{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2020-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2020 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2020-06-30"],"dcterms_description":["Annual financial report for the White County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2020 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n3 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n4 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n5 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n6 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n7 \r\n \r\nH \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\n33 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n35 \r\n \r\n4 SCHEDULE OF PROPORTIONATE SHARE OF NET OPEB LIABILITY \r\n \r\nSCHOOL OPEB FUND \r\n \r\n36 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n37 \r\n \r\n6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 38 \r\n \r\n7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \r\n \r\n39 \r\n \r\n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n40 \r\n \r\n9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n41 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n42 43 45 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional \r\n \r\n procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 26, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n WHITE COUNTY BOARD OF EDUCATION \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories 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 and Accrued Liabilities Salaries and Benefits Payable Interest Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n14,963,325.14 \r\n \r\n1,244,864.39 3,026,871.16 \r\n463,516.93 63,381.75 75,252.12 \r\n2,007,724.88 70,844,824.89 \r\n \r\n92,689,761.26 \r\n \r\n10,787,445.30 2,090,867.00 \r\n12,878,312.30 \r\n \r\n226,394.02 4,802,981.28 \r\n96,562.50 38,592,838.00 30,194,633.00 \r\n2,724,920.77 5,894,813.06 \r\n82,533,142.63 \r\n \r\n1,802,671.00 7,951,485.00 \r\n9,754,156.00 \r\n \r\n68,773,877.14 \r\n612,459.90 4,576,135.55 1,531,354.78 (62,213,052.44) \r\n \r\n$ \r\n \r\n13,280,774.93 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\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 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 Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 30,700,287.09 $ \r\n1,884,407.98 1,214,693.49 \r\n749,596.84 1,027,642.83 3,371,243.48 \r\n379,997.07 3,060,239.77 2,403,179.77 \r\n201,277.97 218,768.22 \r\n225,112.67 2,616,144.40 \r\n183,254.23 \r\n$ 48,235,845.81 $ \r\n \r\n146,155.04 $ \r\n- \r\n437,586.83 \r\n- \r\n583,741.87 $ \r\n \r\n19,024,909.90 $ \r\n692,145.99 1,063,303.40 \r\n566,760.00 656,829.99 1,089,488.67 131,000.80 1,302,753.51 639,033.40 \r\n83,474.04 29,180.69 \r\n2,482.08 2,074,022.39 \r\n- \r\n27,355,384.86 $ \r\n \r\n- $ \r\n75,985.55 - \r\n- \r\n75,985.55 \r\n \r\n(11,529,222.15) \r\n(1,192,261.99) (151,390.09) (182,836.84) (370,812.84) \r\n(2,281,754.81) (248,996.27) \r\n(1,757,486.26) (1,688,160.82) \r\n(117,803.93) (189,587.53) \r\n(222,630.59) (104,535.18) (183,254.23) \r\n(20,220,733.53) \r\n \r\n16,640,829.96 \r\n5,437,469.69 410,994.74 348,422.04 \r\n1,132,026.16 \r\n23,969,742.59 \r\n3,749,009.06 \r\n9,531,765.87 \r\n \r\nNet Position - End of Year \r\n \r\n$ 13,280,774.93 \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 WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 9,537,077.86 $ \r\n362,307.77 3,026,871.16 \r\n463,516.93 63,381.75 75,252.12 \r\n \r\n753,549.23 $ 4,672,698.05 $ 14,963,325.14 \r\n \r\n882,556.62 - \r\n \r\n- \r\n \r\n1,244,864.39 \r\n \r\n- \r\n \r\n3,026,871.16 \r\n \r\n- \r\n \r\n463,516.93 \r\n \r\n- \r\n \r\n63,381.75 \r\n \r\n- \r\n \r\n75,252.12 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 13,528,407.59 $ 1,636,105.85 $ 4,672,698.05 $ 19,837,211.49 \r\n \r\n$ \r\n \r\n121,642.95 $ \r\n \r\n4,802,981.28 \r\n \r\n4,924,624.23 \r\n \r\n104,751.07 $ - \r\n104,751.07 \r\n \r\n- $ \r\n \r\n226,394.02 \r\n \r\n- \r\n \r\n4,802,981.28 \r\n \r\n- \r\n \r\n5,029,375.30 \r\n \r\n53,316.73 - \r\n53,316.73 \r\n \r\n385,146.15 \r\n385,146.15 \r\n \r\n- \r\n \r\n53,316.73 \r\n \r\n- \r\n \r\n385,146.15 \r\n \r\n- \r\n \r\n438,462.88 \r\n \r\n75,252.12 537,207.78 503,172.74 7,434,833.99 \r\n8,550,466.63 \r\n \r\n1,146,208.63 \r\n- \r\n1,146,208.63 \r\n \r\n4,672,698.05 \r\n- \r\n4,672,698.05 \r\n \r\n75,252.12 6,356,114.46 \r\n503,172.74 7,434,833.99 \r\n14,369,373.31 \r\n \r\n$ 13,528,407.59 $ 1,636,105.85 $ 4,672,698.05 $ 19,837,211.49 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2020 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand 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\nCertain revenues will be collected after year-end but are not available soon enough to pay for current periods expenditures. \r\nUnavailable property taxes Unavailable sales taxes \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Compensated absences payable Unamortized bond premiums \r\n \r\n$ 14,369,373.31 \r\n \r\n$ 1,835,564.40 172,160.48 \r\n81,965,887.62 8,625,991.42 2,691,321.39 \r\n(22,438,375.54) \r\n \r\n72,852,549.77 \r\n \r\n$ (38,592,838.00) (30,194,633.00) \r\n \r\n(68,787,471.00) \r\n \r\n$ 8,984,774.30 (5,860,618.00) \r\n \r\n3,124,156.30 \r\n \r\n$ \r\n \r\n53,316.73 \r\n \r\n385,146.15 \r\n \r\n438,462.88 \r\n \r\n$ (7,725,000.00) (96,562.50) (69,972.50) \r\n(824,761.33) \r\n \r\n(8,716,296.33) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 13,280,774.93 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Service \r\nPrincipal Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nSale of Capital Assets 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\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 16,665,592.57 $ 410,994.74 \r\n23,186,435.09 4,259,985.20 583,741.87 231,549.84 1,110,776.16 \r\n46,449,075.47 \r\n \r\n- $ 5,052,323.54 \r\n432,646.99 - \r\n18,859.12 21,250.00 \r\n5,525,079.65 \r\n \r\n- $ 98,013.08 - \r\n98,013.08 \r\n \r\n16,665,592.57 5,463,318.28 \r\n23,619,082.08 4,259,985.20 583,741.87 348,422.04 1,132,026.16 \r\n52,072,168.20 \r\n \r\n28,820,724.33 \r\n1,814,365.73 1,180,163.04 \r\n717,717.38 971,051.35 3,192,504.33 366,446.93 2,874,726.70 2,289,246.18 197,257.11 202,348.40 225,112.67 2,538,836.12 \r\n- \r\n- \r\n45,390,500.27 \r\n1,058,575.20 \r\n \r\n213,115.52 \r\n123,915.51 3,750.00 152,039.21 279,160.90 16,094.72 73,313.13 1,108,040.19 \r\n- \r\n1,969,429.18 \r\n3,555,650.47 \r\n \r\n- \r\n- \r\n2,325,000.00 502,500.00 \r\n2,827,500.00 \r\n(2,729,486.92) \r\n \r\n29,033,839.85 \r\n1,814,365.73 1,180,163.04 \r\n717,717.38 1,094,966.86 3,192,504.33 \r\n370,196.93 3,026,765.91 2,568,407.08 \r\n197,257.11 218,443.12 225,112.67 2,612,149.25 1,108,040.19 \r\n2,325,000.00 502,500.00 \r\n50,187,429.45 \r\n1,884,738.75 \r\n \r\n5,400.00 210,106.33 \r\n- \r\n215,506.33 \r\n1,274,081.53 \r\n7,276,385.10 \r\n \r\n(4,127,354.83) \r\n(4,127,354.83) \r\n(571,704.36) \r\n1,717,912.99 \r\n \r\n3,917,248.50 \r\n- \r\n3,917,248.50 \r\n1,187,761.58 \r\n3,484,936.47 \r\n \r\n5,400.00 4,127,354.83 (4,127,354.83) \r\n5,400.00 \r\n1,890,138.75 \r\n12,479,234.56 \r\n \r\n$ \r\n \r\n8,550,466.63 $ \r\n \r\n1,146,208.63 $ \r\n \r\n4,672,698.05 $ 14,369,373.31 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nProperty taxes Sales taxes \r\nGeorgia State Financing and Investing 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. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nBond principal retirements Amortization of bond premium \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences \r\n \r\n$ \r\n \r\n1,890,138.75 \r\n \r\n$ \r\n \r\n1,795,358.42 \r\n \r\n(1,510,668.37) \r\n \r\n284,690.05 \r\n \r\n$ \r\n \r\n(24,762.61) \r\n \r\n385,146.15 \r\n \r\n360,383.54 (432,646.99) \r\n \r\n$ \r\n \r\n2,325,000.00 \r\n \r\n274,920.77 \r\n \r\n2,599,920.77 \r\n \r\n$ \r\n \r\n(1,203,798.69) \r\n \r\n198,192.00 \r\n \r\n(1,005,606.69) \r\n \r\n$ \r\n \r\n44,325.00 \r\n \r\n7,804.63 \r\n \r\n52,129.63 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n3,749,009.06 \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 WHITE COUNTY BOARD OF EDUATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\nLIABILITIES Funds Held for Others \r\nNET POSITION Held in Trust for Private Purposes \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n74,707.11 $ 210,883.56 \r\n \r\n$ 210,883.56 \r\n \r\n$ 74,707.11 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n4,951.00 \r\n \r\n1,669.19 6,620.19 \r\n \r\n3,000.00 3,620.19 71,086.92 \r\n \r\n$ \r\n \r\n74,707.11 \r\n \r\nThe notes to the 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 WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n \r\n- 10 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS: \r\nThe fund financial statements provide information about the School District's funds, 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\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 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 and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 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 long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \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 governmentwide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Computer Applications Intangible Assets \r\n \r\nAny Amount $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 45,000.00 $ 100,000.00 \r\n \r\nN/A 20 years 10 to 80 years 5 to 20 years \r\n6 years 10 to 20 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\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of sick leave public school retirement employees earned based on services already rendered. \r\n \r\nSick leave of 1.25 days is awarded on a monthly basis to all full-time public school retirement personnel. Sick leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such sick leave does not exceed 90 days. Upon terminating employment, the School District pays all unused and unforfeited sick leave benefits to public school retirement employees. Accordingly, these benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\n \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\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 White County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on August 5, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on November 15, 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $15,202,095.39. \r\n \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\n17.481 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,463,497.18 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 $5,052,323.54 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 reauthorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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, 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\n \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\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 $15,248,915.81, and a bank balance of $16,525,837.07. The bank balances insured by Federal depository insurance were $250,000.00. \r\nAt June 30, 2020, $16,275,837.07 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in the amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible criteria. The OST approves authorized custodians. \r\n \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,571,076.00 $ 264,488.40 $ \r\n \r\n- $ 1,835,564.40 \r\n \r\n781,580.86 \r\n \r\n403,742.64 \r\n \r\n1,013,163.02 \r\n \r\n172,160.48 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n2,352,656.86 \r\n \r\n668,231.04 \r\n \r\n1,013,163.02 \r\n \r\n2,007,724.88 \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\n80,395,694.41 8,297,038.03 2,643,368.39 \r\n \r\n1,570,193.21 522,144.19 47,953.00 \r\n \r\n13,425,936.29 5,602,215.80 2,092,745.88 \r\n \r\n1,020,469.52 444,598.82 45,600.03 \r\n \r\n193,190.80 \r\n- \r\n \r\n81,965,887.62 8,625,991.42 2,691,321.39 \r\n \r\n193,190.80 \r\n- \r\n \r\n14,446,405.81 5,853,623.82 2,138,345.91 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n70,215,202.86 \r\n \r\n629,622.03 \r\n \r\n- \r\n \r\n70,844,824.89 \r\n \r\nGovernmental Activities Capital Assets - Net $ 72,567,859.72 $ 1,297,853.07 $ 1,013,163.02 $ 72,852,549.77 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Educational Media Services School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n47,586.05 \r\n \r\n12,991.75 \r\n \r\n99,704.11 \r\n \r\n38,975.24 \r\n \r\n233,851.46 \r\n \r\n$ 1,042,361.18 \r\n433,108.61 35,198.58 \r\n \r\n$ 1,510,668.37 \r\n \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2020, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\nCapital Projects Fund \r\n \r\nGeneral Fund Debt Service Fund \r\n \r\n$ 210,106.33 3,917,248.50 \r\n \r\nTotal \r\n \r\n$ 4,127,354.83 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the capital projects fund to the debt service fund for the current year bond principal and interest payments. In addition, transfers are used to repay loans between funds or misclassification in transactions between the general fund, the capital projects fund and the debt service fund. \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\nGovernmental Activities \r\n \r\nBalance \r\n \r\nBalance \r\n \r\nJuly 1, 2019 \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nJune 30, 2020 Due Within One Year \r\n \r\nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Compensated Absences(1) \r\n \r\n$ 10,050,000.00 $ \r\n \r\n- $ 2,325,000.00 $ 7,725,000.00 $ \r\n \r\n1,099,682.10 \r\n \r\n- \r\n \r\n274,920.77 \r\n \r\n824,761.33 \r\n \r\n77,777.13 8,612.00 \r\n \r\n16,416.63 \r\n \r\n69,972.50 \r\n \r\n2,450,000.00 274,920.77 - \r\n \r\n$ 11,227,459.23 $ 8,612.00 $ 2,616,337.40 $ 8,619,733.83 $ \r\n \r\n2,724,920.77 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nThe School District's outstanding bonds from direct borrowings related to governmental activities of $7,725,000.00 contain a provision that in an event of default, outstanding amounts become immediately due if the School District is unable to make payment. \r\n \r\nOf the total amount originally authorized, $2,915,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2016 \r\n \r\n3.0% - 5.0% \r\n \r\n4/20/2016 \r\n \r\n4/1/2023 $ 12,085,000.00 $ 7,725,000.00 \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2021 2022 2023 \r\n \r\n$ 2,450,000.00 $ 386,250.00 \r\n \r\n$ \r\n \r\n2,575,000.00 \r\n \r\n263,750.00 \r\n \r\n2,700,000.00 \r\n \r\n135,000.00 \r\n \r\n274,920.77 274,920.77 274,919.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 7,725,000.00 $ 785,000.00 \r\n \r\n$ \r\n \r\n824,761.33 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\nNOTE 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\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 $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any liabilities for unemployment compensation during the last two fiscal years. \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSURETY BOND The School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nDrivers Education \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 Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n75,252.12 \r\n \r\n$ \r\n \r\n537,207.78 \r\n \r\n1,146,208.63 \r\n \r\n4,672,698.05 \r\n \r\n6,356,114.46 \r\n \r\n503,172.74 7,434,833.99 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 14,369,373.31 \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\nOPERATING LEASES \r\n \r\nThe School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $33,459.84 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2021 \r\n \r\n$ \r\n \r\n2,788.32 \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \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\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $837,129.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\nAt June 30, 2020, the School District reported a liability of $30,194,633.00 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 \r\n \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\ndetermined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.246042%, which was an increase of 0.001089% from its proportion measured as of June 30, 2018. \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of $638,937.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 3,284,862.00 \r\n \r\nChanges of assumptions \r\n \r\n1,048,601.00 \r\n \r\n4,256,489.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n65,755.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n139,382.00 \r\n \r\n410,134.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n837,129.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,090,867.00 $ 7,951,485.00 \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, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2021 2022 2023 2024 2025 Thereafter \r\n \r\n$ (1,521,641.00) $ (1,521,641.00) $ (1,524,168.00) $ (1,314,183.00) $ (683,469.00) $ (132,645.00) \r\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2019: \r\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00% - 8.75%, including inflation \r\n \r\nLong-term expected rate of return Healthcare cost trend rate \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nPre-Medicare Eligible \r\n \r\n7.250% \r\n \r\nMedicare Eligible \r\n \r\n5.375% \r\n \r\nUltimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n4.75% \r\n \r\nMedicare Eligible Year of Ultimate trend rate \r\n \r\n4.75% \r\n \r\nPre-Medicare Eligible Medicare Eligible \r\n \r\n2028 2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with \r\nprojection 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 \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\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014, and adopted by the pension Board on December 17, 2015. The next experience study for TRS will be for the period ending June 30, 2018. \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2018 valuation were based on a review of recent plan experience done concurrently with the June 30, 2018 valuation. \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\nTotal \r\n \r\nTarget allocation \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n100.00% \r\n \r\nLong-Term Expected Real Rate of Return* \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\n*Net of Inflation \r\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\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that \r\nis 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\n$ 35,096,128.00 $ \r\n \r\n30,194,633.00 $ 26,207,485.00 \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the 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 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$ 25,435,778.00 $ \r\n \r\n30,194,633.00 $ 36,238,737.00 \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\n \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by O.C.G.A 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 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 21.10% of payroll was required from the School District and 0.04% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,904,913.30 and $9,060.88 from the School District and the State, respectively. \r\n \r\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contribution rate for the year ended June 30, 2020 was 24.66% of annual covered payroll for old and new plan members and 21.64% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. There are no employer contributions to the pension plan for the current fiscal year due to the fact that the School District has no current employees who are covered under ERS. \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\n \r\n- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBenefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose \r\nto receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $67,652.00. \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2020, the School District reported a liability of $38,592,838.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 38,592,838.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n74,614.00 \r\n \r\nTotal \r\n \r\n$ 38,667,452.00 \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 0.179479%, which was a decrease of 0.000623% from its proportion measured as of June 30, 2018. At June 30, 2019, the School District's ERS proportion was 0.000000%, which was an decrease of 0.000106% from its proportion measured as of June 30, 2018. \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2020, the School District 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 $391,304.00. \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 $6,049,647.33 for TRS, $55.00 for ERS and $120,673.00 for PSERS and revenue of $59,010.00 for TRS and $120,673.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 2,175,289.00 $ \r\n \r\n11,442.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n3,703,486.00 \r\n \r\n- \r\n \r\n- \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\n919,013.00 \r\n \r\n- \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n2,774.00 \r\n \r\n869,682.00 \r\n \r\n983.00 \r\n \r\n2,534.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n4,904,913.30 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 10,786,462.30 $ 1,800,137.00 $ 983.00 $ 2,534.00 \r\n \r\nThe School District contributions subsequent to the measurement date for TRS and for ERS are \r\n \r\nreported as deferred outflows of resources and will be recognized as a reduction of the net pension \r\n \r\nliability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources \r\n \r\nand deferred inflows of resources related to pensions will be recognized in pension expense as \r\n \r\nfollows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2021 2022 2023 2024 \r\n \r\n$ 1,742,810.00 $ $ 106,436.00 $ $ 1,004,949.00 $ $ 1,227,217.00 $ \r\n \r\n(600.00) (951.00) \r\n- \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\nPost-retirement benefit increases \r\n \r\n2.50% \r\n3.00%  8.75%, average, including inflation \r\n7.25%, net of pension plan investment expense, including inflation 1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the long-term assumed investment rate of return. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\n \r\n- 29 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases Investment rate of return \r\n \r\nN/A \r\n7.30%, 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\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of assumed rate of inflation. \r\n \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net 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 \r\nproportionate share of the net pension liability would be if it were calculated using a discount rate \r\nthat 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$ 62,647,472.00 $ \r\n \r\n38,592,838.00 $ 18,811,382.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly available at www.trsga.com/publications and www.ers.ga.gov/financials. \r\nNOTE 14: SUBSEQUENT EVENTS \r\nIn the subsequent fiscal year, voters of the White County School District authorized a special one percent sales tax for a period not to exceed twenty (20) calendar quarters and for the purpose of raising not more than $32,000,000.00 for the purpose of (i) acquiring, constructing and equipping a performing arts center, a transportation facility, and athletic field improvements at White County High School, (ii) adding to, constructing, renovating, repairing, demolishing, improving and equipping existing school buildings and school system facilities, including athletic fields and facilities, (iii) acquiring computers and computer technology equipment and software, including tablets and laptops, (iv) acquiring heating, air conditioning and energy efficiency equipment, (v) acquiring textbooks and other instructional materials and electronic media, as well as school buses, transportation and maintenance equipment and band equipment, (vi) paying any general obligation debt of the School District issued in conjunction with the imposition of such sales and use tax, and (vii) paying the expenses incident to accomplish the foregoing. Voters also authorized the issuance of $20,000,000.00 in general obligation bonds to be expended on projects (i)  (v) and (vii) and for payment of a portion of interest on such debt. The School District has not issued any of these bonds as of the report date. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of \r\nthe net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.179479% $ 38,592,838.00 $ 0.180102% $ 33,430,789.00 $ 0.185757% $ 34,523,511.00 $ 0.185718% $ 38,315,694.00 $ 0.189972% $ 28,921,351.00 $ 0.191627% $ 24,209,544.00 $ \r\n \r\n74,614.00 65,710.00 270,602.00 578,290.00 330,056.00 302,829.00 \r\n \r\nTotal \r\n$ 38,667,452.00 $ 33,496,499.00 $ 34,794,113.00 $ 38,893,984.00 $ 29,251,407.00 $ 24,512,373.00 \r\n \r\nSchool District's covered payroll \r\n$ 21,964,380.56 $ 21,492,936.27 $ 21,497,902.76 $ 20,681,026.08 $ 20,280,801.09 $ 19,734,249.63 \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\n175.71% 155.54% 160.59% 185.27% 142.60% 122.68% \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 WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nSchool District's covered payroll \r\n \r\n0.000000% $ 0.000106% $ 0.000000% $ 0.000000% $ 0.000983% $ 0.001251% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,358.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n39,825.00 $ \r\n \r\n46,920.00 $ \r\n \r\n2,709.70 \r\n28,610.93 27,687.76 \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\nN/A 160.83% \r\nN/A N/A 139.20% 169.46% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.74% 76.68% \r\nN/A N/A 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 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\n391,304.00 361,691.00 334,911.00 448,772.00 329,428.00 389,393.00 \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n$ 391,304.00 $ 836,542.10 $ 361,691.00 $ 817,330.66 $ 334,911.00 $ 898,389.29 $ 448,772.00 $ 875,389.96 $ 329,428.00 $ 934,416.58 $ 389,393.00 $ 1,304,044.50 \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 WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"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\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n0.246042% $ 30,194,633.00 $ \r\n \r\n- \r\n \r\n0.244953% $ 31,132,774.00 $ \r\n \r\n- \r\n \r\n0.248065% $ 34,853,032.00 $ \r\n \r\n- \r\n \r\nTotal \r\n$ 30,194,633.00 $ 31,132,774.00 $ 34,853,032.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 20,556,347.05 $ 19,942,062.06 $ 19,798,997.11 \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n146.89% 156.12% 176.03% \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 WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution (1) \r\n \r\nContributions in relation to the contractually required \r\ncontribution (1) \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \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\n2012 \r\n \r\n$ \r\n \r\n2011 \r\n \r\n$ \r\n \r\n4,904,913.30 $ 4,581,703.99 $ 3,605,872.21 $ 3,043,888.28 $ 2,912,031.52 $ 2,666,825.33 $ 2,423,365.85 $ 2,309,283.34 $ 2,284,521.02 $ 2,331,210.10 $ \r\n \r\n4,904,913.30 $ 4,581,703.99 $ 3,605,872.21 $ 3,043,888.28 $ 2,912,031.52 $ 2,666,825.33 $ 2,423,365.85 $ 2,309,283.34 $ 2,284,521.02 $ 2,331,210.10 $ \r\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\n23,245,131.07 21,964,380.56 21,492,936.27 21,497,902.76 20,681,026.08 20,280,801.09 19,734,249.63 20,239,117.79 22,222,967.12 22,677,141.05 \r\n \r\n(1) The School District has included on behalf payments within the contributions for years 2015 and prior. \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n21.10% 20.86% 16.78% 14.16% 14.08% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n \r\n- 37 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\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\n672.28 $ \r\n \r\n672.28 $ \r\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\n6,282.96 $ \r\n \r\n6,282.96 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,111.16 $ \r\n \r\n5,111.16 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,271.52 $ \r\n \r\n4,271.52 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,247.08 $ \r\n \r\n3,247.08 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,709.70 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n28,610.93 \r\n \r\n$ \r\n \r\n27,687.76 \r\n \r\n$ \r\n \r\n28,667.52 \r\n \r\n$ \r\n \r\n27,919.42 \r\n \r\n$ \r\n \r\n- \r\n \r\nContribution as a percentage of covered \r\npayroll \r\nN/A N/A 24.81% N/A N/A 21.96% 18.46% 14.90% 11.63% 0.00% \r\n \r\n- 38 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n837,129.00 $ \r\n \r\n837,129.