n$ \r\n \r\n417,443.93 \r\n \r\n819,501.20 \r\n \r\n30,728,352.69 \r\n \r\n2,381,619.21 \r\n \r\n3,303,052.00 \r\n \r\n(7,712,331.62) \r\n \r\n29,937,637.41 \r\n \r\n$ (10,928,964.00) (7,325,858.00) \r\n \r\n(18,254,822.00) \r\n \r\n$ \r\n \r\n2,536,253.21 \r\n \r\n(1,675,471.00) \r\n \r\n860,782.21 80,065.28 2,274.80 \r\n \r\n(607,960.35) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 16,192,945.32 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nRevenues under Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nCapital Leases Transfers In Transfers Out Transfers to City Government \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning - Restated \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,756,060.19 $ 24,708.46 \r\n9,232,481.51 503,018.37 \r\n1,024,958.17 2,947.08 \r\n1,052,370.67 \r\n13,596,544.45 \r\n \r\n- $ 784,107.95 \r\n76,466.20 - \r\n9,991.55 5,000.00 \r\n \r\n1,756,060.19 808,816.41 \r\n9,308,947.71 503,018.37 \r\n1,024,958.17 12,938.63 \r\n1,057,370.67 \r\n \r\n875,565.70 \r\n \r\n14,472,110.15 \r\n \r\n8,090,875.94 \r\n636,297.30 75,543.18 \r\n208,747.05 564,888.26 874,979.51 284,713.80 1,425,972.49 776,620.80 158,581.37 \r\n7,232.50 25,042.47 565,097.76 \r\n- \r\n113,751.65 1,624.35 \r\n13,809,968.43 \r\n(213,423.98) \r\n \r\n47,790.82 \r\n1.00 11,764.00 22,748.00 1,847,470.16 \r\n- \r\n1,929,773.98 \r\n(1,054,208.28) \r\n \r\n8,138,666.76 \r\n636,297.30 75,543.18 \r\n208,747.05 564,888.26 874,979.51 284,714.80 1,437,736.49 776,620.80 158,581.37 \r\n7,232.50 25,042.47 587,845.76 1,847,470.16 \r\n113,751.65 1,624.35 \r\n15,739,742.41 \r\n(1,267,632.26) \r\n \r\n721,712.00 - \r\n(620,265.95) - \r\n101,446.05 \r\n(111,977.93) \r\n2,294,817.15 \r\n \r\n620,265.95 \r\n(705,450.00) \r\n(85,184.05) \r\n(1,139,392.33) \r\n3,131,521.08 \r\n \r\n721,712.00 620,265.95 (620,265.95) (705,450.00) \r\n16,262.00 \r\n(1,251,370.26) \r\n5,426,338.23 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,182,839.22 $ 1,992,128.75 $ 4,174,967.97 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\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\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. \r\nCapital leases issued Capital lease payments Capital lease cancellation \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\n \r\n$ \r\n$ 2,701,904.57 (996,192.08) \r\n$ (721,712.00) 113,751.65 117,881.25 \r\n$ (422,729.15) 91,636.00 \r\n \r\n(1,251,370.26) \r\n1,705,712.49 (172,608.00) 52,437.17 (53,718.20) \r\n(490,079.10) \r\n(331,093.15) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n(540,719.05) \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2020 \r\nASSETS Cash and Cash Equivalents \r\nNET POSITION Restricted \r\nIndividuals, Organizations, and Other Governments \r\n \r\nEXHIBIT \"G\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n20,067.50 \r\n \r\n$ \r\n \r\n20,067.50 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \r\nADDITIONS Contributions Donors \r\nDEDUCTIONS Other Deductions Change in Net Position \r\nNet Position - Beginning - Restated \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n2,860.36 \r\n \r\n2,585.36 275.00 \r\n19,792.50 \r\n \r\n$ \r\n \r\n20,067.50 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Chickamauga 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 not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the School District is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nDISCRETELY PRESENTED COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) was created for the benefit of the City of Chickamauga Board of Education with four separate charitable purposes identified as follows: (1) the Gordon Lee book fund; (2) Gordon Lee Librarian's salary fund; (3) the Gordon Lee High School building fund; and (4) the Gordon Lee High School endowment fund. The financial statements of the Gordon Lee Charitable Trust have not been audited and we were not engaged to audit their financial statements as part of our audit of the City of Chickamauga Board of Education. The Trust's financial activities are included in the School District's financial statements as a discretely presented component unit. See Note 15: Component Unit. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and 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\nThe School District reports the following fiduciary fund type: \r\n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\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 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. \r\nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 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\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nINVENTORIES Food Inventories \r\n \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 5,000.00 5,000.00 5,000.00 100,000.00 \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nN/A 15 to 80 years 15 to 80 years \r\n5 to 25 years 15 to 80 years \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\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 \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\ndetermined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\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 City of Chickamauga adopted the property tax levy for the 2019 tax digest year (calendar year) on September 4, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 20, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Chickamauga City Clerk bills and collects the property taxes for the School District and \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nremits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $1,640,026.68. \r\nThe tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.25 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $116,033.51 during fiscal year ended June 30, 2020. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $784,107.95 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization of ESPLOST expires June 30, 2022. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects associated with issuance of Education Special Purpose Local Option Sales Tax (ESPLOST). In fiscal year 2020, the School District provided $705,450.00 of ESPLOST proceeds to the City Government for debt services on general obligation school bonds, series 2016A. \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 is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, the School District had deposits with a carrying amount of $3,379,821.00, and a bank balance of $4,023,368.12. The bank balances insured by Federal depository insurance were $250,000.00. \r\nAt June 30, 2020, $3,773,368.12 of the School District's bank balances were exposed to custodial credit risk. This balance was in the State Deposit Program. \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 4,194,806.32 20,067.50 \r\n \r\nTotal cash and cash equivalents \r\n \r\n4,214,873.82 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n835,052.82 \r\n \r\nTotal carrying value of deposits - June 30, 2020 \r\n \r\n$ 3,379,821.00 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $835,052.82 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 417,443.93 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n1,820,370.18 1,840,470.16 2,841,339.14 \r\n \r\n417,443.93 819,501.20 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n2,237,814.11 1,840,470.16 2,841,339.14 \r\n \r\n1,236,945.13 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n27,875,013.55 2,188,747.80 3,303,052.00 \r\n \r\n2,853,339.14 849,434.41 - \r\n \r\n4,647,349.44 1,418,117.62 1,134,627.48 \r\n \r\n619,013.58 182,039.19 195,139.31 \r\n \r\n656,563.00 \r\n- \r\n \r\n30,728,352.69 2,381,619.21 3,303,052.00 \r\n \r\n483,955.00 \r\n- \r\n \r\n5,266,363.02 1,116,201.81 1,329,766.79 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n26,166,718.81 2,706,581.47 \r\n \r\n172,608.00 28,700,692.28 \r\n \r\nGovernmental Activities Capital Assets - Net $ 28,404,532.92 $ 4,547,051.63 $ 3,013,947.14 $ 29,937,637.41 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n19,664.51 \r\n \r\n101,867.04 \r\n \r\n58,333.50 \r\n \r\n$ 762,643.34 \r\n179,865.05 53,683.69 \r\n \r\n$ 996,192.08 \r\n \r\nNOTE 6: TRANSFERS INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2020, consisted of the following: \r\nTransfers From General Fund \r\n \r\nCapital Projects Fund \r\n \r\n$ 620,265.95 \r\n \r\nTotal \r\n \r\n$ 620,265.95 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund as a supplemental funding source for capital construction projects. \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nTRANSFER TO CITY GOVERNMENT \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects. Payment of the principal and interest on the series 2016A bonds will be secured by and payable first from the Education Special Purpose Local Option Sales Tax (ESPLOST) and then, if and to the extent necessary, from the general fund of the City Government or the School District or from ad valorem taxes to be levied by the City Government. Payment of the principal and interest on the series 2016B bonds will be secured by and payable from ad valorem taxes to be levied by the City Government. In fiscal year 2020, the School District transferred $705,450.00 of ESPLOST proceeds to the City Government for debt services on said general obligation debt. \r\nThe School District has pledged the following estimated proceeds in the future years to the City Government for debt service on said general obligation debt: \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2021 2022 2023 2024 - 2028 2029 - 2032 2033 \r\n \r\n$ \r\n \r\n705,100.00 \r\n \r\n697,550.00 \r\n \r\n699,550.00 \r\n \r\n1,481,575.00 \r\n \r\n1,163,515.00 \r\n \r\n289,988.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n5,037,278.00 \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, 2019 \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nAdditions \r\n \r\nDeductions June 30, 2020 \r\n \r\nDue Within One Year \r\n \r\nCapital Leases \r\n \r\n$ 117,881.25 $ 721,712.00 $ 231,632.90 $ 607,960.35 $ 99,265.05 \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired buses under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n721,712.00 36,085.60 \r\n \r\n$ \r\n \r\n685,626.40 \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nDuring the current fiscal year, the School District entered into a lease agreement as lessee for financing the acquisition of buses at a cost of $721,712.00. This lease qualifies as a capital lease for accounting purposes, and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of inception. In addition, the School District canceled the prior year bus lease before the end of the lease term. \r\n \r\nCapital leases currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nIssue Date Maturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nBuses \r\n \r\n2.65% \r\n \r\n1/15/2020 2/15/2025 $ \r\n \r\n721,712.00 $ \r\n \r\n607,960.35 \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2021 2022 2023 2024 2025 \r\n \r\n$ \r\n \r\n99,265.05 $ \r\n \r\n101,895.57 \r\n \r\n104,595.81 \r\n \r\n107,367.60 \r\n \r\n194,836.32 \r\n \r\n16,110.95 13,480.43 10,780.19 \r\n8,008.40 5,163.68 \r\n \r\nTotal Principal and Interest $ \r\n \r\n607,960.35 $ \r\n \r\n53,543.65 \r\n \r\nNOTE 8: 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' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\nSURETY BOND \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Gordon Lee Charitable Trust \r\nCommitted School Activity Accounts Future Lease Payments \r\nUnassigned \r\n \r\n$ \r\n \r\n34,481.53 \r\n \r\n$ \r\n \r\n54,116.65 \r\n \r\n1,992,128.75 \r\n \r\n84,284.16 \r\n \r\n2,130,529.56 \r\n \r\n$ \r\n \r\n392,499.22 \r\n \r\n806,190.52 \r\n \r\n1,198,689.74 811,267.14 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 4,174,967.97 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\n \r\n- 20 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 10: SIGNIFICANT COMMITMENTS COMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2020, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2020 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nChickamauga Elementary School HVAC $ Gordon Lee High School Gym Bleachers \r\n$ \r\n \r\n38,421.82 $ 117,800.00 \r\n156,221.82 $ \r\n \r\n815,913.80 $ - \r\n815,913.80 $ \r\n \r\n452,421.00 - \r\n452,421.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include retainages payable at year end. OPERATING LEASES \r\n \r\nThe School District leases copiers and computers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases(s) totaled $74,474.98 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2021 2022 2023 2024 2025 \r\n \r\n$ \r\n \r\n57,459.03 \r\n \r\n57,459.03 \r\n \r\n57,459.03 \r\n \r\n42,685.41 \r\n \r\n798.48 \r\n \r\nTotal \r\n \r\n$ 215,860.98 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a 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 $199,643.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2020, the School District reported a liability of $7,325,858.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.059695%, which was a decrease of 0.000860% from its proportion measured as of June 30, 2018. \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of $108,007.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB Deferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 796,977.00 \r\n \r\nChanges of assumptions \r\n \r\n254,413.00 \r\n \r\n1,032,714.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n15,953.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n24,450.00 \r\n \r\n340,239.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n199,643.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 494,459.00 $ 2,169,930.00 \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2021 2022 \r\n \r\n$ (416,195.00) $ (416,195.00) \r\n \r\n2023 2024 2025 Thereafter \r\n \r\n$ (416,808.00) $ (371,395.00) $ (209,745.00) $ (44,776.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: \r\n \r\nOPEB: \r\n \r\nInflation Salary increases Long-term expected rate of return \r\n \r\n2.50% 3.00% - 8.75%, including inflation 7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nHealthcare cost trend rate Pre-Medicare Eligible Medicare Eligible \r\nUltimate trend rate Pre-Medicare Eligible Medicare Eligible \r\nYear of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible \r\n \r\n7.250% 5.375% \r\n4.75% 4.75% \r\n2028 2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018. \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 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\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\n \r\nDiscount Rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 8,515,065.00 $ \r\n \r\n7,325,858.00 $ 6,358,491.00 \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net \r\nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \r\nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \r\npercentage-point higher than the current healthcare cost trend rates: \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\n$ \r\n \r\n6,171,259.00 $ \r\n \r\n7,325,858.00 $ 8,792,285.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\nNOTE 13: RETIREMENT PLANS \r\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 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 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 20.88% of payroll was required from the School District and 0.26% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,350,336.21 and $16,320.92 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 \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/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\n \r\nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $19,801.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2020, the School District reported a liability of $10,928,964.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 10,928,964.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n132,672.00 \r\n \r\nTotal \r\n \r\n$ 11,061,636.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2019. \r\nAt June 30, 2019, the School District's TRS proportion was 0.050826%, which was an increase of 0.000411% from its proportion measured as of June 30, 2018. \r\n \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $114,528.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \r\n \r\nFor the year ended June 30, 2020, the School District recognized pension expense of $1,805,241.00 for TRS and $35,319.00 for PSERS and revenue of $32,175.00 for TRS and $35,319.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 616,012.00 $ 3,240.00 \r\n \r\nChanges of assumptions \r\n \r\n1,048,777.00 \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\n260,252.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n99,065.00 \r\n \r\n314,445.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n1,350,336.21 \r\n \r\n- \r\n \r\n$ 3,114,190.21 $ 577,937.00 \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, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2021 2022 2023 2024 \r\n \r\n$ 505,194.00 $ 39,403.00 $ 276,210.00 $ 365,110.00 \r\n \r\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.25%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases \r\n \r\n1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return \r\n \r\n- 28 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nby weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nPSERS Target allocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of assumed rate of inflation. \r\nDiscount Rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease \r\n \r\nCurrent Discount Rate \r\n \r\n1% Increase \r\n \r\n(6.25%) \r\n \r\n(7.25%) \r\n \r\n(8.25%) \r\n \r\nSchool District's proportionate share of the \r\n \r\nnet pension liability \r\n \r\n$ 17,740,908.00 $ \r\n \r\n10,928,964.00 $ 5,327,126.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net \r\n \r\nposition is available in the separately issued TRS and PSERS financial report which is publicly available \r\n \r\nat www.trsga.com/publications and http://www.ers.ga.gov/financials. \r\n \r\n- 29 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2020, the School District made prior period adjustments due to the adoption of GASB Statement No. 84, as described in \"New Accounting Pronouncements,\" which requires the restatement of the June 30, 2019 net position in governmental activities and fund balance in the general fund and fiduciary funds. These changes are in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2019 as previously reported \r\n \r\n$ 16,701,990.88 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \r\n \r\n31,673.49 \r\n \r\nNet Position, July 1, 2019, as restated \r\n \r\n$ 16,733,664.37 \r\n \r\nFund Balance (General Fund), July 1, 2019, as previously reported $ 2,263,143.66 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \r\n \r\n31,673.49 \r\n \r\nFund Balance (General Fund), July 1, 2019, as restated \r\n \r\n$ 2,294,817.15 \r\n \r\nNet Position (Fiduciary Funds), July 1, 2019 as previously reported $ \r\n \r\n51,465.99 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: Restatement for Custodial Funds Beginning Net Position \r\n \r\n(31,673.49) \r\n \r\nNet Position (Fiduciary Funds), July 1, 2019, as restated \r\n \r\n$ \r\n \r\n19,792.50 \r\n \r\nNOTE 15: COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) is a legally separate tax-exempt component unit of the City of Chickamauga Board of Education (School District). It originated from the last will and testament of Gordon Lee, a citizen of City of Chickamauga that dies in 1927. First Tennessee Bank serves as the trustee for the Trust. Mr. Lee's will set forth four separate bequests providing for distribution of specific amounts for charitable purposes, all for the benefit of Gordon Lee High School. The four separate trusts are as follows, Gordon Lee  Book Fund, Gordon Lee  Librarian's Salary Fund, Gordon Lee  High School Building and Gordon Lee  High School Endowment Fund. The School District receives quarterly distributions based on five percent of the December 31st fair market value. These distributions are allocated in the following manner: \r\nBook Fund  0.535% \r\nLibrarian's Salary Fund  0.435% \r\nBuilding Fund  14.7% \r\nEndowment Fund  84.33% \r\nAlthough the School District does not control the timing or amount of the receipts from the Trust, the Trust's resources and income are restricted for the benefit of Gordon Lee High School. Consequently, the Trust is considered a component unit of the School District and is discretely presented in the School District's financial statements. The Trust is operated on a calendar year basis. The balance sheet and trust activity are reported on the Statement of Net Position and Statement of Activities, respectively. During the year ended December 31, 2019, the Trust distributed $201,449.66 to the School District. \r\n- 30 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2020 \r\nComponent Unit Restricted Assets consist of the following: \r\n \r\nEXHIBIT \"I\" \r\n \r\nCash and Cash Equivalents Fixed Income Mutual Funds Equity Investments \r\n \r\nFair Market Value December 31, 2019 \r\n \r\n$ \r\n \r\n31,215.66 \r\n \r\n1,257,622.45 \r\n \r\n3,356,722.37 \r\n \r\n$ \r\n \r\n4,645,560.48 \r\n \r\nThe Trust was not audited and did not prepare official financial statements. The Trust follows Internal Revenue Code Section 509 for tax filings. Any inquiries or information about the Trust can be obtained from City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.050826% $ 0.050415% $ 0.052910% $ 0.052331% $ 0.053486% $ 0.053783% $ \r\n \r\n10,928,964.00 9,358,104.00 9,833,486.00 \r\n10,796,469.00 8,142,712.00 6,794,773.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n$ \r\n \r\n132,672.00 \r\n \r\n$ \r\n \r\n109,702.00 \r\n \r\n$ \r\n \r\n110,583.00 \r\n \r\n$ \r\n \r\n125,643.00 \r\n \r\n$ \r\n \r\n95,150.00 \r\n \r\n$ \r\n \r\n54,198.00 \r\n \r\nTotal \r\n$ 11,061,636.00 $ 9,467,806.00 $ 9,944,069.00 $ 10,922,112.00 $ 8,237,862.00 $ 6,848,971.00 \r\n \r\nSchool District's covered payroll \r\n$ 6,278,074.30 $ 6,072,083.32 $ 6,143,523.50 $ 5,807,063.88 $ 5,711,698.44 $ 5,530,641.43 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n174.08% 154.12% 160.06% 185.92% 142.56% 122.86% \r\n \r\n78.56% 80.27% 79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n1,350,336.21 $ \r\n \r\n1,350,336.21 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,296,389.36 $ \r\n \r\n1,296,389.36 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,008,880.33 $ \r\n \r\n1,008,880.33 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n866,902.64 $ \r\n \r\n866,902.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n819,130.00 $ \r\n \r\n819,130.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n742,415.82 $ \r\n \r\n742,415.82 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n671,571.47 $ \r\n \r\n671,571.47 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n618,476.49 $ \r\n \r\n618,476.49 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n557,755.57 $ \r\n \r\n557,755.57 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n557,278.23 $ \r\n \r\n557,278.23 $ \r\n \r\n- \r\n \r\nSchool District's covered Contribution as a percentage \r\n \r\npayroll \r\n \r\nof covered payroll \r\n \r\n$ \r\n \r\n6,465,832.76 \r\n \r\n$ \r\n \r\n6,278,074.24 \r\n \r\n$ \r\n \r\n6,072,083.32 \r\n \r\n$ \r\n \r\n6,143,523.50 \r\n \r\n$ \r\n \r\n5,807,063.88 \r\n \r\n$ \r\n \r\n5,711,698.44 \r\n \r\n$ \r\n \r\n5,530,641.43 \r\n \r\n$ \r\n \r\n5,482,377.36 \r\n \r\n$ \r\n \r\n5,483,868.24 \r\n \r\n$ \r\n \r\n5,479,016.37 \r\n \r\n20.88% 20.65% 16.62% 14.11% 14.11% 13.00% 12.14% 11.28% 10.17% 10.17% \r\n \r\n- 34 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n114,528.00 $ 113,029.00 $ \r\n98,022.00 $ 124,359.00 $ \r\n79,756.00 $ 65,897.00 $ \r\n \r\nTotal \r\n114,528.00 113,029.00 \r\n98,022.00 124,359.00 \r\n79,756.00 65,897.00 \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n324,673.67 \r\n \r\n$ \r\n \r\n320,079.48 \r\n \r\n$ \r\n \r\n295,654.46 \r\n \r\n$ \r\n \r\n297,155.02 \r\n \r\n$ \r\n \r\n287,438.33 \r\n \r\n$ \r\n \r\n275,204.77 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n85.02% \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\n0.059695% $ 0.060555% $ 0.062750% $ \r\n \r\n7,325,858.00 7,696,354.00 8,816,350.00 \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nTotal \r\n$ 7,325,858.00 $ 7,696,354.00 $ 8,816,350.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 5,350,889.40 $ 5,165,643.73 $ 5,252,940.80 \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n136.91% 148.99% 167.84% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n4.63% 2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2020 \r\n \r\n$ \r\n \r\n199,643.00 $ \r\n \r\n199,643.00 $ \r\n \r\n- \r\n \r\n2019 \r\n \r\n$ \r\n \r\n321,500.00 $ \r\n \r\n321,500.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n313,849.00 $ \r\n \r\n313,849.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n327,185.00 $ \r\n \r\n327,185.