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,325,110.00 $ \r\n \r\n1,325,110.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,269,569.00 $ \r\n \r\n1,269,569.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,293,430.00 $ \r\n \r\n1,293,430.00 $ \r\n \r\n- \r\n \r\nSchool District's coveredemployee payroll \r\n \r\n$ \r\n \r\n21,250,607.86 \r\n \r\n$ \r\n \r\n20,556,347.05 \r\n \r\n$ \r\n \r\n19,942,062.06 \r\n \r\n$ \r\n \r\n19,798,997.11 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n3.94% 6.45% 6.37% 6.53% \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 WHITE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"8\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2-015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \r\nEmployees' Retirement System \r\nChanges of benefit terms:  A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016. $RQHWLPHSD\\PHQWZDVJUDQWHGWRFHUWDLQUHWLUHHVDQGEHQHILFLDULHVHIIHFWLYH-XO\\ \r\nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, withdrawal and salary increases. \r\nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more FORVHO\\UHIOHFWDFWXDOH[SHULHQFH \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. \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019. \r\n \r\n- 40 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"9\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Sale of Capital Assets 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\n16,377,260.00 $ \r\n \r\n225,000.00 \r\n \r\n23,021,799.00 \r\n \r\n4,877,267.00 \r\n \r\n598,693.00 \r\n \r\n178,515.00 \r\n \r\n1,283,211.00 \r\n \r\n46,561,745.00 \r\n \r\n16,912,586.00 $ 375,000.00 \r\n23,055,535.42 5,227,359.86 600,893.00 225,561.00 1,326,918.99 \r\n47,723,854.27 \r\n \r\n16,665,592.57 $ 410,994.74 \r\n23,186,435.09 4,259,985.20 583,741.87 231,549.84 1,110,776.16 \r\n46,449,075.47 \r\n \r\n(246,993.43) 35,994.74 \r\n130,899.67 (967,374.66) \r\n(17,151.13) 5,988.84 \r\n(216,142.83) \r\n(1,274,778.80) \r\n \r\n29,707,077.00 \r\n2,104,072.00 1,336,681.00 \r\n767,320.00 975,283.00 3,405,105.00 375,443.00 2,924,780.00 2,464,732.00 231,501.00 247,635.00 224,820.00 2,773,298.00 \r\n47,537,747.00 \r\n(976,002.00) \r\n \r\n29,824,337.64 \r\n2,116,837.63 1,459,265.68 \r\n778,836.53 1,049,300.48 3,420,763.57 \r\n375,443.00 2,952,533.60 2,526,583.26 \r\n237,501.00 259,874.33 228,090.00 2,773,298.00 \r\n48,002,664.72 \r\n(278,810.45) \r\n \r\n28,820,724.33 \r\n1,814,365.73 1,180,163.04 \r\n717,717.38 971,051.35 3,192,504.33 366,446.93 2,874,726.70 2,289,246.18 197,257.11 202,348.40 225,112.67 2,538,836.12 \r\n45,390,500.27 \r\n1,058,575.20 \r\n \r\n140,000.00 - \r\n(130,000.00) \r\n10,000.00 \r\n(966,002.00) \r\n7,438,888.02 \r\n- \r\n \r\n623,779.00 3,600.00 \r\n(329,029.00) \r\n298,350.00 \r\n19,539.55 \r\n7,438,886.02 \r\n(114,973.12) \r\n \r\n210,106.33 5,400.00 - \r\n215,506.33 \r\n1,274,081.53 \r\n7,276,385.10 \r\n- \r\n \r\n1,003,613.31 \r\n302,471.90 279,102.64 \r\n61,119.15 78,249.13 228,259.24 \r\n8,996.07 77,806.90 237,337.08 40,243.89 57,525.93 \r\n2,977.33 234,461.88 \r\n2,612,164.45 \r\n1,337,385.65 \r\n(413,672.67) 1,800.00 \r\n329,029.00 \r\n(82,843.67) \r\n1,254,541.98 \r\n(162,500.92) \r\n114,973.12 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n6,472,886.02 $ \r\n \r\n7,343,452.45 $ \r\n \r\n8,550,466.63 $ \r\n \r\n1,207,014.18 \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- 41 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"10\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Child Care and Development Fund Cluster Pass-Through From Department of Human Services Promoting Safe and Stable Families Grant \r\nOther Programs Pass-Through From Georgia Dept of Behavioral Health \u0026 Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \r\nTotal U. S. Department of Health and Human Services \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n10.665 \r\n10.558 \r\n \r\n205GA324N1099 205GA324N1099 \r\n486 Forest \r\n \r\n$ \r\n \r\n572,843.78 \r\n \r\n1,677,790.85 \r\n \r\n2,250,634.63 \r\n \r\n29,605.97 \r\n \r\n04960-A/04960-B \r\n \r\n109,552.67 2,389,793.27 \r\n \r\n84.027 84.027 84.173 84.173 \r\n84.048 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 \r\n \r\nH027A180073 H027A190073 H173A180081 H173A190081 \r\nV048A190010 S365B180010 S424A180011 S424A19001 S367A180001 S367A190001 S010A180010 S010A190010 S287C180010 \r\n \r\n93.556 93.959 \r\n \r\n42700040 44100002600000100000 \r\n \r\n12.UNKNOWN \r\n \r\n96,367.76 650,775.94 \r\n19,108.68 16,113.83 782,366.21 \r\n52,828.46 16,503.00 20,029.20 157,951.30 85,931.86 54,420.04 96,314.63 793,836.64 167,098.76 1,444,913.89 2,227,280.10 \r\n24,643.00 \r\n44,505.46 69,148.46 \r\n162,261.40 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n4,848,483.23 \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 White County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 42 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"11\" \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 Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Georgia Foundation for Public Education - COVID-19 Response Fund Hygiene Products in Georgia Schools Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds 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\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,005,741.00 $ 592,645.00 \r\n2,576,335.00 1,391,837.00 1,402,612.00 \r\n537,987.00 2,636,691.00 2,422,216.00 \r\n989,921.00 3,425,164.00 \r\n703,461.00 396,242.00 206,305.00 139,352.00 476,271.00 150,324.00 \r\n79,106.00 1,660.00 \r\n760,513.00 1,015,038.00 \r\n958,257.00 (336,516.00) 407,799.00 \r\n528,670.00 82,292.00 \r\n60,574.00 5,000.00 2,401.00 \r\n16,385.42 82,622.00 77,220.00 161,308.79 \r\n9,060.88 104,288.00 \r\n \r\n- $ 1,005,741.00 \r\n \r\n- \r\n \r\n592,645.00 \r\n \r\n- \r\n \r\n2,576,335.00 \r\n \r\n- \r\n \r\n1,391,837.00 \r\n \r\n- \r\n \r\n1,402,612.00 \r\n \r\n- \r\n \r\n537,987.00 \r\n \r\n- \r\n \r\n2,636,691.00 \r\n \r\n- \r\n \r\n2,422,216.00 \r\n \r\n- \r\n \r\n989,921.00 \r\n \r\n- \r\n \r\n3,425,164.00 \r\n \r\n- \r\n \r\n703,461.00 \r\n \r\n- \r\n \r\n396,242.00 \r\n \r\n- \r\n \r\n206,305.00 \r\n \r\n- \r\n \r\n139,352.00 \r\n \r\n- \r\n \r\n476,271.00 \r\n \r\n- \r\n \r\n150,324.00 \r\n \r\n- \r\n \r\n79,106.00 \r\n \r\n- \r\n \r\n1,660.00 \r\n \r\n- \r\n \r\n760,513.00 \r\n \r\n- \r\n \r\n1,015,038.00 \r\n \r\n- \r\n \r\n958,257.00 \r\n \r\n- \r\n \r\n(336,516.00) \r\n \r\n- \r\n \r\n407,799.00 \r\n \r\n- \r\n \r\n528,670.00 \r\n \r\n- \r\n \r\n82,292.00 \r\n \r\n- \r\n \r\n60,574.00 \r\n \r\n- \r\n \r\n5,000.00 \r\n \r\n- \r\n \r\n2,401.00 \r\n \r\n- \r\n \r\n16,385.42 \r\n \r\n- \r\n \r\n82,622.00 \r\n \r\n- \r\n \r\n77,220.00 \r\n \r\n- \r\n \r\n161,308.79 \r\n \r\n- \r\n \r\n9,060.88 \r\n \r\n- \r\n \r\n104,288.00 \r\n \r\n67,652.00 \r\n \r\n432,646.99 - \r\n \r\n432,646.99 67,652.00 \r\n \r\n50,000.00 \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n$ 23,186,435.09 $ \r\n \r\n432,646.99 $ 23,619,082.08 \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 WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"12\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED COST (1)(5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4)(5)(6) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3)(4)(5)(6) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nSPLOST 2009 \r\n \r\n(ii) Adding to, constructing, renovating, repairing, \r\n \r\nimproving, and equipping existing school \r\n \r\nbuildings and facilities \r\n \r\n$ 1,138,332.00 $ 5,645,195.00 $ \r\n \r\n696,356.85 $ \r\n \r\n4,806,925.71 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(iii) Acquiring computers and computer \r\n \r\ntechnology equipment \r\n \r\n1,185,569.00 \r\n \r\n4,375,125.00 \r\n \r\n219,394.71 \r\n \r\n4,049,847.55 \r\n \r\n- \r\n \r\n- \r\n \r\n(vii) Acquiring textbooks and other instructional \r\n \r\nmaterials and transportation equipment \r\n \r\n136,000.00 \r\n \r\n1,375,730.00 \r\n \r\n279,160.90 \r\n \r\n989,832.56 \r\n \r\n- \r\n \r\n- \r\n \r\n2,459,901.00 \r\n \r\n11,396,050.00 \r\n \r\n1,194,912.46 \r\n \r\n9,846,605.82 \r\n \r\n- \r\n \r\n- \r\n \r\nSPLOST 2015 \r\n \r\n(ii) Adding to, constructing, renovating, repairing, \r\n \r\nimproving and equipping existing school \r\n \r\nbuildings and school system facilities, \r\n \r\nincluding athletic facilities \r\n \r\n9,259,200.00 \r\n \r\n6,229,250.00 \r\n \r\n607,850.39 \r\n \r\n1,969,724.40 \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) Acquiring computers and computer \r\n \r\ntechnology equipment and software, \r\n \r\nincluding tablets and laptops \r\n \r\n2,500,000.00 \r\n \r\n2,249,169.00 \r\n \r\n164,455.36 \r\n \r\n673,553.42 \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) Acquiring heating, air conditioning and energy \r\n \r\nefficiency equipment \r\n \r\n1,850,800.00 \r\n \r\n1,010,000.00 \r\n \r\n- \r\n \r\n17,650.00 \r\n \r\n- \r\n \r\n- \r\n \r\n(v) Acquiring textbooks and other instructional \r\n \r\nmaterials and electronic media, as well as \r\n \r\nschool buses, transportation and \r\n \r\nmaintenance equipment and band equipment \r\n \r\n940,000.00 \r\n \r\n650,000.00 \r\n \r\n212,317.30 \r\n \r\n227,955.64 \r\n \r\n- \r\n \r\n- \r\n \r\n14,550,000.00 \r\n \r\n10,138,419.00 \r\n \r\n984,623.05 \r\n \r\n2,888,883.46 \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nJune 2021 June 2021 June 2021 \r\nDecember 2022 December 2022 December 2022 \r\nDecember 2022 \r\n \r\n$ 17,009,901.00 $ 21,534,469.00 $ 2,179,535.51 $ \r\n \r\n12,735,489.28 $ \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 White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 6,318,527.37 \r\n \r\nCurrent Year \r\n \r\n502,500.00 \r\n \r\nTotal \r\n \r\n$ 6,821,027.37 \r\n \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the School District issued $10,000,000.00 of general obligation debt to build the middle school. In October 2013, the School District issued additional bonds in the amount of $4,255,000.00 of the $6,000,000.00 outstanding to be used for projects approved in the 2009 SPLOST. \r\n \r\n(6) In the 2015 Resolution, the School District obtained approval to issue a total of $15,000,000.00 in general obligation debt. In April of 2016, bonds were issued for the projects noted above in the amount of $12,085,000.00. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 26, 2021. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the White County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION 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 SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Funds Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 84.027, 84.173 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies Special Education Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n$750,000.00 No \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2019-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2019 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2019-06-30"],"dcterms_description":["Annual financial report for the White County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2019 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUND \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n35 36 37 38 \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n39 40 41 42 43 \r\n44 45 47 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\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 White County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n (This page left intentionally blank) \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the 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\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\n \r\n (This page left intentionally blank) \r\n \r\n The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements 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 14, 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 14, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest 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 Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ 12,870,190.31 \r\n711,449.38 3,576,958.96 \r\n639,052.97 24,186.19 19,945.02 53,922.95 \r\n2,352,656.86 70,215,202.86 \r\n90,463,565.50 \r\n \r\n7,306,384.99 1,367,232.00 \r\n8,673,616.99 \r\n \r\n328,329.04 4,535,084.59 \r\n140,887.50 23,155.00 19,176.26 \r\n33,435,147.00 31,132,774.00 \r\n2,599,920.77 8,627,538.46 \r\n80,842,012.62 \r\n \r\n2,275,503.00 6,487,901.00 \r\n8,763,404.00 \r\n \r\n65,866,111.32 \r\n435,322.52 3,344,048.97 1,741,067.99 (61,854,784.93) \r\n \r\n$ \r\n \r\n9,531,765.87 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 27,844,445.60 $ \r\n1,767,824.06 1,178,883.57 \r\n710,705.05 808,005.62 3,039,108.22 326,081.75 2,891,501.33 2,508,681.31 230,407.65 149,531.72 \r\n419,457.13 2,705,029.27 \r\n289,379.23 \r\n$ 44,869,041.51 $ \r\n \r\n184,202.81 \r\n- \r\n557,851.64 \r\n- \r\n742,054.45 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ \r\n \r\n18,271,551.11 $ \r\n \r\n770,107.29 1,069,472.91 \r\n553,465.00 413,184.07 1,044,332.13 102,608.35 1,194,126.56 813,481.41 \r\n70,291.89 18,075.93 \r\n \r\n3,209.70 2,049,163.80 \r\n- \r\n \r\n$ \r\n \r\n26,373,070.15 $ \r\n \r\n597,171.81 $ \r\n27,019.82 - \r\n7,376.85 - \r\n56,612.96 - \r\n22,130.52 281,914.13 \r\n- \r\n19,986.09 \r\n- \r\n1,012,212.18 \r\n \r\n(8,791,519.87) \r\n(970,696.95) (109,410.66) (149,863.20) (394,821.55) (1,938,163.13) (223,473.40) (1,675,244.25) (1,413,285.77) (160,115.76) (131,455.79) \r\n(416,247.43) (78,027.74) \r\n(289,379.23) \r\n(16,741,704.73) \r\n \r\n16,031,476.88 \r\n4,673,676.04 300,198.05 298,950.63 \r\n1,513,236.73 \r\n22,817,538.33 \r\n6,075,833.60 \r\n3,455,932.27 \r\n \r\n$ \r\n \r\n9,531,765.87 \r\n \r\n- 3 - \r\n \r\n ASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Due from Other Funds Inventories \r\n \r\nWHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2019 \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nEXHIBIT \"C\" TOTAL \r\n \r\n$ 8,145,798.75 $ 1,239,455.09 $ 3,484,936.47 $ 12,870,190.31 \r\n \r\n272,160.85 3,110,016.08 \r\n639,052.97 24,186.19 19,945.02 53,922.95 \r\n \r\n439,288.53 466,942.88 \r\n205,892.40 - \r\n \r\n- \r\n \r\n711,449.38 \r\n \r\n- \r\n \r\n3,576,958.96 \r\n \r\n- \r\n \r\n639,052.97 \r\n \r\n- \r\n \r\n24,186.19 \r\n \r\n- \r\n \r\n19,945.02 \r\n \r\n- \r\n \r\n205,892.40 \r\n \r\n- \r\n \r\n53,922.95 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Due to Other Funds Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - State Revenue \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 12,265,082.81 $ 2,351,578.90 $ 3,484,936.47 $ 18,101,598.18 \r\n \r\n$ \r\n \r\n150,465.12 $ \r\n \r\n4,535,084.59 \r\n \r\n205,892.40 \r\n \r\n- \r\n \r\n19,176.26 \r\n \r\n4,910,618.37 \r\n \r\n177,863.92 $ - \r\n23,155.00 - \r\n201,018.92 \r\n \r\n- $ \r\n \r\n328,329.04 \r\n \r\n- \r\n \r\n4,535,084.59 \r\n \r\n- \r\n \r\n205,892.40 \r\n \r\n- \r\n \r\n23,155.00 \r\n \r\n- \r\n \r\n19,176.26 \r\n \r\n- \r\n \r\n5,111,637.29 \r\n \r\n78,079.34 - \r\n78,079.34 \r\n \r\n432,646.99 \r\n432,646.99 \r\n \r\n- \r\n \r\n78,079.34 \r\n \r\n- \r\n \r\n432,646.99 \r\n \r\n- \r\n \r\n510,726.33 \r\n \r\n53,922.95 381,399.57 535,249.23 6,305,813.35 \r\n7,276,385.10 \r\n \r\n1,717,912.99 \r\n- \r\n1,717,912.99 \r\n \r\n3,484,936.47 \r\n- \r\n3,484,936.47 \r\n \r\n53,922.95 5,584,249.03 \r\n535,249.23 6,305,813.35 \r\n12,479,234.56 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 12,265,082.81 $ 2,351,578.90 $ 3,484,936.47 $ 18,101,598.18 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2019 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\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, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Compensated absences payable Unamortized bond premiums \r\n \r\n$ 12,479,234.56 \r\n \r\n$ 1,571,076.00 781,580.86 \r\n80,395,694.41 8,297,038.03 2,643,368.39 \r\n(21,120,897.97) \r\n \r\n72,567,859.72 \r\n \r\n$ (33,435,147.00) (31,132,774.00) \r\n \r\n(64,567,921.00) \r\n \r\n$ 5,030,881.99 (5,120,669.00) \r\n \r\n(89,787.01) 78,079.34 432,646.99 \r\n \r\n$ (10,050,000.00) (140,887.50) (77,777.13) \r\n(1,099,682.10) \r\n \r\n(11,368,346.73) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 9,531,765.87 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nSale of Capital Assets Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 15,972,550.59 $ 300,198.05 \r\n22,212,940.14 4,760,358.18 742,054.45 192,067.17 1,513,236.73 \r\n45,693,405.31 \r\n \r\n- $ 4,673,676.04 \r\n34,295.89 - \r\n51,973.62 - \r\n4,759,945.55 \r\n \r\n- $ 54,909.84 - \r\n54,909.84 \r\n \r\n15,972,550.59 4,973,874.09 \r\n22,247,236.03 4,760,358.18 742,054.45 298,950.63 1,513,236.73 \r\n50,508,260.70 \r\n \r\n27,991,796.68 \r\n1,796,429.53 1,236,058.94 \r\n735,881.41 833,604.29 3,087,565.57 350,417.41 2,746,041.41 2,383,740.38 239,346.48 143,418.70 419,457.13 2,607,278.02 \r\n- \r\n- \r\n44,571,035.95 \r\n1,122,369.36 \r\n \r\n523,119.30 \r\n9,588.00 133,899.81 149,650.00 17,164.40 208,626.91 1,363,305.22 \r\n- \r\n2,405,353.64 \r\n2,354,591.91 \r\n \r\n- \r\n- \r\n2,035,000.00 750.00 \r\n563,550.00 \r\n2,599,300.00 \r\n(2,544,390.16) \r\n \r\n28,514,915.98 \r\n1,796,429.53 1,236,058.94 \r\n735,881.41 833,604.29 3,097,153.57 350,417.41 2,879,941.22 2,533,390.38 239,346.48 160,583.10 419,457.13 2,815,904.93 1,363,305.22 \r\n2,035,000.00 750.00 \r\n563,550.00 \r\n49,575,689.59 \r\n932,571.11 \r\n \r\n5,954.00 - \r\n(83,936.70) \r\n(77,982.70) \r\n1,044,386.66 \r\n6,231,998.44 \r\n \r\n83,936.70 (4,638,686.01) \r\n(4,554,749.31) \r\n(2,200,157.40) \r\n3,918,070.39 \r\n \r\n4,638,686.01 \r\n- \r\n4,638,686.01 \r\n2,094,295.85 \r\n1,390,640.62 \r\n \r\n5,954.00 4,722,622.71 (4,722,622.71) \r\n5,954.00 \r\n938,525.11 \r\n11,540,709.45 \r\n \r\nFund Balances - Ending \r\n \r\n$ 7,276,385.10 $ 1,717,912.99 $ 3,484,936.47 $ 12,479,234.56 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\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. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nBond principal retirements Amortization of bond premium \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nCompensated absences \r\n \r\n$ \r\n \r\n938,525.11 \r\n \r\n$ \r\n \r\n1,962,511.83 \r\n \r\n(1,379,994.94) \r\n \r\n582,516.89 (95,996.10) 58,926.29 432,646.99 \r\n \r\n$ \r\n \r\n2,035,000.00 \r\n \r\n274,920.77 \r\n \r\n2,309,920.77 \r\n \r\n$ \r\n \r\n1,822,386.78 \r\n \r\n104,684.00 \r\n \r\n1,927,070.78 \r\n \r\n(77,777.13) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 6,075,833.60 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments Receivables, Net \r\nInterest and Dividends Other \r\nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \r\n \r\nWHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2019 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 32,874.16 $ 174,713.78 \r\n \r\n38,025.23 \r\n \r\n- \r\n \r\n187.53 - \r\n \r\n2,745.28 \r\n \r\n$ 71,086.92 $ 177,459.06 \r\n \r\n$ 177,459.06 \r\n \r\n$ 71,086.92 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n4,604.00 \r\n \r\n777.87 5,381.87 \r\n \r\n1,750.00 3,631.87 67,455.05 \r\n \r\n$ 71,086.92 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProperty taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial 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 School District included additional information in the Long-term Liabilities note disclosure. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\n \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \r\n \r\nINVENTORIES \r\n \r\nFood Inventories \r\n \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\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\nComputer Applications \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAny Amount 10,000.00 10,000.00 10,000.00 45,000.00 \r\n100,000.00 \r\n \r\nN/A 20 years 10 to 80 years 5 to 20 years \r\n6 years 10 to 20 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\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of sick leave that public school retirement employees earned based on services already rendered. \r\nSick leave of 1.25 days is awarded on a monthly basis to all full-time public school retirement personnel Sick leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such sick leave does not exceed 90 days. Upon terminating employment, the School District pays all unused and unforfeited sick leave benefits to public school retirement employees. Accordingly, these benefits are accrued as a liability in the government-wide financial statements. A liability for these amounts is reported in the governmental fund financial statements only if they have matured, for example, as a result of employee resignations and retirements by fiscal-year end. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\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 White County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on July 30, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on November 15, 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2019, for maintenance and operations amounted to $14,923,158.00. \r\nThe tax millage rate levied for the 2018 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n17.481 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,049,392.59 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 $4,673,676.04 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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 \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nadopted 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 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS 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- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 warrant. 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, 2019, the School District had deposits with a carrying amount of $13,112,646.38, which includes $38,025.23 in Certificates of Deposit that are reported as investments, and a bank balance of $14,043,183.20. The bank balances insured by Federal depository insurance were $288,025.23 and the bank balances included in the State's Secure Deposit Program (SDP) were $13,755,157.97. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 12,870,190.31 207,587.94 \r\n \r\nTotal cash and cash equivalents \r\n \r\n13,077,778.25 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n38,025.23 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n3,157.10 \r\n \r\nTotal carrying value of deposits - June 30, 2019 \r\n \r\n$ 13,112,646.38 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $3,157.10 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, \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\n$1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019, was 39 days. \r\n \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2018 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2019 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 1,571,076.00 $ 13,486,770.29 \r\n \r\n- $ \r\n \r\n- $ 1,571,076.00 \r\n \r\n781,580.86 13,486,770.29 \r\n \r\n781,580.86 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n15,057,846.29 \r\n \r\n781,580.86 13,486,770.29 \r\n \r\n2,352,656.86 \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\n66,455,733.09 8,860,837.78 2,701,058.19 \r\n \r\n13,978,525.32 611,620.94 77,555.00 \r\n \r\n38,564.00 1,175,420.69 \r\n135,244.80 \r\n \r\n80,395,694.41 8,297,038.03 2,643,368.39 \r\n \r\n12,514,352.98 6,294,120.90 2,185,662.54 \r\n \r\n920,036.92 417,629.68 \r\n42,328.34 \r\n \r\n8,453.61 1,109,534.78 \r\n135,245.00 \r\n \r\n13,425,936.29 5,602,215.80 2,092,745.88 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n57,023,492.64 13,287,706.32 \r\n \r\n95,996.10 70,215,202.86 \r\n \r\nGovernmental Activities Capital Assets - Net $ 72,081,338.93 $ 14,069,287.18 $ 13,582,766.39 $ 72,567,859.72 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Educational Media Services School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 43,469.84 11,867.96 91,079.67 35,603.87 \r\n213,623.22 \r\n \r\n$ 952,196.50 \r\n395,644.56 32,153.88 \r\n$ 1,379,994.94 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS \r\n \r\nINTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2019, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral Fund Capital Projects Fund \r\n \r\n$ \r\n \r\n- \r\n \r\n205,892.40 \r\n \r\n$ 205,892.40 - \r\n \r\n$ 205,892.40 \r\n \r\n$ 205,892.40 \r\n \r\nThe general fund plans to reimburse the capital projects fund to resolve payments that were made from an incorrect account. \r\n \r\nINTERFUND 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\nCapital Projects \r\n \r\nGeneral Fund \r\n \r\nFund \r\n \r\nCapital Projects Fund $ Debt Service Fund \r\n \r\n83,936.70 $ \r\n \r\n- \r\n \r\n- \r\n \r\n4,638,686.01 \r\n \r\nTotal \r\n \r\n$ 83,936.70 $ 4,638,686.01 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the capital projects fund to the debt service fund for the current year bond principal and interest payments. In addition, transfers are used to repay loans between funds or misclassification in transactions between the general fund and capital projects fund. \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\nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Compensated Absences(1) \r\n \r\nBalance July 1, 2018 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2019 \r\n \r\nDue Within One Year \r\n \r\n$ 12,085,000.00 $ \r\n \r\n- $ 2,035,000.00 $ 10,050,000.00 $ 2,325,000.00 \r\n \r\n1,374,602.87 \r\n \r\n- \r\n \r\n274,920.77 \r\n \r\n1,099,682.10 \r\n \r\n274,920.77 \r\n \r\n- \r\n \r\n77,777.13 \r\n \r\n- \r\n \r\n77,777.13 \r\n \r\n- \r\n \r\n$ 13,459,602.87 $ 77,777.13 $ 2,309,920.77 $ 11,227,459.23 $ 2,599,920.77 \r\n \r\n(1) The portion of compensated absences due within one year has been determined to be immaterial to the basic financial statements. \r\nThe School District's outstanding bonds from direct borrowings related to governmental activities of $10,050,000.00 contain a provision that in an event of default, outstanding amounts become immediately due if the School District is unable to make payment. \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nOf the total amount originally authorized, $2,915,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2016 3.0% - 5.0% 4/20/2016 \r\n \r\n4/1/2023 $ 12,085,000.00 $ 10,050,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2020 2021 2022 2023 \r\n \r\n$ \r\n \r\n2,325,000.00 $ \r\n \r\n502,500.00 $ \r\n \r\n274,920.77 \r\n \r\n2,450,000.00 \r\n \r\n386,250.00 \r\n \r\n274,920.77 \r\n \r\n2,575,000.00 \r\n \r\n263,750.00 \r\n \r\n274,920.77 \r\n \r\n2,700,000.00 \r\n \r\n135,000.00 \r\n \r\n274,919.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n10,050,000.00 $ 1,287,500.00 $ \r\n \r\n1,099,682.10 \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\nFor fiscal year 2019, the School District began recording the accumulated compensated absences liability at June 30 in the government-wide financial statements. \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\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 \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSchool 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 $200,000.00 per year corridor retention. \r\n \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any liabilities for unemployment compensation during the last two fiscal years. \r\n \r\nSURETY BOND \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education \r\n \r\n$ 50,000.00 $ 10,000.00 \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, 2019: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n53,922.95 \r\n \r\n$ 381,399.57 1,717,912.99 3,484,936.47 \r\n \r\n5,584,249.03 \r\n \r\n535,249.23 6,305,813.35 \r\n \r\nFund Balance, June 30, 2019 \r\n \r\n$ 12,479,234.56 \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- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \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, 2019: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2019 (2) \r\n \r\nWhite County High School Stadium \r\n \r\nRelight and Old Gym Renovation \r\n \r\n$ \r\n \r\n9,864.00 $ \r\n \r\n503,589.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include retainages payable at year end. \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases Copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $33,459.84 for governmental activities for the year ended June 30, 2019. The following future minimum lease payments were required under operating leases at June 30, 2019: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2020 2021 \r\n \r\n$ \r\n \r\n33,459.84 \r\n \r\n2,788.32 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n36,248.16 \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 \r\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRetirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\n \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $1,325,110.00 for the year ended June 30, 2019. Active employees are not required to contribute to the School OPEB Fund. \r\n \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2019, the School District reported a liability of $31,132,774.00 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 0.244953%, which was a decrease of 0.003112% from its proportion measured as of June 30, 2017. \r\n \r\nFor the year ended June 30, 2019, the School District recognized OPEB expense of $1,220,426.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 708,148.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n5,274,042.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n42,122.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n505,711.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n1,325,110.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,367,232.00 $ 6,487,901.00 \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2020 2021 2022 2023 2024 Thereafter \r\n \r\n$ (1,248,863.00) $ (1,248,863.00) $ (1,248,863.00) $ (1,251,380.00) $ (1,042,279.00) $ (405,531.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018: \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 9.00%, including inflation \r\n \r\nLong-term expected rate of return 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\n7.30%, compounded annually, net of investment expense, and including inflation 7.50% 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\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\n \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2017 valuation were based on a review of recent plan experience done concurrently with the June 30, 2017 valuation. \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment strategy to a more long-term approach. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Mid Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% \r\n12.00% 13.50% \r\n8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.58% to 3.87%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.87% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2018. Therefore, the calculated discount rate of 3.87% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\n \r\n- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the 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 \r\nof the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point \r\nlower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \r\n \r\n1% Decrease (2.87%) \r\n \r\nCurrent Discount Rate (3.87%) \r\n \r\n1% Increase (4.87%) \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 36,353,319.00 $ \r\n \r\n31,132,774.00 $ 26,922,952.00 \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$ 26,173,575.00 $ \r\n \r\n31,132,774.00 $ 37,470,450.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\n \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\namount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2019. The School District's contractually required contribution rate for the year ended June 30, 2019 was 20.90% of annual School District payroll, of which 20.86% of payroll was required from the School District and 0.04% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $4,581,703.99 and $8,562.86 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nP lan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2019 was 24.78% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.66% of annual covered payroll of new and old plan members and 21.66% of GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. There are no employer contributions to the pension plan for the current fiscal year due to the fact that the School District has no current employees who are covered under ERS. \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\n \r\nBenefits 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 \r\nto receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $64,494.00. \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 $33,435,147.00 for its proportionate share of the net pension liability for TRS ($33,430,789.00) and ERS ($4,358.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 33,430,789.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n65,710.00 \r\n \r\nTotal \r\n \r\n$ 33,496,499.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2018. \r\n \r\n- 29 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2018, the School District's TRS proportion was 0.180102%, which was a decrease of 0.005655% from its proportion measured as of June 30, 2017. At June 30, 2018, the School District's ERS proportion was 0.000106%, which was an increase of 0.000106% from its proportion measured as of June 30, 2017. \r\n \r\nAt June 30, 2019, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $361,691.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2018. \r\n \r\nFor the year ended June 30, 2019, the School District recognized pension expense of $2,697,887.00 for TRS, ($3,442.00) for ERS and $83,745.00 for PSERS and revenue of ($65,647.00) for TRS and $83,745.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 2,213,165.00 $ \r\n \r\n68,902.00 $ \r\n \r\n136.00 $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n504,458.00 \r\n \r\n- \r\n \r\n205.00 \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\n914,063.00 \r\n \r\n- \r\n \r\n100.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n4,096.00 \r\n \r\n1,292,438.00 \r\n \r\n2,621.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n4,581,703.99 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 7,303,422.99 $ 2,275,403.00 $ \r\n \r\n2,962.00 $ \r\n \r\n100.00 \r\n \r\nThe School District contributions subsequent to the measurement date for TRS and ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2020 2021 2022 2023 2024 \r\n \r\n$ 1,226,241.00 $ \r\n \r\n$ 530,496.00 $ \r\n \r\n$ (1,111,974.00) $ \r\n \r\n$ (210,432.00) $ \r\n \r\n$ \r\n \r\n11,985.00 $ \r\n \r\n1,966.00 1,108.00 \r\n(167.00) (45.00) - \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP-2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\n- 31 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\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 ERS and PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 32 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50% and 7.30%, as well as what the School \r\nDistrict's proportionate share of the net pension liability would be if it were calculated using a discount \r\nrate that is 1-percentage-point lower (6.50% and 6.30%) or 1-percentage-point higher (8.50% \r\nand 8.30%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 55,805,559.00 $ \r\n \r\n33,430,789.00 $ 14,992,840.00 \r\n \r\nEmployees' Retirement System: \r\n \r\n1% Decrease (6.30%) \r\n \r\nCurrent Discount Rate (7.30%) \r\n \r\n1% Increase (8.30%) \r\n \r\nSchool District's proportionate share of the \r\n \r\nnet pension liability \r\n \r\n$ \r\n \r\n6,198.00 $ \r\n \r\n4,358.00 $ \r\n \r\n2,790.00 \r\n \r\nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publicly \r\navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 14: SUBSEQUENT EVENTS \r\nIn December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n0.180102% $ 0.185757% $ 0.185718% $ 0.189972% $ 0.191627% $ \r\n \r\n33,430,789.00 34,523,511.00 38,315,694.00 28,921,351.00 24,209,544.00 \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\n65,710.00 \r\n \r\n$ \r\n \r\n270,602.00 \r\n \r\n$ \r\n \r\n578,290.00 \r\n \r\n$ \r\n \r\n330,056.00 \r\n \r\n$ \r\n \r\n302,829.00 \r\n \r\nTotal \r\n$ 33,496,499.00 $ 34,794,113.00 $ 38,893,984.00 $ 29,251,407.00 $ 24,512,373.00 \r\n \r\nSchool District's covered payroll \r\n$ 21,492,936.27 $ 21,497,902.76 $ 20,681,026.08 $ 20,280,801.09 $ 19,734,249.63 \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\n155.54% 160.59% 185.27% 142.60% 122.68% \r\n \r\n80.27% 79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the \r\nnet pension liability \r\n \r\nSchool District's covered payroll \r\n \r\n0.000106% $ 0.000000% $ 0.000000% $ 0.000983% $ 0.001251% $ \r\n \r\n4,358.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n39,825.00 $ \r\n \r\n46,920.00 $ \r\n \r\n2,709.70 - \r\n28,610.93 27,687.76 \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\n160.83% N/A N/A \r\n139.20% 169.46% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.68% N/A N/A \r\n76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"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 \r\nnet pension liability associated with the School \r\nDistrict \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\n361,691.00 $ 334,911.00 $ 448,772.00 $ 329,428.00 $ 389,393.00 $ \r\n \r\nTotal \r\n361,691.00 334,911.00 448,772.00 329,428.00 389,393.00 \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n817,330.66 \r\n \r\n$ \r\n \r\n898,389.29 \r\n \r\n$ \r\n \r\n875,389.96 \r\n \r\n$ \r\n \r\n934,416.58 \r\n \r\n$ 1,304,044.50 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 37 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n0.244953% $ 31,132,774.00 $ \r\n \r\n- \r\n \r\n0.248065% $ 34,853,032.00 $ \r\n \r\n- \r\n \r\nTotal \r\n$ 31,132,774.00 $ 34,853,032.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 19,942,062.06 $ 19,798,997.11 \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\n156.12% 176.03% \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- 38 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution (1) \r\n \r\nContributions in relation to the contractually required contribution \r\n(1) \r\n \r\nContribution deficiency (excess) \r\n \r\n2019 \r\n \r\n$ \r\n \r\n4,581,703.99 $ \r\n \r\n4,581,703.99 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n3,605,872.21 $ \r\n \r\n3,605,872.21 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n3,043,888.28 $ \r\n \r\n3,043,888.28 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2,912,031.52 $ \r\n \r\n2,912,031.52 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2,666,825.33 $ \r\n \r\n2,666,825.33 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2,423,365.85 $ \r\n \r\n2,423,365.85 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2,309,283.34 $ \r\n \r\n2,309,283.34 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n2,284,521.02 $ \r\n \r\n2,284,521.02 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2,331,210.10 $ \r\n \r\n2,331,210.10 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n2,137,946.25 $ \r\n \r\n2,137,946.25 $ \r\n \r\n- \r\n \r\n(1) The School District has included on behalf payments within the contributions for years 2015 and prior. \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n21,964,380.56 \r\n \r\n$ \r\n \r\n21,492,936.27 \r\n \r\n$ \r\n \r\n21,497,902.76 \r\n \r\n$ \r\n \r\n20,681,026.08 \r\n \r\n$ \r\n \r\n20,280,801.09 \r\n \r\n$ \r\n \r\n19,734,249.63 \r\n \r\n$ \r\n \r\n20,239,117.79 \r\n \r\n$ \r\n \r\n22,222,967.12 \r\n \r\n$ \r\n \r\n22,677,141.05 \r\n \r\n$ \r\n \r\n21,950,166.84 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.86% 16.78% 14.16% 14.08% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% \r\n \r\n- 39 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 2014 2013 2012 \r\n \r\nContractually required contribution \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n672.28 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,282.96 \r\n \r\n$ \r\n \r\n5,111.16 \r\n \r\n$ \r\n \r\n4,271.52 \r\n \r\n$ \r\n \r\n3,247.08 \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n672.28 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,282.96 \r\n \r\n$ \r\n \r\n5,111.16 \r\n \r\n$ \r\n \r\n4,271.52 \r\n \r\n$ \r\n \r\n3,247.08 \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,709.70 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n28,610.93 \r\n \r\n$ \r\n \r\n27,687.76 \r\n \r\n$ \r\n \r\n28,667.52 \r\n \r\n$ \r\n \r\n27,919.42 \r\n \r\nN/A 24.81% \r\nN/A N/A 21.96% 18.46% 14.90% 11.63% \r\n \r\nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \r\n \r\n- 40 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n1,325,110.00 $ \r\n \r\n1,325,110.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,269,569.00 $ \r\n \r\n1,269,569.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,293,430.00 $ \r\n \r\n1,293,430.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 20,556,347.05 $ 19,942,062.06 $ 19,798,997.11 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.45% 6.37% 6.53% \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 WHITE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"8\" \r\n \r\nTeachers Retirement System \r\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\nEmployees' Retirement System \r\nChanges of benefit terms:  A new benefit tier was added for members joining the System on and after July 1, 2009.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2016.  A one-time 3% payment was granted to certain retirees and beneficiaries effective July 2017. \r\nChanges of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for the June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \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). 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\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- 42 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"9\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Sale of Capital Asset 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$ 14,506,337.00 $ 15,895,274.00 $ 15,972,550.59 $ \r\n \r\n225,000.00 \r\n \r\n256,986.00 \r\n \r\n300,198.05 \r\n \r\n23,960,142.00 \r\n \r\n22,373,446.86 \r\n \r\n22,212,940.14 \r\n \r\n4,562,154.00 \r\n \r\n5,557,379.79 \r\n \r\n4,760,358.18 \r\n \r\n497,985.00 \r\n \r\n504,785.00 \r\n \r\n742,054.45 \r\n \r\n12,805.00 \r\n \r\n178,848.00 \r\n \r\n192,067.17 \r\n \r\n2,176,214.00 \r\n \r\n1,519,787.00 \r\n \r\n1,513,236.73 \r\n \r\n45,940,637.00 \r\n \r\n46,286,506.65 \r\n \r\n45,693,405.31 \r\n \r\n77,276.59 43,212.05 (160,506.72) (797,021.61) 237,269.45 13,219.17 (6,550.27) \r\n(593,101.34) \r\n \r\n31,962,033.00 \r\n1,301,361.00 766,336.00 769,581.00 734,994.00 \r\n2,409,666.00 390,426.00 \r\n2,465,501.00 2,176,188.00 \r\n348,037.00 266,063.00 373,944.00 2,530,029.00 \r\n46,494,159.00 \r\n(553,522.00) \r\n \r\n29,015,402.56 \r\n2,047,255.22 1,424,104.27 \r\n774,585.84 894,977.96 3,125,176.17 356,993.86 2,812,096.02 2,440,929.16 251,728.00 186,171.00 424,500.00 2,671,270.63 \r\n46,425,190.69 \r\n(138,684.04) \r\n \r\n27,991,796.68 \r\n1,796,429.53 1,236,058.94 \r\n735,881.41 833,604.29 3,087,565.57 350,417.41 2,746,041.41 2,383,740.38 239,346.48 143,418.70 419,457.13 2,607,278.02 \r\n44,571,035.95 \r\n1,122,369.36 \r\n \r\n1,023,605.88 \r\n250,825.69 188,045.33 \r\n38,704.43 61,373.67 37,610.60 \r\n6,576.45 66,054.61 57,188.78 12,381.52 42,752.30 \r\n5,042.87 63,992.61 \r\n1,854,154.74 \r\n1,261,053.40 \r\n \r\n105,000.00 - \r\n(105,000.00) \r\n- \r\n(553,522.00) \r\n6,466,078.58 \r\n(10,376.85) \r\n \r\n126,500.00 - \r\n(151,530.00) \r\n(25,030.00) \r\n(163,714.04) \r\n6,466,078.58 \r\n(36,672.57) \r\n \r\n5,954.00 (83,936.70) \r\n(77,982.70) \r\n1,044,386.66 \r\n6,231,998.44 \r\n- \r\n \r\n(126,500.00) 5,954.00 \r\n67,593.30 \r\n(52,952.70) \r\n1,208,100.70 \r\n(234,080.14) \r\n36,672.57 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n5,902,179.73 $ \r\n \r\n6,265,691.97 $ \r\n \r\n7,276,385.10 $ \r\n \r\n1,010,693.13 \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 WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"10\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States 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 Career and Technical Education - Basic Grants to States Rural Education Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Georgia Dept of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n10.665 \r\n10.558 \r\n \r\n195GA324N1099 \r\n \r\n$ \r\n \r\n451,737.09 \r\n \r\n195GA324N1099 \r\n \r\n1,763,423.61 \r\n \r\n2,215,160.70 \r\n \r\n486 Forest \r\n \r\n31,523.09 \r\n \r\n04960-A/04960-B \r\n \r\n202,813.02 2,449,496.81 \r\n \r\n84.027 84.027 84.173 \r\n \r\nH027A170073 H027A180073 H173A180081 \r\n \r\n84.048 84.048 84.358 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \r\n \r\nV048A170010 V048A180010 S365B170010 S365B180010 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 S287C170010 S287C180010 \r\n \r\n161,204.75 647,059.32 \r\n1,406.33 \r\n809,670.40 \r\n1,985.00 49,526.89 26,858.00 57,527.59 \r\n7,309.00 70,723.20 38,249.89 38,854.45 82,598.14 848,381.68 195,316.37 442,967.93 \r\n1,860,298.14 \r\n2,669,968.54 \r\n \r\n93.959 \r\n \r\n44100002600000100000 \r\n \r\n45,700.32 \r\n \r\n12.UNKNOWN \r\n \r\n159,523.43 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,324,689.10 \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 White County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\n \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3. Indirect Cost Rate The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 44 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"11\" \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 Charter System Adjustment State Health Benefit Plan Employer Holiday Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bus Allotment School Safety Grant Teachers Retirement Vocational Construction Related Equipment - State Bonds Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,266,245.00 $ 131,293.00 \r\n3,073,331.00 509,680.00 \r\n1,454,793.00 432,491.00 \r\n2,799,440.00 2,317,400.00 \r\n894,054.00 3,218,526.00 \r\n672,616.00 194,577.00 199,562.00 112,518.00 463,841.00 145,944.00 \r\n71,966.00 1,802.00 \r\n584,464.00 983,025.00 959,233.00 \r\n27,137.00 373,052.00 (247,590.00) \r\n516,573.00 79,449.00 \r\n60,812.00 25,336.29 76,329.41 154,440.00 50,406.00 \r\n8,562.86 390,829.31 \r\n96,308.27 \r\n \r\n- $ - \r\n- \r\n \r\n1,266,245.00 131,293.00 \r\n3,073,331.00 509,680.00 \r\n1,454,793.00 432,491.00 \r\n2,799,440.00 2,317,400.00 \r\n894,054.00 3,218,526.00 \r\n672,616.00 194,577.00 199,562.00 112,518.00 463,841.00 145,944.00 \r\n71,966.00 1,802.00 \r\n584,464.00 983,025.00 959,233.00 \r\n27,137.00 373,052.00 (247,590.00) \r\n \r\n- \r\n \r\n516,573.00 \r\n \r\n- \r\n \r\n79,449.00 \r\n \r\n- \r\n \r\n60,812.00 \r\n \r\n- \r\n \r\n25,336.29 \r\n \r\n- \r\n \r\n76,329.41 \r\n \r\n- \r\n \r\n154,440.00 \r\n \r\n- \r\n \r\n50,406.00 \r\n \r\n- \r\n \r\n8,562.86 \r\n \r\n- \r\n \r\n390,829.31 \r\n \r\n- \r\n \r\n96,308.27 \r\n \r\n64,494.00 \r\n \r\n34,295.89 - \r\n \r\n34,295.89 64,494.00 \r\n \r\n50,000.00 \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n$ 22,212,940.14 $ \r\n \r\n34,295.89 $ \r\n \r\n22,247,236.03 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"12\" \r\n \r\nPROJECT \r\nSPLOST 2009 \r\n(ii) Adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities \r\n(iii) Acquiring computers and computer technology equipment \r\n(vii) Acquiring textbooks and other instructional materials and transportation equipment \r\nSPLOST 2015 \r\n(i) Acquiring, constructing and equipping one new ninth grade academy and an auxiliary gym at White County High School \r\n(ii) Adding to, constructing, renovating, repairing, improving and equipping existing school buildings and school system facilities, including athletic facilities \r\n(iii) Acquiring computers and computer technology equipment and software, including tablets and laptops \r\n(iv) Acquiring heating, air conditioning and energy efficiency equipment \r\n(v) Acquiring textbooks and other instructional materials and electronic media, as well as school buses, transportation and maintenance equipment and band equipment \r\n \r\nORIGINAL ESTIMATED COST (1)(5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4)(5)(6) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3)(4)(5)(6) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ 1,138,332.00 $ 4,984,229.00 $ \r\n \r\n673,519.62 $ \r\n \r\n4,133,406.09 $ \r\n \r\n1,185,569.00 \r\n \r\n4,281,095.00 \r\n \r\n90,265.45 \r\n \r\n3,959,582.10 \r\n \r\n136,000.00 2,459,901.00 \r\n \r\n1,153,730.00 10,419,054.00 \r\n \r\n2,854.22 766,639.29 \r\n \r\n986,978.34 9,079,966.53 \r\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\n9,450,000.00 \r\n \r\n13,861,580.41 \r\n \r\n205,200.09 \r\n \r\n13,656,380.32 \r\n \r\n13,861,580.41 \r\n \r\n- \r\n \r\n9,259,200.00 \r\n \r\n5,259,200.00 \r\n \r\n892,933.70 \r\n \r\n1,076,790.70 \r\n \r\n- \r\n \r\n- \r\n \r\n2,500,000.00 \r\n \r\n1,250,000.00 \r\n \r\n371,204.91 \r\n \r\n302,348.51 \r\n \r\n- \r\n \r\n- \r\n \r\n1,850,800.00 \r\n \r\n1,850,800.00 \r\n \r\n17,650.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n940,000.00 \r\n \r\n440,000.00 \r\n \r\n151,725.65 \r\n \r\n76,229.99 \r\n \r\n- \r\n \r\n- \r\n \r\n24,000,000.00 \r\n \r\n22,661,580.41 \r\n \r\n1,638,714.35 \r\n \r\n15,111,749.52 \r\n \r\n13,861,580.41 \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nAugust 2020 August 2020 August 2020 \r\nComplete \r\nJuly 2022 May 2022 May 2022 \r\nMay 2022 \r\n \r\n$ 26,459,901.00 $ 33,080,634.41 $ 2,405,353.64 $ 24,191,716.05 $ 13,861,580.41 $ \r\n \r\n- \r\n \r\n(1) \r\n \r\nThe 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) \r\n \r\nThe School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) \r\n \r\nThe voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include \r\n \r\nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) \r\n \r\nIn 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$ 5,754,977.37 \r\n \r\nCurrent Year \r\n \r\n563,550.00 \r\n \r\nTotal \r\n \r\n$ 6,318,527.37 \r\n \r\n(5) \r\n \r\nIn the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the School District issued $10,000,000.00 of general \r\n \r\nobligation debt to build the middle school. In October 2013, the School District issued additional bonds in the amount of $4,255,000.00 of the $6,000,000.00 outstanding to be \r\n \r\nused for projects approved in the 2009 SPLOST. \r\n \r\n(6) \r\n \r\nIn the 2015 Resolution, the School District obtained approval to issue a total of $15,000,000.00 in general obligation debt. In April of 2016, bonds were issued for the \r\n \r\nprojects noted above in the amount of $12,085,000.00. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 47 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 14, 2020. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\n \r\n (This page left intentionally blank) \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMay 14, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the White County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n (This page left intentionally blank) \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMay 14, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2019 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2018-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2018 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2018-06-30"],"dcterms_description":["Annual financial report for the White County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2018 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \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\nPage \r\n1 2 4 5 6 7 8 9 11 \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\n35 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n36 \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\n37 \r\n \r\n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\n \r\nSCHOOL OPEB FUND \r\n \r\n38 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n39 \r\n \r\n6 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 40 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND SUPPLEMENTARY INFORMATION 10 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 11 SCHEDULE OF STATE REVENUE 12 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n41 42 43 \r\n44 45 47 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 8, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management , as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2018, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended by GASB Statement No. 85, Omnibus 2017. The School District restated beginning net position for the effect of GASB Statement No. 75. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated October 8, 2019 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable 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 State Programs Continuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n12,482,643.68 \r\n \r\n736,255.61 3,157,057.19 \r\n827,979.06 539.64 \r\n39,991.27 47,331.56 15,057,846.29 57,023,492.64 \r\n \r\n89,373,136.94 \r\n \r\n5,659,480.21 1,279,762.00 \r\n6,939,242.21 \r\n \r\n294,813.59 4,367,076.92 \r\n140,887.50 355,715.00 559,890.00 154,440.00 34,523,511.00 34,853,032.00 \r\n2,309,920.77 11,149,682.10 \r\n88,708,968.88 \r\n \r\n1,362,621.00 2,784,857.00 \r\n4,147,478.00 \r\n \r\n63,831,118.70 \r\n41,191.43 156,499.02 1,249,753.12 1,544,778.88 (63,367,408.88) \r\n \r\n$ \r\n \r\n3,455,932.27 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous Special Items Gain on Sale of Equipment Insurance Proceeds \r\nTotal General Revenues and Special Items \r\nChange in Net Position \r\nNet Position - Beginning of Year, Restated \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUE \r\n \r\n$ \r\n \r\n27,962,114.85 $ \r\n \r\n1,630,840.33 1,249,100.35 \r\n774,166.19 783,656.23 2,883,755.27 343,174.38 2,531,267.45 2,317,227.33 224,212.20 340,512.29 \r\n \r\n431,375.86 2,728,013.99 \r\n251,886.03 \r\n \r\n$ \r\n \r\n44,451,302.75 $ \r\n \r\n157,295.29 \r\n- \r\n492,912.14 \r\n- \r\n650,207.43 \r\n \r\nNet Position - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ \r\n \r\n17,957,693.15 $ \r\n \r\n796,397.49 1,017,028.30 \r\n535,397.04 352,081.81 1,033,265.75 107,311.42 1,147,663.83 831,016.24 \r\n72,247.68 64,627.59 \r\n \r\n4,383.04 2,136,806.20 \r\n- \r\n \r\n$ \r\n \r\n26,055,919.54 $ \r\n \r\n591,289.59 $ \r\n22,219.35 - \r\n6,030.23 - \r\n46,340.39 - \r\n18,090.74 77,319.58 \r\n- \r\n16,131.68 \r\n- \r\n777,421.56 \r\n \r\n(9,255,836.82) \r\n(812,223.49) (232,072.05) (232,738.92) (431,574.42) (1,804,149.13) (235,862.96) (1,365,512.88) (1,408,891.51) (151,964.52) (275,884.70) \r\n(426,992.82) (82,163.97) \r\n(251,886.03) \r\n(16,967,754.22) \r\n \r\n15,512,426.70 \r\n4,339,003.20 345,545.39 74,705.32 \r\n1,288,808.09 \r\n3,088.50 93,148.23 \r\n21,656,725.43 \r\n4,688,971.21 \r\n(1,233,038.94) \r\n \r\n$ \r\n \r\n3,455,932.27 \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2018 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents 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\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n6,609,947.43 $ 4,482,055.63 $ 1,390,640.62 $ 12,482,643.68 \r\n \r\n331,957.11 3,157,057.19 \r\n827,979.06 539.64 \r\n39,991.27 1,896.57 \r\n47,331.56 \r\n \r\n404,298.50 - \r\n \r\n- \r\n \r\n736,255.61 \r\n \r\n- \r\n \r\n3,157,057.19 \r\n \r\n- \r\n \r\n827,979.06 \r\n \r\n- \r\n \r\n539.64 \r\n \r\n39,991.27 \r\n \r\n- \r\n \r\n1,896.57 \r\n \r\n47,331.56 \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 \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 11,016,699.83 $ 4,886,354.13 $ 1,390,640.62 $ 17,293,694.58 \r\n \r\n$ \r\n \r\n244,031.42 $ \r\n \r\n50,782.17 $ \r\n \r\n4,367,076.92 \r\n \r\n- \r\n \r\n- \r\n \r\n1,896.57 \r\n \r\n- \r\n \r\n355,715.00 \r\n \r\n- \r\n \r\n559,890.00 \r\n \r\n154,440.00 \r\n \r\n- \r\n \r\n4,765,548.34 \r\n \r\n968,283.74 \r\n \r\n- $ - \r\n- \r\n \r\n294,813.59 4,367,076.92 \r\n1,896.57 355,715.00 559,890.00 154,440.00 \r\n5,733,832.08 \r\n \r\n19,153.05 \r\n \r\n- \r\n \r\n- \r\n \r\n19,153.05 \r\n \r\n47,331.56 150,358.89 478,557.84 5,555,750.15 \r\n6,231,998.44 \r\n \r\n3,918,070.39 \r\n- \r\n3,918,070.39 \r\n \r\n1,390,640.62 \r\n- \r\n1,390,640.62 \r\n \r\n47,331.56 5,459,069.90 \r\n478,557.84 5,555,750.15 \r\n11,540,709.45 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 11,016,699.83 $ 4,886,354.13 $ 1,390,640.62 $ 17,293,694.58 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2018 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand 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 and OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Unamortized bond premiums \r\n \r\n$ 11,540,709.45 \r\n \r\n$ \r\n \r\n1,571,076.00 \r\n \r\n13,486,770.29 \r\n \r\n66,455,733.09 \r\n \r\n8,860,837.78 \r\n \r\n2,701,058.19 \r\n \r\n(20,994,136.42) \r\n \r\n72,081,338.93 \r\n \r\n$ (34,523,511.00) (34,853,032.00) \r\n \r\n(69,376,543.00) \r\n \r\n$ \r\n \r\n4,296,859.21 \r\n \r\n(1,505,095.00) \r\n \r\n2,791,764.21 19,153.05 \r\n \r\n$ (12,085,000.00) (140,887.50) \r\n(1,374,602.87) \r\n \r\n(13,600,490.37) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n3,455,932.27 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2018 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nSale of Capital Assets Insurance Proceeds Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 15,582,371.54 $ 345,545.39 \r\n21,358,989.09 4,792,389.24 650,207.43 12,955.82 1,288,808.09 \r\n44,031,266.60 \r\n \r\n- $ 4,339,003.20 \r\n700,101.98 - \r\n59,048.62 - \r\n5,098,153.80 \r\n \r\n- $ 2,700.88 - \r\n \r\n15,582,371.54 4,684,548.59 \r\n22,059,091.07 4,792,389.24 650,207.43 74,705.32 1,288,808.09 \r\n \r\n2,700.88 \r\n \r\n49,132,121.28 \r\n \r\n26,554,152.27 \r\n1,601,623.44 1,243,817.71 \r\n764,115.49 782,883.27 2,820,191.96 331,561.28 2,465,472.85 2,279,505.20 221,040.97 285,880.66 431,375.86 2,597,988.62 \r\n- \r\n- \r\n42,379,609.58 \r\n1,651,657.02 \r\n \r\n917,964.14 \r\n10,816.00 - \r\n69,318.25 12,050.00 81,173.27 106,874.42 \r\n74,943.98 \r\n137,164.97 4,674,008.64 \r\n- \r\n6,084,313.67 \r\n(986,159.87) \r\n \r\n- \r\n- \r\n3,140,000.00 700,550.00 \r\n3,840,550.00 \r\n(3,837,849.12) \r\n \r\n27,472,116.41 \r\n1,612,439.44 1,243,817.71 \r\n764,115.49 782,883.27 2,889,510.21 343,611.28 2,546,646.12 2,386,379.62 221,040.97 360,824.64 431,375.86 2,735,153.59 4,674,008.64 \r\n3,140,000.00 700,550.00 \r\n52,304,473.25 \r\n(3,172,351.97) \r\n \r\n6,957.00 49,706.73 97,497.00 (13,800.00) \r\n140,360.73 \r\n1,792,017.75 \r\n4,439,980.69 \r\n \r\n450,000.00 43,441.50 \r\n612,937.42 (4,691,958.98) \r\n(3,585,580.06) \r\n(4,571,739.93) \r\n8,489,810.32 \r\n \r\n4,594,461.98 (599,137.42) \r\n3,995,324.56 \r\n157,475.44 \r\n1,233,165.18 \r\n \r\n456,957.00 93,148.23 \r\n5,304,896.40 (5,304,896.40) \r\n550,105.23 \r\n(2,622,246.74) \r\n14,162,956.19 \r\n \r\nFund Balances - Ending \r\n \r\n$ 6,231,998.44 $ 3,918,070.39 $ 1,390,640.62 $ 11,540,709.45 \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 WHITE COUTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2018 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nInterest expense reported on the Statement of Activities is reported as incurred, whereas interest expense in the governmental fund statements is reported when paid. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nBond principal retirements Amortization of bond premium \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\n \r\n$ (2,622,246.74) \r\n \r\n$ 5,894,350.82 (1,258,764.93) \r\n \r\n4,635,585.89 \r\n \r\n(450,000.00) \r\n \r\n(69,944.84) \r\n \r\n34,250.00 \r\n \r\n$ 3,140,000.00 414,413.97 \r\n \r\n3,554,413.97 \r\n \r\n$ 340,100.93 (733,188.00) \r\n \r\n(393,087.07) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 4,688,971.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments Receivables, Net \r\nOther \r\nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \r\n \r\nWHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2018 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n28,380.05 $ 182,969.48 \r\n \r\n39,075.00 \r\n \r\n- \r\n \r\n- \r\n \r\n56.19 \r\n \r\n$ \r\n \r\n67,455.05 $ 183,025.67 \r\n \r\n$ 183,025.67 \r\n \r\n$ \r\n \r\n67,455.05 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018 \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n4,275.54 \r\n \r\n137.54 4,413.08 \r\n \r\n2,000.00 2,413.08 65,041.97 \r\n \r\n$ \r\n \r\n67,455.05 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), bond proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProperty taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 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 statements. \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 statements. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources--resources other than the proceeds of refunding debt--are placed in an irrevocable trust for the sole purpose of extinguishing debt. This statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\n \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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 Land Improvements \r\n \r\nAny Amount \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nComputer Applications \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\n10,000.00 10,000.00 45,000.00 100,000.00 \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nN/A 20 years \r\n10 to 80 years 5 to 20 years 6 years \r\n10 to 20 years \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\n \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\n \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\n \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \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\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\n \r\nThe White County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on August 14, 2017 (levy date) based on property values as of January 1, 2017. Taxes were due on November 15, 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2018, for maintenance and operations amounted to $14,417,347.64. \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\n17.978 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,165,023.90 during fiscal year ended June 30, 2018. \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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 $4,339,003.20 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \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, 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 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS 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 \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\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 warrant. 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\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 $9,683,056.73, which includes $39,075.00 in Certificates of Deposit that are reported as Investments, and a bank balance of $11,014,897.24. The bank balances insured by Federal depository insurance were $289,075.00, and the bank balances included in the State's Secure Deposit Program (SDP) were $10,725,822.24. \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 12,482,643.68 211,349.53 \r\n \r\nTotal cash and cash equivalents \r\n \r\n12,693,993.21 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n39,075.00 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n3,050,011.48 \r\n \r\nTotal carrying value of deposits - June 30, 2018 \r\n \r\n$ 9,683,056.73 \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\n \r\nThe School District reported cash equivalents of $3,050,011.48 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \r\n \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2017 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2018 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,021,076.00 $ \r\n \r\n- $ \r\n \r\n9,004,241.61 5,211,412.10 \r\n \r\n450,000.00 $ 1,571,076.00 \r\n \r\n728,883.42 \r\n \r\n13,486,770.29 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n11,025,317.61 5,211,412.10 \r\n \r\n1,178,883.42 \r\n \r\n15,057,846.29 \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\n65,655,156.00 8,301,024.73 2,701,058.19 \r\n \r\n800,577.09 611,245.05 \r\n- \r\n \r\n11,688,659.92 5,952,886.44 2,145,257.13 \r\n \r\n825,693.06 392,666.46 \r\n40,405.41 \r\n \r\n51,432.00 \r\n- \r\n \r\n66,455,733.09 8,860,837.78 2,701,058.19 \r\n \r\n51,432.00 \r\n- \r\n \r\n12,514,352.98 6,294,120.90 2,185,662.54 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n56,870,435.43 \r\n \r\n153,057.21 \r\n \r\n- \r\n \r\n57,023,492.64 \r\n \r\nGovernmental Activities Capital Assets - Net $ 67,895,753.04 $ 5,364,469.31 $ 1,178,883.42 $ 72,081,338.93 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nEducational Media Services \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$ \r\n39,704.01 10,828.36 83,017.46 32,485.09 194,910.54 \r\n \r\n868,547.78 \r\n360,945.46 29,271.69 \r\n \r\n$ 1,258,764.93 \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2018, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral Fund \r\n \r\n$ \r\n \r\nCapital Projects Fund \r\n \r\n1,896.57 \r\n \r\n$ \r\n \r\n- \r\n \r\n1,896.57 \r\n \r\n$ \r\n \r\n1,896.57 \r\n \r\n$ \r\n \r\n1,896.57 \r\n \r\nThe capital projects fund plans to reimburse the general fund for allowable SPLOST purchases. INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2018, consisted of the following: \r\n \r\nTransfers to \r\n \r\nGeneral Fund \r\n \r\nTransfers From \r\nCapital Projects Fund \r\n \r\nDebt Service Fund \r\n \r\nGeneral Fund \r\n \r\n$ \r\n \r\n- $ \r\n \r\n97,497.00 $ \r\n \r\n- \r\n \r\nCapital Projects Fund \r\n \r\n13,800.00 \r\n \r\n- \r\n \r\n599,137.42 \r\n \r\nDebt Service Fund \r\n \r\n- \r\n \r\n4,594,461.98 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 13,800.00 $ 4,691,958.98 $ 599,137.42 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the capital projects fund to the debt service fund for the current year bond principal and interest payments. In addition, transfers are used to repay loans between funds or correct transaction misclassifications between the general fund, the capital projects fund and the debt service fund. \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2017 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2018 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums \r\n \r\n$ 15,225,000.00 $ 1,789,016.84 \r\n \r\n- $ 3,140,000.00 $ 12,085,000.00 $ 2,035,000.00 \r\n \r\n- \r\n \r\n414,413.97 \r\n \r\n1,374,602.87 \r\n \r\n274,920.77 \r\n \r\n$ 17,014,016.84 $ - $ 3,554,413.97 $ 13,459,602.87 $ 2,309,920.77 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of an issue of general obligation bonds that are generally non-callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nOf the total amount originally authorized, $2,915,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2016 3.0% - 5.0% 4/20/2016 \r\n \r\n4/1/2023 $ 12,085,000.00 $ 12,085,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ 2,035,000.00 $ 2,325,000.00 2,450,000.00 2,575,000.00 2,700,000.00 \r\n \r\n563,550.00 $ 502,500.00 386,250.00 263,750.00 135,000.00 \r\n \r\n274,920.77 274,920.77 274,920.77 274,920.77 274,919.79 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 12,085,000.00 $ 1,851,050.00 $ 1,374,602.87 \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\n \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nWORKERS' COMPENSATION Georgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any liabilities for unemployment compensation during the last two fiscal years. \r\nSURETY BOND \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education \r\n \r\n$ 50,000.00 $ 10,000.00 \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, 2018: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Continuation of State Programs Capital Projects Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n47,331.56 \r\n \r\n$ 109,167.46 41,191.43 \r\n3,918,070.39 1,390,640.62 \r\n \r\n5,459,069.90 \r\n \r\n- \r\n \r\n478,557.84 \r\n \r\n5,555,750.15 \r\n \r\nFund Balance, June 30, 2018 \r\n \r\n$ 11,540,709.45 \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- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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, 2018, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2018 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nNinth Grade Academy/High School Renovation \r\n \r\n$ 84,256.30 $ 13,486,770.29 $ \r\n \r\n443,710.88 \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\nThe School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $30,571.32 for governmental activities for the year ended June 30, 2018. The following future minimum lease payments were required under operating leases at June 30, 2018: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2019 2020 2021 \r\n \r\n$ \r\n \r\n33,459.84 \r\n \r\n33,459.84 \r\n \r\n2,788.32 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n69,708.00 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately \r\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\neligible 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 $1,269,569.00 for the year ended June 30, 2018. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2018, the School District reported a liability of $34,853,032.00 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 0.248065%, which was a decrease of 0.001042% from its proportion measured as of June 30, 2016. \r\n \r\nFor the year ended June 30, 2018, the School District recognized OPEB expense of $2,002,757.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nChanges of assumptions \r\n \r\n$ \r\n \r\n- $ 2,653,970.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n10,193.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n130,887.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n1,269,569.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,279,762.00 $ 2,784,857.00 \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSchool District contributions subsequent to the measurement date of $1,269,569.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2019 2020 2021 2022 2023 Thereafter \r\n \r\n$ (498,324.00) $ (498,324.00) $ (498,324.00) $ (498,324.00) $ (500,873.00) $ (280,495.00) \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\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\nPSERS \r\n \r\nN/A \r\n \r\nLong-term expected rate of return \r\nHealthcare cost trend rate \r\nPre-Medicare Eligible \r\n \r\n3.88%, compounded annually, net of investment expense, and including inflation \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 Medicare Eligible \r\n \r\n5.00% 5.00% \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 \r\nwith projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \r\n \r\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \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, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\nAdditionally, there was a change of assumptions that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58%. \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset Class Local Government Investment Pool \r\n \r\nTarget Allocation 100.00% \r\n \r\nLong-Term Expected Real Rate of Return* \r\n1.13% \r\n \r\n* Rate shown is net of the 2.75% assumed rate of inflation \r\nDiscount rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\n \r\n- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability \r\ncalculated 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$ 41,381,733.00 $ \r\n \r\n34,853,032.00 $ 29,700,566.00 \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB \r\n \r\nliability, as well as what the District's proportionate share of the net OPEB liability would be if it were \r\n \r\ncalculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point \r\n \r\nhigher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nNet OPEB Liability \r\n \r\n$ 28,889,194.00 $ \r\n \r\n34,853,032.00 $ 42,617,943.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\nNOTE 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% of their annual pay during fiscal year 2018. The School District's contractually required contribution rate for \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nthe year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.78% of payroll was required from the School District and 0.03% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,605,872.21 and $6,886.20 from the School District and the State, respectively. \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan Description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits Provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2018 was 24.81% of annual covered payroll for old and new plan members and 21.81% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.69% of annual covered payroll for old and new plan members and 21.69% for GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. There are no employer contributions to the pension plan for the current fiscal year due to the fact that the district has no current employees who are covered under ERS. \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. \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $74,188.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2018, the School District reported a liability of $34,523,511.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 34,523,511.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n270,602.00 \r\n \r\nTotal \r\n \r\n$ 34,794,113.00 \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 0.185757%, which was an increase of 0.000039% from its proportion measured as of June 30, 2016. \r\n \r\n- 29 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2018, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $334,911.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017. \r\n \r\nFor the year ended June 30, 2018, the School District recognized pension expense of $3,282,208.00 for TRS, ($21,203.00) for ERS and $67,498.00 for PSERS and revenue of ($4,563.00) for TRS and $67,498.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 1,291,392.00 $ 130,288.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n756,798.00 \r\n \r\n- \r\n \r\n- \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\n237,579.00 \r\n \r\n- \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n5,418.00 \r\n \r\n989,144.00 \r\n \r\n- \r\n \r\n5,610.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n3,605,872.21 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 5,659,480.21 $ 1,357,011.00 $ \r\n \r\n- $ 5,610.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $3,605,872.21 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ (718,809.00) $ $ 1,512,629.00 $ $ 789,782.00 $ $ (908,021.00) $ $ 21,016.00 $ \r\n \r\n(5,610.00) - \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25%  9.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future \r\n \r\nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \r\n \r\nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \r\n \r\nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \r\n \r\nwas used for death after disability retirement. There is a margin for future mortality improvement in \r\n \r\nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \r\n \r\nactual number of deaths that occurred during the study period for service retirements and \r\n \r\nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected \r\n \r\nto 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\n \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \r\n \r\n- 31 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nafter disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n100.00% \r\n \r\nERS/PSERS Target \r\nallocation \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future 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 \r\n \r\nnet pension liability \r\n \r\n$ 56,657,131.00 $ \r\n \r\n34,523,511.00 $ 16,290,382.00 \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, ERS and PSERS financial report which is publicly \r\n \r\navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 32 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \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 $35,624,939.00. This change is in accordance with generally accepted accounting procedures. \r\n \r\nNet Position, July 1, 2017 as previously reported \r\n \r\n$ 34,391,900.06 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \r\n \r\n(36,918,369.00) \r\n \r\nDeferred Outflows - School District's Contributions made during fiscal year 2017 \r\n \r\n1,293,430.00 \r\n \r\nNet Position, July 1, 2017, as restated \r\n \r\n$ \r\n \r\n(1,233,038.94) \r\n \r\nNOTE 15: SPECIAL ITEMS \r\nThe School District recognized a net gain in the amount of $3,088.50 on the sale of capital equipment. The fully depreciated equipment items were removed from the School District's capital asset listing at their carrying value on the date they were sold. Also, during the fiscal year, the School District received insurance proceeds of $93,148.23 for damages that occurred in September 2017 due to Hurricane Irma. These activities are reported as Special Items on the Statement of Activities. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of \r\nthe net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\n0.185757% $ 34,523,511.00 $ 0.185718% $ 38,315,694.00 $ 0.189972% $ 28,921,351.00 $ 0.191627% $ 24,209,544.00 $ \r\n \r\n270,602.00 578,290.00 330,056.00 302,829.00 \r\n \r\n$ 34,794,113.00 $ 38,893,984.00 $ 29,251,407.00 $ 24,512,373.00 \r\n \r\nSchool District's covered payroll \r\n$ 21,497,902.76 $ 20,681,026.08 $ 20,280,801.09 $ 19,734,249.63 \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\n160.59% 185.27% 142.60% 122.68% \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- 35 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\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 \r\nliability \r\n \r\n0.000000% $ 0.000000% $ 0.000983% $ 0.001251% $ \r\n \r\n39,825.00 46,920.00 \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n28,610.93 \r\n \r\n$ \r\n \r\n27,687.76 \r\n \r\nSchool District's proportionate share of the net pension liability as a \r\npercentage of covered payroll \r\nN/A N/A 139.20% 169.46% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\nN/A N/A 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \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 \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\nTotal \r\n \r\n$ \r\n \r\n334,911.00 $ 334,911.00 \r\n \r\n$ \r\n \r\n448,772.00 $ 448,772.00 \r\n \r\n$ \r\n \r\n329,428.00 $ 329,428.00 \r\n \r\n$ \r\n \r\n389,393.00 $ 389,393.00 \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n$ \r\n \r\n898,389.29 \r\n \r\n$ \r\n \r\n875,389.96 \r\n \r\n$ \r\n \r\n934,416.58 \r\n \r\n$ 1,304,044.50 \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 37 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\nOPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability \r\nassociated with the School District \r\n \r\n2018 \r\n \r\n0.248065% $ 34,853,032.00 $ \r\n \r\n- \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability as a percentage of its covered- \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n$ 34,853,032.00 $ 19,798,997.11 \r\n \r\n176.03% \r\n \r\n1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 38 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution (1) \r\n \r\nContributions in relation to the contractually required contribution (1) \r\n \r\nContribution deficiency (excess) \r\n \r\n2018 \r\n \r\n$ \r\n \r\n3,605,872.21 $ \r\n \r\n3,605,872.21 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n3,043,888.28 $ \r\n \r\n3,043,888.28 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2,912,031.52 $ \r\n \r\n2,912,031.52 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2,666,825.33 $ \r\n \r\n2,666,825.33 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2,423,365.85 $ \r\n \r\n2,423,365.85 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2,309,283.34 $ \r\n \r\n2,309,283.34 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n2,284,521.02 $ \r\n \r\n2,284,521.02 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2,331,210.10 $ \r\n \r\n2,331,210.10 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n2,137,946.25 $ \r\n \r\n2,137,946.25 $ \r\n \r\n- \r\n \r\n2009 \r\n \r\n$ \r\n \r\n2,045,707.77 $ \r\n \r\n2,045,707.77 $ \r\n \r\n- \r\n \r\n(1) The School District has included on behalf payments within the contributions for years 2015 and prior. \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered payroll \r\n \r\n$ 21,492,936.27 $ 21,497,902.76 $ 20,681,026.08 $ 20,280,801.09 $ 19,734,249.63 $ 20,239,117.79 $ 22,222,967.12 $ 22,677,141.05 $ 21,950,166.84 $ 22,044,264.76 \r\n \r\n16.78% 14.16% 14.08% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% \r\n \r\n- 39 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"6\" \r\n \r\nYear Ended \r\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\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n6,282.96 $ \r\n \r\n6,282.96 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n5,111.16 $ \r\n \r\n5,111.16 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n4,271.52 $ \r\n \r\n4,271.52 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n3,247.08 $ \r\n \r\n3,247.08 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n28,610.93 \r\n \r\n$ \r\n \r\n27,687.76 \r\n \r\n$ \r\n \r\n28,667.52 \r\n \r\n$ \r\n \r\n27,919.42 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\nN/A N/A N/A 21.96% 18.46% 14.90% 11.63% \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 WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2018 \r\n \r\n$ \r\n \r\n1,269,569.00 $ \r\n \r\n1,269,569.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n1,293,430.00 $ \r\n \r\n1,293,430.