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\n$ \r\n \r\n5,524,349.13 \r\n \r\n$ \r\n \r\n5,350,889.40 \r\n \r\n$ \r\n \r\n5,165,643.73 \r\n \r\n$ \r\n \r\n5,252,940.80 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n3.61% 6.01% 6.08% 6.23% \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019. \r\n \r\n- 38 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nDebt Service Principal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning - Restated \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n1,729,400.00 $ \r\n \r\n1,731,071.00 $ \r\n \r\n- \r\n \r\n- \r\n \r\n9,165,744.00 \r\n \r\n9,283,697.00 \r\n \r\n679,506.00 \r\n \r\n728,319.00 \r\n \r\n1,210,500.00 \r\n \r\n1,207,390.00 \r\n \r\n2,755.00 \r\n \r\n2,750.00 \r\n \r\n1,135,400.00 \r\n \r\n1,307,619.00 \r\n \r\n13,923,305.00 \r\n \r\n14,260,846.00 \r\n \r\n1,756,060.19 $ 24,708.46 \r\n9,232,481.51 503,018.37 \r\n1,024,958.17 2,947.08 \r\n1,052,370.67 \r\n13,596,544.45 \r\n \r\n24,989.19 24,708.46 (51,215.49) (225,300.63) (182,431.83) \r\n197.08 (255,248.33) \r\n(664,301.55) \r\n \r\n8,835,901.00 \r\n419,544.00 82,963.00 \r\n207,797.00 583,361.00 952,603.00 282,778.00 1,367,088.00 142,707.00 157,376.00 \r\n7,233.00 38,000.00 656,000.00 \r\n- \r\n13,733,351.00 \r\n189,954.00 \r\n \r\n8,666,063.00 \r\n734,470.00 97,086.00 \r\n209,583.00 576,368.00 869,540.00 286,593.00 1,513,149.00 215,792.00 160,598.00 \r\n7,233.00 28,000.00 656,000.00 \r\n- \r\n14,020,475.00 \r\n240,371.00 \r\n \r\n8,090,875.94 \r\n636,297.30 75,543.18 \r\n208,747.05 564,888.26 874,979.51 284,713.80 1,425,972.49 776,620.80 158,581.37 \r\n7,232.50 25,042.47 565,097.76 \r\n113,751.65 1,624.35 \r\n13,809,968.43 \r\n(213,423.98) \r\n \r\n575,187.06 \r\n98,172.70 21,542.82 \r\n835.95 11,479.74 (5,439.51) \r\n1,879.20 87,176.51 (560,828.80) \r\n2,016.63 0.50 \r\n2,957.53 90,902.24 \r\n(113,751.65) (1,624.35) \r\n210,506.57 \r\n(453,794.98) \r\n \r\n(460,456.00) (460,456.00) (270,502.00) 2,263,143.66 \r\n- \r\n \r\n5,566.00 (625,832.00) (620,266.00) (379,895.00) 2,263,143.66 \r\n43,306.36 \r\n \r\n721,712.00 (620,265.95) 101,446.05 (111,977.93) 2,294,817.15 \r\n- \r\n \r\n716,146.00 5,566.05 \r\n721,712.05 267,917.07 \r\n31,673.49 (43,306.36) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n1,992,641.66 $ \r\n \r\n1,926,555.02 $ \r\n \r\n2,182,839.22 $ \r\n \r\n256,284.20 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n205GA324N1099 $ 205GA324N1099 \r\n \r\n15,928.19 554,708.54 \r\n570,636.73 \r\n \r\n10.560 \r\n \r\n195GA904N2533 \r\n \r\n1,313.45 571,950.18 \r\n \r\n84.027 84.027 84.173 \r\n \r\nH027A180073 H027A190073 H173A190081 \r\n \r\n84.048 84.424A 84.367 84.367 84.010 84.010 \r\n \r\nV048A190010 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010 \r\n \r\n131,463.00 93,661.92 4,252.00 \r\n229,376.92 \r\n11,429.00 10,005.00 \r\n3,042.00 14,194.86 \r\n275.00 94,185.58 \r\n133,131.44 \r\n362,508.36 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n934,458.54 \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 City of Chickamauga Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 40 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS 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 Amended Formula Adjustment Categorical Grant Nursing Services Education Equalization Funding Grant Other State Programs Food Services Hygiene Products in Georgia Schools Preschool Disability Services School Safety Grant School Security Grant Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n439,157.00 $ \r\n \r\n39,267.00 \r\n \r\n1,171,123.00 \r\n \r\n39,038.00 \r\n \r\n563,996.00 \r\n \r\n35,191.00 \r\n \r\n1,068,517.00 \r\n \r\n934,592.00 \r\n \r\n456,277.00 \r\n \r\n898,750.00 \r\n \r\n458,179.00 \r\n \r\n32,726.00 \r\n \r\n87,241.00 \r\n \r\n10,553.00 \r\n \r\n172,120.00 \r\n \r\n55,037.00 \r\n \r\n27,465.00 \r\n \r\n916.00 \r\n \r\n478,764.00 459,894.00 359,625.00 \r\n42,646.00 (121,948.00) \r\n \r\n45,000.00 1,285,821.00 \r\n \r\n14,266.00 102.00 \r\n2,818.00 22,182.04 89,719.55 16,320.92 27,325.00 \r\n \r\n- $ \r\n \r\n439,157.00 \r\n \r\n- \r\n \r\n39,267.00 \r\n \r\n- \r\n \r\n1,171,123.00 \r\n \r\n- \r\n \r\n39,038.00 \r\n \r\n- \r\n \r\n563,996.00 \r\n \r\n- \r\n \r\n35,191.00 \r\n \r\n- \r\n \r\n1,068,517.00 \r\n \r\n- \r\n \r\n934,592.00 \r\n \r\n- \r\n \r\n456,277.00 \r\n \r\n- \r\n \r\n898,750.00 \r\n \r\n- \r\n \r\n458,179.00 \r\n \r\n- \r\n \r\n32,726.00 \r\n \r\n- \r\n \r\n87,241.00 \r\n \r\n- \r\n \r\n10,553.00 \r\n \r\n- \r\n \r\n172,120.00 \r\n \r\n- \r\n \r\n55,037.00 \r\n \r\n- \r\n \r\n27,465.00 \r\n \r\n- \r\n \r\n916.00 \r\n \r\n- \r\n \r\n478,764.00 \r\n \r\n- \r\n \r\n459,894.00 \r\n \r\n- \r\n \r\n359,625.00 \r\n \r\n- \r\n \r\n42,646.00 \r\n \r\n- \r\n \r\n(121,948.00) \r\n \r\n- \r\n \r\n45,000.00 \r\n \r\n- \r\n \r\n1,285,821.00 \r\n \r\n- \r\n \r\n14,266.00 \r\n \r\n- \r\n \r\n102.00 \r\n \r\n- \r\n \r\n2,818.00 \r\n \r\n- \r\n \r\n22,182.04 \r\n \r\n- \r\n \r\n89,719.55 \r\n \r\n- \r\n \r\n16,320.92 \r\n \r\n- \r\n \r\n27,325.00 \r\n \r\n19,801.00 \r\n \r\n76,466.20 - \r\n \r\n76,466.20 19,801.00 \r\n \r\n$ 9,232,481.51 $ \r\n \r\n76,466.20 $ \r\n \r\n9,308,947.71 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n2017 ESPLOST \r\nAcquisition, construction, and equipping of new educational buildings and facilities; \r\nAcquisition and installation of system-wide security and safety equipment; \r\nAcquisition, installation, and upgrading of system-wide technology and equipment, including computers, text books, and e-books; \r\nRenovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\nAcquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and \r\nAcquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 2,000,000.00 $ 14,613,287.06 $ 1,066,971.87 $ 13,536,315.19 $ \r\n \r\n25,000.00 \r\n \r\n5,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n10,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n4,663,763.00 \r\n \r\n820,977.61 \r\n \r\n2,814,536.57 \r\n \r\n- $ - \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n125,000.00 \r\n \r\n25,000.00 \r\n \r\n- \r\n \r\n200,000.00 \r\n \r\n100,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n2017 ESPLOST Total \r\n \r\n$ 2,900,000.00 $ 19,417,050.06 $ 1,887,949.48 $ 16,350,851.76 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n194,477.78 \r\n \r\nCurrent Year \r\n \r\n59,050.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n253,527.78 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated April 24, 2021. \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n (This page left intentionally blank) \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nApril 24, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the City of Chickamauga Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n (This page left intentionally blank) \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nApril 24, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2020 \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; All Major Funds; Aggregate Remaining Fund Information Discretely Presented Component Unit \r\n \r\nUnmodified Disclaimer \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_1394079499-2020-05-08","title":"City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2020-05-08"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2019 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1394079499-2020-05-08"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1394079499-2020-05-08"],"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":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"CITY OF CHICKAMAUGA \r\nBOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n(Including Independent Auditor's Reports) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nPage \r\ni \r\n1 2 \r\n4 5 6 7 8 10 \r\n33 34 35 36 37 38 \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n39 40 41 43 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectlively 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 did not audit the financial statements of the discretely presented component unit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the discretely presented component unit. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nSummary of Opinions \r\n \r\nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Aggregate Remaining Fund Information \r\n \r\nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified \r\n \r\nBasis for Disclaimer of Opinion on the Discretely Presented Component Unit \r\n \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nDisclaimer of Opinion \r\n \r\nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the discretely presented component unit of the School District. Accordingly, we do not express an opinion on these financial statements. \r\nUnmodified Opinions \r\n \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nOther Matters \r\nRequired Supplementary Information \r\n \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 \r\n \r\n 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\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 8, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nMay 8, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nINTRODUCTION \r\nThe discussion and analysis of the City of Chickamauga Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2019 and June 30, 2018. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2019 and 2018 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $16.7 million and $14.6 million, respectively, for the fiscal years ended June 30, 2019 and 2018. Of these amounts, $1,950,245 and $1,632,351 respectively, for fiscal years 2019 and 2018 are available for spending at the School District's discretion. \r\n General revenues net of transfers to City Government accounts for $4.3 million in revenue or 29.7% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $10.3 million or 70.3% of total revenues of $14.6 million. \r\n The School District had $12.5 million in expenses related to governmental activities; however, $10.3 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily taxes) net of transfers to City Government totaling $4.3 million were adequate to provide for these programs. \r\n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 4.4 and 4.6 for the fiscal years ended June 30, 2019 and June 30, 2018, respectively. Generally, a ratio greater than 2.0 is considered very financially stable. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\ni \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nThe fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2019 and 2018, the general fund and the capital projects fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, is one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law. The School District's major governmental funds are the general fund and the capital projects fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into, and out of those funds, and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2019 and 2018. \r\n \r\nTable 1 Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ \r\n \r\n7,080,920 $ 8,427,734 \r\n \r\n28,404,533 \r\n \r\n25,727,483 \r\n \r\nTotal Assets \r\n \r\n35,485,453 \r\n \r\n34,155,217 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n2,117,938 363,231 \r\n \r\n1,672,713 354,614 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n2,481,169 \r\n \r\n2,027,327 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n1,602,634 117,881 \r\n9,358,104 7,696,354 \r\n \r\n1,832,679 157,901 \r\n9,833,486 8,816,350 \r\n \r\nTotal Liabilities \r\n \r\n18,774,973 \r\n \r\n20,640,416 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n729,816 1,759,842 \r\n \r\n269,054 671,342 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n2,489,658 \r\n \r\n940,396 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n27,977,589 3,837,104 \r\n(15,112,702) \r\n \r\n25,072,093 5,460,193 \r\n(15,930,554) \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n16,701,991 $ 14,601,732 \r\n \r\nThe total net position of the School District increased $2.1 million from the prior year. \r\n \r\niii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2019 and June 30, 2018. \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\n$ \r\n \r\n1,157,280 $ \r\n \r\n1,081,670 \r\n \r\n8,018,235 \r\n \r\n7,960,856 \r\n \r\n1,086,935 \r\n \r\n4,795,203 \r\n \r\nTotal Program Revenues \r\n \r\n10,262,450 \r\n \r\n13,837,729 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers To City Government \r\n \r\n1,728,973 \r\n702,908 11,918 \r\n1,202,868 27,229 \r\n1,361,667 \r\n(706,650) \r\n \r\n1,796,314 \r\n681,563 17,285 \r\n1,289,866 47,725 \r\n1,229,867 \r\n(769,757) \r\n \r\nTotal General Revenues and Transfers to City Government \r\n \r\n4,328,913 \r\n \r\n4,292,863 \r\n \r\nTotal Revenues \r\n \r\n14,591,363 \r\n \r\n18,130,592 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n8,318,201 \r\n335,694 96,294 \r\n178,322 547,515 886,698 237,346 1,147,447 \r\n74,485 6,090 7,988 \r\n37,876 613,200 \r\n3,948 \r\n \r\n9,762,794 \r\n298,682 79,705 \r\n278,407 593,487 827,198 200,869 1,102,066 140,378 \r\n5,200 13,721 \r\n42,496 788,776 \r\n4,924 \r\n \r\nTotal Expenses \r\n \r\n12,491,104 \r\n \r\n14,138,703 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n2,100,259 $ \r\n \r\n3,991,889 \r\n \r\niv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions decreased $3,575,279 for governmental activities during fiscal year 2019. This decrease is largely due to a decrease in Georgia State Financing and Investment Commission (GSFIC) capital outlay grants. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services: \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services: \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n8,318,201 $ \r\n335,694 96,294 \r\n178,322 547,515 886,698 237,346 1,147,447 \r\n74,485 6,090 7,988 \r\n37,876 613,200 \r\n3,948 \r\n \r\n9,762,794 $ \r\n298,682 79,705 \r\n278,407 593,487 827,198 200,869 1,102,066 140,378 \r\n5,200 13,721 \r\n42,496 788,776 \r\n4,924 \r\n \r\n595,680 $ \r\n \r\n(1,202,799) \r\n \r\n207,322 (7,562) (4,083) 98,268 \r\n410,629 237,346 595,156 \r\n73,490 6,090 \r\n10,997 \r\n \r\n186,460 9,208 \r\n100,269 22,581 \r\n367,464 200,869 489,204 140,378 \r\n5,200 (12,874) \r\n \r\n37,876 (36,502) \r\n3,948 \r\n \r\n42,496 (52,407) \r\n4,924 \r\n \r\nTotal Expenses \r\n \r\n$ 12,491,104 $ 14,138,703 $ \r\n \r\n2,228,655 $ \r\n \r\n300,973 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District may still be dependent upon tax revenues for governmental activities. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $17.3 million and total expenses and other financing uses of $16.8 million. There was an increase in the fund balance totaling $0.5 million for the governmental funds as a whole. \r\n \r\nv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nGeneral Fund Budgeting Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2019 and 2018, the School District amended its general fund budget as needed. \r\nFor the general fund, actual revenues of $13.5 million were approximately the same as final budgeted revenues. \r\nThe actual expenditures and other financing uses of $13.0 million were $0.8 million less than final budget. The majority of the variances between the final budgeted expenditures and actual are due to lower than anticipated expenditures in instruction, maintenance and operation of plant, student transportation services and other financing uses. \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2019 and June 30, 2018, the School District had $28.4 and $25.7 million, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n417,444 $ \r\n \r\n1,820,370 \r\n \r\n23,227,664 \r\n \r\n770,630 \r\n \r\n2,168,425 \r\n \r\n183,344 369,655 23,038,172 897,215 1,239,097 \r\n \r\nTotal \r\n \r\n$ 28,404,533 $ \r\n \r\n25,727,483 \r\n \r\nThe overall capital assets increased in fiscal year 2019 by $2,677,050 primarily due to construction of the new high school and land improvements around the new high school. \r\n \r\nvi \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nDEBT \r\nAt the fiscal year ending June 30, 2019 the School District had $0.1 million in capital leases. Table 5 summarizes the School District's debt for capital leases. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nCapital Leases \r\n \r\n$ \r\n \r\n117,881 $ \r\n \r\n157,901 \r\n \r\nCURRENT ISSUES \r\nThe School District is financially challenged by reduction of state revenue appropriations to local School Districts known as \"austerity reductions\". Since the austerity began in fiscal year 2003 and ended in fiscal year 2018, the School District's state funding was reduced a total of $8.3 million. Though the austerity reduction was eliminated in fiscal year 2019, this is still lost funding that will not be recouped. \r\nApproximately 84.7% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2019. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS. For fiscal year 2018, the Board approved a 2% increase to the salary schedules. With the elimination of austerity reduction in fiscal year 2019, the School District authorized the issuance of a one time pay adjustment of 3% to all permanent employees, meeting and calculated based on certain criteria, paid in November 2018. For fiscal year 2020, the Board approved a $3,000 increase to the salary schedule for certified employees. Classified employees in degree requiring job positions also received a $3,000 increase, while the remaining classified employees received a 5% increase. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that students receive a quality education from effective personnel. \r\nThe School District's millage rate for fiscal year 2019 was 14.25. The net digest for fiscal year 2019 was $107.0 million, which produced approximately $106,990 per mill. O.C.G.A. 20-2-165 requires a minimum effective millage rate in order for the School District to qualify for equalization purposes. The School District received $1,202,868 in equalization funding for fiscal year 2019. The School District's millage rate for fiscal year 2020 will remain at 14.25. It is anticipated that pressure will continue to provide local monies to meet mandated educational requirements and operational costs. \r\nThe School District entered into a \"Strategic Waivers School System (SWSS/IE) Partnership Contract\" with the State Board of Education with performance accountability provisions of this contract becoming effective fiscal year 2017. The School District intends to use the flexibility provided by the contract to maximize all resources available to provide a quality education to the students of Chickamauga City Schools. \r\nThe Georgia Department of Education created the Financial Efficiency Star Ratings to provide a measure of a school district's per-pupil spending in relation to the academic achievements of its students. Specifically, the rating is based on a three-year average of per-pupil spending, which is then associated with the school district's CCRPI score. Each school district receives a rating ranging from one-half star to five stars; a five-star district can be described as having strong academic outcomes \r\nvii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nand lower levels of expenditures in comparison with other districts. The School District was pleased to receive a 4.5 rating in the initial year of fiscal year 2015. The School District maintained the 4.5 rating in fiscal year 2016 with Chickamauga Elementary School and Gordon Lee High School receiving a 4.5 rating for their schools and Gordon Lee Middle School receiving a 4.0 rating. For fiscal year 2017, the School District and all three schools received a 4.5 rating. For fiscal year 2018, the School District continued to maintain a 4.5 rating and all three schools received a 4.0 rating. Ratings are not yet available for fiscal year 2019, however the School District remains confident in the ability to be good stewards of resources to ensure the tradition of excellence continues for all our students. \r\nFiscal year 2017 began with the selection of a contractor to begin construction on the new high school to replace the existing original three buildings and modifications to the middle school. The architect's original estimate was $15.2 million with $11.6 million provided by state funds. The School District's local share, owner's cost, and owner's upgrades will be funded by the recently passed ESPLOST, recently passed issuance of general obligation bonds by the City Government, and local committed funds. The project was completed March 2019 with a final capital outlay project certification construction cost of $14.2 million. \r\nFiscal year 2019 also began with the selection of a contractor to begin construction on a new middle/high multipurpose building. The architect's original estimate was $2.3 million with $0.6 million provided by state funds. The School District's local share, owner's cost, and owner's upgrades will be funded by the recently passed ESPLOST, recently passed issuance of general obligation bonds by the City Government, and local committed funds. The project is on schedule with completion anticipated in November 2019. \r\nThe most significant challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is in the process of exploring new funding formulas. It is uncertain at this point what type of financial impact these changes might have on the School District's finances. \r\nThe School District believes that it is currently financially sound and by maintaining a healthy general fund reserve that it has positioned itself to face the upcoming challenges and concerns. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nviii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET POSITION JUNE 30, 2019 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories Restricted Assets Cash and Investments with Fiscal Agent or Trustee Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Gordon Lee Charitable Trust Unrestricted (Deficit) \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nCOMPONENT UNIT \r\nGORDON LEE CHARITABLE TRUST DECEMBER 31, 2018 \r\n \r\n$ \r\n \r\n5,581,290.63 $ \r\n \r\n145,785.91 1,145,691.12 \r\n117,441.11 67,862.71 22,848.66 \r\n \r\n2,237,814.11 26,166,718.81 \r\n \r\n35,485,453.06 \r\n \r\n- \r\n- \r\n4,001,931.47 - \r\n4,001,931.47 \r\n \r\n2,117,938.36 \r\n \r\n- \r\n \r\n363,231.00 \r\n \r\n- \r\n \r\n2,481,169.36 \r\n \r\n- \r\n \r\n6,082.74 \r\n \r\n- \r\n \r\n1,287,489.27 \r\n \r\n- \r\n \r\n226,242.23 \r\n \r\n- \r\n \r\n82,820.05 \r\n \r\n- \r\n \r\n9,358,104.00 \r\n \r\n- \r\n \r\n7,696,354.00 \r\n \r\n- \r\n \r\n117,881.25 \r\n \r\n- \r\n \r\n18,774,973.54 \r\n \r\n- \r\n \r\n729,816.00 \r\n \r\n- \r\n \r\n1,759,842.00 \r\n \r\n- \r\n \r\n2,489,658.00 \r\n \r\n- \r\n \r\n27,977,589.39 \r\n117,749.34 3,496,576.36 \r\n222,778.35 (15,112,702.56) \r\n \r\n- \r\n4,001,931.47 - \r\n \r\nTotal Net Position \r\n \r\n$ 16,701,990.88 $ \r\n \r\n4,001,931.47 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nComponent Unit Gordon Lee Charitable Trust \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings (Loss) Miscellaneous \r\nTransfers to City Government \r\nTotal General Revenues and Transfers to City Government \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 8,318,201.46 $ \r\n335,694.08 96,294.41 \r\n178,322.30 547,514.49 886,697.97 237,345.80 1,147,447.45 \r\n74,484.65 6,089.75 7,987.80 \r\n37,876.17 613,200.22 \r\n3,947.52 \r\n$ 12,491,104.07 $ \r\n \r\n789,329.48 \r\n- \r\n367,950.19 \r\n- \r\n1,157,279.67 \r\n \r\n$ \r\n \r\n229,572.48 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\n \r\nAND CHANGES IN NET POSITION \r\n \r\nPRIMARY \r\n \r\nCOMPONENT \r\n \r\nGOVERNMENT \r\n \r\nUNIT \r\n \r\nGORDON LEE \r\n \r\nGOVERNMENTAL \r\n \r\nCHARITABLE TRUST \r\n \r\nACTIVITIES \r\n \r\nDECEMBER 31, 2018 \r\n \r\n$ 6,046,802.58 $ \r\n \r\n886,389.11 $ \r\n \r\n(595,680.29) \r\n \r\n128,372.33 103,856.13 182,405.00 434,649.00 476,069.01 \r\n434,262.91 \r\n995.00 - \r\n \r\n14,597.36 118,028.59 (3,009.32) \r\n \r\n(207,321.75) 7,561.72 4,082.70 \r\n(98,268.13) (410,628.96) (237,345.80) (595,155.95) \r\n(73,489.65) (6,089.75) \r\n(10,997.12) \r\n \r\n210,822.51 \r\n- \r\n \r\n70,929.59 \r\n- \r\n \r\n(37,876.17) 36,502.07 (3,947.52) \r\n \r\n$ 8,018,234.47 $ 1,086,935.33 \r\n \r\n(2,228,654.60) \r\n \r\n(229,572.48) \r\n \r\n1,728,973.49 \r\n702,908.11 11,917.95 \r\n1,202,868.00 27,228.87 \r\n1,361,666.65 (706,650.00) \r\n4,328,913.07 \r\n2,100,258.47 \r\n14,601,732.41 \r\n \r\n(359,944.97) \r\n(359,944.97) (589,517.45) 4,591,448.92 \r\n \r\n$ 16,701,990.88 $ \r\n \r\n4,001,931.47 \r\n \r\n- 3 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2019 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,241,914.38 $ 3,339,376.25 $ 5,581,290.63 \r\n \r\n84,585.48 1,049,453.54 \r\n117,441.11 67,862.71 22,848.66 \r\n \r\n61,200.43 96,237.58 \r\n- \r\n \r\n145,785.91 1,145,691.12 \r\n117,441.11 67,862.71 22,848.66 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Georgia State Financing and Investment Commission \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\n \r\n$ 3,584,105.88 $ 3,496,814.26 $ 7,080,920.14 \r\n \r\n$ \r\n \r\n5,844.84 $ \r\n \r\n1,287,489.27 \r\n \r\n- \r\n \r\n- \r\n \r\n1,293,334.11 \r\n \r\n237.90 $ - \r\n226,242.23 82,820.05 \r\n309,300.18 \r\n \r\n6,082.74 1,287,489.27 \r\n226,242.23 82,820.05 \r\n1,602,634.29 \r\n \r\n27,628.11 - \r\n27,628.11 \r\n \r\n55,993.00 \r\n55,993.00 \r\n \r\n27,628.11 55,993.00 \r\n83,621.11 \r\n \r\n22,848.66 317,679.03 433,269.67 1,489,346.30 \r\n2,263,143.66 \r\n \r\n3,131,521.08 \r\n- \r\n3,131,521.08 \r\n \r\n22,848.66 3,449,200.11 \r\n433,269.67 1,489,346.30 \r\n5,394,664.74 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 3,584,105.88 $ 3,496,814.26 $ 7,080,920.14 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2019 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nGeorgia State Financing and Investment Commission grants that are not available to pay 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. \r\nCapital leases payable \r\n \r\n$ 5,394,664.74 \r\n \r\n$ \r\n \r\n417,443.93 \r\n \r\n1,820,370.18 \r\n \r\n27,875,013.55 \r\n \r\n2,188,747.80 \r\n \r\n3,303,052.00 \r\n \r\n(7,200,094.54) \r\n \r\n28,404,532.92 \r\n \r\n$ (9,358,104.00) (7,696,354.00) \r\n \r\n(17,054,458.00) \r\n \r\n$ 1,388,122.36 (1,396,611.00) \r\n \r\n(8,488.64) 27,628.11 55,993.00 \r\n \r\n(117,881.25) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 16,701,990.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 5 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nRevenues over Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,769,433.40 $ 11,917.95 \r\n8,673,705.53 529,699.47 \r\n1,157,279.67 2,990.68 \r\n1,358,713.45 \r\n13,503,740.15 \r\n \r\n- $ 702,908.11 2,679,356.57 \r\n24,238.19 2,953.20 \r\n3,409,456.07 \r\n \r\n1,769,433.40 714,826.06 \r\n11,353,062.10 529,699.47 \r\n1,157,279.67 27,228.87 \r\n1,361,666.65 \r\n16,913,196.22 \r\n \r\n8,407,120.31 \r\n351,533.17 96,915.39 \r\n190,288.53 562,138.97 926,567.36 247,617.46 1,121,104.22 \r\n52,070.04 6,089.75 7,183.00 \r\n37,876.17 592,425.85 \r\n- \r\n40,019.48 3,947.52 \r\n12,642,897.22 \r\n860,842.93 \r\n \r\n23,256.00 \r\n31,062.35 21,795.00 2,971,423.10 \r\n- \r\n3,047,536.45 \r\n361,919.62 \r\n \r\n8,430,376.31 \r\n351,533.17 96,915.39 \r\n190,288.53 562,138.97 926,567.36 247,617.46 1,152,166.57 \r\n73,865.04 6,089.75 7,183.00 \r\n37,876.17 592,425.85 2,971,423.10 \r\n40,019.48 3,947.52 \r\n15,690,433.67 \r\n1,222,762.55 \r\n \r\n(364,737.49) \r\n(364,737.49) \r\n496,105.44 \r\n1,767,038.22 \r\n \r\n364,737.49 (706,650.00) \r\n(341,912.51) \r\n20,007.11 \r\n3,111,513.97 \r\n \r\n364,737.49 (1,071,387.49) \r\n(706,650.00) \r\n516,112.55 \r\n4,878,552.19 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,263,143.66 $ 3,131,521.08 $ 5,394,664.74 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nGeorgia State Financing and Investment Commission grants that are not available to pay current period expenditures are deferred in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. \r\nCapital lease payments \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\n \r\n$ \r\n \r\n516,112.55 \r\n \r\n$ 3,597,039.09 (919,989.53) \r\n \r\n2,677,049.56 \r\n \r\n(40,459.91) \r\n \r\n(1,592,421.24) \r\n \r\n40,019.48 \r\n \r\n$ \r\n \r\n459,845.03 \r\n \r\n40,113.00 \r\n \r\n499,958.03 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 2,100,258.47 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2019 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 51,465.99 $ 51,465.99 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Chickamauga 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 not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the School District is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nDISCRETELY PRESENTED COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) was created for the benefit of the City of Chickamauga Board of Education with four separate charitable purposes identified as follows: (1) the Gordon Lee book fund; (2) Gordon Lee Librarian's salary fund; (3) the Gordon Lee High School building fund; and (4) the Gordon Lee High School endowment fund. The financial statements of the Gordon Lee Charitable Trust have not been audited and we were not engaged to audit their financial statements as part of our audit of the City of Chickamauga Board of Education. The Trust's financial activities are included in the School District's financial statements as a discretely presented component unit. See Note 14  Component Unit. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and 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\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\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 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial statements. \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The adoption of this statement did not have an impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\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 \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\naccount for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities' column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 5,000.00 5,000.00 5,000.00 100,000.00 \r\n \r\nN/A 15 to 80 years 15 to 80 years \r\n5 to 25 years 15 to 80 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nto/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nFUND BALANCES \r\n \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\n \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\n \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Chickamauga adopted the property tax levy for the 2018 tax digest year (calendar year) on September 4, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on December 20, 2018 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2018 tax digest are reported as revenue in the governmental funds for fiscal year 2019. The Chickamauga City Clerk bills and collects the property taxes for the School District and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2019, for maintenance and operations amounted to $1,671,277.28. \r\n \r\nThe tax millage rate levied for the 2018 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operation \r\n \r\n14.25 mills \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $98,156.12 during fiscal year ended June 30, 2019. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $702,908.11 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization of ESPLOST expires June 30, 2022. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects associated with issuance of Education Special Purpose Local Option Sales Tax (ESPLOST). In fiscal year 2019, the School District provided $702,908.11 of ESPLOST proceeds to the City Government for debt services on general obligation school bonds, series 2016A. \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 is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\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. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2019, the School District had deposits with a carrying amount of $4,955,204.64, and a bank balance of $5,367,311.81. The bank balances insured by Federal depository insurance were $250,000.00 and the bank balances included in the State's Secure Deposit Program (SDP) were $5,117,311.81. \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits is shown below: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 5,581,290.63 51,465.99 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,632,756.62 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n677,551.98 \r\n \r\nTotal carrying value of deposits - June 30, 2019 \r\n \r\n$ 4,955,204.64 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $677,551.98 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019, was 39 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2018 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2019 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 183,343.93 $ 234,100.00 $ \r\n \r\n- $ 417,443.93 \r\n \r\n369,654.82 2,956,853.10 1,506,137.74 \r\n \r\n1,820,370.18 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n552,998.75 3,190,953.10 1,506,137.74 \r\n \r\n2,237,814.11 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n27,099,603.90 2,140,126.81 2,214,858.91 \r\n \r\n775,409.65 48,620.99 \r\n1,088,193.09 \r\n \r\n4,061,432.24 1,242,911.49 \r\n975,761.28 \r\n \r\n585,917.20 175,206.13 158,866.20 \r\n \r\n- \r\n \r\n27,875,013.55 \r\n \r\n- \r\n \r\n2,188,747.80 \r\n \r\n- \r\n \r\n3,303,052.00 \r\n \r\n- \r\n \r\n4,647,349.44 \r\n \r\n- \r\n \r\n1,418,117.62 \r\n \r\n- \r\n \r\n1,134,627.48 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n25,174,484.61 \r\n \r\n992,234.20 \r\n \r\n- \r\n \r\n26,166,718.81 \r\n \r\nGovernmental Activities Capital Assets - Net $ 25,727,483.36 $ 4,183,187.30 $ 1,506,137.74 $ 28,404,532.92 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nGeneral Administration \r\n \r\n$ \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nOther Support Services \r\n \r\nFood Services \r\n \r\n20,151.01 62,287.38 46,108.95 \r\n2,121.59 \r\n \r\n$ 735,991.06 \r\n130,668.93 53,329.54 \r\n \r\n$ 919,989.53 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2019, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nCapital Projects Fund \r\n \r\n$ 364,737.49 $ \r\n \r\n- \r\n \r\nCity of Chickamauga (City Government) \r\n \r\n- \r\n \r\n706,650.00 \r\n \r\nTotal \r\n \r\n$ 364,737.49 $ 706,650.00 \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund as a supplemental funding source for capital construction projects. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects. Payment of the principal and interest on the series 2016A bonds will be secured by and payable first from the Education Special Purpose Local Option Sales Tax (ESPLOST) and then, if and to the extent necessary, from the general funds of the City Government or the School District or from ad valorem taxes to be levied by the City Government. Payment of the principal and interest on the series 2016B bonds will be secured by and payable from ad valorem taxes to be levied by the City Government. In fiscal year 2019, the School District transferred $702,908.11 of ESPLOST proceeds and $3,741.89 of tax proceeds to the City Government for debt services on said general obligation debt. \r\nThe School District has pledged the following estimated proceeds in the future years to the City Government for debt service on said general obligation debt: \r\nFiscal Year Ended June 30: \r\n \r\n2020 2021 2022 2023 - 2027 2028 - 2032 2033 \r\n \r\n$ 704,450.00 705,100.00 697,550.00 \r\n1,887,000.00 1,457,640.00 \r\n289,988.00 \r\n \r\nTotal \r\n \r\n$ 5,741,728.00 \r\n \r\nNOTE 7: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2018 \r\n \r\nGovernmental Activities \r\n \r\nAdditions \r\n \r\nBalance Deductions June 30, 2019 \r\n \r\nDue Within One Year \r\n \r\nCapital Leases \r\n \r\n$ 157,900.73 $ \r\n \r\n- $ 40,019.48 $ 117,881.25 $ 117,881.25 \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired buses under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n345,216.00 155,347.20 \r\n \r\n$ 189,868.80 \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2020 \r\n \r\n$ 117,881.25 $ 2,946.75 \r\n \r\nNOTE 8: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\n- 20 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSURETY BOND \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \r\n \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ \r\n \r\n22,848.66 \r\n \r\nRestricted \r\n \r\nContinuation of Federal Programs $ \r\n \r\n94,900.68 \r\n \r\nCapital Projects \r\n \r\n3,131,521.08 \r\n \r\nGordon Lee Charitable Trust \r\n \r\n222,778.35 \r\n \r\n3,449,200.11 \r\n \r\nCommitted \r\n \r\nSchool Activity Accounts \r\n \r\n$ 258,455.61 \r\n \r\nFuture Lease Payments \r\n \r\n174,814.06 \r\n \r\n433,269.67 \r\n \r\nUnassigned \r\n \r\n1,489,346.30 \r\n \r\nFund Balance, June 30, 2019 \r\n \r\n$ 5,394,664.74 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\n \r\nNOTE 10: SIGNIFICANT COMMITMENTS \r\n \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2019. \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2019 (2) \r\n \r\nGordon Lee High School Multipurpose Building \r\n \r\n$ \r\n \r\n942,064.48 $ 1,803,592.84 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainage payable at year end. \r\nOPERATING LEASES \r\nThe School District leases copiers and computers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $72,140.39 for governmental activities for the year ended June 30, 2019. \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following future minimum lease payments were required under operating leases at June 30, 2019: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2020 2021 2022 2023 2024 \r\n \r\n$ 73,676.50 19,690.44 19,690.44 19,690.44 4,916.82 \r\n \r\nTotal \r\n \r\n$ 137,664.64 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nP lan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits P rovided: 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 $321,500.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2019, the School District reported a liability of $7,696,354.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2018. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2017. An expected total OPEB liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2018. At June 30, 2018, the School District's proportion was 0.060555%, which was a decrease of 0.002195% from its proportion measured as of June 30, 2017. \r\n \r\nFor the year ended June 30, 2019, the School District recognized OPEB expense of $281,387.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB Deferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n175,062.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n1,303,799.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n10,413.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n31,318.00 \r\n \r\n280,981.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n321,500.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 363,231.00 $ 1,759,842.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $321,500.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2020 2021 2022 2023 2024 2025 \r\n \r\n$ (329,047.00) $ (329,047.00) $ (329,047.00) $ (329,669.00) $ (283,558.00) $ (117,743.00) \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018: \r\n \r\nOPEB: \r\n \r\nInflation Salary increases Long-term expected rate of return Healthcare cost trend rate \r\nPre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate Pre-Medicare Eligible Medicare Eligible \r\n \r\n2.75% 3.25% - 9.00%, including inflation 7.30%, compounded annually, net of investment expense, and including inflation \r\n7.50% 5.50% \r\n4.75% 4.75% \r\n2028 2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2017 valuation were based on a review of recent plan experience done concurrently with the June 30, 2017 valuation. \r\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 \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nweighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Mid Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\nTotal \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n100.00% \r\n \r\n(0.50)% 9.00% \r\n12.00% 13.50% \r\n8.00% 12.00% 10.50% \r\n \r\n*Net of Inflation \r\n \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.58% to 3.87%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.87% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2018. Therefore, the calculated discount rate of 3.87% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.87%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \r\n \r\n1% Decrease (2.87%) \r\n \r\nCurrent Discount Rate (3.87%) \r\n \r\n1% Increase (4.87%) \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\n$ 8,986,929.00 $ \r\n \r\n7,696,354.00 $ 6,655,641.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\n$ 6,470,387.00 $ \r\n \r\n7,696,354.00 $ 9,263,096.00 \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2019. The School District's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual School District payroll, of which 20.65% of payroll was required from the School District and 0.25% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,296,389.36 and $15,157.53 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits P rovided: 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 $15.00, 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 \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\ntermination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $17,872.00. \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2019, the School District reported a liability of $9,358,104.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 9,358,104.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n109,702.00 \r\n \r\nTotal \r\n \r\n$ 9,467,806.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2018. \r\nAt June 30, 2018, the School District's TRS proportion was 0.050415%, which was a decrease of 0.002495% from its proportion measured as of June 30, 2017. \r\nAt June 30, 2019, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $113,029.00. \r\nThe PSERS net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2018. \r\n \r\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFor the year ended June 30, 2019, the School District recognized pension expense of $861,614.00 for TRS and $26,170.00 for PSERS and revenue of $24,557.00 for TRS and $26,170.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 619,520.00 $ 19,287.00 \r\n \r\nChanges of assumptions \r\n \r\n141,210.00 \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\n255,869.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n60,819.00 \r\n \r\n454,660.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n1,296,389.36 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,117,938.36 $ 729,816.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $1,296,389.36 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2020 2021 \r\n \r\n$ 365,182.00 $ 138,363.00 \r\n \r\n2022 2023 2024 \r\n \r\n$ (323,407.00) \r\n \r\n$ (88,598.00) \r\n \r\n$ \r\n \r\n193.00 \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\n- 28 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\nPSERS Target allocation \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\n- 29 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.50%. The discount rate used to measure the total PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 15,621,355.00 $ \r\n \r\n9,358,104.00 $ 4,196,866.00 \r\n \r\nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\nNOTE 14: COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) is a legally separate tax-exempt component unit of the City of Chickamauga Board of Education (School District). It originated from the last will and testament of Gordon Lee, a citizen of City of Chickamauga that died in 1927. First Tennessee Bank serves as the trustee for the Trust. Mr. Lee's will set forth four separate bequests providing for distribution of specific amounts for charitable purposes, all for the benefit of Gordon Lee High School. The four separate trusts are as follows, Gordon Lee  Book Fund, Gordon Lee  Librarian's Salary Fund, Gordon Lee  High School Building and Gordon Lee  High School Endowment Fund. The School District receives quarterly distributions based on five percent of the December 31st fair market value. These distributions are allocated in the following manner: \r\nBook Fund  0.535% \r\nLibrarian's Salary Fund  0.435% \r\nBuilding Fund  14.7% \r\nEndowment Fund  84.33% \r\nAlthough the School District does not control the timing or amount of the receipts from the Trust, the Trust's resources and income are restricted for the benefit of Gordon Lee High School. Consequently, the Trust is considered a component unit of the School District and is discretely presented in the School District's financial statements. The Trust is operated on a calendar year basis. The balance sheet and trust activity are reported on the Statement of Net Position and Statement of Activities, respectively. During the year ended December 31, 2018, the Trust distributed $229,572.48 to the School District. \r\n \r\n- 30 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nComponent Unit Restricted Assets consist of the following: \r\n \r\nFair Market Value December 31, 2018 \r\n \r\nCash and Cash Equivalents $ Fixed Income Mutual Funds Equity Investments \r\n \r\n112,564.05 1,234,869.12 2,654,498.30 \r\n \r\n$ \r\n \r\n4,001,931.47 \r\n \r\nThe Trust was not audited and did not prepare official financial statements. The Trust follows Internal Revenue Code Section 509 for tax filings. Any inquiries or information about the Trust can be obtained from City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nNOTE 15: SUBSEQUENT EVENT \r\nIn December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\nTotal \r\n \r\n2019 2018 2017 2016 2015 \r\n \r\n0.050415% $ 9,358,104.00 $ 0.052910% $ 9,833,486.00 $ 0.052331% $ 10,796,469.00 $ 0.053486% $ 8,142,712.00 $ 0.053783% $ 6,794,773.00 $ \r\n \r\n109,702.00 110,583.00 125,643.00 \r\n95,150.00 54,198.00 \r\n \r\n$ 9,467,806.00 $ 9,944,069.00 $ 10,922,112.00 $ 8,237,862.00 $ 6,848,971.00 \r\n \r\nSchool District's covered payroll \r\n$ 6,072,083.32 $ 6,143,523.50 $ 5,807,063.88 $ 5,711,698.44 $ 5,530,641.43 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n154.12% 160.06% 185.92% 142.56% 122.86% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n80.27% 79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n2019 2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n113,029.00 $ 98,022.00 $ \r\n124,359.00 $ 79,756.00 $ 65,897.00 $ \r\n \r\nTotal \r\n113,029.00 98,022.00 \r\n124,359.00 79,756.00 65,897.00 \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n$ \r\n \r\n320,079.48 \r\n \r\n$ \r\n \r\n295,654.46 \r\n \r\n$ \r\n \r\n297,155.02 \r\n \r\n$ \r\n \r\n287,438.33 \r\n \r\n$ \r\n \r\n275,204.77 \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\n0.060555% $ 0.062750% $ \r\n \r\n7,696,354.00 8,816,350.00 \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nTotal \r\n$ 7,696,354.00 $ 8,816,350.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 5,165,643.73 $ 5,252,940.80 \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n148.99% 167.84% \r\n \r\n2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n1,296,389.36 $ \r\n \r\n1,296,389.36 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,008,880.33 $ \r\n \r\n1,008,880.33 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n866,902.64 $ \r\n \r\n866,902.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n819,130.00 $ \r\n \r\n819,130.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n742,415.82 $ \r\n \r\n742,415.82 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n671,571.47 $ \r\n \r\n671,571.47 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n618,476.49 $ \r\n \r\n618,476.49 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n557,755.57 $ \r\n \r\n557,755.57 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n557,278.23 $ \r\n \r\n557,278.23 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n552,516.23 $ \r\n \r\n552,516.23 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n6,278,074.24 \r\n \r\n$ \r\n \r\n6,072,083.32 \r\n \r\n$ \r\n \r\n6,143,523.50 \r\n \r\n$ \r\n \r\n5,807,063.88 \r\n \r\n$ \r\n \r\n5,711,698.44 \r\n \r\n$ \r\n \r\n5,530,641.43 \r\n \r\n$ \r\n \r\n5,482,377.36 \r\n \r\n$ \r\n \r\n5,483,868.24 \r\n \r\n$ \r\n \r\n5,479,016.37 \r\n \r\n$ \r\n \r\n5,716,111.71 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.65% 16.62% 14.11% 14.11% 13.00% 12.14% 11.28% 10.17% 10.17% \r\n9.67% \r\n \r\n- 36 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2019 \r\n \r\n$ \r\n \r\n321,500.00 $ \r\n \r\n321,500.00 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n313,849.00 $ \r\n \r\n313,849.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n327,185.00 $ \r\n \r\n327,185.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 5,350,889.40 $ 5,165,643.73 $ 5,252,940.80 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.01% 6.08% 6.23% \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\n \r\nChanges of assumptions: On November 18, 2015, th-e 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 \r\n \r\nexpectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the \r\n \r\nSociety of Actuaries' projection scale BB (set forward one year for males). \r\n \r\n \r\n \r\nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\n \r\nPublic School Employees Retirement System \r\nChanges of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nOn-December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the 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\nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\n \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges of assumptions: June 30, 2017 valuation: the June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. \r\n \r\n- 38 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n1,684,400.00 $ \r\n \r\n1,729,400.00 $ \r\n \r\n1,769,433.40 $ \r\n \r\n- \r\n \r\n- \r\n \r\n11,917.95 \r\n \r\n8,711,838.00 \r\n \r\n8,637,880.00 \r\n \r\n8,673,705.53 \r\n \r\n567,640.00 \r\n \r\n692,912.00 \r\n \r\n529,699.47 \r\n \r\n1,127,200.00 \r\n \r\n1,146,000.00 \r\n \r\n1,157,279.67 \r\n \r\n2,895.00 \r\n \r\n2,895.00 \r\n \r\n2,990.68 \r\n \r\n1,245,687.00 \r\n \r\n1,351,740.00 \r\n \r\n1,358,713.45 \r\n \r\n13,339,660.00 \r\n \r\n13,560,827.00 \r\n \r\n13,503,740.15 \r\n \r\n40,033.40 11,917.95 35,825.53 (163,212.53) 11,279.67 \r\n95.68 6,973.45 \r\n(57,086.85) \r\n \r\n8,646,154.00 \r\n325,973.00 108,651.00 207,989.00 567,001.00 928,741.00 201,911.00 1,192,859.00 152,128.00 \r\n5,200.00 7,150.00 47,300.00 622,850.00 199,969.00 \r\n- \r\n13,213,876.00 \r\n125,784.00 \r\n \r\n8,675,440.00 \r\n417,552.00 107,756.00 202,882.00 572,907.00 931,181.00 267,606.00 1,212,216.00 143,258.00 \r\n6,090.00 7,183.00 38,000.00 622,850.00 \r\n- \r\n- \r\n13,204,921.00 \r\n355,906.00 \r\n \r\n8,407,120.31 \r\n351,533.17 96,915.39 \r\n190,288.53 562,138.97 926,567.36 247,617.46 1,121,104.22 \r\n52,070.04 6,089.75 7,183.00 \r\n37,876.17 592,425.85 \r\n- \r\n40,019.48 3,947.52 \r\n12,642,897.22 \r\n860,842.93 \r\n \r\n268,319.69 \r\n66,018.83 10,840.61 12,593.47 10,768.03 \r\n4,613.64 19,988.54 91,111.78 91,187.96 \r\n0.25 - \r\n123.83 30,424.15 \r\n- \r\n(40,019.48) (3,947.52) \r\n562,023.78 \r\n504,936.93 \r\n \r\n(200,000.00) (200,000.00) \r\n(74,216.00) 1,767,038.22 \r\n- \r\n \r\n6,700.00 (554,645.00) (547,945.00) (192,039.00) 1,767,038.22 \r\n1,122.54 \r\n \r\n(364,737.49) (364,737.49) 496,105.44 1,767,038.22 \r\n- \r\n \r\n(6,700.00) 189,907.51 183,207.51 688,144.44 \r\n(1,122.54) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n1,692,822.22 $ \r\n \r\n1,576,121.76 $ \r\n \r\n2,263,143.66 $ \r\n \r\n687,021.90 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services State Administrative Expenses for Child Nutrition \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n195GA324N1099 $ 195GA324N1099 \r\n \r\n22,164.37 545,634.58 \r\n567,798.95 \r\n \r\n10.560 \r\n \r\n185GA904N2533 \r\n \r\n774.83 568,573.78 \r\n \r\n84.027 84.027 84.173 \r\n \r\nH027A170073 H027A180073 H173A180081 \r\n \r\n84.048 84.424A 84.424A 84.367 84.367 84.010 84.010 \r\n \r\nV048A180010 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 \r\n \r\n113,087.00 66,927.08 3,948.00 \r\n183,962.08 \r\n20,957.00 10,000.00 10,000.00 \r\n6,738.00 17,557.64 \r\n4,577.00 97,941.33 \r\n167,770.97 \r\n351,733.05 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n920,306.83 \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 City of Chickamauga Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present[the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 40 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS 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 State Health Benefit Plan Employer Holiday Categorical Grants Pupil Transportation Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services School Safety Grant Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n458,896.00 $ \r\n \r\n28,694.00 \r\n \r\n1,048,624.00 \r\n \r\n57,754.00 \r\n \r\n597,168.00 \r\n \r\n31,039.00 \r\n \r\n1,099,869.00 \r\n \r\n875,507.00 \r\n \r\n385,006.00 \r\n \r\n682,469.00 \r\n \r\n493,218.00 \r\n \r\n92,540.00 \r\n \r\n76,849.00 \r\n \r\n9,964.00 \r\n \r\n168,811.00 \r\n \r\n53,659.00 \r\n \r\n25,761.00 \r\n \r\n852.00 \r\n \r\n402,401.00 440,775.00 367,607.00 \r\n10,347.00 (67,095.00) \r\n \r\n995.00 45,000.00 1,202,868.00 \r\n \r\n12,486.00 2,447.00 2,627.00 6,970.00 \r\n15,157.53 26,568.00 \r\n \r\n- $ \r\n \r\n458,896.00 \r\n \r\n- \r\n \r\n28,694.00 \r\n \r\n- \r\n \r\n1,048,624.00 \r\n \r\n- \r\n \r\n57,754.00 \r\n \r\n- \r\n \r\n597,168.00 \r\n \r\n- \r\n \r\n31,039.00 \r\n \r\n- \r\n \r\n1,099,869.00 \r\n \r\n- \r\n \r\n875,507.00 \r\n \r\n- \r\n \r\n385,006.00 \r\n \r\n- \r\n \r\n682,469.00 \r\n \r\n- \r\n \r\n493,218.00 \r\n \r\n- \r\n \r\n92,540.00 \r\n \r\n- \r\n \r\n76,849.00 \r\n \r\n- \r\n \r\n9,964.00 \r\n \r\n- \r\n \r\n168,811.00 \r\n \r\n- \r\n \r\n53,659.00 \r\n \r\n- \r\n \r\n25,761.00 \r\n \r\n- \r\n \r\n852.00 \r\n \r\n- \r\n \r\n402,401.00 \r\n \r\n- \r\n \r\n440,775.00 \r\n \r\n- \r\n \r\n367,607.00 \r\n \r\n- \r\n \r\n10,347.00 \r\n \r\n- \r\n \r\n(67,095.00) \r\n \r\n- \r\n \r\n995.00 \r\n \r\n- \r\n \r\n45,000.00 \r\n \r\n- \r\n \r\n1,202,868.00 \r\n \r\n- \r\n \r\n12,486.00 \r\n \r\n- \r\n \r\n2,447.00 \r\n \r\n- \r\n \r\n2,627.00 \r\n \r\n- \r\n \r\n6,970.00 \r\n \r\n- \r\n \r\n15,157.53 \r\n \r\n- \r\n \r\n26,568.00 \r\n \r\n17,872.00 \r\n \r\n2,679,356.57 - \r\n \r\n2,679,356.57 17,872.00 \r\n \r\n$ 8,673,705.53 $ 2,679,356.57 $ 11,353,062.10 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n2017 ESPLOST \r\nAcquisition, construction, and equipping of new educational buildings and facilities; \r\nAcquisition and installation of system-wide security and safety equipment; \r\nAcquisition, installation, and upgrading of system-wide technology and equipment, including computers, text books, and e-books; \r\nRenovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\nAcquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and \r\nAcquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ 2,000,000.00 $ 14,471,635.00 $ 2,982,798.96 $ 10,553,516.23 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n25,000.00 \r\n \r\n10,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n15,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n3,765,000.00 \r\n \r\n- \r\n \r\n2,814,536.57 \r\n \r\n- \r\n \r\n- \r\n \r\n125,000.00 \r\n \r\n75,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n200,000.00 \r\n \r\n125,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nMarch 2020 June 2022 June 2022 June 2022 \r\nJune 2022 June 2022 \r\n \r\n2017 ESPLOST Total \r\n \r\n$ 2,900,000.00 $ 18,461,635.00 $ 2,982,798.96 $ 13,368,052.80 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 124,227.78 \r\n \r\nCurrent Year \r\n \r\n70,250.00 \r\n \r\nTotal \r\n \r\n$ 194,477.78 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 8, 2020. The report was modified for a scope limitation as identified in the auditors' report on the basic financial statements and described below. \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion on the discretely presented component unit. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMay 8, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the City of Chickamauga Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMay 8, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \r\n \r\nUnmodified Disclaimer \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\nNoncompliance material to financial statements noted: \r\n \r\nNo None Reported \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_1394079499-2019-09-30","title":"City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports).","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2019-09-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2018 June 30 (including independent auditor's reports)."],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_1394079499-2019-09-30"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_1394079499-2019-09-30"],"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":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"CITY OF CHICKAMAUGA \r\nBOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n(Including Independent Auditor's Reports) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nPage \r\ni \r\n1 2 \r\n4 5 6 7 8 9 \r\n33 34 35 36 37 38 \r\n \r\n CITY OF CHICKAMAUGABOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n39 40 41 43 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 30, 2019 \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education (School District), a component unit of the City of Chickamauga, Georgia as of and for the year ended June 30, 2018, and the related notes to the financial statements. We were not engaged to audit the financial statements of the Gordon Lee Charitable Trust. These financial statements 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. Because of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Units\" paragraph, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the discretely presented component unit. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\nExcept for the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Unit\" paragraph, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nSummary of Opinions \r\n \r\nOpinion Unit Governmental Activities Discretely Presented Component Unit General Fund Capital Projects Fund Aggregate Remaining Fund Information \r\n \r\nType of Opinion Unmodified Disclaimer Unmodified Unmodified Unmodified \r\n \r\nBasis for Disclaimer of Opinion on the Aggregate Discretely Presented Component Unit \r\n \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. \r\nDisclaimer of Opinion \r\n \r\nBecause of the significance of the matter described in the \"Basis for Disclaimer of Opinion on the Discretely Presented Component Units\" paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements of the aggregate discretely presented component unit of the School District. Accordingly, we do not express an opinion on these financial statements. \r\nUnmodified Opinions \r\n \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\n \r\nAs described in Note 2 to the financial statements, in 2018, the School District adopted new \r\naccounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended by GASB Statement 85, Omnibus 2017. The School District restated beginning net position for the \r\neffect of GASB Statement No. 75. Our opinions are not modified with respect to this matter. \r\n \r\n Other 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 accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated September 30, 2019 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\n \r\n A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nINTRODUCTION \r\nThe discussion and analysis of the City of Chickamauga Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2018 and June 30, 2017. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2018 and 2017 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $14.6 million and $19.5 million, respectively, for the fiscal years ended June 30, 2018 and 2017. Of these amounts, $1,632,351 and $1,238,807 respectively, for fiscal years 2018 and 2017 are available for spending at the School District's discretion. \r\n General revenues net of transfers to City Government accounts for $4.3 million in revenue or 23.7% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $13.8 million or 76.3% of total revenues of $18.1 million. \r\n The School District had $14.1 million in expenses related to governmental activities; however, $13.8 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily taxes) net of transfers to City Government totaling $4.3 million were adequate to provide for these programs. \r\n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 4.6 and 3.7 for the fiscal years ended June 30, 2018 and June 30, 2017, respectively. Generally, a ratio greater than 2.0 is considered very financially stable. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\ni \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nThe fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2018 and 2017, the general fund and the capital projects fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distincttype of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund and the capital projects fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. \r\nii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2018 and 2017. \r\n \r\nTable 1 Net Position \r\nAssets Current and Other Assets Capital Assets, Net \r\nTotal Assets Deferred Outflows of Resources \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources Liabilities \r\nCurrent and Other Liabilities Long-Term Liabilities Related to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Liabilities Deferred Inflows of Resources \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources Net Position \r\nNet Investment in Capital Assets Restricted Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\n$ 8,427,734 $ 10,197,673 25,727,483 20,702,327 \r\n34,155,217 30,900,000 \r\n \r\n1,672,713 354,614 \r\n2,027,327 \r\n \r\n2,673,369 - \r\n2,673,369 \r\n \r\n1,832,679 157,901 \r\n9,833,486 8,816,350 \r\n20,640,416 \r\n \r\n2,760,711 196,944 \r\n10,796,469 - \r\n13,754,124 \r\n \r\n269,054 671,342 \r\n940,396 \r\n \r\n281,911 - \r\n281,911 \r\n \r\n25,072,093 5,460,193 \r\n(15,930,554) \r\n \r\n19,007,515 7,696,024 (7,166,205) \r\n \r\n$ 14,601,732 $ 19,537,334 \r\n \r\nFiscal year 2017 balances do not reflect the effects of the Restatement of Net Position. See Current Issues in Management's Discussion and Analysis and Notes to the Basic Financial Statements for additional information. \r\nThe total net position of the School District increased $4 million from the prior year, excluding the effects of the restatement of beginning net position attributable to a change in reporting requirements that are a result of GASB Statement No. 75. The fiscal year 2017 statements above do not reflect the \r\n \r\niii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nother post-employment benefits (OPEB) liability, but from fiscal year 2018 forward, this will be included in the annual financial statements. In fiscal year 2018, the beginning net position was restated and decreased by $8.9 million to reflect these changes and then the current year liability was reported. \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2018 and June 30, 2017. \r\n \r\nTable 2 Change in Net Position \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Proceeds from Sale of Bonds by City Government Premium on Bonds Sold by City Government \r\nTransfers To City Government \r\nTotal General Revenues, Special Items and Transfer to City Government \r\nTotal Revenues \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\nIncrease in Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\n$ 1,081,670 $ 1,074,449 \r\n \r\n7,960,856 \r\n \r\n7,299,326 \r\n \r\n4,795,203 \r\n \r\n6,376,110 \r\n \r\n13,837,729 \r\n \r\n14,749,885 \r\n \r\n1,796,314 \r\n \r\n1,669,122 \r\n \r\n681,563 17,285 \r\n1,289,866 47,725 \r\n1,229,867 \r\n- \r\n(769,757) \r\n4,292,863 \r\n18,130,592 \r\n \r\n644,431 10,274 \r\n1,002,323 29,836 \r\n1,121,559 \r\n5,400,000 518,358 \r\n(726,156) \r\n9,669,747 \r\n24,419,632 \r\n \r\n9,762,794 \r\n \r\n8,503,927 \r\n \r\n298,682 79,705 \r\n278,407 593,487 827,198 200,869 1,102,066 140,378 \r\n5,200 13,721 \r\n \r\n300,255 91,650 \r\n230,982 561,566 806,002 367,701 1,109,665 \r\n96,157 5,200 \r\n11,571 \r\n \r\n42,496 788,776 \r\n4,924 \r\n \r\n47,299 643,459 \r\n5,876 \r\n \r\n14,138,703 \r\n \r\n12,781,310 \r\n \r\n$ 3,991,889 $ 11,638,322 \r\n \r\niv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nFiscal year 2017 balances do not reflect the effects of the Restatement of Net Position. See Current Issues in Management's Discussion and Analysis and Notes to the Basic Financial Statements for additional information. \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions decreased $912,156 for governmental activities during fiscal year 2018. This decrease is largely due to a decrease in GSFIC capital outlay grants. \r\n \r\nGeneral revenues and special items and transfer to City Government decreased by $5,376,884 during fiscal year 2018 due to proceeds from sale of bonds by City and premium on bonds sold by City in prior year. \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services: \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services: \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n9,762,794 $ \r\n298,682 79,705 \r\n278,407 593,487 827,198 200,869 1,102,066 140,378 \r\n5,200 13,721 \r\n42,496 788,776 \r\n4,924 \r\n \r\n8,503,927 $ (1,202,799) $ (3,204,426) \r\n \r\n300,255 91,650 \r\n230,982 561,566 806,002 367,701 1,109,665 \r\n96,157 5,200 \r\n11,571 \r\n \r\n186,460 9,208 \r\n100,269 22,581 \r\n367,464 200,869 489,204 140,378 \r\n5,200 (12,874) \r\n \r\n196,513 11,555 66,637 (52,994) \r\n369,256 367,701 328,178 \r\n96,157 5,200 \r\n(32,512) \r\n \r\n47,299 643,459 \r\n5,876 \r\n \r\n42,496 (52,407) \r\n4,924 \r\n \r\n47,299 (173,015) \r\n5,876 \r\n \r\nTotal Expenses \r\n \r\n$ 14,138,703 $ 12,781,310 $ 300,973 $ (1,968,575) \r\n \r\nFiscal year 2017 balances do not reflect the effects of the Restatement of Net Position. See Current Issues in Management's Discussion and Analysis and Notes to the Basic Financial Statements for additional information. \r\n \r\nv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District may still be dependent upon tax revenues for governmental activities. \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues and other financing sources of $17.7 million and total expenses and other financing uses of $20.2 million. There was a decrease in the fund balance totaling $2.5 million for the governmental funds as a whole primarily resulting from capital outlay. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state revenue and local property tax revenue. During the course of fiscal years 2018 and 2017, the School District amended its general fund budget as needed. \r\n \r\nFor the general fund, actual revenues of $13.3 million was approximately the same as final budgeted revenues. \r\n \r\nThe actual expenditures and other financing uses of $13.2 million was $0.5 million less than final budget . The majority of the variances between the final budgeted expenditures and actual are due to lower than anticipated expenditures in instruction, maintenance and operation of plant, student transportation services and capital outlay. \r\n \r\nCAPITAL ASSETS \r\n \r\nAt the fiscal years ended June 30, 2018 and June 30, 2017, the School District had $25.7 and $20.7 million, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\nTable 4 \r\nCapital Assets (Net of Depreciation) \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\n$ \r\n \r\n183,344 $ \r\n \r\n183,344 \r\n \r\n369,655 \r\n \r\n7,686,768 \r\n \r\n23,038,172 \r\n \r\n10,608,768 \r\n \r\n897,215 \r\n \r\n940,029 \r\n \r\n1,239,097 \r\n \r\n1,283,418 \r\n \r\nTotal \r\n \r\n$ 25,727,483 $ 20,702,327 \r\n \r\nThe overall capital assets increased in fiscal year 2018 by $5,025,156 primarily due to construction of new high school and middle school renovations. \r\n \r\nvi \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nDEBT \r\n \r\nAt the fiscal year ending June 30, 2018 the School District had $0.2 million in capital leases. Table 5 summarizes the School District's debt for capital leases. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\nCapital Leases \r\n \r\n$ \r\n \r\n157,901 $ \r\n \r\n196,944 \r\n \r\nCURRENT ISSUES \r\n \r\nThe School District is financially challenged by reduction of state revenue appropriations to local School Districts known as \"austerity reductions\". The School District has suffered from these \"austerity reductions\" in state funding of $0.1 million in fiscal year 2018. Since the austerity began in fiscal year 2003, the School District's funding has been reduced a total of $8.3 million as of fiscal year 2018. Though the austerity reduction amounts are decreasing, this is still lost funding that will not be recouped. The austerity reduction has been eliminated in fiscal year 2019. \r\n \r\nApproximately 80% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2018. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS and health insurance premium expenses. For fiscal year 2018, the School District approved a 2% increase to the salary schedules. With the elimination of austerity reduction in fiscal year 2019, the School District authorized the issuance of a one time pay adjustment of 3% to all permanent employees, meeting and calculated based on certain criteria, paid in November 2018. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that students receive a quality education from effective personnel. \r\n \r\nThe School District's millage rate for fiscal year 2018 was 14.25. The net digest for fiscal year 2018 was $107.1 million, which produced approximately $107,192 per mill. O.C.G.A. 20-2-165 requires a minimum effective millage rate in order for the School District to qualify for equalization purposes. The School District received $1,289,866 in equalization funding for fiscal year 2018. The School District's millage rate for fiscal year 2019 will remain at 14.25. It is anticipated pressure will continue to provide local monies to meet mandated educational requirements and operational costs. \r\n \r\nThe School District entered into a \"Strategic Waivers School System (SWSS/IE) Partnership Contract\" with the State Board of Education with performance accountability provisions of this contract becoming effective fiscal year 2017. The School District intends to use the flexibility provided by the contract to maximize all resources available to provide a quality education to the students of Chickamauga City Schools. \r\n \r\nThe Georgia Department of Education created the Financial Efficiency Star Ratings to provide a measure of a school district's per-pupil spending in relation to the academic achievements of its students. Specifically, the rating is based on a three-year average of per-pupil spending, which is then associated with the School District's CCRPI score. Each school district receives a rating ranging from one-half star to five stars; a five-star district can be described as having strong academic outcomes and lower levels of expenditures in comparison with other districts. The School District was pleased to receive a 4.5 rating in the initial year of fiscal year 2015. The School District maintained the 4.5 \r\nvii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nrating in fiscal year 2016 with Chickamauga Elementary School and Gordon Lee High School receiving a 4.5 rating for their schools and Gordon Lee Middle School receiving a 4.0 rating. For fiscal year 2017, the School District and all three schools received a 4.5 rating. Ratings are not yet available for fiscal year 2018, however the School District remains confident in the ability to be good stewards of resources to ensure the tradition of excellence continues for all our students. Fiscal year 2017 began with the selection of a contractor to begin construction on the new high school to replace the existing original three buildings and modifications to the middle school. The architect's original estimate was $15.2 million with $11.6 million provided by state funds. The School District's local share, owner's cost, and owner's upgrades will be funded by the recently passed ESPLOST, recently passed issuance of general obligation bonds, and local committed funds. The project is on schedule with completion anticipated in fiscal year 2019. Fiscal year 2019 also began with the selection of a contractor to begin construction on a new middle/high multipurpose building. The architect's original estimate was $2.3 million with $0.6 million provided by state funds. The School District's local share, owner's cost, and owner's upgrades will be funded by the recently passed ESPLOST, recently passed issuance of general obligation bonds by the City Government, and local committed funds. The project is on schedule with completion anticipated in summer 2019. The most significant challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is in the process of exploring new funding formulas. It is uncertain at this point what type of financial impact these changes might have on the School District's finances. The School District believes that it is currently financially sound and by maintaining a healthy general fund reserve that it has positioned itself to face the upcoming challenges and concerns. 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 City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nviii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET POSITION JUNE 30, 2018 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Restricted Assets Cash and Investments with Fiscal Agent or Trustee Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenues Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Gordon Lee Charitable Trust Unrestricted (Deficit) \r\n \r\nPRIMARY GOVERNMENT \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nCOMPONENT UNIT \r\nGORDON LEE CHARITABLE TRUST DECEMBER 31, 2017 \r\n \r\n$ \r\n \r\n5,205,031.41 $ \r\n \r\n248,479.21 2,834,431.02 \r\n47,596.52 643.49 \r\n69,826.23 21,726.12 \r\n \r\n552,998.75 25,174,484.61 \r\n \r\n34,155,217.36 \r\n \r\n- \r\n- \r\n4,591,448.92 - \r\n4,591,448.92 \r\n \r\n1,672,713.33 \r\n \r\n- \r\n \r\n354,614.00 \r\n \r\n- \r\n \r\n2,027,327.33 \r\n \r\n- \r\n \r\n15,468.54 \r\n \r\n- \r\n \r\n1,284,897.73 \r\n \r\n- \r\n \r\n163,464.87 \r\n \r\n- \r\n \r\n334,025.16 \r\n \r\n- \r\n \r\n34,823.25 \r\n \r\n- \r\n \r\n9,833,486.00 \r\n \r\n- \r\n \r\n8,816,350.00 \r\n \r\n- \r\n \r\n40,019.48 \r\n \r\n- \r\n \r\n117,881.25 \r\n \r\n- \r\n \r\n20,640,416.28 \r\n \r\n- \r\n \r\n269,054.00 \r\n \r\n- \r\n \r\n671,342.00 \r\n \r\n- \r\n \r\n940,396.00 \r\n \r\n- \r\n \r\n25,072,092.60 \r\n131,614.91 5,257,418.24 \r\n71,161.08 (15,930,554.42) \r\n \r\n- \r\n4,591,448.92 - \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n14,601,732.41 $ \r\n \r\n4,591,448.92 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nComponent Unit Gordon Lee Charitable Trust \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers to City Government \r\nTotal General Revenues and Transfers to City Government \r\nChange in Net Position \r\nNet Position - Beginning of Year - Restated \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUES \r\n \r\n$ \r\n \r\n9,762,794.13 $ \r\n \r\n298,682.36 79,705.11 \r\n278,407.48 593,486.60 827,197.80 200,868.72 1,102,065.78 140,377.86 \r\n5,200.40 13,720.85 \r\n \r\n42,496.23 788,775.58 \r\n4,923.60 \r\n \r\n$ 14,138,702.50 $ \r\n \r\n$ \r\n \r\n220,327.76 \r\n \r\n713,403.84 \r\n- \r\n368,266.55 \r\n- \r\n1,081,670.39 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\n \r\nAND CHANGES IN NET POSITION \r\n \r\nPRIMARY \r\n \r\nCOMPONENT \r\n \r\nGOVERNMENT \r\n \r\nUNIT \r\n \r\nGORDON LEE \r\n \r\nGOVERNMENTAL \r\n \r\nCHARITABLE TRUST \r\n \r\nACTIVITIES \r\n \r\nDECEMBER 31,2017 \r\n \r\n$ \r\n \r\n6,054,786.93 $ \r\n \r\n112,222.54 70,496.94 \r\n178,138.00 441,555.00 459,733.00 \r\n421,142.52 \r\n- \r\n \r\n222,781.42 \r\n- \r\n \r\n$ \r\n \r\n7,960,856.35 $ \r\n \r\n4,197,402.66 $ \r\n129,350.33 191,719.44 26,595.17 \r\n250,134.93 \r\n- \r\n4,795,202.53 \r\n \r\n1,202,799.30 \r\n(186,459.82) (9,208.17) \r\n(100,269.48) (22,581.27) \r\n(367,464.80) (200,868.72) (489,203.82) (140,377.86) \r\n(5,200.40) 12,874.32 \r\n(42,496.23) 52,407.32 (4,923.60) \r\n(300,973.23) \r\n \r\n220,327.76 \r\n \r\n1,796,313.71 \r\n681,563.16 17,285.21 \r\n1,289,866.00 47,724.26 \r\n1,229,867.41 (769,757.00) \r\n4,292,862.75 \r\n3,991,889.52 \r\n10,609,842.89 \r\n \r\n405,222.09 \r\n405,222.09 184,894.33 4,406,554.59 \r\n \r\n$ \r\n \r\n14,601,732.41 $ \r\n \r\n4,591,448.92 \r\n \r\n- 3 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2018 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Due from Other Funds Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,665,627.04 $ 3,539,404.37 $ 5,205,031.41 \r\n \r\n192,066.07 1,186,016.78 \r\n47,596.52 - \r\n69,826.23 - \r\n21,726.12 \r\n \r\n56,413.14 1,648,414.24 \r\n643.49 \r\n12,543.00 \r\n- \r\n \r\n248,479.21 2,834,431.02 \r\n47,596.52 643.49 \r\n69,826.23 12,543.00 21,726.12 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Due to Other Funds Contracts Payable Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Georgia State Financing and Investment Commission \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\n \r\n$ 3,182,858.76 $ 5,257,418.24 $ 8,440,277.00 \r\n \r\n$ \r\n \r\n15,468.54 $ \r\n \r\n1,284,897.73 \r\n \r\n12,543.00 \r\n \r\n- \r\n \r\n- \r\n \r\n34,823.25 \r\n \r\n1,347,732.52 \r\n \r\n- $ 163,464.87 334,025.16 - \r\n497,490.03 \r\n \r\n15,468.54 1,284,897.73 \r\n12,543.00 163,464.87 334,025.16 \r\n34,823.25 \r\n1,845,222.55 \r\n \r\n68,088.02 - \r\n68,088.02 \r\n \r\n1,648,414.24 \r\n1,648,414.24 \r\n \r\n68,088.02 1,648,414.24 \r\n1,716,502.26 \r\n \r\n21,726.12 181,049.87 358,634.45 1,205,627.78 \r\n1,767,038.22 \r\n \r\n3,111,513.97 \r\n- \r\n3,111,513.97 \r\n \r\n21,726.12 3,292,563.84 \r\n358,634.45 1,205,627.78 \r\n4,878,552.19 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 3,182,858.76 $ 5,257,418.24 $ 8,440,277.00 \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 CITY OF CHICKAMUAGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2018 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nGeorgia State Financing and Investment Commission grants that are not available to pay 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. \r\nCapital leases payable \r\n \r\n$ 4,878,552.19 \r\n \r\n$ \r\n \r\n183,343.93 \r\n \r\n369,654.82 \r\n \r\n27,099,603.90 \r\n \r\n2,140,126.81 \r\n \r\n2,214,858.91 \r\n \r\n(6,280,105.01) \r\n \r\n25,727,483.36 \r\n \r\n$ (9,833,486.00) (8,816,350.00) \r\n \r\n(18,649,836.00) \r\n \r\n$ \r\n \r\n1,403,659.33 \r\n \r\n(316,728.00) \r\n \r\n1,086,931.33 68,088.02 \r\n1,648,414.24 \r\n \r\n(157,900.73) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 14,601,732.41 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,743,220.89 $ \r\n \r\n17,285.21 \r\n \r\n8,888,470.38 \r\n \r\n436,433.15 \r\n \r\n1,081,670.39 \r\n \r\n2,820.50 \r\n \r\n1,190,946.52 \r\n \r\n13,360,847.04 \r\n \r\n- $ 681,563.16 3,056,788.29 \r\n44,903.76 38,920.89 \r\n3,822,176.10 \r\n \r\n1,743,220.89 698,848.37 \r\n11,945,258.67 436,433.15 \r\n1,081,670.39 47,724.26 \r\n1,229,867.41 \r\n17,183,023.14 \r\n \r\n8,642,729.97 \r\n297,826.24 79,672.85 \r\n274,103.90 553,063.82 809,449.71 197,006.45 1,045,811.30 \r\n52,878.47 5,200.40 7,150.00 \r\n42,496.23 641,251.82 \r\n- \r\n39,043.40 4,923.60 \r\n12,692,608.16 \r\n668,238.88 \r\n(493,674.00) \r\n(493,674.00) \r\n174,564.88 \r\n1,592,473.34 \r\n \r\n106,753.82 \r\n5,418.74 160,930.00 5,990,970.28 \r\n- \r\n6,264,072.84 \r\n(2,441,896.74) \r\n \r\n8,749,483.79 \r\n297,826.24 79,672.85 \r\n274,103.90 553,063.82 809,449.71 197,006.45 1,051,230.04 \r\n52,878.47 5,200.40 7,150.00 \r\n42,496.23 802,181.82 5,990,970.28 \r\n39,043.40 4,923.60 \r\n18,956,681.00 \r\n(1,773,657.86) \r\n \r\n493,674.00 (769,757.00) \r\n(276,083.00) \r\n(2,717,979.74) \r\n5,829,493.71 \r\n \r\n493,674.00 (1,263,431.00) \r\n(769,757.00) \r\n(2,543,414.86) \r\n7,421,967.05 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n1,767,038.22 $ \r\n \r\n3,111,513.97 $ \r\n \r\n4,878,552.19 \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2018 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nGeorgia State Financing and Investment Commission grants that are not available to pay current period expenditures are deferred in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. \r\nCapital lease payments \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\n \r\n$ (2,543,414.86) \r\n \r\n$ 6,204,285.90 (750,702.89) \r\n \r\n5,453,583.01 \r\n \r\n(428,426.78) \r\n \r\n53,092.82 \r\n \r\n1,648,414.24 \r\n \r\n39,043.40 \r\n \r\n$ \r\n \r\n(24,815.31) \r\n \r\n(205,587.00) \r\n \r\n(230,402.31) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 3,991,889.52 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2018 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 43,384.51 $ 43,384.51 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Chickamauga 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 not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the School District is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nDISCRETELY PRESENTED COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) was created for the benefit of the City of Chickamauga Board of Education with four separate charitable purposes identified as follows: (1) the Gordon Lee book fund; (2) Gordon Lee Librarian's salary fund; (3) the Gordon Lee High School building fund; and (4) the Gordon Lee High School endowment fund. The financial statements of the Gordon Lee Charitable Trust have not been audited and we were not engaged to audit their financial statements as part of our audit of the City of Chickamauga Board of Education. The Trust's financial activities are included in the School District's financial statements as a discretely presented component unit. See Note 15  Component Unit. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and 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\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\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 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. The adoption of this statement has a significant impact on the School District's financial statements. As noted in the Restatement of Net Position note disclosure, the School District restated beginning net position for the cumulative effect of this accounting change. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 81, Irrevocable Split-Interest Agreements. This statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This statement requires that a government recognize revenue when the resources become applicable to the reporting period. The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 85, Omnibus 2017. The objective of this statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits OPEB). The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources--resources other than the proceeds of refunding debt--are placed in an irrevocable trust for the sole purpose of extinguishing debt. This statement also improves accounting and financial \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nreporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 5,000.00 5,000.00 5,000.00 100,000.00 \r\n \r\nN/A 15 to 80 years 15 to 80 years \r\n5 to 25 years 15 to 80 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nfund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\n \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\n \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Chickamauga adopted the property tax levy for the 2017 tax digest year (calendar year) on September 5, 2017 (levy date) based on property values as of January 1, 2017. Taxes were due on December 20, 2017 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2017 tax digest are reported as revenue in the governmental funds for fiscal year 2018. The Chickamauga City Clerk bills and collects the property taxes for the School District, and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2018, for maintenance and operations amounted to $1,663,145.51. \r\n \r\nThe tax millage rate levied for the 2017 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.25 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $80,075.38 during fiscal year ended June 30, 2018. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $681,563.16 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. The most recent authorization of ESPOST expires June 30, 2022. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects associated with issuance of Education Special Purpose Local Option Sales Tax (ESPLOST). In fiscal year 2018, the School District provided $681,563.16 of ESPLOST proceeds to the City Government for debt services on general obligation school bonds, series 2011 and 2016A. \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 is prepared and adopted by fund, function and object. \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2018, the School District had deposits with a carrying amount of $3,259,958.43, and a bank balance of $4,042,846.05. The bank balances insured by Federal depository insurance were $250,000.00 and the bank balances included in the State's Secure Deposit Program (SDP) were $3,792,846.05. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits is shown below: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 5,205,031.41 43,384.51 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,248,415.92 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n1,988,457.49 \r\n \r\nTotal carrying value of deposits - June 30, 2018 \r\n \r\n$ 3,259,958.43 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $1,988,457.49 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2017 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2018 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 183,343.93 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n7,686,768.44 \r\n \r\n5,994,996.28 13,312,109.90 \r\n \r\n183,343.93 369,654.82 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n7,870,112.37 \r\n \r\n5,994,996.28 13,312,109.90 \r\n \r\n552,998.75 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n14,692,421.32 2,243,116.98 2,171,704.15 \r\n \r\n13,214,409.90 213,315.62 93,674.00 \r\n \r\n4,083,653.31 1,303,088.22 \r\n888,286.16 \r\n \r\n441,951.08 187,597.20 121,154.61 \r\n \r\n807,227.32 316,305.79 \r\n50,519.24 \r\n \r\n27,099,603.90 2,140,126.81 2,214,858.91 \r\n \r\n464,172.15 247,773.93 \r\n33,679.49 \r\n \r\n4,061,432.24 1,242,911.49 \r\n975,761.28 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n12,832,214.76 12,770,696.63 \r\n \r\n428,426.78 25,174,484.61 \r\n \r\nGovernmental Activity Capital Assets - Net $ 20,702,327.13 $ 18,765,692.91 $ 13,740,536.68 $ 25,727,483.36 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services \r\n \r\n$ 20,637.51 30,588.34 52,709.20 4,243.19 \r\n \r\n$ 602,616.27 \r\n108,178.24 39,908.38 \r\n \r\n$ 750,702.89 \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \r\n \r\nINTERFUND ASSETS AND LIABILITIES \r\n \r\nInterfund balances at June 30, 2018, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral Fund \r\n \r\n$ \r\n \r\nCapital Projects Fund \r\n \r\n$ \r\n \r\n- $ 12,543.00 \r\n12,543.00 $ \r\n \r\n12,543.00 - \r\n12,543.00 \r\n \r\nINTERFUND TRANSFERS \r\nTransfers for the year ended June 30, 2018, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nCapital Projects Fund \r\n \r\n$ 493,674.00 $ \r\n \r\n- \r\n \r\nCity of Chickamauga (City Government) \r\n \r\n- \r\n \r\n769,757.00 \r\n \r\nTotal \r\n \r\n$ 493,674.00 $ 769,757.00 \r\n \r\nTransfers are used to move property tax revenues collected by the general fund to the capital projects fund as a supplemental funding source for capital construction projects. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for capital outlay projects. Payment of the principal and interest on the series 2011 and series 2016A bonds will be secured by and payable first from the Education Special Purpose Local Option Sales Tax (ESPLOST) and then, if and to the extent necessary, from the general funds of the City Government or the School District or from ad valorem taxes to be levied by the City Government. Payment of the principal and interest on the series 2016B bonds will be secured by and payable from ad valorem taxes to be levied by the City Government. In fiscal year 2018, the School District transferred $681,563.16 of ESPLOST proceeds and $88,193.84 of tax proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nThe School District has pledged the following estimated proceeds in the future years to the City Government for debt service on said general obligation debt: \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2019 2020 2021 2022 2023 - 2027 2028 - 2032 2033 \r\nTotal \r\n \r\n$ 705,650.00 704,450.00 705,100.00 697,550.00 \r\n1,887,000.00 1,457,640.00 \r\n289,988.00 \r\n$ 6,447,378.00 \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2017 \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nAdditions \r\n \r\nDeductions June 30, 2018 \r\n \r\nDue Within One Year \r\n \r\nCapital Leases \r\n \r\n$ 196,944.13 $ \r\n \r\n- $ 39,043.40 $ 157,900.73 $ 40,019.48 \r\n \r\nCAPITAL LEASES \r\nThe School District has acquired buses under the provisions of various long-term lease agreements classified as capital leases for accounting purposes because they provide for a bargain purchase option or a transfer of ownership by the end of the lease term. \r\nThe following assets were acquired through capital leases and are reflected in the capital asset note at fiscal year-end: \r\nGovernmental Activities \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nLess: Accumulated Depreciation \r\n \r\n345,216.00 120,825.60 \r\n \r\n$ 224,390.40 \r\n \r\nThe following is a schedule of total capital lease payments: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2019 2020 \r\n \r\n$ 40,019.48 $ 117,881.25 \r\n \r\n3,947.52 2,946.75 \r\n \r\nTotal Principal and Interest $ 157,900.73 $ \r\n \r\n6,894.27 \r\n \r\nNOTE 8: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nfor its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\n \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\n \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\n \r\nSURETY BOND \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n- 20 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \r\nFUND BALANCES \r\n \r\nNonspendable \r\n \r\nInventories \r\n \r\n$ 21,726.12 \r\n \r\nRestricted \r\n \r\nContinuation of Federal programs $ 109,888.79 \r\n \r\nCapital projects \r\n \r\n3,111,513.97 \r\n \r\nGordon Lee Charitable Trust \r\n \r\n71,161.08 3,292,563.84 \r\n \r\nCommitted \r\n \r\nSchool activity accounts \r\n \r\n$ 206,695.33 \r\n \r\nFuture lease payments \r\n \r\n151,939.12 \r\n \r\n358,634.45 \r\n \r\nUnassigned \r\n \r\n1,205,627.78 \r\n \r\nFund Balance, June 30, 2018 \r\n \r\n$ 4,878,552.19 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: SIGNIFICANT COMMITMENTS \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2018, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Payments through Funding Available \r\n \r\nContracts (1) \r\n \r\nJune 30, 2018 (2) From State (1) \r\n \r\nGordon Lee Middle/High Facility $ 1,971,018.79 $ 12,485,003.99 $ 527,005.33 \r\n \r\n(1) The amounts described at not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \r\n \r\nOPERATING LEASES \r\nThe School District leases copiers and computers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $67,927.30 for governmental activities for the year ended June 30, 2018. The following future minimum lease payments were required under operating leases at June 30, 2018: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2019 2020 \r\n \r\n$ 56,964.37 54,646.62 \r\n \r\nTotal \r\n \r\n$ 111,610.99 \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nP lan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits P rovided: 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 $313,849.00 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\nAt June 30, 2018, the School District reported a liability of $8,816,350.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2017. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2016. An expected total OPEB liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2017. At June 30, 2017, the School District's proportion was 0.062750%, which was an increase of 0.000304% from its proportion measured as of June 30, 2016. \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFor the year ended June 30, 2018, the School District recognized OPEB expense of $519,436.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nChanges of assumptions \r\n \r\n$ \r\n \r\n- $ 671,342.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n2,579.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences \r\n \r\nbetween School District contributions and \r\n \r\nproportionate share of contributions \r\n \r\n38,186.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n313,849.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 354,614.00 $ 671,342.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $313,849.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2019 2020 2021 2022 2023 2024 \r\n \r\n$ (113,232.00) $ (113,232.00) $ (113,232.00) $ (113,232.00) $ (113,877.00) $ (63,772.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017: \r\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nERS \r\n \r\n3.25% - 7.00%, including inflation \r\n \r\nJRS \r\n \r\n4.50%, including inflation \r\n \r\nLRS \r\n \r\nNone \r\n \r\nTRS \r\n \r\n3.25 -- 9.00%, including inflation \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPSERS \r\n \r\nN/A \r\n \r\nLong-term expected rate of return \r\nHealthcare cost trend rate \r\n \r\n3.88%, compounded annually, net of investment expense, and including inflation \r\n \r\nPre-Medicare Eligible \r\n \r\n7.75% \r\n \r\nMedicare Eligible \r\n \r\n5.75% \r\n \r\nUltimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n5.00% \r\n \r\nMedicare Eligible \r\n \r\n5.00% \r\n \r\nYear of Ultimate trend rate \r\n \r\n2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n \r\n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 with projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\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\nAdditionally, there was a change of assumptions that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58%. \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nweighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset Class \r\n \r\nTarget Allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nLocal Government Investment Pool \r\n \r\n100.00% \r\n \r\n1.13% \r\n \r\n*Rate shown is net of the 2.75% assumed rate of inflation. \r\n \r\nDiscount rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\nNet OPEB Liability \r\n \r\n$ 10,467,836.00 $ \r\n \r\n8,816,350.00 $ 7,512,992.00 \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nNet OPEB Liability \r\n \r\n$ 7,307,750.00 $ \r\n \r\n8,816,350.00 $ 10,780,545.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. The School District's contractually required contribution rate for the year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.62% of payroll was required from the School District and 0.19% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,008,880.33 and $11,438.18 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $17,961.00. \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2018, the School District reported a liability of $9,833,486.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 9,833,486.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n110,583.00 \r\n \r\nTotal \r\n \r\n$ 9,944,069.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2017. \r\nAt June 30, 2017, the School District's TRS proportion was 0.052910%, which was an increase of 0.000579% from its proportion measured as of June 30, 2016. \r\nAt June 30, 2018, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $98,022.00. \r\nThe PSERS net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017. \r\nFor the year ended June 30, 2018, the School District recognized pension expense of $1,059,196.00 for TRS and $19,755.00 for PSERS and revenue of $25,463.00 for TRS and $19,755.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 27 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 367,833.00 $ 37,111.00 \r\n \r\nChanges of assumptions \r\n \r\n215,562.00 \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\n67,671.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n80,438.00 \r\n \r\n164,272.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n1,008,880.33 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,672,713.33 $ 269,054.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $$1,008,880.33 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ (107,189.00) \r\n \r\n$ 485,932.00 \r\n \r\n$ 247,154.00 \r\n \r\n$ (239,028.00) \r\n \r\n$ \r\n \r\n7,910.00 \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\n- 28 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n100.00% \r\n \r\nPSERS Target allocation \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% 100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\n- 29 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nDiscount rate: The discount rate used to measure the total TRS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 16,137,905.00 $ \r\n \r\n9,833,486.00 $ 4,640,063.00 \r\n \r\nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available \r\nat www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2018, the School District made prior period adjustments due to the adoption of GASB Statement No. 75, as described in \"New Accounting Pronouncements\", which require the restatement of the June 30, 2017, net position in Governmental Activities. The result is a decrease in net position at July 1, 2017 of $8,927,491.00 This change is in accordance with generally accepted accounting procedures. \r\n \r\nNet Position, July 1, 2017 as previously reported \r\n \r\n$ 19,537,333.89 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \r\n \r\n(9,254,676.00) \r\n \r\nDeferred Outflows - School District's Contributions made during fiscal year 2017 \r\n \r\n327,185.00 \r\n \r\nNet Position, July 1, 2017, as restated \r\n \r\n$ 10,609,842.89 \r\n \r\nNOTE 15: COMPONENT UNIT \r\nThe Gordon Lee Charitable Trust (Trust) is a legally separate tax-exempt component unit of the City of Chickamauga Board of Education (School District). It originated from the last will and testament of Gordon Lee, a citizen of City of Chickamauga that died in 1927. First Tennessee Bank serves as the trustee for the Trust. Mr. Lee's will set forth four separate bequests providing for distribution of specific amounts for charitable purposes, all for the benefit of Gordon Lee High School. The four separate trusts are as follows, Gordon Lee  Book Fund, Gordon Lee  Librarian's Salary Fund, Gordon Lee  \r\n \r\n- 30 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nHigh School Building and Gordon Lee  High School Endowment Fund. The School District receives quarterly distributions based on five percent of the December 31st fair market value. These distributions are allocated in the following manner: \r\nBook Fund  0.535% Librarian's Salary Fund  0.435% Building Fund  14.7% Endowment Fund  84.33% \r\n \r\nAlthough the School District does not control the timing or amount of the receipts from the Trust, the Trust's resources and income are restricted for the benefit of Gordon Lee High School. Consequently, the Trust is considered a component unit of the School District and is discretely presented in the School District's financial statements. The Trust is operated on a calendar year basis. The balance sheet and trust activity are reported on the Statement of Net Position and Statement of Activities, respectively. During the year ended December 31, 2017, the Trust distributed $220,327.76 to the School District. \r\n \r\nComponent Unit Restricted Assets consist of the following: \r\n \r\nCash and Cash Equivalents Fixed Income Mutual Funds \r\n \r\nFair Market Value \r\n \r\nDecember 31, 2017 \r\n \r\n$ \r\n \r\n54,282.44 \r\n \r\n1,274,634.09 \r\n \r\nEquity Investments \r\n \r\n3,262,532.39 \r\n \r\n$ \r\n \r\n4,591,448.92 \r\n \r\nThe Trust was not audited and did not prepare official financial statements. The Trust follows Internal Revenue Code Section 509 for tax filings. Any Inquiries or information about the Trust can be obtained from City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n0.052910% $ 0.052331% $ 0.053486% $ 0.053783% $ \r\n \r\n9,833,486.00 10,796,469.00 \r\n8,142,712.00 6,794,773.00 \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\n$ \r\n \r\n110,583.00 \r\n \r\n$ \r\n \r\n125,643.00 \r\n \r\n$ \r\n \r\n95,150.00 \r\n \r\n$ \r\n \r\n54,198.00 \r\n \r\nTotal \r\n$ 9,944,069.00 $ 10,922,112.00 $ 8,237,862.00 $ 6,848,971.00 \r\n \r\nSchool District's covered payroll \r\n$ 6,143,523.50 $ 5,807,063.88 $ 5,711,698.44 $ 5,530,641.43 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n160.06% 185.92% 142.56% 122.86% \r\n \r\n79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\n0.00% $ \r\n \r\n- \r\n \r\n0.00% $ \r\n \r\n- \r\n \r\n0.00% $ \r\n \r\n- \r\n \r\n0.00% $ \r\n \r\n- \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\n$ \r\n \r\n98,022.00 $ \r\n \r\n$ \r\n \r\n124,359.00 $ \r\n \r\n$ \r\n \r\n79,756.00 $ \r\n \r\n$ \r\n \r\n65,897.00 $ \r\n \r\nTotal \r\n98,022.00 124,359.00 \r\n79,756.00 65,897.00 \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n295,654.46 \r\n \r\n$ \r\n \r\n297,155.02 \r\n \r\n$ \r\n \r\n287,438.33 \r\n \r\n$ \r\n \r\n275,204.77 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n0.062750% $ \r\n \r\n8,816,350.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\nTotal 8,816,350.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 5,252,940.80 \r\n \r\nSchool District's proportionate share of the net OPEB liability as a percentage of its \r\ncovered-employee payroll \r\n167.84% \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2018 \r\n \r\n$ \r\n \r\n1,008,880.33 $ \r\n \r\n1,008,880.33 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n866,902.64 $ \r\n \r\n866,902.64 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n819,130.00 $ \r\n \r\n819,130.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n742,415.82 $ \r\n \r\n742,415.82 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n671,571.47 $ \r\n \r\n671,571.47 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n618,476.49 $ \r\n \r\n618,476.49 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n557,755.57 $ \r\n \r\n557,755.57 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n557,278.23 $ \r\n \r\n557,278.23 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n552,516.23 $ \r\n \r\n552,516.23 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 6,072,083.32 $ 6,143,523.50 $ 5,807,063.88 $ 5,711,698.44 $ 5,530,641.43 $ 5,482,377.36 $ 5,483,868.24 $ 5,479,016.37 $ 5,716,111.71 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n16.62% 14.11% 14.11% 13.00% 12.14% 11.28% 10.17% 10.17% \r\n9.67% \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION- WALKER COUNTY REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2018 \r\n \r\n$ \r\n \r\n313,849.00 $ \r\n \r\n313,849.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n327,185.00 $ \r\n \r\n327,185.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 5,165,643.73 $ 5,252,940.80 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.08% 6.23% \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nSchool OPEB Fund \r\nChanges of benefit terms: In June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \r\nChanges in assumptions: In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. Additionally, there were changes to the discount rate and an increase in the investment rate of return due to a longer-term investment strategy. \r\nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \r\nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \r\n \r\n- 38 - \r\n \r\n CITY OF CHICKAMAIGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 1,605,000.00 $ 1,684,400.00 $ 1,743,220.89 $ \r\n \r\n- \r\n \r\n- \r\n \r\n17,285.21 \r\n \r\n8,333,939.00 \r\n \r\n8,722,802.00 \r\n \r\n8,888,470.38 \r\n \r\n553,196.00 \r\n \r\n547,240.00 \r\n \r\n436,433.15 \r\n \r\n1,159,510.00 \r\n \r\n1,165,850.00 \r\n \r\n1,081,670.39 \r\n \r\n2,305.00 \r\n \r\n2,840.00 \r\n \r\n2,820.50 \r\n \r\n1,191,212.00 \r\n \r\n1,222,797.00 \r\n \r\n1,190,946.52 \r\n \r\n12,845,162.00 \r\n \r\n13,345,929.00 \r\n \r\n13,360,847.04 \r\n \r\n58,820.89 17,285.21 165,668.38 (110,806.85) (84,179.61) \r\n(19.50) (31,850.48) \r\n14,918.04 \r\n \r\n8,302,433.00 \r\n300,805.00 105,934.00 228,383.00 555,870.00 802,015.00 223,692.00 1,159,399.00 160,595.00 \r\n5,200.00 7,425.00 47,300.00 650,500.00 366,220.00 \r\n- \r\n12,915,771.00 \r\n(70,609.00) \r\n \r\n8,945,930.00 \r\n320,639.00 99,476.00 \r\n292,086.00 560,445.00 826,434.00 192,158.00 1,126,178.00 142,895.00 \r\n5,200.00 7,150.00 47,300.00 650,500.00 103,674.00 \r\n- \r\n13,320,065.00 \r\n25,864.00 \r\n \r\n8,642,729.97 \r\n297,826.24 79,672.85 \r\n274,103.90 553,063.82 809,449.71 197,006.45 1,045,811.30 \r\n52,878.47 5,200.40 7,150.00 \r\n42,496.23 641,251.82 \r\n- \r\n39,043.40 4,923.60 \r\n12,692,608.16 \r\n668,238.88 \r\n \r\n303,200.03 \r\n22,812.76 19,803.15 17,982.10 \r\n7,381.18 16,984.29 (4,848.45) 80,366.70 90,016.53 \r\n(0.40) - \r\n4,803.77 9,248.18 103,674.00 \r\n(39,043.40) (4,923.60) \r\n627,456.84 \r\n642,374.88 \r\n \r\n(200,000.00) (270,609.00) 1,592,473.34 \r\n- \r\n \r\n(400,000.00) (374,136.00) 1,592,473.34 \r\n11,390.60 \r\n \r\n(493,674.00) 174,564.88 1,592,473.34 \r\n- \r\n \r\n(93,674.00) 548,700.88 \r\n(11,390.60) \r\n \r\n$ 1,321,864.34 $ 1,229,727.94 $ 1,767,038.22 $ \r\n \r\n537,310.28 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n CITY OF CHICKAMAIGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n18185GA324N1099 $ 18185GA324N1100 \r\n \r\n37,860.52 587,214.00 \r\n625,074.52 \r\n \r\n84.027 84.027 84.173 \r\n \r\nH027A160073 H027A170073 H173A170081 \r\n \r\n84.048 84.367 84.367 84.010 84.010 \r\n \r\nV048A170010 S367A160001 S367A170001 S010A160010 S010A170010 \r\n \r\n21,000.00 77,016.02 \r\n3,615.00 \r\n101,631.02 \r\n9,588.00 11,001.00 \r\n7,114.40 7,623.00 110,986.79 \r\n146,313.19 \r\n247,944.21 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n873,018.73 \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 City of Chickamauga Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2018. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments , or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 40 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Nursing Services Education Equalization Funding Grant Other State Programs Agriculture Construction Related Equipment - State Bonds Food Services Math and Science Supplements Preschool Disability Services Teachers Retirement Vocational Education Vocational Construction Related Equipment - State Bonds \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 502,509.00 $ 29,199.00 \r\n998,761.00 67,854.00 \r\n583,245.00 43,621.00 \r\n1,068,354.00 856,648.00 368,483.00 695,689.00 514,469.00 48,573.00 75,340.00 11,257.00 165,574.00 52,198.00 25,788.00 851.00 \r\n409,912.00 426,772.00 366,510.00 (120,507.00) \r\n45,000.00 1,289,866.00 \r\n90,000.00 15,070.00 \r\n2,365.20 5,129.00 11,438.18 28,566.00 191,975.00 \r\n \r\n- $ \r\n \r\n502,509.00 \r\n \r\n- \r\n \r\n29,199.00 \r\n \r\n- \r\n \r\n998,761.00 \r\n \r\n- \r\n \r\n67,854.00 \r\n \r\n- \r\n \r\n583,245.00 \r\n \r\n- \r\n \r\n43,621.00 \r\n \r\n- \r\n \r\n1,068,354.00 \r\n \r\n- \r\n \r\n856,648.00 \r\n \r\n- \r\n \r\n368,483.00 \r\n \r\n- \r\n \r\n695,689.00 \r\n \r\n- \r\n \r\n514,469.00 \r\n \r\n- \r\n \r\n48,573.00 \r\n \r\n- \r\n \r\n75,340.00 \r\n \r\n- \r\n \r\n11,257.00 \r\n \r\n- \r\n \r\n165,574.00 \r\n \r\n- \r\n \r\n52,198.00 \r\n \r\n- \r\n \r\n25,788.00 \r\n \r\n- \r\n \r\n851.00 \r\n \r\n- \r\n \r\n409,912.00 \r\n \r\n- \r\n \r\n426,772.00 \r\n \r\n- \r\n \r\n366,510.00 \r\n \r\n- \r\n \r\n(120,507.00) \r\n \r\n- \r\n \r\n45,000.00 \r\n \r\n- \r\n \r\n1,289,866.00 \r\n \r\n- \r\n \r\n90,000.00 \r\n \r\n- \r\n \r\n15,070.00 \r\n \r\n- \r\n \r\n2,365.20 \r\n \r\n- \r\n \r\n5,129.00 \r\n \r\n- \r\n \r\n11,438.18 \r\n \r\n- \r\n \r\n28,566.00 \r\n \r\n- \r\n \r\n191,975.00 \r\n \r\n17,961.00 \r\n \r\n3,056,788.29 - \r\n \r\n3,056,788.29 17,961.00 \r\n \r\n$ 8,888,470.38 $ 3,056,788.29 $ 11,945,258.67 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n2012 ESPLOST \r\nAdding to, remodeling, renovating, improving, and equipping existing educational buildings, properties, and facilities of the School District, including athletic facilities and sites, and acquiring any property, both real and personal; and \r\nSystem-wide security and safety improvements and upgrade of technology and equipment. \r\n2012 ESPLOST Total \r\n2017 ESPLOST \r\nAcquisition, construction, and equipping of new educational buildings and facilities; \r\nAcquisition and installation of system-wide security and safety equipment; \r\nAcquisition, installation, and upgrading of system-wide technology and equipment, including computers, text books, and e-books; \r\nRenovations, improvements, and equipping of existing educational buildings, properties, and facilities; \r\nAcquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, including energy management systems, heating and air conditioning systems, lighting, and similar equipment; and \r\nAcquisition of real property for future schools, facilities, administrative offices, support services, and other purposes of the City of Chickamauga School District. \r\n2017 ESPLOST Total \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ 2,018,850.00 $ 1,777,824.84 $ \r\n \r\n25,633.33 $ 1,752,191.51 $ 1,777,824.84 $ \r\n \r\n- \r\n \r\n100,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n2,118,850.00 \r\n \r\n1,777,824.84 \r\n \r\n25,633.33 \r\n \r\n1,752,191.51 \r\n \r\n1,777,824.84 \r\n \r\n- \r\n \r\n2,000,000.00 \r\n \r\n14,210,446.00 \r\n \r\n3,338,426.37 \r\n \r\n7,215,089.86 \r\n \r\n- \r\n \r\n- \r\n \r\n25,000.00 \r\n \r\n25,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n25,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n500,000.00 \r\n \r\n2,850,000.00 \r\n \r\n2,806,339.14 \r\n \r\n8,197.43 \r\n \r\n- \r\n \r\n- \r\n \r\n125,000.00 \r\n \r\n100,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n200,000.00 \r\n \r\n150,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n2,900,000.00 \r\n \r\n17,360,446.00 \r\n \r\n6,144,765.51 \r\n \r\n7,223,287.29 \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nCompleted Completed \r\nJune 2020 June 2020 June 2020 June 2020 \r\nJune 2020 June 2020 \r\n \r\nESPLOST Total \r\n \r\n$ 5,018,850.00 $ 19,138,270.84 $ 6,170,398.84 $ 8,975,478.80 $ 1,777,824.84 $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n461,594.39 \r\n \r\nCurrent Year \r\n \r\n87,800.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n549,394.39 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 30, 2019 \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \r\nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated September 30, 2019. The report was modified for a scope limitation as identified in the auditor's report on the basic financial statements and described below. \r\nThe financial statements of the Gordon Lee Charitable Trust (Trust) have not been audited, and we were not engaged to audit the Trust's financial statements as part of our audit of the School District's basic financial statements. The Trust's financial activities are included in the School District's basic financial statements as a discretely presented component unit. We do not express an opinion on the discretely presented component unit. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. 