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 19,942,062.06 $ 19,798,997.11 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.37% 6.53% \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 WHITE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"8\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nEmployees' Retirement System \r\nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nSchool OPEB Fund \r\nChanges of benefit terms: In June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \r\nChanges in assumptions: In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. Additionally, there were changes to the discount rate and an increase in the investment rate of return due to a longer-term investment strategy. \r\nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \r\nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \r\n \r\n- 42 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"9\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Sale of Capital Assets Insurance Proceeds 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$ 14,675,260.00 $ 15,111,761.00 $ 15,582,371.54 $ \r\n \r\n225,000.00 \r\n \r\n225,000.00 \r\n \r\n345,545.39 \r\n \r\n20,855,929.26 \r\n \r\n23,003,533.00 \r\n \r\n21,358,989.09 \r\n \r\n3,418,253.56 \r\n \r\n6,365,411.25 \r\n \r\n4,792,389.24 \r\n \r\n589,870.00 \r\n \r\n745,820.00 \r\n \r\n650,207.43 \r\n \r\n8,058.00 \r\n \r\n9,058.00 \r\n \r\n12,955.82 \r\n \r\n1,017,220.00 \r\n \r\n1,196,400.00 \r\n \r\n1,288,808.09 \r\n \r\n40,789,590.82 \r\n \r\n46,656,983.25 \r\n \r\n44,031,266.60 \r\n \r\n470,610.54 120,545.39 (1,644,543.91) (1,573,022.01) (95,612.57) \r\n3,897.82 92,408.09 \r\n(2,625,716.65) \r\n \r\n28,942,619.46 \r\n1,880,776.04 815,361.07 830,131.59 782,251.53 \r\n2,802,691.29 323,598.80 \r\n2,454,945.82 2,276,546.52 \r\n317,788.45 280,160.69 \r\n2,341,995.33 \r\n- \r\n44,048,866.59 \r\n(3,259,275.77) \r\n \r\n29,561,900.04 \r\n2,089,764.76 1,478,675.42 \r\n775,899.00 808,312.87 2,841,590.00 335,561.00 2,467,501.00 2,338,606.14 324,067.00 278,820.00 430,000.00 2,423,179.00 \r\n38,500.00 \r\n46,192,376.23 \r\n464,607.02 \r\n \r\n26,554,152.27 \r\n1,601,623.44 1,243,817.71 \r\n764,115.49 782,883.27 2,820,191.96 331,561.28 2,465,472.85 2,279,505.20 221,040.97 285,880.66 431,375.86 2,597,988.62 \r\n- \r\n42,379,609.58 \r\n1,651,657.02 \r\n \r\n3,007,747.77 \r\n488,141.32 234,857.71 \r\n11,783.51 25,429.60 21,398.04 \r\n3,999.72 2,028.15 59,100.94 103,026.03 (7,060.66) (1,375.86) (174,809.62) 38,500.00 \r\n3,812,766.65 \r\n1,187,050.00 \r\n \r\n105,000.00 - \r\n(105,000.00) \r\n- \r\n(3,259,275.77) \r\n4,427,840.12 \r\n29,299.34 \r\n \r\n225,000.00 - \r\n(225,000.00) \r\n- \r\n464,607.02 \r\n4,427,840.12 \r\n11,995.23 \r\n \r\n97,497.00 6,957.00 \r\n49,706.73 (13,800.00) \r\n140,360.73 \r\n1,792,017.75 \r\n4,439,980.69 \r\n- \r\n \r\n(127,503.00) 6,957.00 \r\n49,706.73 211,200.00 \r\n140,360.73 \r\n1,327,410.73 \r\n12,140.57 \r\n(11,995.23) \r\n \r\n$ \r\n \r\n1,197,863.69 $ \r\n \r\n4,904,442.37 $ \r\n \r\n6,231,998.44 $ \r\n \r\n1,327,556.07 \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- 43 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"10\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child and Adult Care Food Program Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Rural Education Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through from Georgia Department of Behavioral Health and Developmental Disabilities Block Grants for Prevention and Treatment of Substance Abuse \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n10.665 \r\n \r\n18185GA324N1099 \r\n \r\n$ \r\n \r\n18185GA324N1100 \r\n \r\n506,982.72 1,789,817.67 \r\n2,296,800.39 \r\n \r\n486 Forest \r\n \r\n34,402.75 \r\n \r\n10.558 10.579 \r\n \r\n04960-A/04960-B 185GA350N8103 \r\n \r\n173,592.45 \r\n39,128.95 212,721.40 2,543,924.54 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A160073 H027A170073 H173A160081 H173A170081 \r\n \r\n84.048 84.358 84.358 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \r\n \r\nV048A170010 S358B160010 S365B170010 S424A170011 S367A160001 S367A170001 S010A160010 S010A170010 S287C160010 S287C170010 \r\n \r\n93.959 \r\n \r\n4410002600000100452 \r\n \r\n12.UNKNOWN \r\n \r\n132,476.38 544,723.25 \r\n224.90 19,494.84 696,919.37 \r\n46,704.47 65,621.00 41,698.89 18,254.66 86,692.32 83,249.28 84,583.65 834,408.64 128,414.72 492,089.03 1,881,716.66 2,578,636.03 \r\n16,001.92 \r\n144,966.21 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,283,528.70 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\nNote 1. Basis of Presentation \r\n \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the White County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2018. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\n \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 44 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"11\" \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 Amended Formula Adjustment On Behalf Payments Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teacher of the Year Teachers Retirement Virtual Schools Grant Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nGovernor's Office of Student Achievement Connections for Classrooms Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\nContract Human Resources, Georgia Department of Family Connection \r\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$ 1,205,805.99 $ 267,869.00 \r\n2,745,404.00 534,070.00 \r\n1,429,558.00 409,652.00 \r\n2,721,636.00 2,211,896.00 \r\n799,277.00 3,377,584.81 \r\n686,982.00 203,041.00 187,032.00 114,381.00 447,852.00 137,919.77 \r\n71,346.00 1,787.01 \r\n627,277.00 1,018,305.00 \r\n950,288.52 (331,711.00) \r\n6,448.00 360,174.00 \r\n525,028.00 70,909.00 \r\n61,656.00 31,023.77 94,788.19 77,319.58 \r\n507.25 6,886.20 16,502.00 146,569.14 \r\n \r\n- $ 1,205,805.99 \r\n \r\n- \r\n \r\n267,869.00 \r\n \r\n- \r\n \r\n2,745,404.00 \r\n \r\n- \r\n \r\n534,070.00 \r\n \r\n- \r\n \r\n1,429,558.00 \r\n \r\n- \r\n \r\n409,652.00 \r\n \r\n- \r\n \r\n2,721,636.00 \r\n \r\n- \r\n \r\n2,211,896.00 \r\n \r\n- \r\n \r\n799,277.00 \r\n \r\n- \r\n \r\n3,377,584.81 \r\n \r\n- \r\n \r\n686,982.00 \r\n \r\n- \r\n \r\n203,041.00 \r\n \r\n- \r\n \r\n187,032.00 \r\n \r\n- \r\n \r\n114,381.00 \r\n \r\n- \r\n \r\n447,852.00 \r\n \r\n- \r\n \r\n137,919.77 \r\n \r\n- \r\n \r\n71,346.00 \r\n \r\n- \r\n \r\n1,787.01 \r\n \r\n- \r\n \r\n627,277.00 \r\n \r\n- \r\n \r\n1,018,305.00 \r\n \r\n- \r\n \r\n950,288.52 \r\n \r\n- \r\n \r\n(331,711.00) \r\n \r\n- \r\n \r\n6,448.00 \r\n \r\n- \r\n \r\n360,174.00 \r\n \r\n- \r\n \r\n525,028.00 \r\n \r\n- \r\n \r\n70,909.00 \r\n \r\n- \r\n \r\n61,656.00 \r\n \r\n- \r\n \r\n31,023.77 \r\n \r\n- \r\n \r\n94,788.19 \r\n \r\n- \r\n \r\n77,319.58 \r\n \r\n- \r\n \r\n507.25 \r\n \r\n- \r\n \r\n6,886.20 \r\n \r\n- \r\n \r\n16,502.00 \r\n \r\n- \r\n \r\n146,569.14 \r\n \r\n8,492.30 74,188.00 \r\n \r\n600,702.52 99,399.46 - \r\n \r\n600,702.52 107,891.76 \r\n74,188.00 \r\n \r\n61,244.56 \r\n \r\n- \r\n \r\n61,244.56 \r\n \r\n$ 21,358,989.09 $ \r\n \r\n700,101.98 $ 22,059,091.07 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"12\" \r\n \r\nPROJECT \r\n \r\nSPLOST 2009 \r\n \r\n(ii) Adding to, constructing, renovating, repairing, \r\n \r\nimproving, and equipping existing school \r\n \r\nbuildings and facilities \r\n \r\n$ \r\n \r\n(iii) Acquiring computers and computer technology equipment \r\n \r\n(vii) Acquiring textbooks and other instructional materials and transportation equipment \r\n \r\nSPLOST 2015 \r\n(i) Acquiring, constructing and equipping one new ninth grade academy and an auxiliary gym at White County High School \r\n(ii) Adding to, constructing, renovating, repairing, improving and equipping existing school buildings and school system facilities, including athletic facilities \r\n(iii) Acquiring computers and computer technology equipment and software, including tablets and laptops \r\n(iv) Acquiring heating, air conditioning and energy efficiency equipment \r\n(v) Acquiring textbooks and other instructional materials and electronic media, as well as school buses, transportation and maintenance equipment and band equipment \r\n \r\nORIGINAL ESTIMATED COST (1)(5) \r\n1,138,332.00 $ 1,185,569.00 \r\n136,000.00 2,459,901.00 \r\n9,450,000.00 \r\n9,259,200.00 2,500,000.00 1,850,800.00 \r\n940,000.00 24,000,000.00 \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4)(5)(6) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3)(4)(5)(6) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n4,684,229.00 $ \r\n \r\n274,524.89 $ \r\n \r\n3,858,881.20 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n4,281,095.00 \r\n \r\n489,139.84 \r\n \r\n3,470,442.26 \r\n \r\n- \r\n \r\n- \r\n \r\n1,153,730.00 \r\n \r\n204,372.15 \r\n \r\n782,606.19 \r\n \r\n- \r\n \r\n- \r\n \r\n10,119,054.00 \r\n \r\n968,036.88 \r\n \r\n8,111,929.65 \r\n \r\n- \r\n \r\n- \r\n \r\n14,699,433.00 \r\n \r\n5,076,936.79 \r\n \r\n8,579,443.53 \r\n \r\n- \r\n \r\n- \r\n \r\n5,259,200.00 \r\n \r\n7,000.00 \r\n \r\n1,069,790.70 \r\n \r\n- \r\n \r\n- \r\n \r\n1,250,000.00 \r\n \r\n28,040.00 \r\n \r\n274,308.51 \r\n \r\n- \r\n \r\n- \r\n \r\n1,850,800.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n440,000.00 \r\n \r\n4,300.00 \r\n \r\n71,929.99 \r\n \r\n- \r\n \r\n- \r\n \r\n23,499,433.00 \r\n \r\n5,116,276.79 \r\n \r\n9,995,472.73 \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nDecember 2019 December 2019 December 2019 \r\nJuly 2019 \r\nMarch 2020 May 2020 March 2020 \r\nMay 2020 \r\n \r\n$ 26,459,901.00 $ 33,618,487.00 $ \r\n \r\n6,084,313.67 $ \r\n \r\n18,107,402.38 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) \r\n \r\nThe 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) \r\n \r\nThe School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) \r\n \r\nThe voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include \r\n \r\nsales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) \r\n \r\nIn 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\n5,054,427.37 \r\n \r\nCurrent Year \r\n \r\n700,550.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n5,754,977.37 \r\n \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the School District issued $10,000,000.00 of general obligation debt to build the middle school. In October 2013, the School District issued additional bonds in the amount of $4,255,000.00 of the $6,000,000.00 outstanding to be used for projects approved in the 2009 SPLOST. \r\n \r\n(6) In the 2015 Resolution, the School District obtained approval to issue a total of $15,000,000.00 in general obligation debt. In April of 2016, bonds were issued for the projects noted above in the amount of $12,085,000.00. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 47 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 8, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \r\nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated October 8, 2019. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n 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\nOctober 8, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the White County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-001 \r\n \r\nInternal Controls over Financial Reporting \r\n \r\nControl Category: Internal Control Impact: Compliance Impact: \r\n \r\nFinancial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2017-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2017 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2017-06-30"],"dcterms_description":["Annual financial report for the White County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2017 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2017-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["annual reports"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \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\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n33 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n35 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n36 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 37 \r\n \r\n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n38 \r\n \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n39 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n40 41 43 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n GREG S. GRIFFIN \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 24, 2018 \r\n \r\nThe Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2017, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures, GASB Statement No. 80, Blending Requirements for Certain Component Units, and GASB Statement No. 82, Pension Issues. Our opinions are not modified with respect to these matters. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages 33 through 39, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and are 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 July 24, 2018 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages Payable Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n13,244,291.56 \r\n \r\n727,620.27 6,111,381.32 \r\n719,640.77 22,850.67 51,900.60 \r\n11,025,317.61 56,870,435.43 \r\n \r\n88,773,438.23 \r\n \r\n9,454,872.28 \r\n \r\n172,957.04 4,334,437.07 \r\n175,137.50 1,427,658.00 \r\n690,579.00 38,315,694.00 \r\n3,554,413.97 13,459,602.87 \r\n62,130,479.45 \r\n \r\n1,705,931.00 \r\n \r\n57,198,195.67 \r\n91,683.33 1,339,802.68 4,725,156.97 (28,962,938.59) \r\n \r\n$ \r\n \r\n34,391,900.06 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVEN \r\n \r\n$ 28,465,540.42 $ \r\n1,667,103.52 1,174,842.55 \r\n827,036.85 820,258.13 2,827,484.02 328,523.30 2,489,143.55 2,366,966.01 220,766.73 296,714.48 \r\n428,015.85 2,545,944.04 \r\n354,852.11 \r\n$ 44,813,191.56 $ \r\n \r\n151,773.42 \r\n- \r\n541,754.49 \r\n- \r\n693,527.91 \r\n \r\nNet Position - End of Year \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 17,168,235.60 $ \r\n764,717.62 885,157.68 519,406.05 572,513.38 1,020,328.13 \r\n90,905.33 1,148,884.11 \r\n698,884.93 58,100.62 48,025.15 \r\n2,617.27 1,845,357.93 \r\n- \r\n$ 24,823,133.80 $ \r\n \r\n2,901,026.96 $ \r\n108,163.72 - \r\n29,528.77 - \r\n226,278.79 - \r\n88,586.31 77,216.25 \r\n- \r\n79,996.88 \r\n- \r\n3,510,797.68 \r\n \r\n(8,244,504.44) \r\n(794,222.18) (289,684.87) (278,102.03) (247,744.75) (1,580,877.10) (237,617.97) (1,251,673.13) (1,590,864.83) (162,666.11) (248,689.33) \r\n(425,398.58) (78,834.74) \r\n(354,852.11) \r\n(15,785,732.17) \r\n \r\n15,266,462.06 \r\n4,042,769.69 336,974.99 67,988.39 \r\n1,225,869.26 \r\n20,940,064.39 \r\n5,154,332.22 \r\n29,237,567.84 \r\n \r\n$ \r\n \r\n34,391,900.06 \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2017 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Due from Other Funds Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,912,393.04 $ 7,098,733.34 $ 1,233,165.18 $ 13,244,291.56 \r\n \r\n349,637.99 2,858,388.72 \r\n719,640.77 22,850.67 \r\n100,425.89 51,900.60 \r\n \r\n377,982.28 3,252,992.60 \r\n- \r\n \r\n- \r\n \r\n727,620.27 \r\n \r\n- \r\n \r\n6,111,381.32 \r\n \r\n- \r\n \r\n719,640.77 \r\n \r\n- \r\n \r\n22,850.67 \r\n \r\n- \r\n \r\n100,425.89 \r\n \r\n- \r\n \r\n51,900.60 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Due to Other Funds Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 9,015,237.68 $ 10,729,708.22 $ 1,233,165.18 $ 20,978,111.08 \r\n \r\n$ 151,722.03 $ 4,334,437.07 - \r\n4,486,159.10 \r\n \r\n21,235.01 $ - \r\n100,425.89 1,427,658.00 \r\n690,579.00 \r\n2,239,897.90 \r\n \r\n- $ - \r\n- \r\n \r\n172,957.04 4,334,437.07 \r\n100,425.89 1,427,658.00 \r\n690,579.00 \r\n6,726,057.00 \r\n \r\n89,097.89 \r\n \r\n- \r\n \r\n- \r\n \r\n89,097.89 \r\n \r\n51,900.60 39,782.73 428,812.08 3,919,485.28 \r\n4,439,980.69 \r\n \r\n8,489,810.32 \r\n- \r\n8,489,810.32 \r\n \r\n1,233,165.18 \r\n- \r\n1,233,165.18 \r\n \r\n51,900.60 9,762,758.23 \r\n428,812.08 3,919,485.28 \r\n14,162,956.19 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 9,015,237.68 $ 10,729,708.22 $ 1,233,165.18 $ 20,978,111.08 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2017 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\n \r\n$ 14,162,956.19 \r\n \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\n \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\n \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\n \r\n$ \r\n \r\n2,021,076.00 \r\n \r\n9,004,241.61 \r\n \r\n65,655,156.00 \r\n \r\n8,301,024.73 \r\n \r\n2,701,058.19 \r\n \r\n(19,786,803.49) \r\n \r\n67,895,753.04 \r\n \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\n \r\nNet pension liability \r\n \r\n(38,315,694.00) \r\n \r\nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. \r\n \r\n7,748,941.28 \r\n \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\n \r\n89,097.89 \r\n \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\n \r\nBonds payable Accrued interest payable Unamortized bond premiums \r\n \r\n$ (15,225,000.00) (175,137.50) \r\n(1,789,016.84) \r\n \r\n(17,189,154.34) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 34,391,900.06 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\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\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n15,215,108.54 $ \r\n \r\n336,974.99 \r\n \r\n20,578,218.87 \r\n \r\n4,477,331.61 \r\n \r\n693,527.91 \r\n \r\n11,373.75 \r\n \r\n1,225,045.52 \r\n \r\n42,537,581.19 \r\n \r\n- $ 4,042,769.69 3,252,992.60 \r\n53,302.62 823.74 \r\n7,349,888.65 \r\n \r\n- $ 3,312.02 - \r\n3,312.02 \r\n \r\n15,215,108.54 4,379,744.68 \r\n23,831,211.47 4,477,331.61 693,527.91 67,988.39 1,225,869.26 \r\n49,890,781.86 \r\n \r\n26,453,269.60 \r\n1,595,375.44 1,159,372.01 \r\n799,499.84 812,495.13 2,696,630.21 317,867.09 2,439,860.74 2,169,766.86 218,216.03 265,012.37 428,015.85 2,524,953.42 \r\n- \r\n- \r\n41,880,334.59 \r\n657,246.60 \r\n \r\n509,061.12 \r\n185.95 - \r\n1,656.89 - \r\n3,050.00 6,500.00 168,418.75 \r\n31,591.21 \r\n8,710,243.05 \r\n- \r\n9,430,706.97 \r\n(2,080,818.32) \r\n \r\n- \r\n- \r\n3,030,000.00 782,257.08 \r\n3,812,257.08 \r\n(3,808,945.06) \r\n \r\n26,962,330.72 \r\n1,595,561.39 1,159,372.01 \r\n801,156.73 812,495.13 2,696,630.21 320,917.09 2,446,360.74 2,338,185.61 218,216.03 296,603.58 428,015.85 2,524,953.42 8,710,243.05 \r\n3,030,000.00 782,257.08 \r\n55,123,298.64 \r\n(5,232,516.78) \r\n \r\n(41,548.41) (41,548.41) 615,698.19 \r\n3,824,282.50 \r\n \r\n41,548.41 (3,925,546.61) (3,883,998.20) (5,964,816.52) \r\n14,454,626.84 \r\n \r\n3,925,546.61 - \r\n3,925,546.61 116,601.55 \r\n1,116,563.63 \r\n \r\n3,967,095.02 (3,967,095.02) \r\n(5,232,516.78) \r\n19,395,472.97 \r\n \r\n$ \r\n \r\n4,439,980.69 $ \r\n \r\n8,489,810.32 $ \r\n \r\n1,233,165.18 $ 14,162,956.19 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2017 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nInterest expense reported on the Statement of Activities is reported when incurred and interest expense on fund statements when paid \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nBond principal retirements Amortization of bond premium \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. \r\nPension expense \r\n \r\n$ (5,232,516.78) \r\n \r\n$ 8,643,076.48 (1,234,012.25) \r\n \r\n7,409,064.23 \r\n \r\n51,353.52 \r\n \r\n12,991.00 \r\n \r\n$ 3,030,000.00 414,413.97 \r\n \r\n3,444,413.97 \r\n \r\n(530,973.72) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 5,154,332.22 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments Receivables, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\nNET POSITION Held in Trust for Private Purposes \r\n \r\nWHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2017 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 25,966.97 $ 166,658.93 \r\n \r\n39,075.00 \r\n \r\n- \r\n \r\n- \r\n \r\n56.19 \r\n \r\n$ 65,041.97 $ 166,715.12 \r\n \r\n$ 166,715.12 $ 65,041.97 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2017 \r\nADDITIONS Contributions Donors Investment Earnings Interest \r\nTotal Additions DEDUCTIONS \r\nScholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n6,118.43 \r\n \r\n38.80 \r\n \r\n6,157.23 \r\n \r\n5,037.43 1,119.80 63,922.17 \r\n \r\n$ 65,041.97 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net positon often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nintergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures. This statement requires governments that enter into tax abatement agreements to disclose the following information; (1) brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to abate taxes, as part of a tax abatement agreement. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements No. 67 and No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. \r\n \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nOfficial Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nDue to other funds and due from other funds consist of activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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\nComputer Applications \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAny Amount 10,000.00 10,000.00 10,000.00 45,000.00 \r\n100,000.00 \r\n \r\nN/A 20 years \r\n10 to 80 years 5 to 20 years 6 years \r\n10 to 20 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\n \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\n \r\nPENSIONS \r\n \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nFUND BALANCES \r\n \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \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- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \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\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 White County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on August 8, 2016 (levy date) based on property values as of January 1, 2016. Taxes were due on November 15, 2016 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2016 tax digest are reported as revenue in the governmental funds for fiscal year 2017. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2017, for maintenance and operations amounted to $14,299,726.90. \r\nThe tax millage rate levied for the 2016 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n17.982 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $915,381.64 during fiscal year ended June 30, 2017. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $4,042,769.69 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \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, 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, 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 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS 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- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2017, the School District had deposits with a carrying amount of $8,382,304.52, which includes $39,075.00 in Certificates of Deposit that are reported as Investments, and a bank balance of $11,772,086.13. The bank balances insured by Federal depository insurance were $1,639,845.76. \r\nAt June 30, 2017, $10,132,240.37 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n10,132,240.37 \r\n \r\nTotal \r\n \r\n$ 10,132,240.37 \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nStatement of Net Position Cash and cash equivalents \r\nStatement of Fiduciary Net Position Cash and cash equivalents \r\n \r\n$ 13,244,291.56 192,625.90 \r\n \r\nTotal cash and cash equivalents \r\n \r\n13,436,917.46 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n39,075.00 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n5,093,687.94 \r\n \r\nTotal carrying value of deposits - June 30, 2017 \r\n \r\n$ \r\n \r\n8,382,304.52 \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $5,093,687.94 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2017, was 56 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nNOTE 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2016 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2017 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,021,076.00 $ \r\n \r\n- $ \r\n \r\n861,518.70 \r\n \r\n8,142,722.91 \r\n \r\n- $ - \r\n \r\n2,021,076.00 9,004,241.61 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n2,882,594.70 \r\n \r\n8,142,722.91 \r\n \r\n- \r\n \r\n11,025,317.61 \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\n65,655,156.00 8,324,951.16 2,522,782.19 \r\n10,864,995.40 5,923,394.54 2,110,405.30 \r\n \r\n322,077.57 178,276.00 \r\n823,664.52 375,495.90 34,851.83 \r\n \r\n346,004.00 \r\n- \r\n \r\n65,655,156.00 8,301,024.73 2,701,058.19 \r\n \r\n346,004.00 \r\n- \r\n \r\n11,688,659.92 5,952,886.44 2,145,257.13 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n57,604,094.11 \r\n \r\n(733,658.68) \r\n \r\n- \r\n \r\n56,870,435.43 \r\n \r\nGovernmental Activity Capital Assets - Net $ 60,486,688.81 $ 7,409,064.23 $ \r\n \r\n- $ 67,895,753.04 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Educational Media Services School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n38,911.73 \r\n \r\n10,612.29 \r\n \r\n81,360.89 \r\n \r\n31,836.87 \r\n \r\n191,021.21 \r\n \r\n$ 851,468.45 \r\n353,742.99 28,800.81 \r\n$ 1,234,012.25 \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS INTERFUND ASSETS AND LIABILITIES \r\n \r\nDue to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. Interfund balances at June 30, 2017, consisted of the following: \r\n \r\nDue From Other Funds \r\n \r\nDue To Other Funds \r\n \r\nGeneral fund Capital projects \r\n \r\n$ 100,425.89 - \r\n \r\n$ \r\n \r\n- \r\n \r\n100,425.89 \r\n \r\n$ 100,425.89 $ 100,425.89 \r\n \r\nThe capital projects fund plans to reimburse the general fund for allowable SPLOST purchases. INTERFUND TRANFERS Interfund transfers for the year ended June 30, 2017, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nCapital projects fund Debt service fund \r\n \r\n$ 41,548.41 $ \r\n \r\n- \r\n \r\n- \r\n \r\n3,925,546.61 \r\n \r\nTotal \r\n \r\n$ 41,548.41 $ 3,925,546.61 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the capital projects fund to the debt service fund for the current year bond principal and interest payments and to move funds from the general fund to the capital projects fund to repay the Special Purpose Local Options Sales Tax (SPLOST) fund for unallowed expenditures as reported in the fiscal year 2015 audit report. \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2016 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2017 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\n$ 18,255,000.00 $ 2,203,430.81 \r\n \r\n- $ 3,030,000.00 $ 15,225,000.00 $ 3,140,000.00 \r\n \r\n- \r\n \r\n414,413.97 1,789,016.84 \r\n \r\n414,413.97 \r\n \r\n$ 20,458,430.81 $ \r\n \r\n- $ 3,444,413.97 $ 17,014,016.84 $ 3,554,413.97 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally non-callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nOf the total amount originally authorized, $4,660,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2010 General Government - Series 2012 General Government - Series 2016 \r\n \r\n3.0% - 5.0% 2.0% - 3.0% 3.0% - 5.0% \r\n \r\n2/25/2010 10/9/2012 4/20/2016 \r\n \r\n4/1/2018 4/1/2018 4/1/2023 \r\n \r\n$ 10,000,000.00 $ 4,255,000.00 \r\n12,085,000.00 \r\n \r\n2,140,000.00 1,000,000.00 12,085,000.00 \r\n \r\n$ 26,340,000.00 $ 15,225,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2018 2019 2020 2021 2022-2023 \r\n \r\n$ \r\n \r\n3,140,000.00 $ \r\n \r\n2,035,000.00 \r\n \r\n2,325,000.00 \r\n \r\n2,450,000.00 \r\n \r\n5,275,000.00 \r\n \r\n700,550.00 \r\n \r\n$ \r\n \r\n563,550.00 \r\n \r\n502,500.00 \r\n \r\n386,250.00 \r\n \r\n398,750.00 \r\n \r\n414,413.97 274,920.77 274,920.77 274,920.77 549,840.56 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n15,225,000.00 $ \r\n \r\n2,551,600.00 \r\n \r\n$ \r\n \r\n1,789,016.84 \r\n \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 8: RISK MANAGEMENT INSURANCE Commercial Insurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The White County Board of Education has not incurred any liabilities for worker's compensation during the past two fiscal years. \r\nSURETY BOND \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2017: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of federal programs Capital projects Debt service \r\nAssigned School Activity \r\nUnassigned \r\n \r\n$ \r\n \r\n$ \r\n \r\n39,782.73 \r\n \r\n8,208,035.32 \r\n \r\n1,514,940.18 \r\n \r\n51,900.60 \r\n9,762,758.23 428,812.08 \r\n3,919,485.28 \r\n \r\nFund Balance, June 30, 2017 \r\n \r\n$ 14,162,956.19 \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\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2017, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2017 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nNinth Grade Academy/ High School Renovation $ \r\n \r\n4,040,936.41 $ \r\n \r\n8,301,791.86 $ \r\n \r\n1,080,229.40 \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\nOPERATING LEASES \r\nThe School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $38,642.67 for governmental activities for the year ended June 30, 2017. These leases ended during 2017; therefore, there are no future minimum lease payments. \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- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 12: POST-EMPLOYMENT BENEFITS \r\n \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2017: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2016  June 30, 2017 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2016  December 31, 2016 $746.20 per member per month \r\n \r\nJanuary 1, 2017  June 30, 2017 $846.20 per member per month \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2017 2016 2015 \r\n \r\n100% \r\n \r\n$ \r\n \r\n4,578,770.77 \r\n \r\n100% \r\n \r\n$ \r\n \r\n4,263,624.46 \r\n \r\n100% \r\n \r\n$ \r\n \r\n4,111,034.20 \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\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2017. The School District's contractually required contribution rate for the year ended June 30, 2017 was 14.27% of annual School District payroll, of which 14.16% of payroll was required from the School District and 0.11% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $3,043,888.28 and $28,196.60 from the School District and the State, respectively. \r\n \r\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2017 was 24.81% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. There are no employer contributions to the pension plan for the current fiscal year due to the fact that the district has no current employees who are covered under ERS. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\n \r\n- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\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 $93,181.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2017, the School District reported a liability of $38,315,694.00 for its proportionate share of the net pension liability for TRS ($38,315,694.00) and ERS ($0.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 38,315,694.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n578,290.00 \r\n \r\nTotal \r\n \r\n$ 38,893,984.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2016. \r\nAt June 30, 2016, the School District's TRS proportion was 0.185718%, which was a decrease of 0.004254% from its proportion measured as of June 30, 2015. At June 30, 2016, the School District's ERS proportion was 0.000000%, which was an a decrease of 0.000983% from its proportion measured as of June 30, 2015. \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2017, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $448,772.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2016. \r\n \r\nFor the year ended June 30, 2017, the School District recognized pension expense of $3,666,556.00 for TRS, ($23,526.00) for ERS and $73,571.00 for PSERS and revenue of $73,195.00 for TRS and $73,571.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2017, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 570,801.00 $ 189,471.00 \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n993,090.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings \r\n \r\non pension plan investments \r\n \r\n4,847,093.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n1,489,647.00 \r\n \r\n- \r\n \r\n26,813.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n3,043,888.28 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 9,454,872.28 $ 1,679,118.00 \r\n \r\n$ \r\n \r\n- $ 26,813.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $3,043,888.28 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2018 2019 2020 2021 2022 \r\n \r\n$ 236,318.00 $ \r\n \r\n$ 236,316.00 $ \r\n \r\n$ 2,467,325.00 $ \r\n \r\n$ 1,744,665.00 $ \r\n \r\n$ \r\n \r\n47,242.00 $ \r\n \r\n(21,203.00) (5,610.00) - \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25%  9.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 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, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases Investment rate of return \r\n \r\n3.25% - 7.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future \r\nmortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set \r\nforward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society \r\nof Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females \r\nwas used for death after disability retirement. There is a margin for future mortality improvement in \r\nthe tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the \r\nactual number of deaths that occurred during the study period for service retirements and \r\nbeneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases Investment rate of return \r\n \r\nN/A \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\n- 29 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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 \r\npension liability calculated using the discount rate of 7.50%, as well as what the School District's \r\nproportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 59,638,851.00 $ \r\n \r\n38,315,694.00 $ 20,759,590.00 \r\n \r\nEmployees' Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \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 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 of the net pension \r\nliability 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\n2017 2016 2015 \r\n \r\n0.185718% $ 38,315,694.00 $ 0.189972% $ 28,921,351.00 $ 0.191627% $ 24,209,544.00 $ \r\n \r\n578,290.00 330,056.00 302,829.00 \r\n \r\n$ 38,893,984.00 $ 29,251,407.00 $ 24,512,373.00 \r\n \r\n$ 20,681,026.08 $ 20,280,801.09 $ 19,734,249.63 \r\n \r\n185.27% 142.60% 122.68% \r\n \r\n76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of total net pension liability \r\n \r\n2017 2016 2015 \r\n \r\n0.000000% $ 0.000983% $ 0.001251% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n39,825.00 $ \r\n \r\n46,920.00 $ \r\n \r\n28,610.93 27,687.76 \r\n \r\nN/A 139.20% 169.46% \r\n \r\nN/A 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proprotionate share of the net pension liaibility \r\nassociated with the School District \r\n \r\n2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n448,772.00 $ 329,428.00 $ 389,393.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension \r\nliability as a percentage of its covered payroll \r\n \r\nPlan fiduciary net position as a percentage of \r\nthe total pension liability \r\n \r\n448,772.00 $ 329,428.00 $ 389,393.00 $ \r\n \r\n898,389.29 875,389.96 934,416.58 \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 WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution (1) \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \r\n \r\n2017 \r\n \r\n$ \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2010 \r\n \r\n$ \r\n \r\n2009 \r\n \r\n$ \r\n \r\n2008 \r\n \r\n$ \r\n \r\n3,043,888.28 $ 2,912,031.52 $ 2,666,825.33 $ 2,423,365.85 $ 2,309,283.34 $ 2,284,521.02 $ 2,331,210.10 $ 2,137,946.25 $ 2,045,707.77 $ 1,927,346.12 $ \r\n \r\n3,043,888.28 $ 2,912,031.52 $ 2,666,825.33 $ 2,423,365.85 $ 2,309,283.34 $ 2,284,521.02 $ 2,331,210.10 $ 2,137,946.25 $ 2,045,707.77 $ 1,927,346.12 $ \r\n \r\n- \r\n \r\n$ 21,497,902.76 \r\n \r\n- \r\n \r\n$ 20,681,026.08 \r\n \r\n- \r\n \r\n$ 20,280,801.09 \r\n \r\n- \r\n \r\n$ 19,734,249.63 \r\n \r\n- \r\n \r\n$ 20,239,117.79 \r\n \r\n- \r\n \r\n$ 22,222,967.12 \r\n \r\n- \r\n \r\n$ 22,677,141.05 \r\n \r\n- \r\n \r\n$ 21,950,166.84 \r\n \r\n- \r\n \r\n$ 22,044,264.76 \r\n \r\n- \r\n \r\n$ 20,768,815.95 \r\n \r\n(1) The School District has included on behalf payments within the contributions for years 2015 and prior. \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n14.16% 14.08% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% 9.28% \r\n \r\n- 36 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered payroll \r\n \r\n2017 \r\n \r\n$ \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2014 \r\n \r\n$ \r\n \r\n2013 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,282.96 $ \r\n \r\n5,111.16 $ \r\n \r\n4,271.52 $ \r\n \r\n3,247.08 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,282.96 $ \r\n \r\n5,111.16 $ \r\n \r\n4,271.52 $ \r\n \r\n3,247.08 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n$ \r\n \r\n28,610.93 \r\n \r\n- \r\n \r\n$ \r\n \r\n27,687.76 \r\n \r\n- \r\n \r\n$ \r\n \r\n28,667.52 \r\n \r\n- \r\n \r\n$ \r\n \r\n27,919.42 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\nN/A N/A 21.96% 18.46% 14.90% 11.63% \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 WHITE COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nEmployees' Retirement System \r\nChanges of assumptions: On December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\n \r\n- 38 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\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 (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n14,675,260.00 $ \r\n \r\n14,786,012.00 $ \r\n \r\n15,215,108.54 $ \r\n \r\n225,000.00 \r\n \r\n225,000.00 \r\n \r\n336,974.99 \r\n \r\n20,809,763.27 \r\n \r\n21,773,729.50 \r\n \r\n20,578,218.87 \r\n \r\n3,554,173.04 \r\n \r\n5,424,506.94 \r\n \r\n4,477,331.61 \r\n \r\n647,405.00 \r\n \r\n647,405.00 \r\n \r\n693,527.91 \r\n \r\n7,840.00 \r\n \r\n7,840.00 \r\n \r\n11,373.75 \r\n \r\n1,159,120.00 \r\n \r\n1,384,420.00 \r\n \r\n1,225,045.52 \r\n \r\n41,078,561.31 \r\n \r\n44,248,913.44 \r\n \r\n42,537,581.19 \r\n \r\n429,096.54 111,974.99 (1,195,510.63) (947,175.33) \r\n46,122.91 3,533.75 \r\n(159,374.48) \r\n(1,711,332.25) \r\n \r\n28,398,895.10 \r\n1,729,072.29 820,374.69 825,870.58 802,091.78 \r\n2,810,693.93 323,598.80 \r\n2,435,543.30 2,304,919.10 \r\n318,107.90 281,345.36 \r\n2,471,244.00 \r\n43,521,756.83 \r\n(2,443,195.52) \r\n \r\n28,724,360.66 \r\n2,168,711.04 1,356,798.29 \r\n825,856.62 837,345.44 2,827,375.39 329,573.80 2,435,543.30 2,212,012.03 317,788.65 280,555.19 \r\n2,521,244.00 \r\n44,837,164.41 \r\n(588,250.97) \r\n \r\n26,453,269.60 \r\n1,595,375.44 1,159,372.01 \r\n799,499.84 812,495.13 2,696,630.21 317,867.09 2,439,860.74 2,169,766.86 218,216.03 265,012.37 428,015.85 2,524,953.42 \r\n41,880,334.59 \r\n657,246.60 \r\n \r\n2,271,091.06 \r\n573,335.60 197,426.28 \r\n26,356.78 24,850.31 130,745.18 11,706.71 (4,317.44) 42,245.17 99,572.62 15,542.82 (428,015.85) (3,709.42) \r\n2,956,829.82 \r\n1,245,497.57 \r\n \r\n105,000.00 (105,000.00) \r\n(2,443,195.52) 3,638,464.91 \r\n34,720.43 \r\n \r\n105,000.00 (105,000.00) \r\n(588,250.97) 3,638,464.91 \r\n6,686.51 \r\n \r\n(41,548.41) (41,548.41) 615,698.19 3,824,282.50 \r\n- \r\n \r\n(105,000.00) 63,451.59 (41,548.41) \r\n1,203,949.16 185,817.59 (6,686.51) \r\n \r\n$ \r\n \r\n1,229,989.82 $ \r\n \r\n3,056,900.45 $ \r\n \r\n4,439,980.69 $ \r\n \r\n1,383,080.24 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $915,851.06 and $960,932.72, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Improving Teacher Quality State Grants Rural Education Rural Education Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n16165GA324N1099 $ 16165GA324N1099 \r\n \r\n506,415.60 1,918,647.09 \r\n2,425,062.69 \r\n \r\n10.665 \r\n \r\n486-Forest \r\n \r\n2,641.08 \r\n \r\n10.579 \r\n \r\n15155GA350N8103 \r\n \r\n12,800.00 2,440,503.77 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A150073 H027A160073 H173A150081 H173A160081 \r\n \r\n151,797.00 668,344.19 \r\n982.00 19,618.43 \r\n840,741.62 \r\n \r\n84.048 84.367 84.367 84.358 84.358 84.010 84.010 84.287 84.287 \r\n \r\nV048A160010 S367A150001 S367A160001 S358B150010 S358B160010 S010A150010 S010A160010 S287C150010 S287C160010 \r\n \r\n45,748.66 47,395.00 32,794.55 13,264.00 21,680.69 16,160.00 907,504.53 93,660.00 678,635.74 \r\n1,856,843.17 \r\n2,697,584.79 \r\n \r\n12.UNKNOWN \r\n \r\n139,715.05 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n5,277,803.61 \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 White County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2017. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 40 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2017 \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 Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Agriculture Construction Related Equipment - State Bonds Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teacher of the Year Teachers Retirement Vocational Education Vocational Supervisors Vocational Construction Related Equipment - State Bonds \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nOTHER Mental Health/Mental Retardation Substance Abuse and Violence Prevention \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,209,739.00 $ 70,012.00 \r\n2,750,219.00 427,385.00 \r\n1,350,031.00 449,755.00 \r\n2,638,851.00 2,156,110.00 \r\n791,953.00 3,145,469.92 \r\n705,630.00 66,275.00 \r\n189,186.05 75,929.00 \r\n430,079.00 133,200.00 \r\n71,153.00 \r\n551,540.00 980,980.00 941,089.00 \r\n42,053.00 (290,103.00) 351,056.00 \r\n520,732.00 75,172.00 \r\n113,108.75 60,296.00 24,496.77 52,833.86 77,216.25 507.25 28,196.60 \r\n156,805.38 4,435.32 \r\n67,480.08 \r\n \r\n- $ - \r\n \r\n1,209,739.00 70,012.00 \r\n2,750,219.00 427,385.00 \r\n1,350,031.00 449,755.00 \r\n2,638,851.00 2,156,110.00 \r\n791,953.00 3,145,469.92 \r\n705,630.00 66,275.00 \r\n189,186.05 75,929.00 \r\n430,079.00 133,200.00 \r\n71,153.00 \r\n \r\n- \r\n \r\n551,540.00 \r\n \r\n- \r\n \r\n980,980.00 \r\n \r\n- \r\n \r\n941,089.00 \r\n \r\n- \r\n \r\n42,053.00 \r\n \r\n- \r\n \r\n(290,103.00) \r\n \r\n- \r\n \r\n351,056.00 \r\n \r\n- \r\n \r\n520,732.00 \r\n \r\n- \r\n \r\n75,172.00 \r\n \r\n- \r\n \r\n113,108.75 \r\n \r\n- \r\n \r\n60,296.00 \r\n \r\n- \r\n \r\n24,496.77 \r\n \r\n- \r\n \r\n52,833.86 \r\n \r\n- \r\n \r\n77,216.25 \r\n \r\n- \r\n \r\n507.25 \r\n \r\n- \r\n \r\n28,196.60 \r\n \r\n- \r\n \r\n156,805.38 \r\n \r\n- \r\n \r\n4,435.32 \r\n \r\n- \r\n \r\n67,480.08 \r\n \r\n93,181.00 \r\n \r\n3,252,992.60 \r\n \r\n3,252,992.60 \r\n \r\n- \r\n \r\n93,181.00 \r\n \r\n42,956.14 23,209.50 \r\n \r\n- \r\n \r\n42,956.14 \r\n \r\n- \r\n \r\n23,209.50 \r\n \r\n$ 20,578,218.87 $ \r\n \r\n3,252,992.60 $ 23,831,211.47 \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 WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\nSPLOST 2009 \r\n(ii) Adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities \r\n(iii) Acquiring computers and computer technology equipment \r\n(vii) Acquiring textbooks and other instructional materials and transportation equipment \r\nSPLOST 2015 \r\n(i) Acquiring, constructing and equipping one new ninth grade academy and an auxiliary gym at White County High School \r\nii) Adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and school system facilities, including athletic facilities \r\n(iii) Acquiring computers and computer technology equipment and software, including tablets and laptops \r\n(iv) Acquiring heating, air conditioning and energy efficiency equipment \r\n(v) Acquiring textbooks and other instructional materials and electronic media, as well as school buses, transportation and maintenance equipment and band equipment \r\n \r\nORIGINAL ESTIMATED COST (1) (5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4)(5)(6) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3)(4)(5)(6) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT EXPENDED (6) \r\n \r\n$ 1,138,332.00 $ 4,584,228.37 $ \r\n \r\n65,775.35 $ \r\n \r\n3,793,105.85 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n1,185,569.00 \r\n \r\n3,781,094.18 \r\n \r\n266,343.82 \r\n \r\n3,204,098.44 \r\n \r\n- \r\n \r\n- \r\n \r\n136,000.00 \r\n \r\n903,730.00 \r\n \r\n104,018.00 \r\n \r\n678,588.19 \r\n \r\n- \r\n \r\n- \r\n \r\n2,459,901.00 \r\n \r\n9,269,052.55 \r\n \r\n436,137.17 \r\n \r\n7,675,792.48 \r\n \r\n- \r\n \r\n- \r\n \r\n9,450,000.00 13,399,433.00 \r\n \r\n8,114,672.61 \r\n \r\n464,770.92 \r\n \r\n- \r\n \r\n- \r\n \r\n9,259,200.00 \r\n \r\n5,259,200.00 \r\n \r\n539,531.04 \r\n \r\n530,259.66 \r\n \r\n- \r\n \r\n- \r\n \r\n2,500,000.00 \r\n \r\n1,250,000.00 \r\n \r\n274,308.51 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n1,850,800.00 \r\n \r\n1,850,800.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n940,000.00 \r\n \r\n440,000.00 \r\n \r\n66,057.64 \r\n \r\n5,872.35 \r\n \r\n- \r\n \r\n- \r\n \r\n24,000,000.00 22,199,433.00 \r\n \r\n8,994,569.80 \r\n \r\n1,000,902.93 \r\n \r\n- \r\n \r\n- \r\n \r\n$ 26,459,901.00 $ 31,468,485.55 $ 9,430,706.97 $ \r\n \r\n8,676,695.41 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nDecember 2018 December 2018 December 2018 \r\nJune 2018 \r\nMarch 2019 May 2020 March 2018 \r\nMay 2020 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n(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$ 4,272,170.29 \r\n782,257.08 \r\n$ 5,054,427.37 \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the School District issued $10,000,000.00 of general obligation debt to build the middle school. In October 2013, the School District issued additional bonds in the amount of $4,255,000.00 of the $6,000,000.00 outstanding to be used for projects approved in the 2009 SPLOST. \r\n(6) In the 2015 Resolution, the School District obtained approval to issue a total of $15,000,000.00 in general obligation debt. In April of 2016, bonds were issued for the projects noted above in the amount of $12,085,000.00. \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\nJuly 24, 2018 \r\n \r\nThe Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Whtie County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED \r\nIN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated July 24, 2018. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS 2017-001, that we consider to be a material weakness. \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nSchool District's Response to Findings \r\nThe School District's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 24, 2018 \r\n \r\nThe Honorable Nathan Deal, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nREPORT 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 White County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\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 WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\nNoncompliance material to financial statements noted: \r\n \r\nUnmodified \r\nYes None Reported \r\nNo \r\n \r\nFederal Awards \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\n84.010 84.027, 84.173 84.287 \r\n \r\nTitle I Grants to Local Educational Agencies Special Education Cluster Twenty-First Century Community Learning Centers \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\n$750,000.00 No \r\n \r\n-1- \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-001 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. The original financial statements, as presented for audit, contained material misstatements. \r\n \r\nCriteria: Management is responsible for maintaining a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial statement reporting should include adequately trained personnel with the knowledge, skills, and experience to prepare the GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\nGASB Statement No. 34, Basic Financial Statements  Management Discussion and Analysis  for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the Statement requires information about the government's major and non-major funds in the aggregate, to be provided in the fund financial statements. \r\nChapter II  2, Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition: The School District did not record accounts receivable for Georgia State Financing and Investment (GSFIC) and the related state revenue in the amount of $3,252,992.60 on the government-wide financial statements and in the capital projects fund. Adjustments were proposed by the auditor and accepted by the School District to correct these material misstatements. \r\n \r\nCause: In discussing this deficiency with the School District, they stated that the failure to properly record accounts receivable for GSFIC was an oversight by finance personnel. \r\n \r\nEffect or Potential Effect: Material misstatements were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. \r\n \r\nRecommendation: Management should monitor the control procedures over the financial statement reporting process to ensure that the financial statements presented for audit are complete and accurate. \r\n \r\nViews of Responsible Officials: The School District concurs with this finding. \r\n \r\n-2- \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n-3- \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n White County Board of Education \r\nOffice of the Superintendent \r\n136 Warriors Path Cleveland, Georgia 30528 706-865-2315 -- 706-865-7784 (fax) \r\nwww.white.k12.ga.us \r\n \r\nCORRECTIVE ACTION PLAN  FINANCIAL STATEMENT FINDING \r\n \r\nFS 2017-001 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nThe School District did not have adequate internal controls in place over the financial statement reporting process. The original financial statements, as presented for audit, contained material misstatements. \r\n \r\nCorrective Action Plan: \r\n \r\nThe Finance Department will review subsequent period cash collections to ensure policies and procedures related to the accrual of accounts receivable for year-end reporting are being followed. This will allow for a complete and accurate accrual of receivables resulting from timing differences occurring at year-end. \r\n \r\nContact Person: Trish H. Fussell, Chief Financial Officer (706) 865-2315, trish.fussell@white.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2016-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2016 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts"],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":null,"dc_date":["2016"],"dcterms_description":["This publication is the annual audit report for the White County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Georgia. Department of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2016 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["audits"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPage \r\ni \r\n1 2 4 5 6 7 8 9 10 \r\n31 32 33 \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nPage \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 35 \r\n \r\n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n36 \r\n \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n37 \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\n38 \r\n \r\n9 SCHEDULE OF STATE REVENUE \r\n \r\n39 \r\n \r\n10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\n41 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 15, 2017 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education (School District) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n \r\n (This page left intentionally blank) \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District, as of June 30, 2016, 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 2016, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedules of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through viii and pages 31 through 37 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n (This page left intentionally blank) \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, consisting of Schedules 8 through 10, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated December 15, 2017, on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\nINTRODUCTION \r\nOur discussion and analysis of the White County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2016. 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 basic financial statements and the notes to these statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2016 are as follows: \r\n Government-wide net position at June 30, 2016 was $29.2 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities, both short-term and long-term, and deferred inflows of resources. The net position at June 30, 2016 of $29.2 million includes a total deficit unrestricted net position of $28.2 million, related to the net unfunded proportionate share of the TRS Pension Liability. The recording of this amount was mandated by GASB No. 68 beginning in fiscal year 2015. As a result, the 2016 Statement of Activities includes adjustments to pension expense. During the current year, the adjustments to pension expense created an overall increase in expenses of $1.4 million. \r\n The School District had $40.9 million in expenses relating to governmental activities; only $24.3 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $20.3 million were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $20.3 million or 45% of all revenues totaling $44.6 million. Program specific revenues in the form of charges for services, grants and contributions 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 government-wide and fund financial statements. The School District also presents fiduciary fund statements that are separate from the above noted statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. These funds reflect the School District's most significant funds. For the White County School District, the general fund, capital projects fund, and debt service fund are the most significant funds. \r\ni \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\nThe fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\nThe 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 financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the government-wide financial statements, a reader can determine if the School District is in better financial condition than the previous year. The Statement of Net Position presents information on all of the School District's assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between them reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the School District is improving or deteriorating. The Statement of Net Position and the Statement of Activities provide the basis for this analysis. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net position and any changes in the net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Position and the Statement of Activities reflect 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 Assets and the Statement of Activities) and governmental funds are reconciled to the financial statements. \r\nii \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nFiduciary Funds: The School District is the trustee, or fiduciary, for assets that belong to others, such as scholarship funds, 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 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 this fiscal year. Net position comparisons to fiscal year 2015 are available and have been included in the following analysis. \r\n \r\nTable 1 Net Position \r\n \r\nAs s et s 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\n2016 \r\n \r\n2015 \r\n \r\n$ \r\n \r\n24,136,700 \r\n \r\n$ \r\n \r\n10,437,982 \r\n \r\n60,486,689 \r\n \r\n60,408,440 \r\n \r\nTotal Assets \r\n \r\n84,623,389 \r\n \r\n70,846,422 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plans \r\n \r\n2,912,210 \r\n \r\n2,642,308 \r\n \r\nL i abi l i t i es Current and Other Liabilities Long Term Liabilities \r\n \r\n4,891,611 49,419,607 \r\n \r\n4,306,032 33,794,943 \r\n \r\nTotal Liabilities \r\n \r\n54,311,218 \r\n \r\n38,100,975 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plans \r\n \r\n3,986,813 \r\n \r\n9,815,986 \r\n \r\nNet Position Net Investments in Capitol Assets Restricted Unrestricted (Deficit) \r\n \r\n54,853,676 2,576,868 \r\n(28,192,976) \r\n \r\n52,893,131 2,642,369 \r\n(29,963,731) \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n29,237,568 \r\n \r\n$ \r\n \r\n25,571,769 \r\n \r\niii \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nTable 2 shows the Changes in Net Position for this fiscal year. Revenue and Expense comparisons to fiscal year 2015 are available and are included in the following analysis. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Program Revenues \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2016 \r\n \r\n2015 \r\n \r\n$ \r\n \r\n750,026 $ \r\n \r\n739,155 \r\n \r\n23,442,738 \r\n \r\n21,893,679 \r\n \r\n154,440 \r\n \r\n154,440 \r\n \r\n24,347,204 \r\n \r\n22,787,274 \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 Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nTotal Revenues \r\n \r\n14,919,694 \r\n3,772,952 290,155 17,419 \r\n1,253,767 20,253,987 44,601,191 \r\n \r\n14,621,455 \r\n3,572,575 278,326 15,448 \r\n1,322,546 19,810,350 42,597,624 \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 Plan 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\n25,499,131 \r\n \r\n25,516,534 \r\n \r\n1,610,398 1,036,087 \r\n781,642 733,733 2,597,528 477,070 2,440,306 2,270,926 191,363 326,864 \r\n \r\n1,299,848 976,866 786,811 744,289 \r\n2,729,979 247,108 \r\n2,162,275 1,793,819 \r\n283,956 402,838 \r\n \r\n379,764 2,296,357 \r\n294,223 \r\n40,935,392 \r\n \r\n393,353 1,875,871 \r\n225,457 \r\n39,439,004 \r\n \r\n$ \r\n \r\n3,665,799 $ \r\n \r\n3,158,620 \r\n \r\niv \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \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 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. Cost of service comparisons to fiscal year 2015 are available and have been included in the following analysis. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year 2016 \r\n \r\nFiscal Year 2015 \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year 2016 \r\n \r\nFiscal Year 2015 \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$ 25,499,131 $ 25,516,534 $ \r\n \r\n1,610,398 1,036,087 \r\n781,642 733,733 2,597,528 477,070 2,440,306 2,270,926 191,363 326,864 \r\n \r\n1,299,848 976,866 786,811 744,289 \r\n2,729,979 247,108 \r\n2,162,275 1,793,819 \r\n283,956 402,838 \r\n \r\n379,764 2,296,357 \r\n294,223 \r\n \r\n393,353 1,875,871 \r\n225,457 \r\n \r\n9,097,609 $ 10,879,759 \r\n \r\n820,187 199,215 263,089 299,071 1,670,772 382,687 1,254,594 1,448,469 124,180 413,371 \r\n \r\n550,107 52,371 \r\n275,353 897,511 1,803,825 162,118 989,297 1,032,400 171,523 (426,963) \r\n \r\n376,883 (56,163) 294,223 \r\n \r\n391,074 (352,103) 225,457 \r\n \r\nTotal Expenses \r\n \r\n$ 40,935,392 $ 39,439,004 $ 16,588,187 $ 16,651,729 \r\n \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, special items and other financing sources of $61.9 million and total expenditures and other financing uses of $48.7 million. \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. During the course of fiscal year 2016, the School District amended its general fund budget as needed. \r\nFor the general fund, the final actual revenues of $40.9 million were $2.4 million less than the final budgeted amounts of $43.3 million. \r\nThe final actual property and sales tax revenues of $15.2 million exceeded the final budgeted amounts of $14.9 million by $0.3 million. The remaining differences are related to state, Federal and other revenue increases and/or decreases. \r\nv \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nThe final actual expenditures of $40.2 million resulted in savings of $4.3 million over the budgeted expenditures. This is mostly due to textbooks and computer technology paid out of Special Purpose Local Option Sales Tax (SPLOST) funds that were originally budgeted in instruction. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt fiscal year ended June 30, 2016 the School District had $60.5 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category net of accumulated depreciation. Capital assets comparisons to fiscal year 2015 are available and have been included in the following analysis. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2016 \r\n \r\n2015 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\nTotal \r\n \r\n$ 2,021,076 $ 861,519 \r\n54,790,161 2,401,556 412,377 \r\n$ 60,486,689 $ \r\n \r\n2,021,076 39,522 \r\n55,532,232 2,439,675 375,935 \r\n60,408,440 \r\n \r\nDue to steady growth in the County and identified capital needs of the School District, the School District has planned construction projects including new buildings, additions and renovations planned for the upcoming year. Mainly, this construction will involve building a new Ninth Grade Academy (NGA) on the high school grounds. In addition to the NGA, the project will include a new auxiliary gym, expansion of CTAE instructional space, new HVAC and roof and other minor renovations to the high school to increase efficiency and better serve the needs of our students. \r\nDebt \r\nAt fiscal year ended June 30, 2016, the School District had $18.255 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. New debt of $12,085,000 was issued in fiscal year 2016 and payments of principal and interest were timely per the bond amortization schedule. \r\nTable 5 Debt at June 30 \r\n \r\nBonds Payable \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year 2016 \r\n \r\nFiscal Year 2015 \r\n \r\n$ 18,255,000 $ 9,120,000 \r\n \r\nvi \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\nSchool District Accomplishments, Economic Factors, and Next Year's Budgets \r\nWhite County School District is one of Georgia's Charter School Systems. Our Board of Education was named Georgia School Board Association \"Quality School Board\", which recognizes exemplary school board leadership. Additionally, our School Board Chairman will serve as a member of the 2016 GSBA Governmental Operations Committee, which represents the interests of all Georgia's school boards. Our School System has strong community support as evidenced by the passing of Education Special Local Option Sales Tax (ESPLOST). Using these funds, we are completing a facility renovation of our Career, Technical, and Agriculture (CTAE) programs. We are also utilizing SPLOST funds, to support a 1:1 Chromebook initiative at White County Ninth Grade Academy. White County High School was named one of US News and World Report's \"America's Best High Schools\". Washington Post 2016 voted our High School as one of \"America's Most Challenging Schools\". In addition, CCRPI for White County School System put us in the top 10% of schools in the state of Georgia (Ranked 13 out of 182 Systems) with 89% one of the Top Scores in the State, the highest in North Georgia. We continue to increase rigor as we bring Advanced Placement and on-campus dual enrollment opportunities to our high school students. CTAE programs consistently win state and national awards. White County Middle School was named a GASSP Breakout School this year. Three out of our 4 elementary Title I Schools were reward schools. White County Intermediate School and Mossy Creek Elementary School were name `High-Progress' schools, and Mount Yonah was named a `Highest-Performing' school. These honors continue to highlight the strong academic and fiscal leadership provided to the students, parents and community of the School District. National School Boards Association and Digital Trends Magazine named White County School System the #1 mid-sized School System in the country for modeling and leverage the effective use of technology. \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations are as follows: \r\n Marginal improvement in the economy and the State budget - State funding for education has improved in the past 2 years due to the reduction in annual austerity imposed on each LEA. However, total austerity for the state in fiscal year 2016 was still $467 million of which $992 thousand was allocated to White County Schools. In addition, health care costs continue to increase resulting in higher per person/per month costs to the School District. Another lingering issue has been a reduction in the value of the White County Tax Digest which has resulted in a lower value per mill. In the 2015 digest, the value per mill was $843,645, the lowest in recent years. A large impact on the value per mill is the impact of the new senior exemption in White County. This exemption has resulted in $1.2 million in lost property tax revenues as of fiscal year 2016. While State revenue has increased through reductions in austerity, due to other losses in local revenue the School District continues to experience pressure to prioritize its educational programs and provide additional local funding. Despite these challenges, the White County School District is strong financially and we remain optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. With the issuance of $12,085,000 in bonds in April of 2016, the School District began renovation of our CTAE facilities and will commence building of a new Ninth Grade Academy on the High School grounds including extensive renovation of the high school facility. The School District regularly monitors anticipated capital outlay needs. \r\nvii \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \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 Mrs. Trish H. Fussell, Finance Director at White County School District, 136 Warriors Path, Cleveland, Georgia 30528. The mailing address is same as above. You may also email your question to Mrs. Trish H. Fussell at trish.fussell@white.k12.ga.us. \r\nviii \r\n \r\n WHITE COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2016 \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages Payable Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n20,184,897.75 \r\n \r\n709,806.64 2,636,434.63 \r\n552,001.88 15,113.77 38,445.45 \r\n2,882,594.70 57,604,094.11 \r\n \r\n84,623,388.93 \r\n \r\n2,912,210.00 \r\n \r\n123,279.95 4,124,356.98 \r\n188,128.50 423,307.85 \r\n32,538.00 28,961,176.00 \r\n3,444,413.97 17,014,016.84 \r\n54,311,218.09 \r\n \r\n3,986,813.00 \r\n \r\n54,853,676.50 \r\n202,348.31 1,744,017.21 \r\n630,502.29 (28,192,976.47) \r\n \r\n$ \r\n \r\n29,237,567.84 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2016 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 25,499,131.17 $ 177,155.75 \r\n \r\n1,610,397.72 1,036,086.68 \r\n781,642.07 733,732.90 2,597,527.69 477,070.15 2,440,306.45 2,270,926.13 191,362.90 326,864.42 \r\n \r\n23,020.00 - \r\n \r\n379,764.55 2,296,356.94 \r\n294,222.80 \r\n \r\n549,850.51 \r\n- \r\n \r\n$ 40,935,392.57 $ 750,026.26 \r\n \r\n- 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 16,224,366.59 $ \r\n790,211.15 836,871.20 518,552.63 434,662.26 926,755.57 \r\n94,382.64 1,162,692.14 \r\n668,017.24 67,182.61 (86,506.49) \r\n2,881.73 1,802,669.18 \r\n- \r\n$ 23,442,738.45 $ \r\n \r\n- $ \r\n154,440.00 - \r\n- \r\n154,440.00 \r\n \r\n(9,097,608.83) \r\n(820,186.57) (199,215.48) (263,089.44) (299,070.64) (1,670,772.12) (382,687.51) (1,254,594.31) (1,448,468.89) (124,180.29) (413,370.91) \r\n(376,882.82) 56,162.75 \r\n(294,222.80) \r\n(16,588,187.86) \r\n \r\n14,919,693.77 \r\n3,772,952.54 290,155.43 17,418.64 \r\n1,253,766.74 \r\n20,253,987.12 \r\n3,665,799.26 \r\n25,571,768.58 \r\n \r\n$ \r\n \r\n29,237,567.84 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2016 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Receivables, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,534,813.55 $ 14,533,520.57 $ 1,116,563.63 $ 20,184,897.75 \r\n \r\n332,854.52 2,636,434.63 \r\n552,001.88 15,113.77 38,445.45 \r\n \r\n376,952.12 - \r\n \r\n- \r\n \r\n709,806.64 \r\n \r\n- \r\n \r\n2,636,434.63 \r\n \r\n- \r\n \r\n552,001.88 \r\n \r\n- \r\n \r\n15,113.77 \r\n \r\n- \r\n \r\n38,445.45 \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 \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 8,109,663.80 $ 14,910,472.69 $ 1,116,563.63 $ 24,136,700.12 \r\n \r\n$ 123,279.95 $ 4,124,356.98 - \r\n4,247,636.93 \r\n \r\n- $ 423,307.85 32,538.00 \r\n455,845.85 \r\n \r\n- $ 123,279.95 \r\n \r\n- \r\n \r\n4,124,356.98 \r\n \r\n- \r\n \r\n423,307.85 \r\n \r\n- \r\n \r\n32,538.00 \r\n \r\n- \r\n \r\n4,703,482.78 \r\n \r\n37,744.37 \r\n \r\n- \r\n \r\n- \r\n \r\n37,744.37 \r\n \r\n38,445.45 163,902.86 475,473.63 3,146,460.56 \r\n3,824,282.50 \r\n \r\n14,454,626.84 \r\n- \r\n14,454,626.84 \r\n \r\n1,116,563.63 \r\n- \r\n1,116,563.63 \r\n \r\n38,445.45 15,735,093.33 \r\n475,473.63 3,146,460.56 \r\n19,395,472.97 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund B $ 8,109,663.80 $ 14,910,472.69 $ 1,116,563.63 $ 24,136,700.12 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2016 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability \r\nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Unamortized bond premiums \r\n \r\n$ \r\n \r\n$ \r\n \r\n2,021,076.00 \r\n \r\n861,518.70 \r\n \r\n65,655,156.00 \r\n \r\n8,324,951.16 \r\n \r\n2,522,782.19 \r\n \r\n(18,898,795.24) \r\n \r\n$ \r\n \r\n(18,255,000.00) \r\n \r\n(188,128.50) \r\n \r\n(2,203,430.81) \r\n \r\n19,395,472.97 \r\n60,486,688.81 (28,961,176.00) \r\n(1,074,603.00) 37,744.37 \r\n(20,646,559.31) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n29,237,567.84 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services 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\nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 14,907,839.62 $ \r\n \r\n- $ \r\n \r\n290,155.43 \r\n \r\n3,772,952.54 \r\n \r\n19,225,128.58 \r\n \r\n- \r\n \r\n4,473,091.82 \r\n \r\n- \r\n \r\n750,026.26 \r\n \r\n- \r\n \r\n9,819.01 \r\n \r\n4,556.29 \r\n \r\n1,253,766.74 \r\n \r\n- \r\n \r\n40,909,827.46 \r\n \r\n3,777,508.83 \r\n \r\n- $ 3,043.34 - \r\n \r\n14,907,839.62 4,063,107.97 \r\n19,225,128.58 4,473,091.82 750,026.26 17,418.64 1,253,766.74 \r\n \r\n3,043.34 \r\n \r\n44,690,379.63 \r\n \r\n25,087,108.44 \r\n1,591,521.48 1,067,817.83 \r\n797,494.76 753,495.28 2,631,139.25 310,289.66 2,407,186.55 2,325,545.16 209,605.75 335,447.07 379,764.55 2,302,136.62 \r\n- \r\n- \r\n40,198,552.40 \r\n711,275.06 \r\n \r\n464,458.49 \r\n1,057.88 187,459.79 664.86 126,291.00 3,520.00 1,232,818.61 \r\n- \r\n2,016,270.63 \r\n1,761,238.20 \r\n \r\n- \r\n- \r\n2,950,000.00 327,450.00 \r\n3,277,450.00 \r\n(3,274,406.66) \r\n \r\n25,551,566.93 \r\n1,591,521.48 1,067,817.83 \r\n798,552.64 753,495.28 2,631,139.25 497,749.45 2,407,851.41 2,451,836.16 209,605.75 338,967.07 379,764.55 2,302,136.62 1,232,818.61 \r\n2,950,000.00 327,450.00 \r\n45,492,273.03 \r\n(801,893.40) \r\n \r\n- \r\n- \r\n711,275.06 \r\n3,113,007.44 \r\n \r\n12,085,000.00 1,924,445.40 (3,234,811.85) \r\n10,774,633.55 \r\n12,535,871.75 \r\n1,918,755.09 \r\n \r\n3,234,811.85 - \r\n3,234,811.85 \r\n(39,594.81) \r\n1,156,158.44 \r\n \r\n12,085,000.00 1,924,445.40 3,234,811.85 (3,234,811.85) \r\n14,009,445.40 \r\n13,207,552.00 \r\n6,187,920.97 \r\n \r\n$ \r\n \r\n3,824,282.50 $ 14,454,626.84 $ 1,116,563.63 $ 19,395,472.97 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2016 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nInterest Expense reported on the Statement of Activities is reported as incurred whereas interest expense in the governmental fund statements is reported when paid. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nGeneral obligation bonds issued, including a premium of $ 1,924,445.40 Bond principal retirements Amortization of bond premium \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension liability is measured a year before the District's report date. Pension expense, which is the change in the net pension liability adjusted for changes in deferred outflows and inflows of resources related to pensions, is reported in the Statement of Activities. \r\nPension expense \r\n \r\n$ \r\n \r\n13,207,552.00 \r\n \r\n$ 1,345,057.21 (1,253,963.07) \r\n \r\n91,094.14 (12,845.67) 11,854.15 (106,266.00) \r\n \r\n$ (14,009,445.40) 2,950,000.00 139,493.20 \r\n \r\n(10,919,952.20) \r\n \r\n1,394,362.84 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n3,665,799.26 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments \r\nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \r\n \r\nWHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSTITION \r\nFIDUCIARY FUNDS JUNE 30, 2016 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 24,847.17 $ 144,762.31 \r\n \r\n39,075.00 \r\n \r\n- \r\n \r\n$ 63,922.17 $ 144,762.31 \r\n \r\n$ 144,762.31 \r\n \r\n$ 63,922.17 \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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2016 \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n3,901.00 \r\n \r\n63.14 3,964.14 \r\n \r\n1,500.00 2,464.14 61,458.03 \r\n \r\n$ 63,922.17 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net positon often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n \r\n- 10 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit individuals, private organizations or other governments. \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 and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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 are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement. \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. If an external investment pool meets the criteria in this statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\n \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at 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 WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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 Land Improvements Buildings and Improvements Equipment Computer Applications Intangible Assets \r\n \r\nAny Amount $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 45,000.00 $ 100,000.00 \r\n \r\nN/A 20 years \r\n10 to 80 years 5 to 20 years 6 years \r\n10 to 20 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\n \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\n \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\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\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \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\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\nThe White County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on August 14, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on November 15, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The White County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $14,069,042.92. \r\n \r\nThe tax millage rate levied for the 2015 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n17.482 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $838,796.70 during fiscal year ended June 30, 2016. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $3,772,952.54 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\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \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, 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, 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 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A. 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2016, the School District had deposits with a carrying amount of $20,393,582.23 which includes $39,075.00 in Certificates of Deposit that are reported as Investments, and a bank balance of $21,567,682.47. The bank balances insured by Federal depository insurance were $296,580.91. \r\nAt June 30, 2016, $21,271,101.56 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured with collateral held by the pledging financial institution's trust department or agent but not in the School District's name \r\n \r\n$ 21,271,101.56 \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories. \r\n \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2015 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2016 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 2,021,076.00 $ \r\n \r\n- $ \r\n \r\n39,521.93 \r\n \r\n861,518.70 \r\n \r\n2,060,597.93 \r\n \r\n861,518.70 \r\n \r\n- $ 39,521.93 \r\n39,521.93 \r\n \r\n2,021,076.00 861,518.70 \r\n2,882,594.70 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n65,572,156.00 8,276,934.16 2,456,742.19 \r\n \r\n83,000.00 374,020.44 \r\n66,040.00 \r\n \r\n326,003.44 \r\n- \r\n \r\n65,655,156.00 8,324,951.16 2,522,782.19 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n10,039,923.34 5,837,258.93 2,080,807.67 \r\n58,347,842.41 \r\n \r\n825,072.06 399,293.38 \r\n29,597.63 \r\n(730,902.63) \r\n \r\n313,157.77 \r\n- \r\n12,845.67 \r\n \r\n10,864,995.40 5,923,394.54 2,110,405.30 \r\n57,604,094.11 \r\n \r\nGovernmental Activity Capital Assets - Net $ 60,408,440.34 $ 130,616.07 $ 52,367.60 $ 60,486,688.81 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nEducational Media Services \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n39,249.04 10,658.69 79,752.05 30,345.91 193,737.29 \r\n \r\n$ 870,877.35 \r\n353,742.98 29,342.74 \r\n$ 1,253,963.07 \r\n \r\nNOTE 7: INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2016, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From Capital Projects \r\nFund \r\n \r\nDebt Service Fund \r\n \r\n$ 3,234,811.85 \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the capital projects fund to the debt service fund for the current year bond principal and interest payments \r\nNOTE 8: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2015 \r\n \r\nAdditions \r\n \r\nGovernmental Activities Deductions \r\n \r\nBalance June 30, 2016 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation Bonds \r\n \r\n$ 9,120,000.00 $ \r\n \r\nUnamortized Bond Premiums \r\n \r\n418,478.61 \r\n \r\n12,085,000.00 $ 2,950,000.00 $ \r\n \r\n1,924,445.40 \r\n \r\n139,493.20 \r\n \r\n18,255,000.00 $ 3,030,000.00 \r\n \r\n2,203,430.81 \r\n \r\n414,413.97 \r\n \r\n$ 9,538,478.61 $ 14,009,445.40 $ 3,089,493.20 $ 20,458,430.81 $ 3,444,413.97 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally non-callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\nDuring the current year, the School District issued general obligation bonds totaling $12,085,000.00 to provide advance funding for capital projects. Of the total amount originally authorized, $4,660,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date Maturity Date Amount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2010 General Government - Series 2012 General Government - Series 2016 \r\n \r\n3.0 - 5.0% 2.0 - 3.0% 3.0 - 5.0% \r\n \r\n2/25/2010 10/9/2012 4/20/2016 \r\n \r\n4/1/2018 $ 10,000,000.00 $ 4,195,000.00 \r\n \r\n4/1/2018 \r\n \r\n4,255,000.00 \r\n \r\n1,975,000.00 \r\n \r\n4/1/2023 \r\n \r\n12,085,000.00 \r\n \r\n12,085,000.00 \r\n \r\n$ 26,340,000.00 $ 18,255,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2017 2018 2019 2020 2021 2022 - 2023 \r\n \r\n$ 3,030,000.00 $ 782,257.00 $ \r\n \r\n3,140,000.00 \r\n \r\n700,550.00 \r\n \r\n2,035,000.00 \r\n \r\n563,550.00 \r\n \r\n2,325,000.00 \r\n \r\n502,500.00 \r\n \r\n2,450,000.00 \r\n \r\n386,250.00 \r\n \r\n5,275,000.00 \r\n \r\n398,750.00 \r\n \r\nTotal Principal and Interest $ 18,255,000.00 $ 3,333,857.00 $ \r\n \r\n414,413.97 414,413.78 274,920.77 274,920.77 274,920.77 549,840.75 \r\n2,203,430.81 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 9: 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. 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 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 $200,000.00 per year corridor retention. \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2016 \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\n1,351.71 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n1,351.71 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 0.00 \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSURETY BOND \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers Education \r\n \r\n$ 50,000.00 $ 10,000.00 \r\n \r\nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of federal programs Capital projects Debt service \r\n \r\n$ \r\n \r\n$ \r\n \r\n163,902.86 \r\n \r\n13,639,044.76 \r\n \r\n1,932,145.71 \r\n \r\n38,445.45 15,735,093.33 \r\n \r\nAssigned School Activity Funds \r\nUnassigned \r\n \r\n475,473.63 3,146,460.56 \r\n \r\nFund Balance, June 30, 2016 \r\n \r\n$ \r\n \r\n19,395,472.97 \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\nNOTE 11: 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, 2016: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2016 (2) \r\n \r\nCTAE Expansion \r\n \r\n$ \r\n \r\n670,636.00 $ \r\n \r\n26,648.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year-end. \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\n \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\n \r\nPlan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2016: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2015  June 30, 2016 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2015  December 31, 2015 $596.20 per member per month \r\n \r\nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2016 2015 2014 \r\n \r\n100% 100% 100% \r\n \r\n$ 4,263,624.46 $ 4,111,034.20 $ 4,242,888.80 \r\n \r\nNOTE 14: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2016. The School District's contractually required contribution rate for the year ended June 30, 2016 was 14.27% of annual School District payroll, of which 14.08% of payroll was required from the School District and 0.19% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,912,031.00 and $41,480.01 from the School District and the State, respectively. \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2016 2015 2014 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,912,031.00 $ 2,666,825.33 $ 2,423,365.85 \r\n \r\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM \r\nPlan description: The Employees' Retirement System of Georgia (ERS) is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly during the 1949 Legislative Session for the purpose of providing retirement allowances for employees of the State of Georgia and its political subdivisions. ERS is directed by a Board of Trustees. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. ERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\n \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\n \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\n \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\n \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's contractually required contribution rate, actuarially determined annually, for the year ended June 30, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. There were no employer contributions to the pension plan for the current fiscal year due to the fact that the district has no current employees who are covered under ERS. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year 2016 2015 2014 \r\n \r\nContributed 100% 100% 100% \r\n \r\nContribution \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,282.96 \r\n \r\n$ \r\n \r\n5,111.16 \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\n \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $91,796.00. \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, 2016, the School District reported a liability of $28,961,176.00 for its proportionate share of the net pension liability for TRS ($28,921,351.00) and ERS ($39,825.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 28,921,351.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n330,056.00 \r\n \r\nTotal \r\n \r\n$ 29,251,407.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS and ERS during the fiscal year ended June 30, 2015. \r\n \r\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2015, the School District's TRS proportion was 0.189972%, which was a decrease of 0.001655% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.000983%, which was a decrease of 0.000268% from its proportion measured as of June 30, 2014. \r\nAt June 30, 2016, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $329,428.00. \r\nThe PSERS net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2015. \r\nFor the year ended June 30, 2016, the School District recognized pension expense of $1,532,904.00 for TRS, ($2,621.00) for ERS and $19,645.00 for PSERS and revenue of $12,589.00 for TRS and $19,645.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ \r\n \r\n- $ 254,378.00 $ \r\n \r\n- $ \r\n \r\n318.00 \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n2,439,546.00 \r\n \r\n- \r\n \r\n2,873.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n1,282,196.00 \r\n \r\n179.00 \r\n \r\n7,502.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n2,912,031.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,912,031.00 $ 3,976,120.00 $ \r\n \r\n179.00 $ 10,693.00 \r\n \r\n- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District contributions subsequent to the measurement date of $2,912,031.00 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2017 2018 2019 2020 2021 \r\n \r\n$ (1,557,753.00) $ $ (1,557,753.00) $ $ (1,557,755.00) $ $ 720,095.00 $ $ (22,954.00) $ \r\n \r\n(6,316.00) (3,887.00) (1,281.00) \r\n970.00 - \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n3.00% \r\n3.75%  7.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \r\n \r\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\n5.45%  9.25%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for the periods after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back eleven years for males for the period after disability retirement. \r\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \r\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \r\nTotal \r\n* Rates shown are net of the 3.00% assumed rate of inflation \r\n \r\nTarget allocation \r\n30.00% 39.70% \r\n3.70% 1.60% 18.90% 6.10% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \r\n \r\nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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 7.50%, as well as what the School District's \r\nproportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n$ 49,699,154.00 \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 28,921,351.00 $$ 11,795,496.00 \r\n \r\nEmployees' Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\n$ \r\n \r\n56,454.00 \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ \r\n \r\n39,825.00 $$ 25,649.