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\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 30, 2019 \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the City of Chickamauga Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \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 CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\nFinancial Statements \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information Discretely Presented Component Unit \r\n \r\nUnmodified Disclaimer \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Number \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2015-belec-p-btext","title":"City of Chickamauga Board of Education, a component unit of the city of Chickamauga, Georgia, annual financial report for the fiscal year ended 2015 June 30 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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Department of Audits"],"dc_date":["2013-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2012-h2013-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n(Including Independent Auditor's Reports) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\ni \r\n1 2 3 4 5 6 7 8 \r\n21 \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n22 23 24 25 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  SECTION I FINANCIAL \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 24, 2014 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board of Education, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of \r\n2013ARL-11 \r\n \r\n  expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2013, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2013, the City of Chickamauga Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 21 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chickamauga Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \r\n2013ARL-11 \r\n \r\n  The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 24, 2014, on our consideration of the City of Chickamauga Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Chickamauga Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\nINTRODUCTION \r\nOur discussion and analysis of the City of Chickamauga School District's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2013 and June 30, 2012. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2013 and 2012 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $15.1 million and $15.7 million, respectively, for the fiscal years ended June 30, 2013 and 2012. Of these amounts $1,019,317 and $1,092,777, respectively, for fiscal years 2013 and 2012 are available for spending at the School District's discretion. \r\n The School District had $11.0 million and $10.9 million, respectively, in expenses for the fiscal years ended June 30, 2013 and June 30, 2012 relating to governmental activities. Only $7.5 million of the above mentioned expenses for 2013 and 2012 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes), special items and transfers to city government totaling $3.0 million and $6.1 million, respectively, for 2013 and 2012 along with fund balance were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $3.0 million or 28.5% of all revenues totaling $10.5 million for fiscal year 2013 and $6.1 million or 45.0% of all revenues totaling $13.6 million for fiscal year 2012. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the Districtwide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \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. The Fiduciary Funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. The fund financial statements reflect the School District's most significant funds. In the case of the Chickamauga City School District, the General Fund and District-wide Capital Projects Fund are the most significant funds. \r\ni \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \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\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net position and any changes in the 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 and other factors. \r\nThe Statement of Net Position and the Statement of Activities reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can 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 to the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the District-wide financial statements because it cannot use these assets to finance its operations. \r\nii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2013 and 2012. \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2013 \r\n \r\nYear 2012 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ \r\n \r\n5,069,410 $ \r\n \r\n6,001,891 \r\n \r\n11,234,043 \r\n \r\n10,772,643 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n16,303,453 $ 16,774,534 \r\n \r\nLiabilities Current and Other Liabilities \r\n \r\n$ \r\n \r\n1,173,316 $ \r\n \r\n1,106,958 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted \r\n \r\n$ \r\n \r\n11,234,043 $ 10,772,643 \r\n \r\n2,876,778 \r\n \r\n3,802,156 \r\n \r\n1,019,316 \r\n \r\n1,092,777 \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n15,130,137 $ 15,667,576 \r\n \r\niii \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n \r\nTable 2 shows the Changes in Net Position for fiscal years ending June 30, 2013 and June 30, 2012. \r\n \r\nTable 2 Change in Net Position \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2013 \r\n \r\n2012 \r\n \r\n$ \r\n \r\n997,083 $ \r\n \r\n961,681 \r\n \r\n6,476,906 \r\n \r\n6,513,907 \r\n \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Proceeds and Premium on Bonds Sold by City \r\nTransfer to City Government \r\n \r\n$ \r\n \r\n7,473,989 $ \r\n \r\n7,475,588 \r\n \r\n$ \r\n \r\n1,440,060 $ \r\n \r\n1,418,026 \r\n \r\n709,543 23,163 \r\n567,286 6,867 \r\n964,765 \r\n-734,868 \r\n \r\n729,442 9,983 \r\n583,413 17,737 \r\n865,645 \r\n3,186,261 -688,954 \r\n \r\nTotal General Revenues, Special Items and Transfer to City Government $ \r\n \r\nTotal Revenues \r\n \r\n$ \r\n \r\nProgram Expenses: \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\nTotal Expenses \r\n \r\n$ \r\n \r\nChange in Net Position \r\n \r\n$ \r\n \r\n2,976,816 $ \r\n10,450,805 $ \r\n7,330,117 $ \r\n267,550 68,951 \r\n198,323 481,194 741,057 187,141 948,201 \r\n87,093 3,667 6,112 \r\n43,140 625,698 \r\n10,988,244 $ \r\n-537,439 $ \r\n \r\n6,121,553 \r\n13,597,141 \r\n7,132,556 \r\n279,223 80,048 \r\n193,220 559,069 720,261 285,829 888,120 102,173 \r\n7,510 \r\n39,762 609,816 \r\n10,897,587 \r\n2,699,554 \r\n \r\niv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, 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. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2013 \r\n \r\nYear 2012 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2013 \r\n \r\nYear 2012 \r\n \r\nInstruction Support Services: \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Enterprise Operations Food Services \r\n \r\n$ \r\n \r\n7,330,117 $ \r\n \r\n7,132,556 $ \r\n \r\n2,332,474 $ \r\n \r\n1,966,501 \r\n \r\n267,550 68,951 \r\n198,323 481,194 741,057 187,141 948,201 \r\n87,093 3,667 6,112 \r\n \r\n279,223 80,048 \r\n193,220 559,069 720,261 285,829 888,120 102,173 \r\n7,510 \r\n \r\n126,936 -20,001 \r\n8,535 200,726 244,295 \r\n-8,558 488,495 \r\n87,093 3,667 6,112 \r\n \r\n142,170 -19,321 31,090 357,864 291,956 86,416 440,565 101,479 \r\n7,092 \r\n \r\n43,140 625,698 \r\n \r\n39,762 609,816 \r\n \r\n43,140 1,341 \r\n \r\n39,762 -23,575 \r\n \r\nTotal Expenses \r\n \r\n$ 10,988,244 $ 10,897,587 $ \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS \r\n \r\n3,514,255 $ \r\n \r\n3,421,999 \r\n \r\nThe School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $11.2 million and total expenditures of $11.4 million for fiscal year 2013 and total revenues of $11.1 million and total expenditures of $11.1 million for fiscal year 2012. \r\n \r\nGeneral Fund Budgeting Highlights \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the General Fund. During the course of fiscal years 2013 and 2012, the School District amended its general fund budget as needed. \r\n \r\nDuring fiscal year 2013 the General Fund had final actual revenues totaling $10.4 million, which represented an increase from the original budgeted amount of $10.3 million by $0.1 million. This difference (final actual vs. original budget) was primarily due to an increase in miscellaneous revenue from original budget by $0.1 million. The School District traditionally estimates revenues on a conservative basis to avoid shortfalls in actual revenues. \r\n \r\nv \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n \r\nFinal actual expenditures and other financing uses during fiscal year 2013 totaling $10.5 million represented a decrease from the original budgeted amount of $10.9. The decrease in actual expenditures versus original budget expenditures totaling $0.4 million was due primarily to decreases in actual instructional, general administration, and maintenance and operation of plant expenses as compared to expenses projected in the original budget. This demonstrates how the School District effectively used its budget to manage it financial affairs. \r\nGeneral fund expenditures and other financing uses exceeded revenue by $49,029 for the fiscal year 2013 and $62,220 for the fiscal year 2012. \r\nEven though the use of financial reserves were required during fiscal years 2013 and 2012, the School District felt that it was able to meet the instructional and related support services needs without jeopardizing the School District's financial status during the continuous precipitous decline of the economy. \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2013 and June 30, 2012, the School District had $11.2 million and $10.8 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2013 \r\n \r\nYear 2012 \r\n \r\nLand \r\n \r\n$ \r\n \r\n98,344 $ \r\n \r\nConstruction In Progress \r\n \r\n801,311 \r\n \r\nBuilding and Improvements \r\n \r\n8,056,892 \r\n \r\nEquipment \r\n \r\n582,312 \r\n \r\nLand Improvements \r\n \r\n1,695,184 \r\n \r\n98,344 60,000 8,079,536 722,616 1,812,147 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n11,234,043 $ \r\n \r\n10,772,643 \r\n \r\nvi \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\nCurrent Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n The School District is operating with financial stability showing a positive financial position at the end of fiscal year 2013 with unrestricted net position of $1.0 and a General Fund unassigned fund balance of $0.8 million. The School District's operating millage rate for fiscal year 2013 was 12.00, which produced approximately $117,700 per mill. \r\n The School District is financially challenged by the State's continuing reduction of revenue estimates and subsequent reduction of state revenue appropriations to local school districts known as \"austerity reductions\". The School District has suffered from these \"austerity reductions\" in state funding of $1.0 million in fiscal year 2013 and 2012. A reduction of approximately $0.9 is expected in fiscal year 2014 and has been included in budgetary projections. \r\n The Board anticipates continued pressure to provide an increasing amount of local monies to meet various mandated educational requirements and operating costs. Approximately 75% of actual expenditures in fiscal year 2013 were related to salaries and benefits. There was a reduction in work calendar days of four during fiscal year 2013 and initial budgetary projections for fiscal year 2014 included the same. State revenue has remained flat and costs, especially health insurance for employees, have continued to rise. In spite of these challenges, the School District remains confident in the ability to maximize resources to provide a quality education for all our students. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact City of Chickamauga Board of Education, Attention: Finance Director, 402 Cove Road, Chickamauga, GA 30707. \r\nvii \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET POSITION JUNE 30, 2013 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Retainages Payable \r\nTotal Liabilities \r\nNET POSITION \r\nInvestment in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Unrestricted \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ 1,539,203.17 2,462,136.45 \r\n136,401.83 808,483.24 \r\n83,009.61 23,629.32 16,547.07 899,654.91 10,334,388.08 \r\n$ 16,303,453.68 \r\n \r\n$ \r\n \r\n1,330.27 \r\n \r\n1,100,586.96 \r\n \r\n71,399.15 \r\n \r\n$ 1,173,316.38 \r\n \r\n$ 11,234,042.99 \r\n345,153.70 2,531,623.95 1,019,316.66 \r\n \r\nTotal Net Position \r\n \r\n$ 15,130,137.30 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2013 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\n \r\n$ 7,330,117.45 $ \r\n267,550.24 68,950.85 \r\n198,322.85 481,193.54 741,057.11 187,140.60 948,200.92 \r\n87,093.51 3,666.60 6,112.45 \r\n43,139.82 625,697.60 \r\n \r\n564,159.81 $ 4,433,483.99 $ \r\n140,614.17 88,951.69 \r\n189,788.30 280,467.51 496,762.01 195,698.74 459,706.11 \r\n \r\n432,922.89 \r\n \r\n191,433.16 \r\n \r\n-2,332,473.65 \r\n-126,936.07 20,000.84 -8,534.55 \r\n-200,726.03 -244,295.10 \r\n8,558.14 -488,494.81 \r\n-87,093.51 -3,666.60 -6,112.45 \r\n-43,139.82 -1,341.55 \r\n \r\nTotal Governmental Activities \r\n \r\n$ 10,988,243.54 $ 997,082.70 $ 6,476,905.68 $ \r\n \r\n-3,514,255.16 \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTransfers to City Government \r\n \r\n$ \r\n \r\n1,440,060.36 \r\n \r\n709,543.38 23,163.24 \r\n567,286.00 6,867.31 \r\n964,764.88 -734,868.75 \r\n \r\nTotal General Revenues and Transfers to City Government \r\n \r\n$ \r\n \r\n2,976,816.42 \r\n \r\nChange in Net Position \r\n \r\n$ \r\n \r\n-537,438.74 \r\n \r\nNet Position - Beginning of Year \r\n \r\n15,667,576.04 \r\n \r\nNet Position - End of Year \r\n \r\n$ 15,130,137.30 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,445,679.60 $ 93,523.57 $ 1,539,203.17 2,462,136.45 2,462,136.45 \r\n \r\n89,038.75 808,483.24 \r\n83,009.61 23,629.32 16,547.07 \r\n \r\n47,363.08 \r\n \r\n136,401.83 808,483.24 \r\n83,009.61 23,629.32 16,547.07 \r\n \r\n$ 2,466,387.59 $ 2,603,023.10 $ 5,069,410.69 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nNonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n1,330.27 \r\n \r\n1,100,586.96 \r\n \r\n$ \r\n \r\n24,616.06 \r\n \r\n$ 1,126,533.29 $ \r\n \r\n$ 71,399.15 \r\n \r\n1,330.27 1,100,586.96 \r\n71,399.15 24,616.06 \r\n \r\n71,399.15 $ 1,197,932.44 \r\n \r\n$ 16,547.07 \r\n \r\n$ 16,547.07 \r\n \r\n328,606.63 $ 2,531,623.95 2,860,230.58 \r\n \r\n198,553.38 \r\n \r\n198,553.38 \r\n \r\n796,147.22 \r\n \r\n796,147.22 \r\n \r\n$ 1,339,854.30 $ 2,531,623.95 $ 3,871,478.25 \r\n \r\n$ 2,466,387.59 $ 2,603,023.10 $ 5,069,410.69 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 3 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2013 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 3,871,478.25 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n801,310.98 \r\n \r\n2,106,325.11 \r\n \r\n11,083,513.02 \r\n \r\n1,717,161.92 \r\n \r\n-4,572,611.97 \r\n \r\n11,234,042.99 \r\n \r\n24,616.06 \r\n \r\n$ 15,130,137.30 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,440,418.16 \r\n \r\n$ 1,440,418.16 \r\n \r\n23,163.24 $ 709,543.38 \r\n \r\n732,706.62 \r\n \r\n6,496,559.62 \r\n \r\n6,496,559.62 \r\n \r\n547,632.06 \r\n \r\n547,632.06 \r\n \r\n997,082.70 \r\n \r\n997,082.70 \r\n \r\n2,020.42 \r\n \r\n4,846.89 \r\n \r\n6,867.31 \r\n \r\n938,304.19 \r\n \r\n26,460.69 \r\n \r\n964,764.88 \r\n \r\n$ 10,445,180.39 $ 740,850.96 $ 11,186,031.35 \r\n \r\n$ 6,925,382.92 $ 21,347.00 $ 6,946,729.92 \r\n \r\n267,550.24 68,950.85 \r\n198,322.85 466,435.89 738,836.13 187,140.60 915,591.77 \r\n42,716.77 \r\n5,592.00 43,139.82 600,800.16 \r\n \r\n1,640.25 6,685.84 3,666.60 \r\n955,843.90 \r\n \r\n267,550.24 68,950.85 \r\n198,322.85 466,435.89 740,476.38 187,140.60 922,277.61 \r\n42,716.77 3,666.60 5,592.00 \r\n43,139.82 600,800.16 955,843.90 \r\n \r\n$ 10,460,460.00 $ 989,183.59 $ 11,449,643.59 \r\n \r\n$ \r\n \r\n-15,279.61 $ -248,332.63 $ -263,612.24 \r\n \r\n$ 33,748.92 $ \r\n \r\n33,748.92 \r\n \r\n$ \r\n \r\n-33,748.92 \r\n \r\n-734,868.75 \r\n \r\n-768,617.67 \r\n \r\n$ \r\n \r\n-33,748.92 $ -701,119.83 $ -734,868.75 \r\n \r\n$ \r\n \r\n-49,028.53 $ -949,452.46 $ -998,480.99 \r\n \r\n1,388,882.83 3,481,076.41 \r\n \r\n4,869,959.24 \r\n \r\n$ 1,339,854.30 $ 2,531,623.95 $ 3,871,478.25 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2013 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -998,480.99 \r\n \r\n$ 955,843.90 -476,245.25 \r\n \r\n479,598.65 -18,198.60 \r\n-357.80 \r\n \r\n$ -537,438.74 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n16,840.56 \r\n \r\n$ \r\n \r\n16,840.56 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Chickamauga Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City of Chickamauga Board of Education is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various School Activity Account Agency Funds. \r\n \r\n- 8 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. 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. 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, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n- 9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nPROPERTY TAXES \r\nThe City of Chickamauga adopted the property tax levy for the 2012 tax digest year (calendar year) on October 1, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on December 20, 2012 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2012 tax digest are reported as revenue in the governmental funds for fiscal year 2013. The Chickamauga City Clerk bills and collects the property taxes for the School District and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2013, for maintenance and operations amounted to $1,412,571.39. \r\nThe tax millage rate levied for the 2012 tax year (calendar year) for the City of Chickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.00 m ills \r\n \r\nAdditionally, Title Ad Valorem Taxes in the amount of $27,846.77 were collected during the fiscal year. \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $709,543.38 and is to be used for capital outlay for educational purposes or debt services. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2013, the School District provided $734,868.75 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINVENTORIES \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nC a pita liz a tio n Policy \r\n \r\nEstim ated Useful Life \r\n \r\nLand Land Im provem ents Buildings and Im provem ents Equipm ent Intangible Assets \r\n \r\nAll \r\n \r\nN/A \r\n \r\n$ \r\n \r\n5,000.00 15 to 80 years \r\n \r\n$ \r\n \r\n5,000.00 15 to 80 years \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n5 to 25 years \r\n \r\n$ \r\n \r\n100,000.00 15 to 80 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \r\nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 80 years. \r\nNET POSITION \r\nThe School District's net position in the District-wide Statements is classified as follows: \r\nInvestment in capital assets - This represents the School District's total investment in capital assets. \r\nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs and capital projects in accordance with restrictions imposed by external third parties. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \r\n \r\nN o nspe nda ble In v e n to rie s \r\nRestricted Continuation of Federal Program s Capital Projects \r\nCom m itted School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n1 6 ,5 4 7 .0 7 \r\n \r\n$ \r\n \r\n3 2 8 ,6 0 6 .6 3 \r\n \r\n2 ,5 3 1 ,6 2 3 .9 5 \r\n \r\n2 ,8 6 0 ,2 3 0 .5 8 \r\n \r\n1 9 8 ,5 5 3 .3 8 7 9 6 ,1 4 7 .2 2 \r\n \r\nFund Balance, June 30, 2013 \r\n \r\n$ 3,871,478.25 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\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- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of Official Code of Georgia Annotated section 20-2167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5 percent of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2013, the bank balances were $2,125,225.16. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2013, the carrying value of the School District's total investments was $2,462,136.45, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2013, was 43 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction In Progress \r\n \r\nBalances July 1, 2012 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2013 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n60,000.00 $ \r\n \r\n801,310.98 $ \r\n \r\n60,000.00 \r\n \r\n801,310.98 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ \r\n \r\n158,343.93 $ \r\n \r\n801,310.98 $ \r\n \r\n60,000.00 $ \r\n \r\n899,654.91 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 10,883,980.10 $ 1,745,161.90 2,106,325.11 \r\n \r\n199,532.92 15,000.00 $ \r\n \r\n$ 42,999.98 \r\n \r\n11,083,513.02 1,717,161.92 2,106,325.11 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n2,804,444.53 1,022,545.95 \r\n294,177.62 \r\n \r\n222,176.78 137,104.84 116,963.63 \r\n \r\n24,801.38 \r\n \r\n3,026,621.31 1,134,849.41 \r\n411,141.25 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 10,614,299.01 $ \r\n \r\n-261,712.33 $ \r\n \r\n18,198.60 $ 10,334,388.08 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 10,772,642.94 $ \r\n \r\n539,598.65 $ \r\n \r\n78,198.60 $ 11,234,042.99 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nIn s tru c tio n \r\n \r\nSupport Services \r\n \r\nGeneral Adm inistration \r\n \r\n$ \r\n \r\nSchool Adm inistration \r\n \r\nM aintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nOther Support Services \r\n \r\nFood Services \r\n \r\n$ \r\n1 4 ,2 1 4 .48 5 5 9 .3 5 \r\n2 4 ,9 6 9 .17 4 2 ,7 4 3 .40 \r\n5 0 1 .3 0 \r\n \r\n3 6 9 ,2 7 6 .5 0 \r\n8 2 ,9 8 7 .7 0 2 3 ,9 8 1 .0 5 \r\n \r\n$ \r\n \r\n4 7 6 ,2 4 5 .2 5 \r\n \r\nNOTE 7: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2013, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-w ide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects City of Chickam auga \r\n \r\n$ \r\n \r\n3 3 ,7 4 8 .9 2 \r\n \r\n$ \r\n \r\n7 3 4 ,8 6 8 .7 5 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n33,748.92 $ \r\n \r\n7 3 4 ,8 6 8 .7 5 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2013, the School District provided $734,868.75 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\nNOTE 8: RISK MANAGEMENT \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The City of Chickamauga Board of Education has not incurred any liabilities for unemployment compensation during the past two fiscal years. \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAm ount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\nNOTE 9: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $659,667.38 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $643,908.00 \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $2,090.38 \r\n \r\nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $13,669.00 \r\n \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \r\nNOTE 10: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2013, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\n14LW-769-015 \r\n \r\n$ 1,986,213.55 $ \r\n \r\n665,355.00 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 12: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2013, contributions also vary based on years of service. On \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\naverage, members with five years or more of service as of January 1, 2013, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2013, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2013: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other \r\neligible participants: \r\n \r\nJuly 2012 - February 2013 March 2013 - June 2013 \r\n \r\n$912.34 per member per month $937.34 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2012 - June 2013 \r\n \r\n$446.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPe rce n ta ge \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nC o ntrib ute d \r\n \r\nC o ntrib utio n \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ 894,921.06 $ 949,796.03 $ 924,233.67 \r\n \r\nNOTE 13: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2013, were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 11.41% of annual salary as required by the June 30, 2010, actuarial valuation. The employer contribution rate will increase to 12.28% effective July 1, 2013. \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ 625,539.26 $ 560,361.03 $ 563,206.11 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 19 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal 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 \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 1,435,000.00 $ 1,390,000.00 $ 1,440,418.16 $ \r\n \r\n23,163.24 \r\n \r\n6,469,101.00 \r\n \r\n6,488,947.00 \r\n \r\n6,496,559.62 \r\n \r\n546,500.00 \r\n \r\n582,431.00 \r\n \r\n547,632.06 \r\n \r\n1,007,075.00 \r\n \r\n1,019,575.00 \r\n \r\n997,082.70 \r\n \r\n14,240.00 \r\n \r\n5,720.00 \r\n \r\n2,020.42 \r\n \r\n828,425.00 \r\n \r\n844,925.00 \r\n \r\n938,304.19 \r\n \r\n50,418.16 23,163.24 \r\n7,612.62 -34,798.94 -22,492.30 \r\n-3,699.58 93,379.19 \r\n \r\n$ 10,300,341.00 $ 10,331,598.00 $ 10,445,180.39 $ 113,582.39 \r\n \r\n$ 7,036,567.00 $ 6,915,843.00 $ 6,925,382.92 $ \r\n \r\n-9,539.92 \r\n \r\n282,500.00 80,407.00 \r\n195,725.00 551,336.00 747,571.00 166,949.00 1,000,663.00 \r\n93,249.00 6,274.00 \r\n40,000.00 650,000.00 \r\n \r\n260,836.00 73,692.00 \r\n199,152.00 474,120.00 743,899.00 164,918.00 969,967.00 \r\n93,749.00 6,274.00 \r\n43,000.00 650,000.00 \r\n34,000.00 \r\n \r\n267,550.24 68,950.85 \r\n198,322.85 466,435.89 738,836.13 187,140.60 915,591.77 \r\n42,716.77 5,592.00 \r\n43,139.82 600,800.16 \r\n \r\n-6,714.24 4,741.15 \r\n829.15 7,684.11 5,062.87 -22,222.60 54,375.23 51,032.23 \r\n682.00 -139.82 49,199.84 34,000.00 \r\n \r\n$ 10,851,241.00 $ 10,629,450.00 $ 10,460,460.00 $ 168,990.00 \r\n \r\n$ -550,900.00 $ -297,852.00 $ \r\n \r\n-15,279.61 $ 282,572.39 \r\n \r\n$ \r\n \r\n24,425.00 \r\n \r\n$ -24,425.00 \r\n \r\n$ \r\n \r\n-33,748.92 \r\n \r\n-33,748.92 \r\n \r\n$ \r\n \r\n24,425.00 $ \r\n \r\n-33,748.92 $ -58,173.92 \r\n \r\n$ -550,900.00 $ -273,427.00 $ \r\n \r\n-49,028.53 $ 224,398.47 \r\n \r\n1,388,882.83 \r\n \r\n1,388,882.83 \r\n \r\n1,388,882.83 \r\n \r\n0.00 \r\n \r\n4,749.13 \r\n \r\n-3,666.77 \r\n \r\n3,666.77 \r\n \r\n$ 842,731.96 $ 1,111,789.06 $ 1,339,854.30 $ 228,065.24 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n$ 583,015.39 (1) \r\n \r\n$ 583,015.39 \r\n \r\n84.027 84.173 \r\n \r\nN/A \r\n \r\n$ 221,212.60 \r\n \r\nN/A \r\n \r\n3,853.00 \r\n \r\n$ 225,065.60 \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n84,378.67 \r\n \r\n84.048 84.410 84.367 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n22,187.00 \r\n \r\nN/A \r\n \r\n522.00 \r\n \r\nN/A \r\n \r\n38,163.63 \r\n \r\n$ \r\n \r\n60,872.63 \r\n \r\n$ 370,316.90 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 953,332.29 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $10,260.56. (2) Expenditures for the funds earned on the School Breakfast Program ($24,667.05) were not maintained separately and are included \r\nin the 2013 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Teachers' Retirement Vocational Education \r\nOffice of the State Treasurer Public School Employees' Retirement \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n445,707.00 \r\n \r\n15,856.00 \r\n \r\n1,008,098.00 \r\n \r\n72,146.00 \r\n \r\n543,445.00 \r\n \r\n39,335.00 \r\n \r\n993,501.00 \r\n \r\n768,378.00 \r\n \r\n281,824.00 \r\n \r\n413,418.00 \r\n \r\n628,907.00 \r\n \r\n150,623.00 \r\n \r\n73,130.00 \r\n \r\n160,197.00 \r\n \r\n49,150.00 \r\n \r\n29,171.00 \r\n \r\n381,132.00 394,672.00 385,215.00 -1,019,727.00 \r\n \r\n45,000.00 567,286.00 \r\n \r\n14,118.00 1,128.60 5,550.00 2,090.38 \r\n33,539.64 \r\n \r\n13,669.00 \r\n \r\n$ 6,496,559.62 \r\n \r\n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $643,908.00 are included as part of the Quality Basic Education revenue allotments. above. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n2007 ESPLOST \r\n \r\nConstruction of additions, renovations and improvements to Gordon Lee High School, Gordon Lee Middle School and Chickamauga Elementary School, including the upgrading and expansion of technology and equipment; \r\n \r\n$ 1,800,000.00 $ 1,679,960.00 \r\n \r\n$ 1,453,169.61 \r\n \r\nJanuary 2014 \r\n \r\nConstruction of additions, renovations and improvements to various athletic facilities and sites; \r\n \r\n1,600,000.00 1,770,375.00 \r\n \r\n1,761,574.70 \r\n \r\nJanuary 2014 \r\n \r\nSystem-wide security and safety improvements and HVAC upgrades; \r\n \r\n300,000.00 \r\n \r\n28,050.00 $ 28,056.00 \r\n \r\n$ 28,056.00 $ \r\n \r\n0.00 Completed \r\n \r\nAcquisition, construction, improvement, repair and equipping of facilities, including acquisition of any necessary property therefore, both real and personal. \r\n \r\n144,857.00 \r\n \r\n117,415.00 94,915.00 \r\n \r\nJanuary 2014 \r\n \r\n2007 ESPLOST Total \r\n \r\n$ 3,844,857.00 $ 3,595,800.00 $ 122,971.00 $ 3,214,744.31 $ 28,056.00 $ \r\n \r\n0.00 \r\n \r\n2012 ESPLOST \r\n \r\nAcquiring, constructing, and equipping of a new facility for the Health Occupations educational program; $ 2,000,000.00 $ 2,746,065.00 $ 801,310.98 \r\n \r\nAugust 2014 \r\n \r\nInstallation of a parent notification system; \r\n \r\n3,650.00 \r\n \r\n3,650.00 \r\n \r\n3,666.60 \r\n \r\n$ 3,666.60 $ \r\n \r\n0.00 Completed \r\n \r\nAcquisition of band equipment, school buses, textbooks, desks, rolling science labs, and driver education simulators; \r\n \r\n200,000.00 \r\n \r\n75,000.00 21,347.00 \r\n \r\nJune 2015 \r\n \r\nAdding to, remodeling, renovating, improving, and equipping existing educational buildings, properties, and facilities of the school district, including athletic facilities and sites, and acquiring any property, both real and personal; and \r\n \r\n2,018,850.00 \r\n \r\n777,640.00 \r\n \r\n$ 507,140.85 \r\n \r\nJune 2017 \r\n \r\nSystem-wide security and safety improvements and upgrade of technology and equipment. \r\n \r\n100,000.00 \r\n \r\n25,000.00 \r\n \r\nJune 2016 \r\n \r\n2012 ESPLOST Total \r\n \r\n$ 4,322,500.00 $ 3,627,355.00 $ 826,324.58 $ 507,140.85 $ 3,666.60 $ \r\n \r\n0.00 \r\n \r\n$ 8,167,357.00 $ 7,223,155.00 $ 949,295.58 $ 3,721,885.16 $ 31,722.60 $ \r\n \r\n0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 421,608.89 \r\n \r\nCurrent Year \r\n \r\n109,368.75 \r\n \r\nTotal \r\n \r\n$ 530,977.64 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category III Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n490,193.00 $ 398,966.29 $ 7,016.60 $ 405,982.89 \r\n \r\n20,862.00 \r\n \r\n34,678.74 \r\n \r\n34,678.74 \r\n \r\n1,103,018.00 \r\n \r\n825,988.20 \r\n \r\n23,809.28 \r\n \r\n849,797.48 \r\n \r\n82,330.00 \r\n \r\n58,429.29 \r\n \r\n58,429.29 \r\n \r\n588,473.00 \r\n \r\n574,235.36 \r\n \r\n16,620.86 \r\n \r\n590,856.22 \r\n \r\n44,223.00 \r\n \r\n50,490.63 \r\n \r\n17.58 \r\n \r\n50,508.21 \r\n \r\n1,098,270.00 1,248,944.56 \r\n \r\n41,000.38 1,289,944.94 \r\n \r\n847,861.00 1,053,759.52 \r\n \r\n44,727.40 1,098,486.92 \r\n \r\n308,719.00 \r\n \r\n294,346.81 \r\n \r\n29,844.35 \r\n \r\n324,191.16 \r\n \r\n457,762.00 \r\n \r\n362,894.11 \r\n \r\n6,613.94 \r\n \r\n369,508.05 \r\n \r\n680,367.00 \r\n \r\n429,800.11 \r\n \r\n5,763.45 \r\n \r\n435,563.56 \r\n \r\n158,778.00 \r\n \r\n148,746.80 \r\n \r\n652.00 \r\n \r\n149,398.80 \r\n \r\n81,084.00 \r\n \r\n61,254.50 \r\n \r\n380.00 \r\n \r\n61,634.50 \r\n \r\n11,693.67 \r\n \r\n11,693.67 \r\n \r\n$ \r\n \r\n5,961,940.00 $ 5,554,228.59 $ 176,445.84 $ 5,730,674.43 \r\n \r\n175,148.00 31,977.00 \r\n \r\n168,535.18 1,692.18 \r\n \r\n16,721.10 \r\n \r\n185,256.28 1,692.18 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n6,169,065.00 $ 5,724,455.95 $ 193,166.94 $ 5,917,622.89 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. (3) Allotments do not include the State Health payments made by GDOE to the Department of Community Health for the certified employees. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 24, 2014 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Chickamauga Board of Education as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise City of Chickamauga Board of Education's basic financial statements and have issued our report thereon dated February 24, 2014. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered City of Chickamauga Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n2013YB-10 \r\n \r\n  Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Chickamauga Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\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, not to provide an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Chickamauga Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013YB-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 24, 2014 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited City of Chickamauga Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. City of Chickamauga Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of City of Chickamauga Board of Education's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Chickamauga Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of City of Chickamauga Board of Education's compliance. \r\n2013SA-10 \r\n \r\n  Opinion on Each Major Federal Program \r\nIn our opinion, the City of Chickamauga Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. \r\nReport on Internal Control over Compliance \r\nManagement of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of Chickamauga Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nYes \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2011-h2012-belec-p-btext","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, annual financial report for the fiscal year ended June 30, 2012 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2012-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, annual financial report for the fiscal year ended June 30, 2012 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\n(Including Independent Auditor's Reports) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 3 4 5 6 7 8 \r\n21 22 23 \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n24 25 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  SECTION I FINANCIAL \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 27, 2013 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Chickamauga Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nManagement has omitted Management's Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an \r\n2012ARL-11 \r\n \r\n  essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 27, 2013, on our consideration of the City of Chickamauga Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 21, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chickamauga Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully, \r\n \r\nGSG:as 2012ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET ASSETS JUNE 30, 2012 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES Accounts Payable Salaries and Benefits Payable \r\nTotal Liabilities NET ASSETS Invested in Capital Assets Restricted for Continuation of Federal Programs Capital Projects Unrestricted Total Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n1,476,643.58 \r\n \r\n3,408,567.33 \r\n \r\n137,777.40 810,795.77 126,656.74 \r\n21,236.67 20,213.84 158,343.93 10,614,299.01 \r\n \r\n$ \r\n \r\n16,774,534.27 \r\n \r\n$ \r\n \r\n13,256.08 \r\n \r\n1,093,702.15 \r\n \r\n$ \r\n \r\n1,106,958.23 \r\n \r\n$ \r\n \r\n10,772,642.94 \r\n \r\n321,079.89 3,481,076.41 1,092,776.80 \r\n \r\n$ \r\n \r\n15,667,576.04 \r\n \r\n$ \r\n \r\n16,774,534.27 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2012 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Proceeds from Sale of Bonds by City Premium on Bonds Sold by City \r\nTransfers to City Government \r\nTotal General Revenues, Special Items and Transfers to City Government \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ 7,132,556.49 $ \r\n279,222.89 80,047.87 \r\n193,219.80 559,069.27 720,261.07 285,829.10 888,119.75 102,172.88 \r\n7,510.09 \r\n39,762.35 609,815.54 \r\n$ 10,897,587.10 $ \r\n \r\n538,942.93 $ 4,627,112.10 $ \r\n137,053.13 99,369.16 \r\n162,129.94 201,205.08 428,304.78 199,413.23 447,554.55 \r\n694.25 418.00 \r\n \r\n422,737.70 \r\n \r\n210,652.90 \r\n \r\n961,680.63 $ 6,513,907.12 $ \r\n \r\n-1,966,501.46 \r\n-142,169.76 19,321.29 -31,089.86 \r\n-357,864.19 -291,956.29 \r\n-86,415.87 -440,565.20 -101,478.63 \r\n-7,092.09 \r\n-39,762.35 23,575.06 \r\n-3,421,999.35 \r\n \r\n$ \r\n \r\n1,418,026.15 \r\n \r\n729,442.21 9,982.85 \r\n583,413.00 17,737.24 \r\n865,645.41 \r\n2,900,000.00 286,260.80 -688,953.89 \r\n \r\n$ \r\n \r\n6,121,553.77 \r\n \r\n$ \r\n \r\n2,699,554.42 \r\n \r\n12,968,021.62 \r\n \r\nNet Assets - End of Year \r\n \r\n$ 15,667,576.04 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2012 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,468,913.13 $ \r\n \r\n7,730.45 $ \r\n \r\n3,408,567.33 \r\n \r\n1,476,643.58 3,408,567.33 \r\n \r\n72,998.77 810,795.77 126,656.74 \r\n21,236.67 20,213.84 \r\n \r\n64,778.63 \r\n \r\n137,777.40 810,795.77 126,656.74 \r\n21,236.67 20,213.84 \r\n \r\n$ 2,520,814.92 $ 3,481,076.41 $ 6,001,891.33 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 13,256.08 1,093,702.15 24,973.86 \r\n$ 1,131,932.09 \r\n \r\n$ \r\n \r\n13,256.08 \r\n \r\n1,093,702.15 \r\n \r\n24,973.86 \r\n \r\n$ 1,131,932.09 \r\n \r\n$ 20,213.84 \r\n \r\n$ \r\n \r\n300,866.05 $ 3,481,076.41 \r\n \r\n220,995.58 \r\n \r\n846,807.36 \r\n \r\n20,213.84 3,781,942.46 \r\n220,995.58 846,807.36 \r\n \r\n$ 1,388,882.83 $ 3,481,076.41 $ 4,869,959.24 \r\n \r\n$ 2,520,814.92 $ 3,481,076.41 $ 6,001,891.33 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 3 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \r\n \r\n$ 4,869,959.24 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n60,000.00 \r\n \r\n2,106,325.11 \r\n \r\n10,883,980.10 \r\n \r\n1,745,161.90 \r\n \r\n-4,121,168.10 \r\n \r\n10,772,642.94 \r\n \r\n24,973.86 \r\n \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 15,667,576.04 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Dues and Fees \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds from Sale of Bonds by City Premiums on Bonds Sold Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,433,201.49 \r\n \r\n$ 1,433,201.49 \r\n \r\n9,982.85 $ 729,442.21 \r\n \r\n739,425.06 \r\n \r\n6,453,697.78 \r\n \r\n6,453,697.78 \r\n \r\n643,622.34 \r\n \r\n643,622.34 \r\n \r\n961,680.63 \r\n \r\n961,680.63 \r\n \r\n14,180.29 \r\n \r\n3,556.95 \r\n \r\n17,737.24 \r\n \r\n864,845.41 \r\n \r\n800.00 \r\n \r\n865,645.41 \r\n \r\n$ 10,381,210.79 $ 733,799.16 $ 11,115,009.95 \r\n \r\n$ 6,779,383.92 \r\n \r\n$ 6,779,383.92 \r\n \r\n279,222.89 80,047.87 \r\n193,219.80 544,377.67 719,682.94 177,975.49 862,501.85 \r\n56,651.22 5,914.00 \r\n39,762.35 591,511.95 \r\n$ \r\n \r\n613,639.80 107,853.61 \r\n \r\n279,222.89 80,047.87 \r\n193,219.80 544,377.67 719,682.94 177,975.49 862,501.85 \r\n56,651.22 5,914.00 \r\n39,762.35 591,511.95 613,639.80 107,853.61 \r\n \r\n$ 10,330,251.95 $ 721,493.41 $ 11,051,745.36 \r\n \r\n$ \r\n \r\n50,958.84 $ 12,305.75 $ \r\n \r\n63,264.59 \r\n \r\n$ 2,900,000.00 $ 2,900,000.00 \r\n \r\n286,260.80 \r\n \r\n286,260.80 \r\n \r\n113,178.80 \r\n \r\n113,178.80 \r\n \r\n$ -113,178.80 \r\n \r\n-688,953.89 \r\n \r\n-802,132.69 \r\n \r\n$ -113,178.80 $ 2,610,485.71 $ 2,497,306.91 \r\n \r\n$ \r\n \r\n-62,219.96 $ 2,622,791.46 $ 2,560,571.50 \r\n \r\n1,451,102.79 \r\n \r\n858,284.95 \r\n \r\n2,309,387.74 \r\n \r\n$ 1,388,882.83 $ 3,481,076.41 $ 4,869,959.24 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2012 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 2,560,571.50 \r\n \r\n$ 626,995.43 -457,481.32 \r\n \r\n169,514.11 \r\n \r\n-15,355.85 \r\n \r\n-15,175.34 \r\n \r\n$ 2,699,554.42 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n28,760.21 \r\n \r\n$ \r\n \r\n28,760.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Chickamauga Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City of Chickamauga Board of Education is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various School Activity Account Agency Funds. \r\n \r\n- 8 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n \r\n- 9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, 5. Prime banker's acceptances, 6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, 7. Repurchase agreements, and \r\n \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nPROPERTY TAXES \r\nThe City of Chickamauga fixed the property tax levy for the 2011 tax digest year (calendar year) on October 3, 2011 (levy date). Taxes were due on December 20, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The Chickamauga City Clerk bills and collects the property taxes for the School District and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2012, for maintenance and operations amounted to $1,433,201.49. \r\n \r\nThe tax millage rate levied for the 2011 tax year (calendar year) for the City of Chickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.00 m ills \r\n \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $729,442.21 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2012, the School District provided $688,953.89 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\nINVENTORIES \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \r\n \r\nstatements are as follows: \r\n \r\nC a pita liz a tio n \r\n \r\nEstim ated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Im provem ents Buildings and Im provem ents Equipm ent Intangible Assets \r\n \r\nAll \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 0 ,0 0 0 .0 0 \r\n \r\nN/A 15 to 80 years 15 to 80 years \r\n5 to 25 years 15 to 80 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \r\nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 80 years. \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \r\n \r\nN o nspe nda ble In v e n to rie s \r\nR e s tric te d Continuation of Federal Program s Capital Projects \r\nCom m itted School Activity Accounts Technoloy Equipm ent \r\nUnassigned \r\n \r\n$ \r\n \r\n2 0 ,2 1 3 .8 4 \r\n \r\n$ \r\n \r\n3 0 0 ,8 6 6 .0 5 \r\n \r\n3,4 8 1 ,0 7 6 .4 1 \r\n \r\n3 ,7 8 1 ,9 4 2 .4 6 \r\n \r\n$ \r\n \r\n1 5 7 ,8 5 4 .2 6 \r\n \r\n6 3 ,1 4 1 .3 2 \r\n \r\n2 2 0 ,9 9 5 .5 8 8 4 6 ,8 0 7 .3 6 \r\n \r\nFund Balance, June 30, 2012 \r\n \r\n$ 4,869,959.24 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \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. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nthe tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of Official Code of Georgia Annotated section 20-2167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 5 percent of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 5 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $5,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $1,786,461.01. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2012, the carrying value of the School District's total investments was $3,408,567.33, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2011 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2012 \r\n \r\nGovernmental Activities Capital Assets, Not B eing Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n4,169.42 $ \r\n \r\n60,000.00 $ \r\n \r\n$ 4,169.42 \r\n \r\n98,343.93 60,000.00 \r\n \r\nTotal Capital Assets Not B eing Depreciated \r\n \r\n$ \r\n \r\n102,513.35 $ \r\n \r\n60,000.00 $ \r\n \r\n4,169.42 $ \r\n \r\n158,343.93 \r\n \r\nCapital Assets B eing Depreciated B uildings and Improvements Equipment Land Improvements \r\n \r\n$ 10,883,980.10 1,787,941.42 $ 1,606,178.84 \r\n \r\n26,508.54 $ 544,656.31 \r\n \r\n$ 69,288.06 44,510.04 \r\n \r\n10,883,980.10 1,745,161.90 2,106,325.11 \r\n \r\nLess Accumulated Depreciation for: B uildings and Improvements Equipment Land Improvements \r\n \r\n2,586,603.33 951,922.50 223,603.20 \r\n \r\n217,841.20 139,911.51 \r\n99,728.61 \r\n \r\n69,288.06 29,154.19 \r\n \r\n2,804,444.53 1,022,545.95 \r\n294,177.62 \r\n \r\nTotal Capital Assets, B eing Depreciated, Net \r\n \r\n$ 10,515,971.33 $ \r\n \r\n113,683.53 $ \r\n \r\n15,355.85 $ 10,614,299.01 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 10,618,484.68 $ \r\n \r\n173,683.53 $ \r\n \r\n19,525.27 $ 10,772,642.94 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nIn s tru c tio n \r\n \r\nSupport Services \r\n \r\nGeneral Adm inistration \r\n \r\n$ \r\n \r\nSchool Adm inistration \r\n \r\nM aintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nOther Support Services \r\n \r\nFood Services \r\n \r\n$ \r\n1 4 ,2 1 4 .4 8 5 5 9 .3 5 \r\n2 4 ,7 8 5 .9 3 4 4 ,0 4 3 .3 0 \r\n1 ,5 4 4 .2 6 \r\n$ \r\n \r\n3 4 8 ,6 6 1 .1 5 \r\n8 5 ,1 4 7 .3 2 2 3 ,6 7 2 .8 5 4 5 7 ,4 8 1 .3 2 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2012, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-w ide \r\n \r\nGeneral \r\n \r\nC a pita l \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects City of Chickamauga \r\nTotal \r\n \r\n$ \r\n \r\n1 1 3 ,1 7 8 .8 0 \r\n \r\n$ \r\n \r\n6 8 8 ,9 5 3 .8 9 \r\n \r\n$ \r\n \r\n113,178.80 $ \r\n \r\n6 8 8 ,9 5 3 .8 9 \r\n \r\nTransfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \r\n \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2012, the School District provided $688,953.89 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nNOTE 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as \r\n \r\nfollows: \r\n \r\nClaim s and \r\n \r\nBeginning of Year \r\n \r\nChanges in \r\n \r\nClaim s \r\n \r\nEnd of Year \r\n \r\nLiability \r\n \r\nEstim ates \r\n \r\nPaid \r\n \r\nLiability \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n1,495.98 $ 0.00 $ \r\n \r\n1,495.98 $ 0.00 $ \r\n \r\n0 .0 0 0 .0 0 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition C overed \r\n \r\nAm ount \r\n \r\nSuperintendent Driver Education School \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n1 0 ,0 0 0 .0 0 \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $882,729.78 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $870,731.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $2,604.78 \r\nOffice of the State Treasurer Paid to the Public School Employees' Retirement System For Public School Employees' Retirement (PSERS) Employer's Cost In the amount of $9,394.00 \r\nNOTE 10: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 11: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nmore years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2012: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other \r\neligible participants: \r\n \r\nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \r\n \r\n1.429% of covered payroll for July coverage 18.534% of covered payroll for August coverage 24.000% of covered payroll for September - April coverage \r\n3.958% of covered payroll for May - July coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2011 - August 2011 \r\n \r\n$246.20 per member per month \r\n \r\nSeptember 2011 - June 2012 $296.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nC o ntribute d \r\n \r\nC o n trib u tio n \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n94 9 ,7 9 6.0 3 \r\n \r\n$ \r\n \r\n92 4 ,2 3 3.6 7 \r\n \r\n$ \r\n \r\n86 6 ,1 0 6.1 7 \r\n \r\nNOTE 12: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntribute d \r\n \r\nRequired C o n trib u tio n \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n56 0 ,3 6 1.0 3 \r\n \r\n$ \r\n \r\n56 3 ,2 0 6.1 1 \r\n \r\n$ \r\n \r\n55 7 ,1 8 5.4 6 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 19 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 1,355,000.00 $ 1,430,000.00 $ 1,433,201.49 $ \r\n \r\n9,982.85 \r\n \r\n6,314,620.00 \r\n \r\n6,426,464.00 \r\n \r\n6,453,697.78 \r\n \r\n502,693.00 \r\n \r\n662,607.00 \r\n \r\n643,622.34 \r\n \r\n981,575.00 \r\n \r\n992,075.00 \r\n \r\n961,680.63 \r\n \r\n19,275.00 \r\n \r\n15,585.00 \r\n \r\n14,180.29 \r\n \r\n845,875.00 \r\n \r\n853,840.00 \r\n \r\n864,845.41 \r\n \r\n$ 10,019,038.00 $ 10,380,571.00 $ 10,381,210.79 $ \r\n \r\n3,201.49 9,982.85 27,233.78 -18,984.66 -30,394.37 -1,404.71 11,005.41 \r\n639.79 \r\n \r\n$ 6,832,366.67 $ 6,841,649.53 $ 6,779,383.92 $ 62,265.61 \r\n \r\n232,934.47 124,081.00 185,890.74 544,685.41 714,646.83 161,844.28 1,037,564.06 \r\n95,800.00 6,296.00 \r\n45,000.00 610,000.00 \r\n \r\n289,908.84 83,271.00 \r\n195,970.50 541,595.19 729,233.05 160,344.28 954,138.52 \r\n79,232.00 6,296.00 \r\n38,000.00 610,000.00 118,676.00 \r\n \r\n279,222.89 80,047.87 \r\n193,219.80 544,377.67 719,682.94 177,975.49 862,501.85 \r\n56,651.22 5,914.00 \r\n39,762.35 591,511.95 \r\n \r\n10,685.95 3,223.13 2,750.70 -2,782.48 9,550.11 \r\n-17,631.21 91,636.67 22,580.78 \r\n382.00 -1,762.35 18,488.05 118,676.00 \r\n \r\n$ 10,591,109.46 $ 10,648,314.91 $ 10,330,251.95 $ 318,062.96 \r\n \r\n$ -572,071.46 $ -267,743.91 $ \r\n \r\n50,958.84 $ 318,702.75 \r\n \r\n-113,178.80 \r\n \r\n-113,178.80 \r\n \r\n$ -572,071.46 $ -267,743.91 $ \r\n \r\n-62,219.96 $ 205,523.95 \r\n \r\n1,451,102.79 \r\n \r\n1,451,102.79 \r\n \r\n1,451,102.79 \r\n \r\n0.00 \r\n \r\n3,117.94 \r\n \r\n3,042.88 \r\n \r\n-3,042.88 \r\n \r\n$ 882,149.27 $ 1,186,401.76 $ 1,388,882.83 $ 202,481.07 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 21 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 579,338.83 (1) \r\n579,338.83 \r\n \r\n84.027 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n244,409.14 3,966.00 \r\n248,375.14 \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n134,818.30 \r\n \r\n84.048 84.410 84.367 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n26,569.00 3,229.00 \r\n35,194.00 \r\n64,992.00 \r\n448,185.44 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n1,027,524.27 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $28,545.37. (2) Expenditures for the funds earned on the School Breakfast Program ($25,061.47) were not maintained separately and are included \r\nin the 2012 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 22 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Education Equalization Funding Grant Food Services Nursing Services Other State Programs Health Insurance Move On When Ready Preschool Handicapped Program Teachers' Retirement Vocational Education \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n393,351.00 \r\n \r\n30,311.00 \r\n \r\n853,708.00 \r\n \r\n77,748.00 \r\n \r\n420,084.00 \r\n \r\n37,332.00 \r\n \r\n895,261.00 \r\n \r\n680,857.00 \r\n \r\n231,814.00 \r\n \r\n378,052.00 \r\n \r\n487,355.00 \r\n \r\n93,803.00 \r\n \r\n66,910.00 \r\n \r\n137,657.00 \r\n \r\n41,957.00 \r\n \r\n28,806.00 \r\n \r\n328,974.00 341,823.00 380,096.00 -1,012,397.00 583,413.00 \r\n15,216.00 38,633.00 \r\n \r\n870,731.00 400.00 \r\n5,506.00 2,604.78 34,298.00 \r\n \r\n9,394.00 \r\n \r\n$ 6,453,697.78 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n2007 ESPLOST \r\nConstruction of additions, renovations and improvements to Gordon Lee High School, Gordon Lee Middle School and Chickamauga Elementary School, including the upgrading and expansion of technology and equipment; \r\nConstruction of additions, renovations and improvements to various athletic facilities and sites; \r\nSystem-wide security and safety improvements and HVAC upgrades; \r\nAcquisition of new school buses, textbooks, desks, rolling science labs and driver education simulators; \r\nUpgrading and equipping cafeterias; \r\nAcquisition, construction, improvement, repair and equipping of facilities, including acquisition of any necessary property therefore, both real and personal. \r\n2007 ESPLOST Total \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 1,800,000.00 $ 1,638,900.00 \r\n \r\n1,600,000.00 1,868,250.00 \r\n \r\n300,000.00 \r\n \r\n35,000.00 \r\n \r\n250,000.00 150,000.00 \r\n \r\n145,500.00 168,000.00 \r\n \r\n144,857.00 \r\n \r\n60,000.00 \r\n \r\n$ 4,244,857.00 $ 3,915,650.00 $ \r\n \r\n$ 1,453,169.61 1,761,574.70 \r\n145,495.60 $ 145,495.60 $ 167,664.30 167,664.30 \r\n \r\nJanuary 2014 January 2014 \r\n \r\nJanuary 2013 \r\n \r\n4.40 335.70 \r\n \r\nCompleted Completed \r\n \r\n0.00 $ 3,527,904.21 $ 313,159.90 $ \r\n \r\nJanuary 2014 340.10 \r\n \r\n2012 ESPLOST \r\n \r\nAcquiring, constructing, and equipping of a new \r\n \r\nfacility for the Health Occupations educational program; \r\n \r\n$ 2,000,000.00 $ 2,000,000.00 \r\n \r\n$ \r\n \r\nInstallation of a parent notification system; \r\n \r\n3,650.00 \r\n \r\n3,650.00 \r\n \r\nAcquisition of band equipment, school buses, textbooks, desks, rolling science labs, and driver education simulators; \r\n \r\n200,000.00 \r\n \r\n200,000.00 \r\n \r\nAdding to, remodeling, renovating, improving, and equipping existing educational buildings, properties, and facilities of the school district, including athletic facilities and sites, and acquiring any property, both real and personal; and \r\n \r\n2,018,850.00 2,018,850.00 $ 507,140.85 \r\n \r\nSystem-wide security and safety improvements and upgrade of technology and equipment. \r\n \r\n100,000.00 \r\n \r\n100,000.00 \r\n \r\nCost the issuance of general obligation debt for the purpose of financing the costs of the capital outlay projects described above \r\n \r\n0.00 \r\n \r\n107,853.61 \r\n \r\n107,853.61 \r\n \r\n2012 ESPLOST Total \r\n \r\n$ 4,322,500.00 $ 4,430,353.61 $ 614,994.46 $ \r\n \r\n0.00 \r\n \r\nJanuary 2014 July 2012 \r\nJune 2015 \r\n \r\n$ 107,853.61 $ 0.00 $ 107,853.61 $ \r\n \r\nJune 2017 June 2016 \r\n \r\n0.00 0.00 \r\n \r\nCompleted \r\n \r\n$ 8,567,357.00 $ 8,346,003.61 $ 614,994.46 $ 3,527,904.21 $ 421,013.51 $ \r\n \r\n340.10 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above projects and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 332,655.00 \r\n \r\nCurrent Year \r\n \r\n88,953.89 \r\n \r\nTotal \r\n \r\n$ 421,608.89 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category III Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\nTOTAL QBE FORMULA FUNDS \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n426,039.00 $ 371,585.96 $ 6,262.78 $ 377,848.74 \r\n \r\n35,847.00 \r\n \r\n41,042.70 \r\n \r\n41,042.70 \r\n \r\n929,913.00 \r\n \r\n810,906.02 \r\n \r\n23,411.30 \r\n \r\n834,317.32 \r\n \r\n87,030.00 \r\n \r\n47,995.86 \r\n \r\n47,995.86 \r\n \r\n463,986.00 \r\n \r\n568,112.18 \r\n \r\n14,949.26 \r\n \r\n583,061.44 \r\n \r\n43,391.00 984,544.00 754,923.00 265,050.00 413,192.00 \r\n532,489.00 102,254.00 \r\n73,988.00 \r\n \r\n51,323.65 1,248,573.79 1,089,684.34 \r\n287,726.86 \r\n349,697.14 344,878.23 \r\n73,019.91 76,422.33 11,242.66 \r\n \r\n208.65 34,994.01 46,661.86 31,497.21 \r\n6,761.93 6,840.59 1,079.00 \r\n380.00 \r\n \r\n51,532.30 1,283,567.80 1,136,346.20 \r\n319,224.07 \r\n356,459.07 351,718.82 \r\n74,098.91 76,802.33 11,242.66 \r\n \r\n$ 5,112,646.00 $ 5,372,211.63 $ 173,046.59 $ 5,545,258.22 \r\n \r\n151,498.00 31,844.00 \r\n \r\n164,528.99 3,158.46 \r\n \r\n15,926.63 \r\n \r\n180,455.62 3,158.46 \r\n \r\n$ 5,295,988.00 $ 5,539,899.08 $ 188,973.22 $ 5,728,872.30 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 27, 2013 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Chickamauga Board of Education as of and for the year ended June 30, 2012, which collectively comprise City of Chickamauga Board of Education's basic financial statements and have issued our report thereon dated March 27, 2013. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nManagement of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\n \r\n2012YB-10 \r\n \r\n  Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Chickamauga Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of management, members of the City of Chickamauga Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully, \r\n \r\nGSG:as 2012YB-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 27, 2013 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited City of Chickamauga Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. City of Chickamauga Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of City of Chickamauga Board of Education's management. Our responsibility is to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Chickamauga Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\nIn our opinion, the City of Chickamauga Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. \r\n2012SA-10 \r\n \r\n  Internal Control Over Compliance \r\nManagement of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\nThis report is intended solely for the information and use of management, members of the City of Chickamauga Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully, \r\n \r\nGSG:as 2012SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \r\n \r\nUnqualified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnqualified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nYes \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2010-h2011-belec-p-btext","title":"City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Walker County, Chickamauga, 34.87119, -85.29079"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2011-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (Received via FTP from the Georgia Department of Audits and Accounts); title from PDF title page (Georgia Government Publications database, viewed August 18, 2023).","Fiscal year ended June 30, 2015 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); (Georgia Government Publications database, viewed August 18, 2023)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, 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":["City of Chickamauga Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Chickamauga--Auditing--Periodicals.","Education--Georgia--Chickamauga--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Georgia Government Documents--Serial"],"dcterms_title":["City of Chickamauga Board of Education, a component unit of the City of Chickamauga, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be33-bc4-b2010-h2011-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing.--fast--(OCoLC)fst00902522","Education--Finance.--fast--(OCoLC)fst00902637","Expenditures, Public.--fast--(OCoLC)fst00918345","Georgia--Chickamauga.--fast--(OCoLC)fst01258394","Periodicals.--fast--(OCoLC)fst01411641","Statistics.--fast--(OCoLC)fst01423727"],"fulltext":"CITY OF CHICKAMAUGA BOARD OF EDUCATION \r\nA COMPONENT UNIT OF THE CITY OF CHICKAMAUGA, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n(Including Independent Auditor's Reports) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 3 4 5 6 7 9 \r\n23 24 25 \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n26 27 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  SECTION I FINANCIAL \r\n \r\n  Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 15, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the City of Chickamauga Board of Education, as of and for the year ended June 30, 2011, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Chickamauga Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Chickamauga Board of Education, as of June 30, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n2011ARL-11 \r\n \r\n  The City of Chickamauga Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 15, 2012, on our consideration of the City of Chickamauga Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 23, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chickamauga Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nRWH:al 2011ARL-11 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF NET ASSETS JUNE 30, 2011 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n$ 1,546,794.94 790,950.46 \r\n192,422.83 797,274.54 \r\n68,488.34 1,867.25 \r\n17,170.96 102,513.35 10,515,971.33 \r\n$ 14,033,454.00 \r\n \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\n$ \r\n \r\n2,823.43 \r\n \r\n1,062,608.95 \r\n \r\n$ 1,065,432.38 \r\n \r\n$ 10,618,484.68 277,095.63 858,284.95 \r\n1,214,156.36 $ 12,968,021.62 \r\n$ 14,033,454.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2011 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Transfers to City Government \r\nTotal General Revenues and Special Items \r\nChanges in Net Assets \r\nNet Assets - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n6,886,888.41 $ 511,667.90 $ 4,932,281.75 $ -1,442,938.76 \r\n \r\n340,215.39 75,331.92 \r\n187,414.92 507,791.90 739,904.94 170,057.29 926,473.14 \r\n83,196.35 7,889.48 \r\n \r\n134,869.21 82,768.21 \r\n167,166.65 352,825.56 433,038.45 \r\n53,235.43 413,949.51 \r\n198.75 392.37 \r\n \r\n-205,346.18 7,436.29 \r\n-20,248.27 -154,966.34 -306,866.49 -116,821.86 -512,523.63 \r\n-82,997.60 -7,497.11 \r\n \r\n37,684.73 578,566.73 \r\n \r\n412,126.35 \r\n \r\n186,132.91 \r\n \r\n-37,684.73 19,692.53 \r\n \r\n$ \r\n \r\n10,541,415.20 $ 923,794.25 $ 6,756,858.80 $ -2,860,762.15 \r\n \r\n$ 1,407,828.20 \r\n \r\n689,443.15 13,740.89 \r\n \r\n452,139.00 20,035.75 \r\n861,320.75 \r\n \r\n-631,252.50 \r\n \r\n$ 2,813,255.24 \r\n \r\n$ \r\n \r\n-47,506.91 \r\n \r\n13,015,528.53 \r\n \r\nNet Assets - End of Year \r\n \r\n$ 12,968,021.62 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n ASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nCITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2011 \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nEXHIBIT \"C\" TOTAL \r\n \r\n$ 1,541,523.65 $ \r\n130,359.63 797,274.54 \r\n68,488.34 1,867.25 \r\n17,170.96 \r\n$ 2,556,684.37 $ \r\n \r\n5,271.29 $ 790,950.46 \r\n62,063.20 \r\n858,284.95 $ \r\n \r\n1,546,794.94 790,950.46 \r\n192,422.83 797,274.54 \r\n68,488.34 1,867.25 \r\n17,170.96 \r\n3,414,969.32 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nNonspendable Restricted Committed Unassigned \r\nTotal Fund Balances \r\n \r\n$ \r\n \r\n2,823.43 \r\n \r\n1,062,608.95 \r\n \r\n40,149.20 \r\n \r\n$ 1,105,581.58 \r\n \r\n$ \r\n \r\n2,823.43 \r\n \r\n1,062,608.95 \r\n \r\n40,149.20 \r\n \r\n$ \r\n \r\n1,105,581.58 \r\n \r\n$ \r\n \r\n17,170.96 \r\n \r\n259,924.67 $ \r\n \r\n279,564.12 \r\n \r\n894,443.04 \r\n \r\n$ 1,451,102.79 $ \r\n \r\n$ 858,284.95 \r\n858,284.95 $ \r\n \r\n17,170.96 1,118,209.62 \r\n279,564.12 894,443.04 \r\n2,309,387.74 \r\n \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 2,556,684.37 $ \r\n \r\n858,284.95 $ \r\n \r\n3,414,969.32 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 3 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 2,309,387.74 \r\n \r\n$ \r\n \r\n98,343.93 \r\n \r\n4,169.42 \r\n \r\n1,606,178.84 \r\n \r\n10,883,980.10 \r\n \r\n1,787,941.42 \r\n \r\n-3,762,129.03 \r\n \r\n10,618,484.68 \r\n \r\n40,149.20 \r\n \r\n$ 12,968,021.62 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,405,332.31 \r\n \r\n13,740.89 $ \r\n \r\n6,393,035.74 \r\n \r\n815,962.06 \r\n \r\n923,794.25 \r\n \r\n18,940.07 \r\n \r\n856,780.75 \r\n \r\n$ \r\n \r\n10,427,586.07 $ \r\n \r\n$ 689,443.15 \r\n1,095.68 4,540.00 695,078.83 $ \r\n \r\n1,405,332.31 703,184.04 \r\n6,393,035.74 815,962.06 923,794.25 20,035.75 861,320.75 \r\n11,122,664.90 \r\n \r\n$ \r\n \r\n6,564,597.55 \r\n \r\n340,215.39 75,331.92 \r\n187,414.92 492,916.75 739,329.71 170,057.29 911,286.14 \r\n36,355.47 5,744.37 \r\n37,684.73 554,538.71 \r\n$ \r\n \r\n$ \r\n \r\n10,115,472.95 $ \r\n \r\n$ \r\n \r\n312,113.12 $ \r\n \r\n$ \r\n129,301.00 129,301.00 $ 565,777.83 $ \r\n \r\n6,564,597.55 \r\n340,215.39 75,331.92 \r\n187,414.92 492,916.75 739,329.71 170,057.29 911,286.14 \r\n36,355.47 5,744.37 \r\n37,684.73 554,538.71 129,301.00 \r\n10,244,773.95 \r\n877,890.95 \r\n \r\n$ \r\n \r\n$ \r\n \r\n-117,551.00 \r\n \r\n$ \r\n \r\n-117,551.00 $ \r\n \r\n$ \r\n \r\n194,562.12 $ \r\n \r\n1,256,540.67 \r\n \r\n117,551.00 $ -631,252.50 -513,701.50 $ \r\n52,076.33 $ 806,208.62 \r\n \r\n117,551.00 -748,803.50 -631,252.50 246,638.45 2,062,749.29 \r\n \r\n$ \r\n \r\n1,451,102.79 $ \r\n \r\n858,284.95 $ \r\n \r\n2,309,387.74 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Depreciation Expense over Capital Outlay \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n246,638.45 \r\n \r\n$ \r\n \r\n143,596.65 \r\n \r\n-440,237.90 \r\n \r\n-296,641.25 2,495.89 \r\n \r\n$ \r\n \r\n-47,506.91 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n29,477.30 \r\n \r\n$ \r\n \r\n29,477.30 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe City of Chickamauga Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is not organized as a separate legal entity and does not have the power to levy taxes or issue bonds. Its budget is subject to approval by the City of Chickamauga, Georgia. Accordingly, the City of Chickamauga Board of Education is determined to be a component unit of the City of Chickamauga, Georgia, which is the primary government. \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the City of Chickamauga Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n \r\n- 9 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred. Capital asset acquisitions are reported as expenditures in governmental funds. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nThe State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1  June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \r\n- 10 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, \r\n(2) Obligations issued by the United States government, \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n(4) Obligations of any corporation of the United States government, \r\n(5) Prime banker's acceptances, \r\n(6) The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n(7) Repurchase agreements, and \r\n(8) Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\n \r\n- 11 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe City of Chickamauga fixed the property tax levy for the 2010 tax digest year (calendar year) on October 4, 2010 (levy date). Taxes were due on December 20, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. The Chickamauga City Clerk bills and collects the property taxes for the School District and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2011, for maintenance and operations amounted to $1,405,332.31. \r\n \r\nThe tax millage rate levied for the 2010 tax year (calendar year) for the City of Chickamauga Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n12.00 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $689,443.15 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2011, the School District provided $631,252.50 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nINVENTORIES \r\n \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost \r\n \r\n- 12 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nwhere no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \r\n \r\nstatements are as follows: \r\n \r\nCapitalization \r\n \r\nEstimated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 100,000.00 \r\n \r\nN/A 15 to 80 years 15 to 80 years \r\n5 to 25 years 15 to 80 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives, with the exception of intangible assets which are amortized. \r\n \r\nAmortization of intangible assets such as water, timber, and mineral rights, easements, patents, trademarks, copyrights and internally generated software is computed using the straight-line method over the estimated useful lives of the assets, generally 15 to 80 years. \r\n \r\nNET ASSETS \r\n \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\n \r\nInvested in capital assets - This represents the School District's total investment in capital assets. \r\n \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal programs and capital projects in accordance with restrictions imposed by external third parties. \r\n \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\n \r\nFUND BALANCES \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 13 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \r\n \r\nFund Balances Nonspendable Inventories Restricted Continuation of Federal Programs Capital Projects Committed School Activity Accounts Technology Equipment Unassigned \r\n \r\n$ \r\n \r\n17,170.96 \r\n \r\n$ 259,924.67 858,284.95 \r\n \r\n1,118,209.62 \r\n \r\n$ 153,282.12 126,282.00 \r\n \r\n279,564.12 894,443.04 \r\n \r\nFund Balance, June 30, 2011 USE OF ESTIMATES \r\n \r\n$ 2,309,387.74 \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS \r\n \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\n \r\n- 14 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2011, the bank balances were $1,804,733.10. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2011, the carrying value of the School District's total investments was $790,950.46, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \r\n- 15 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNote 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2010 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2011 \r\n \r\n$ 98,343.93 58,310.00 $ \r\n \r\n4,169.42 $ \r\n \r\n$ 58,310.00 \r\n \r\n98,343.93 4,169.42 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ 156,653.93 $ \r\n \r\n4,169.42 $ 58,310.00 $ 102,513.35 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 10,815,136.10 $ 1,768,460.77 1,496,766.26 \r\n \r\n68,844.00 $ 19,480.65 109,412.58 \r\n \r\n0.00 $ 10,883,980.10 1,787,941.42 1,606,178.84 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n2,369,889.01 807,373.42 144,628.70 \r\n \r\n216,714.32 144,549.08 \r\n78,974.50 \r\n \r\n2,586,603.33 951,922.50 223,603.20 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 10,758,472.00 $ -242,500.67 $ \r\n \r\n0.00 $ 10,515,971.33 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 10,915,125.93 $ -238,331.25 $ \r\n \r\n58,310.00 $ 10,618,484.68 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nGeneral Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services \r\n \r\n$ \r\n \r\n$ \r\n \r\n14,464.48 \r\n \r\n559.35 \r\n \r\n24,102.69 \r\n \r\n50,408.70 \r\n \r\n2,085.89 \r\n \r\n325,252.13 \r\n91,621.11 23,364.66 \r\n \r\n$ \r\n \r\n440,237.90 \r\n \r\n- 16 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 6: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2011, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\n \r\nDistrict-wide \r\n \r\nGeneral \r\n \r\nCapital \r\n \r\nFund \r\n \r\nProjects \r\n \r\nDistrict-wide Capital Projects City of Chickamauga \r\n \r\n$ 117,551.00 $ 631,252.50 \r\n \r\nTotal \r\n \r\n$ 117,551.00 $ 631,252.50 \r\n \r\nTransfers are used to move revenues collected by the General Fund to the District-wide Capital Projects Fund as supplemental funding source for capital construction projects. \r\n \r\nThe City of Chickamauga (City Government) sold general obligation bonds to provide advance funding for Capital Outlay Projects associated with issuance of Special Purpose Local Option Sales Tax (SPLOST). In fiscal year 2011, the School District provided $631,252.50 of SPLOST proceeds to the City Government for debt services on said general obligation debt. \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as \r\n \r\nfollows: \r\n \r\nClaims and \r\n \r\nBeginning of Year \r\n \r\nChanges in \r\n \r\nClaims \r\n \r\nEnd of Year \r\n \r\nLiability \r\n \r\nEstimates \r\n \r\nPaid \r\n \r\nLiability \r\n \r\n2010 $ 2011 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n446.43 $ 1,495.98 $ \r\n \r\n446.43 $ 1,495.98 $ \r\n \r\n0.00 0.00 \r\n \r\n- 17 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver Education School Each Employee \r\nNote 8: ON-BEHALF PAYMENTS \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n2,500.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nThe School District has recognized revenues and costs in the amount of $22,276.30 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certificated Personnel In the amount of $12,605.42 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $5,927.88 \r\n \r\nOffice of the State Treasurer Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $3,743.00 \r\n \r\nNote 9: SIGNIFICANT CONTINGENT LIABILITIES \r\n \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\nNote 10: SUBSEQUENT EVENTS \r\n \r\nOn March 15, 2011, the voters of City of Chickamauga  Walker County voted in favor of a Special Purpose Local Option Sales Tax Referendum for educational purposes. The imposition of the tax by the City of Chickamauga is to be used for various capital outlay projects and includes the approval to issue debt to advance funds for these projects. General Obligation Bonds were sold on August 30, 2011 in the amount of $2,900,000.00. \r\n \r\nNote 11: POST-EMPLOYMENT BENEFITS \r\n \r\nGeorgia School Personnel Employees Post-employment Health Benefit Fund \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by \r\n \r\n- 18 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nthe Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2011: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies: \r\n \r\nJuly 2010 - April 2011 May 2011 - June 2011 \r\n \r\n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \r\n \r\n$162.72 per member per month $218.20 per member per month $246.20 per member per month \r\n \r\nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \r\n \r\nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2011 2010 2009 \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n924,233.67 866,106.17 665,617.19 \r\n \r\n- 19 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNote 12: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \r\n \r\n- 20 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION  WALKER COUNTY NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2011 2010 2009 \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n563,206.11 557,185.46 535,856.38 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 21 - \r\n \r\n (This page left intentionally blank) \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Enterprise Operations \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Financing 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 \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n1,240,000.00 $ \r\n \r\n1,355,000.00 $ \r\n \r\n1,405,332.31 \r\n \r\n13,740.89 \r\n \r\n6,131,612.00 \r\n \r\n6,229,506.00 \r\n \r\n6,393,035.74 \r\n \r\n714,254.00 \r\n \r\n1,062,796.00 \r\n \r\n815,962.06 \r\n \r\n980,325.00 \r\n \r\n998,825.00 \r\n \r\n923,794.25 \r\n \r\n25,450.00 \r\n \r\n20,075.00 \r\n \r\n18,940.07 \r\n \r\n888,962.00 \r\n \r\n904,820.00 \r\n \r\n856,780.75 \r\n \r\n$ \r\n \r\n9,980,603.00 $ \r\n \r\n10,571,022.00 $ \r\n \r\n10,427,586.07 \r\n \r\n$ \r\n \r\n6,757,246.01 $ \r\n \r\n6,817,956.83 $ \r\n \r\n6,564,597.55 \r\n \r\n344,726.73 87,789.64 \r\n182,437.81 511,251.32 761,797.98 136,456.41 964,644.95 \r\n89,925.00 6,602.00 \r\n610,000.00 55,000.00 \r\n \r\n352,959.90 70,844.00 \r\n179,763.28 503,905.49 755,299.39 146,029.44 958,955.50 \r\n95,530.00 6,386.00 \r\n610,000.00 45,000.00 \r\n121,650.00 \r\n \r\n340,215.39 75,331.92 \r\n187,414.92 492,916.75 739,329.71 170,057.29 911,286.14 \r\n36,355.47 5,744.37 \r\n554,538.71 37,684.73 \r\n \r\n$ \r\n \r\n10,507,877.85 $ \r\n \r\n10,664,279.83 $ \r\n \r\n10,115,472.95 \r\n \r\n$ \r\n \r\n-527,274.85 $ \r\n \r\n-93,257.83 $ \r\n \r\n312,113.12 \r\n \r\n-117,551.00 \r\n \r\n$ \r\n \r\n-527,274.85 $ \r\n \r\n-93,257.83 $ \r\n \r\n194,562.12 \r\n \r\n1,256,124.17 \r\n \r\n1,256,124.17 \r\n \r\n1,256,540.67 \r\n \r\n4,458.19 \r\n \r\n$ \r\n \r\n728,849.32 $ \r\n \r\n1,167,324.53 $ \r\n \r\n1,451,102.79 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 23 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Title I, Part A Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 541,250.90 (1) \r\n541,250.90 \r\n \r\n* 84.391 * 84.392 * 84.027 * 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n112,793.89 1,283.70 \r\n127,760.69 7,226.00 \r\n249,064.28 \r\n \r\n84.389 84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n8,052.00 75,025.43 \r\n83,077.43 \r\n \r\n84.048 * 84.410 \r\n84.367 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n18,601.00 256,165.00 \r\n40,431.00 \r\n315,197.00 \r\n647,338.71 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n1,188,589.61 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $15,148.35. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($20,651.78) were not maintained separately and are included in the 2011 National School Lunch Program. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the City of Chickamauga Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee the notes to the basic financial statements. \r\n \r\n- 24 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \r\nAGENCY/FUNDING \r\nGRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Nursing Services Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Funding Health Insurance Move On When Ready Preschool Handicapped Program Teachers' Retirement Virtual Schools Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n407,788.00 \r\n \r\n52,512.00 \r\n \r\n898,832.00 \r\n \r\n100,291.00 \r\n \r\n489,818.41 \r\n \r\n59,076.00 \r\n \r\n1,076,215.00 \r\n \r\n851,498.59 \r\n \r\n327,007.00 \r\n \r\n400,880.00 \r\n \r\n543,061.00 \r\n \r\n99,125.00 \r\n \r\n78,730.00 \r\n \r\n153,645.00 \r\n \r\n48,249.00 \r\n \r\n28,600.00 \r\n \r\n372,744.00 390,461.00 380,194.00 \r\n39,014.00 7,259.44 \r\n452,139.00 17,746.00 28,070.00 \r\n-940,291.00 \r\n \r\n288.00 12,605.42 \r\n200.00 7,557.00 5,927.88 \r\n50.00 \r\n \r\n3,743.00 \r\n \r\n$ \r\n \r\n6,393,035.74 \r\n \r\nSee notes notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\nConstruction of additions, renovations and improvements to Gordon Lee High School, Gordon Lee Middle School and Chickamauga Elementary School, including the upgrading and expansion of technology and equipment; Construction of additions, renovations and improvements to various athletic facilities and sites; System-wide security and safety improvements and HVAC upgrades; Acquisition of new school buses, textbooks, desks, rolling science labs and driver education simulators; Upgrading and equipping cafeterias; and acquisition, construction, improvement, repair and equipping of facilities, including acquisition of any necessary property therefore, both real and personal \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\n$ 4,244,857.00 $ 4,163,000.00 $ 129,301.00 $ 3,398,603.21 Ongoing \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of City of Chickamauga approved the imposition of a 1% sales tax to fund the above project and retire associated debt incurred by the City of Chickamauga City Government on the Board's behalf. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above project as follows: \r\n \r\nPrior Years \r\n \r\n$ 281,902.50 \r\n \r\nCurrent Year \r\n \r\n50,752.50 \r\n \r\nTotal \r\n \r\n$ 332,655.00 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\n CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category III Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\nTOTAL QBE FORMULA FUNDS \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n434,388.00 $ 328,189.25 $ \r\n \r\n6,234.55 $ \r\n \r\n334,423.80 \r\n \r\n54,688.00 \r\n \r\n20,819.22 \r\n \r\n248.44 \r\n \r\n21,067.66 \r\n \r\n978,656.00 \r\n \r\n775,907.46 \r\n \r\n24,575.91 \r\n \r\n800,483.37 \r\n \r\n105,718.00 \r\n \r\n52,852.17 \r\n \r\n193.48 \r\n \r\n53,045.65 \r\n \r\n526,824.00 \r\n \r\n516,664.47 \r\n \r\n20,206.90 \r\n \r\n536,871.37 \r\n \r\n62,032.00 1,092,801.00 \r\n872,819.00 355,376.00 443,642.00 \r\n570,361.00 108,268.00 \r\n84,596.00 \r\n \r\n34,342.05 1,112,752.77 1,012,923.92 \r\n290,207.70 \r\n313,019.16 337,615.66 127,873.15 \r\n54,768.15 9,949.66 \r\n \r\n68.60 37,070.88 49,051.12 38,169.98 \r\n4,934.73 5,372.09 \r\n770.57 355.28 \r\n \r\n34,410.65 1,149,823.65 1,061,975.04 \r\n328,377.68 \r\n317,953.89 342,987.75 128,643.72 \r\n55,123.43 9,949.66 \r\n \r\n$ \r\n \r\n5,690,169.00 $ 4,987,884.79 $ 187,252.53 $ 5,175,137.32 \r\n \r\n166,091.00 31,048.00 \r\n \r\n162,969.22 258.81 \r\n \r\n13,769.69 \r\n \r\n176,738.91 258.81 \r\n \r\n$ \r\n \r\n5,887,308.00 $ 5,151,112.82 $ \r\n \r\n201,022.22 $ \r\n \r\n5,352,135.04 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 15, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Chickamauga Board of Education as of and for the year ended June 30, 2011, which collectively comprise City of Chickamauga Board of Education's basic financial statements and have issued our report thereon dated March 15, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nManagement of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\n \r\n2011YB-10 \r\n \r\n  Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether City of Chickamauga Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nThis report is intended solely for the information and use of management, members of the City of Chickamauga Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:al 2011YB-10 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n  Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 15, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the City of Chickamauga Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited City of Chickamauga Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. City of Chickamauga Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of City of Chickamauga Board of Education's management. Our responsibility is to express an opinion on City of Chickamauga Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Chickamauga Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City of Chickamauga Board of Education's compliance with those requirements. \r\nIn our opinion, the City of Chickamauga Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. \r\n2011SA-10 \r\n \r\n  Internal Control Over Compliance \r\nManagement of City of Chickamauga Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered City of Chickamauga Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Chickamauga Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\nThis report is intended solely for the information and use of management, members of the City of Chickamauga Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nRWH:al 2011SA-10 \r\n \r\nRussell W. Hinton, CPA, CGFM State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  CITY OF CHICKAMAUGA BOARD OF EDUCATION - WALKER COUNTY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \r\n \r\nUnqualified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnqualified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n84.027, 84.173, 84.391, 84.392 84.410 \r\n \r\nSpecial Education Cluster Education Jobs Fund \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\n$300,000.00 Yes \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n "}],"pages":{"current_page":1,"next_page":2,"prev_page":null,"total_pages":2,"limit_value":10,"offset_value":0,"total_count":18,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":18}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. 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