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS, ERS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\nTotal \r\n \r\nSchool District's covered- \r\nemployee payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered employee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n2016 2015 \r\n \r\n0.189972% $ 28,921,351.00 $ 0.191627% $ 24,209,544.00 $ \r\n \r\n330,056.00 $ 29,251,407.00 $ 20,280,801.09 302,829.00 $ 24,512,373.00 $ 19,734,249.63 \r\n \r\n142.60% 122.68% \r\n \r\n81.44% 84.03% \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 31 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nSchool District's coveredemployee payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a \r\npercentage of covered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of total net pension liability \r\n \r\n2016 2015 \r\n \r\n0.000983% $ 0.001251% $ \r\n \r\n39,825.00 $ 46,920.00 $ \r\n \r\n28,610.93 27,687.76 \r\n \r\n139.20% 169.46% \r\n \r\n76.20% 77.99% \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 32 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of \r\nthe net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability associated \r\nwith the School District \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net \r\npension liability as a percentage of its covered employee \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension \r\nliability \r\n \r\n2016 2015 \r\n \r\n0.00% $ 0.00% $ \r\n \r\n- $ - $ \r\n \r\n329,428.00 $ 329,428.00 $ 389,393.00 $ 389,393.00 $ \r\n \r\n875,389.96 934,416.58 \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 33 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually \r\nrequired contribution (1) \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n2,912,031.00 $ \r\n \r\n2,912,031.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,666,825.33 $ \r\n \r\n2,666,825.33 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,423,365.85 $ \r\n \r\n2,423,365.85 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,309,283.34 $ \r\n \r\n2,309,283.34 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,284,521.02 $ \r\n \r\n2,284,521.02 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,331,210.10 $ \r\n \r\n2,331,210.10 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,137,946.25 $ \r\n \r\n2,137,946.25 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,045,707.77 $ \r\n \r\n2,045,707.77 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,927,346.12 $ \r\n \r\n1,927,346.12 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,824,388.65 $ \r\n \r\n1,824,388.65 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 20,681,026.08 $ 20,280,801.09 $ 19,734,249.63 $ 20,239,117.79 $ 22,222,967.12 $ 22,677,141.05 $ 21,950,166.84 $ 22,044,264.76 $ 20,768,815.95 $ 19,659,360.45 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n14.08% 13.15% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% 9.28% 9.28% \r\n \r\n(1) The School District has included on behalf payments within the contributions for years 2015 and prior. \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 34 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n2016 $ 2015 $ 2014 $ 2013 $ 2012 $ \r\n \r\n- $ 6,282.96 $ 5,111.16 $ 4,271.52 $ 3,247.08 $ \r\n \r\n- $ 6,282.96 $ 5,111.16 $ 4,271.52 $ 3,247.08 $ \r\n \r\n- $ - $ - $ - $ - $ \r\n \r\n28,610.93 27,687.76 28,667.52 27,919.42 \r\n \r\nN/A 21.96% 18.46% 14.90% 11.63% \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 35 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTAL INFORMATION NOTES TO THE REQUIRED SUPPLEMENTAL INFORMATION \r\nFOR YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\n \r\nJune 30, 2013 Entry age Level percentage of payroll, closed 30 years Five-year smoothed market 3.00% 3.75  7.00%, including inflation 7.50%, net of pension plan investment \r\nexpense, including inflation \r\n \r\nEmployees' Retirement System \r\n \r\nChanges of assumptions: There were no changes in assumptions or benefits that affect the measurement of the total pension liability since the prior measurement date. \r\n \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% 5.45% - 9.25% 7.50%, net of pension plan investment \r\nexpense, including inflation \r\n \r\nPublic school Employees Retirement System \r\n \r\nChanges of assumptions: The last experience investigation was prepared for the five-year period ending June 30, 2009, and based on the results of the investigation various assumptions and methods were adopted by the board on December 16, 2010. The next experience investigation will be prepared for the period July 1, 2009 through June 30, 2014. \r\n \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\nCost-of living adjustments \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% N/A 7.50%, net of pension plan investment \r\nexpense, including inflation 1.50% semi-annually \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 36 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"7\" \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nREVENUES \r\n \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\n \r\n$ 14,675,260.00 $ 225,000.00 \r\n20,696,374.27 2,494,570.60 589,870.00 8,058.00 1,117,220.00 \r\n \r\n14,675,260.00 $ 225,000.00 \r\n22,403,107.27 4,227,593.09 640,380.00 7,870.00 1,117,220.00 \r\n \r\nTotal Revenues \r\n \r\n39,806,352.87 \r\n \r\n43,296,430.36 \r\n \r\nEXPENDITURES \r\n \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\n \r\n26,007,329.05 \r\n1,522,136.07 869,771.80 796,643.35 790,448.22 \r\n2,797,685.50 312,493.50 \r\n2,337,793.16 2,509,275.10 \r\n303,723.60 224,423.68 \r\n2,365,100.40 \r\n \r\n28,694,383.53 \r\n1,931,734.32 1,396,077.29 \r\n796,091.66 809,695.62 2,798,274.88 312,493.50 2,361,725.16 2,353,780.41 312,888.60 372,991.93 \r\n2,365,100.40 \r\n \r\nTotal Expenditures \r\n \r\n40,836,823.43 \r\n \r\n44,505,237.30 \r\n \r\nExcess of Revenues over (under) Expenditures \r\n \r\n(1,030,470.56) \r\n \r\n(1,208,806.94) \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nOperating Transfers From Other Funds Operating Transfers To Other Funds \r\n \r\n155,000.00 (155,000.00) \r\n \r\n155,000.00 (155,000.00) \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n- \r\n \r\n- \r\n \r\nNet Change in Fund Balances \r\n \r\n(1,030,470.56) \r\n \r\n(1,208,806.94) \r\n \r\nFund Balances - Beginning \r\n \r\n2,930,630.45 \r\n \r\n2,617,104.25 \r\n \r\nAdjustments \r\n \r\n30,321.96 \r\n \r\n273,854.62 \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n14,907,839.62 $ 290,155.43 \r\n19,225,128.58 4,473,091.82 750,026.26 9,819.01 1,253,766.74 \r\n40,909,827.46 \r\n \r\n232,579.62 65,155.43 \r\n(3,177,978.69) 245,498.73 109,646.26 1,949.01 136,546.74 \r\n(2,386,602.90) \r\n \r\n25,087,108.44 \r\n1,591,521.48 1,067,817.83 \r\n797,494.76 753,495.28 2,631,139.25 310,289.66 2,407,186.55 2,325,545.16 209,605.75 335,447.07 379,764.55 2,302,136.62 \r\n40,198,552.40 \r\n711,275.06 \r\n- \r\n- \r\n711,275.06 \r\n3,113,007.44 \r\n- \r\n \r\n3,607,275.09 \r\n340,212.84 328,259.46 \r\n(1,403.10) 56,200.34 167,135.63 \r\n2,203.84 (45,461.39) 28,235.25 103,282.85 37,544.86 (379,764.55) 62,963.78 \r\n4,306,684.90 \r\n1,920,082.00 \r\n(155,000.00) 155,000.00 \r\n- \r\n1,920,082.00 \r\n495,903.19 \r\n(273,854.62) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n1,930,481.85 $ \r\n \r\n1,682,151.93 $ \r\n \r\n3,824,282.50 $ \r\n \r\n2,142,130.57 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $878,143.42 and $908,610.83, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 37 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Child Nutrition Discretionary Grants Limited Availability State Administrative Expenses for Child Nutrition \r\nTotal Other Programs \r\nTotal U.S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Rural Education Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n16165GA324N1099 $ 16165GA324N1099 \r\n \r\n467,533.86 1,719,823.88 \r\n2,187,357.74 \r\n \r\n10.665 \r\n \r\n486 Forest \r\n \r\n36,323.73 \r\n \r\n10.579 10.560 \r\n \r\n15155GA350N8103 16165GA904N2533 \r\n \r\n16,586.45 8,118.76 \r\n24,705.21 \r\n2,248,386.68 \r\n \r\n84.027 84.173 \r\n \r\nH027A150073 H173A150081 \r\n \r\n84.395 84.048 84.367 84.358 84.010 84.287 \r\n \r\nS412A130039 V048A150010 S367A150001 S358B150010 S010A150010 S287C150010 \r\n \r\n712,983.31 20,961.25 \r\n733,944.56 \r\n133,152.41 50,150.43 67,654.38 78,232.26 \r\n1,023,414.30 603,870.12 \r\n1,956,473.90 \r\n2,690,418.46 \r\n \r\n12.UNKNOWN \r\n \r\n130,555.52 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 4,938,805.14 \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 White County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net assets of the Board. \r\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. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 38 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \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 Charter System Adjustment Special Education Program Categorical Grants Pupil Transportation Regular Nursing Services Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers Retirement Vocational Education Vocational Supervisors \r\nOffice of the State Treasurer Public School Employees Retirement \r\nHuman Resources, Georgia Department of Family Connection \r\nOTHER Mh/Mr Substance Abuse and Violence Prevention Drivers Education Grants \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nSCHEDULE \"9\" \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n$ 1,076,993.00 102,400.00 \r\n2,718,915.00 557,100.00 \r\n1,430,608.00 314,708.00 \r\n2,487,962.00 2,143,382.00 \r\n815,718.00 2,980,681.00 \r\n704,229.00 56,506.00 \r\n184,512.00 84,778.00 \r\n421,859.00 131,186.03 \r\n68,582.00 1,715.00 \r\n532,110.00 958,062.00 932,743.00 (992,155.00) 337,871.00 \r\n7,569.00 \r\n507,047.00 73,615.00 \r\n59,386.00 12,326.50 38,396.77 154,440.00 41,480.01 85,612.34 13,584.00 \r\n91,796.00 \r\n37,276.84 \r\n35,174.50 16,959.59 \r\n$ 19,225,128.58 \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED COST (1) (5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3)(4)(5)(6) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3)(4)(5)(6) \r\n \r\nTOTAL \r\n \r\nEXCESS \r\n \r\nCOMPLETION PROCEEDS NOT \r\n \r\nCOST \r\n \r\nEXPENDED (6) \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nSPLOST 2009 \r\n(ii) Adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities; \r\n \r\n$ 1,138,332.00 $ \r\n \r\n(iii) Acquiring computers and computer technology equipment; \r\n \r\n1,185,569.00 \r\n \r\n(vii) Acquiring textbooks and other instructional materials and transportation equipment; \r\n \r\n136,000.00 \r\n \r\nSPLOST 2015 \r\n(i) Acquiring, constructing and equipping one new ninth grade academy and an auxiliary gym at White County High School; \r\n \r\n2,459,901.00 9,450,000.00 \r\n \r\n(ii) Adding to, constructing, renovating, repairing, improving and equipping existing school buildings and school system facilities, including athletic facilities; \r\n \r\n9,259,200.00 \r\n \r\n(iii) Acquiring computers and computer technology equipment and software, including tablets and laptops; \r\n \r\n2,500,000.00 \r\n \r\n(iv) Acquiring heating, air conditioning and energy efficiency \r\nequipment; \r\n \r\n1,850,800.00 \r\n \r\n(v) Acquiring textbooks and other instructional materials and \r\nelectronic media, as well as school buses, transportation and maintenance equipment and band equipment; \r\n \r\n940,000.00 \r\n \r\n4,184,228.37 $ 3,331,094.18 \r\n803,730.00 8,319,052.55 8,500,000.00 \r\n5,259,200.00 1,250,000.00 1,850,800.00 \r\n440,000.00 \r\n \r\n458,877.48 $ 423,004.26 133,485.96 1,015,367.70 464,770.92 \r\n530,259.66 - \r\n5,872.35 \r\n \r\n3,334,228.37 $ 2,781,094.18 \r\n545,102.23 6,660,424.78 \r\n- \r\n- \r\n- \r\n \r\n- $ - \r\n- \r\n- \r\n \r\n- \r\n \r\nDecember 2017 \r\n \r\n- \r\n \r\nDecember 2017 \r\n \r\n- \r\n \r\nDecember 2017 \r\n \r\n- \r\n \r\n- \r\n \r\nMarch 2018 \r\n \r\n- \r\n \r\nMarch 2018 \r\n \r\n- \r\n \r\nMay 2018 \r\n \r\n- \r\n \r\nMarch 2018 \r\n \r\n- \r\n \r\nMay 2018 \r\n \r\n24,000,000.00 17,300,000.00 \r\n \r\n1,000,902.93 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n$ 26,459,901.00 $ 25,619,052.55 $ 2,016,270.63 $ 6,660,424.78 $ \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 White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years $ 3,944,720.29 \r\n \r\nCurrent Year \r\n \r\n327,450.00 \r\n \r\nTotal $ 4,272,170.29 \r\n \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the School District issued $10,000,000.00 of general obligation debt to build the middle school. In October 2013, the School District issued additional bonds in the amount of $4,255,000.00 of the $6,000,000.00 outstanding to be used for projects approved in the 2009 SPLOST. \r\n \r\n(6) In the 2015 Resolution, the School District obtained approval to issue a total of $15,000,000.00 in general obligation debt. In April of 2016, bonds were issued for the projects noted above in the amount of $12,085,000.00. \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 41 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 15, 2017 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\nGOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with 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 White County Board of Education (School District) as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements and have issued our report thereon dated December 15, 2017. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\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 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 School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 15, 2017 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nREPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited White County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\n \r\n (This page left intentionally blank) \r\n \r\n We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\nOpinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2016. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-2015-001 \r\n \r\nImproper Use of SPLOST Proceeds \r\n \r\nControl Category: Internal Control Impact: Compliance Impact: \r\n \r\nExpenditures/Liabilities/Disbursements Significant Deficiency Nonmaterial Noncompliance \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\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 WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  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_y-ga-ba800-b-pr1-be26-bw58-b2012-h2013-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2013-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2009, released in 2010.","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2009, released 2010; title from cover.","Latest issue consulted: Fiscal year ended June 30, 2014, released in 2016 (online surrogate) (received via FTP on November 2, 2015 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed June 13, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2013 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n26 27 29 30 31 \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  SECTION I FINANCIAL \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 23, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express \r\n2013ARL-11 \r\n \r\n  no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \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 White County Board of Education, as of June 30, 2013, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2013, the White County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual, as presented on page 26, 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 White County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \r\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 Governm ent Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated October 23, 2014, on our consideration of the White County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering White County Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:bf 2013ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Prepaid Items Capitalized Bond and Other Issuance Costs Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET POSITION \r\nInvestment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ 10,038,492.87 \r\n882,057.66 2,262,758.85 \r\n536,118.81 2,500.00 \r\n88,430.53 10,481.90 167,817.73 2,021,886.00 58,659,539.32 \r\n$ 74,670,083.67 \r\n \r\n$ \r\n \r\n9,539.15 \r\n \r\n4,037,884.99 \r\n \r\n121,712.50 \r\n \r\n3,034,493.00 12,547,972.01 \r\n \r\n$ 19,751,601.65 \r\n \r\n$ 48,725,489.68 \r\n336,646.25 1,735,151.00 \r\n372,091.70 3,749,103.39 \r\n \r\n$ 54,918,482.02 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2013 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year - Restated \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 25,071,344.24 $ \r\n1,342,409.63 886,555.94 785,658.43 945,415.23 \r\n1,519,216.90 238,153.31 \r\n2,208,039.96 1,963,773.26 \r\n205,137.22 1,032,466.50 \r\n257,789.29 10,357.00 \r\n2,377,544.11 1,176,789.81 \r\n$ 40,020,650.83 $ \r\n \r\n187,669.15 \r\n11,500.00 2,282.58 \r\n628,485.43 829,937.16 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 13,913,490.14 \r\n775,377.51 879,383.12 465,867.46 600,176.54 519,415.53 \r\n79,778.52 1,126,593.28 \r\n543,429.77 $ 80,679.49 \r\n367,544.33 \r\n1,628,994.94 \r\n$ 20,980,730.63 $ \r\n \r\n$ 228,658.50 228,658.50 $ \r\n \r\n-10,970,184.95 \r\n-567,032.12 -7,172.82 \r\n-319,790.97 -345,238.69 -999,801.37 -158,374.79 -1,069,946.68 -1,189,402.41 -124,457.73 -664,922.17 \r\n-257,789.29 -10,357.00 \r\n-120,063.74 -1,176,789.81 \r\n-17,981,324.54 \r\n \r\n$ \r\n \r\n14,800,494.79 \r\n \r\n312,575.03 \r\n \r\n3,393,148.88 207,673.80 22,536.21 \r\n1,024,633.58 \r\n \r\n$ \r\n \r\n19,761,062.29 \r\n \r\n$ \r\n \r\n1,779,737.75 \r\n \r\n53,138,744.27 \r\n \r\n$ \r\n \r\n54,918,482.02 \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Other Inventories Prepaid Items \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,169,809.18 $ 4,018,468.38 $ 1,850,215.31 $ 10,038,492.87 \r\n \r\n576,873.62 2,262,758.85 \r\n536,118.81 2,500.00 \r\n88,430.53 10,481.90 \r\n \r\n292,810.37 \r\n \r\n12,373.67 \r\n \r\n882,057.66 2,262,758.85 \r\n536,118.81 2,500.00 \r\n88,430.53 10,481.90 \r\n \r\n$ 7,646,972.89 $ 4,311,278.75 $ 1,862,588.98 $ 13,820,840.62 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n9,539.15 \r\n \r\n4,037,884.99 \r\n \r\n258,589.04 \r\n \r\n$ 4,306,013.18 \r\n \r\n$ \r\n \r\n9,539.15 \r\n \r\n4,037,884.99 \r\n \r\n$ \r\n \r\n5,725.48 \r\n \r\n264,314.52 \r\n \r\n$ \r\n \r\n5,725.48 $ 4,311,738.66 \r\n \r\n$ \r\n \r\n98,912.43 \r\n \r\n$ \r\n \r\n98,912.43 \r\n \r\n248,215.72 $ 4,311,278.75 $ 1,856,863.50 \r\n \r\n6,416,357.97 \r\n \r\n533,207.88 \r\n \r\n533,207.88 \r\n \r\n2,460,623.68 \r\n \r\n2,460,623.68 \r\n \r\n$ 3,340,959.71 $ 4,311,278.75 $ 1,856,863.50 $ 9,509,101.96 \r\n \r\n$ 7,646,972.89 $ 4,311,278.75 $ 1,862,588.98 $ 13,820,840.62 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2013 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \r\nProperty Taxes \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Accrued Interest Payable Bond Issuance Costs, Net of Amortization Bond Premiums, Net of Amortization \r\nTotal Long-Term Liabilities \r\n \r\n$ 9,509,101.96 \r\n \r\n$ 2,021,886.00 2,357,323.54 \r\n64,264,889.81 7,539,873.20 \r\n-15,502,547.23 \r\n \r\n60,681,425.32 \r\n \r\n264,314.52 \r\n \r\n$ -14,885,000.00 -121,712.50 167,817.73 -697,465.01 \r\n \r\n-15,536,359.78 \r\n \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 54,918,482.02 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2013 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n14,541,869.31 \r\n \r\n203,345.13 $ \r\n \r\n16,911,442.97 \r\n \r\n4,297,946.15 \r\n \r\n825,716.68 \r\n \r\n11,811.26 \r\n \r\n1,024,633.58 \r\n \r\n$ \r\n \r\n37,816,765.08 $ \r\n \r\n$ 3,393,148.88 \r\n6,721.48 3,399,870.36 $ \r\n \r\n307,584.76 $ 4,328.67 \r\n4,003.82 \r\n \r\n14,849,454.07 3,600,822.68 \r\n16,911,442.97 4,297,946.15 825,716.68 22,536.56 1,024,633.58 \r\n \r\n315,917.25 $ 41,532,552.69 \r\n \r\n$ \r\n \r\n24,191,789.42 $ \r\n \r\n1,330,089.38 883,145.00 781,322.91 668,710.36 \r\n1,510,033.35 206,741.26 \r\n2,048,510.14 2,085,958.42 \r\n205,137.22 1,026,825.11 \r\n256,958.84 \r\n \r\n2,348,832.47 \r\n \r\n$ \r\n \r\n37,544,053.88 $ \r\n \r\n$ \r\n \r\n272,711.20 $ \r\n \r\n442,861.97 \r\n269,397.72 93,595.21 \r\n156,898.97 45,706.75 5,641.39 29,852.00 \r\n264,695.09 $ \r\n191,000.00 1,499,649.10 $ 1,900,221.26 $ \r\n \r\n$ 24,634,651.39 \r\n \r\n1,330,089.38 883,145.00 781,322.91 938,108.08 \r\n1,510,033.35 300,336.47 \r\n2,205,409.11 2,131,665.17 \r\n205,137.22 1,032,466.50 \r\n256,958.84 29,852.00 \r\n2,348,832.47 264,695.09 \r\n \r\n3,320,000.00 575.00 \r\n369,942.60 \r\n \r\n3,320,000.00 575.00 \r\n560,942.60 \r\n \r\n3,690,517.60 $ 42,734,220.58 \r\n \r\n-3,374,600.35 $ -1,201,667.89 \r\n \r\n$ \r\n \r\n4,255,000.00 \r\n \r\n253,579.85 \r\n \r\n$ \r\n \r\n-3,309,708.48 \r\n \r\n$ 3,309,708.48 \r\n \r\n4,255,000.00 253,579.85 \r\n3,309,708.48 -3,309,708.48 \r\n \r\n$ \r\n \r\n1,198,871.37 $ \r\n \r\n3,309,708.48 $ \r\n \r\n4,508,579.85 \r\n \r\n$ \r\n \r\n272,711.20 $ \r\n \r\n3,099,092.63 $ \r\n \r\n-64,891.87 $ \r\n \r\n3,306,911.96 \r\n \r\n3,068,248.51 \r\n \r\n1,212,186.12 \r\n \r\n1,921,755.37 \r\n \r\n6,202,190.00 \r\n \r\n$ \r\n \r\n3,340,959.71 $ \r\n \r\n4,311,278.75 $ \r\n \r\n1,856,863.50 $ \r\n \r\n9,509,101.96 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2013 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nBond proceeds provide current financial resources to Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Position. In the current period, proceeds were received from: \r\nGeneral Obligation Bonds Issued, Including a Premium of $253,579.85 \r\nBond issuance costs and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Position and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nDeferral of Bond Issuance Costs Amortization of Bond Issuance Costs \r\nTotal Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \r\nBond Principal Retirements Amortization of Bond Premiums \r\nTotal Long-Term Debt Repayments \r\nInterest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid. \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 3,306,911.96 \r\n \r\n$ 643,745.65 -1,225,206.43 \r\n \r\n-581,460.78 185,955.47 \r\n \r\n-4,508,579.85 \r\n \r\n$ \r\n \r\n87,767.81 \r\n \r\n-25,584.65 \r\n \r\n62,183.16 \r\n \r\n$ 3,320,000.00 116,440.29 \r\n \r\n3,436,440.29 \r\n \r\n-121,712.50 \r\n \r\n$ 1,779,737.75 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets LIABILITIES Funds Held for Others NET POSITION Held in Trust for Private Purposes \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 20,729.16 $ 153,052.81 39,075.00 \r\n$ 59,804.16 $ 153,052.81 \r\n \r\n$ \r\n \r\n0.00 $ 153,052.81 \r\n \r\n$ 59,804.16 $ \r\n \r\n0.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2013 \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Administrative Expenses Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n4,954.80 \r\n \r\n288.61 \r\n \r\n$ \r\n \r\n5,243.41 \r\n \r\n$ \r\n \r\n1,705.46 \r\n \r\n$ \r\n \r\n3,537.95 \r\n \r\n56,266.21 \r\n \r\n$ \r\n \r\n59,804.16 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County School System (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County School System. \r\nDistrict-wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds. 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District reports the following fiduciary fund types: \r\n \r\n Private Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship. \r\n \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \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, 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 are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\nRESTATEMENT OF PRIOR YEAR NET POSITION \r\nFor fiscal year 2013, the School District restated various Capital Assets due to errors and omissions. The result is an increase in Net Position at July 1, 2012, of $77,371.61. This change is in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2012 as previously reported \r\n \r\n$ 53,061,372.66 \r\n \r\nAdjustments to Capital Assets Buildings and Improvements, Net of Accumulated Depreciation Equipment, Net of Accumulated Depreciation Land Improvements, Net of Accumulated Depreciation \r\n \r\n188,946.61 -182,115.93 \r\n70,540.93 \r\n \r\nNet Position, July 1, 2012, as restated \r\n \r\n$ 53,138,744.27 \r\n \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement establish accounting and financial reporting standards for governments who enter into Service Concession Arrangements (SCA) with other governmental or nongovernmental entities. As of June 30, 2013, the School District has not entered into any arrangements that meet the qualifications to be reported as a SCA in accordance with this standard. \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement incorporate certain accounting and financial reporting guidance into authoritative GASB literature. \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement establish financial reporting standards for the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. The School District changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable reporting changes for the School District. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits \r\nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\nThe White County Board of Commissioners adopted the property tax levy for the 2012 tax digest year (calendar year) on July 7, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on November 15, 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 White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.50% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2013, for maintenance and operations amounted to $14,367,048.57 and for school bonds amounted to $306,029.85. \r\nTax millage rates levied for the 2012 tax year (calendar year) for the White County School System were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n16.591 mills 0.339 mills \r\n \r\n16.930 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $176,375.65 during fiscal year ended June 30, 2013. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,393,148.88 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market \r\n \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nvalue on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Computer Applications \r\n \r\nAny Amount \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n45,000.00 \r\n \r\nN/A 20 years \r\n10 to 80 years 5 to 20 years 6 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 10 to 20 years. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \r\n \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNET POSITION \r\nThe School District's net position in the District-wide Statements is classified as follows: \r\nNet investment in capital assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\n \r\n$ \r\n \r\n88,430.53 \r\n \r\n10,481.90 $ \r\n \r\n$ \r\n \r\n248,215.72 \r\n \r\n4,311,278.75 \r\n \r\n1,856,863.50 \r\n \r\n98,912.43 6,416,357.97 \r\n \r\nAssigned School Activity Accounts \r\n \r\n533,207.88 \r\n \r\nUnassigned \r\n \r\n2,460,623.68 \r\n \r\nFund Balance, June 30, 2013 \r\n \r\n$ 9,509,101.96 \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, 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 Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \r\n \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 4: DEPOSITS \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\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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\n \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \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\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, 2013, the bank balances were $11,187,928.49. The amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2013, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n11,187,928.49 \r\n \r\nTotal \r\n \r\n$ 11,187,928.49 \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2012 (Restated) \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\n \r\n$ \r\n \r\n2,021,886.00 $ \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n64,342,548.07 $ \r\n \r\n7,273,087.49 \r\n \r\n2,357,323.54 \r\n \r\n7,882,038.42 4,843,410.92 2,006,509.66 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ \r\n \r\n59,241,000.10 $ \r\n \r\nGovernmental Activity Capital Assets - Net $ \r\n \r\n61,262,886.10 $ \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2013 \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n2,021,886.00 \r\n \r\n262,652.94 $ 381,092.71 \r\n809,538.20 392,449.55 \r\n23,218.68 -581,460.78 $ -581,460.78 $ \r\n \r\n340,311.20 $ 114,307.00 \r\n \r\n64,264,889.81 7,539,873.20 2,357,323.54 \r\n \r\n340,311.20 114,307.00 \r\n \r\n8,351,265.42 5,121,553.47 2,029,728.34 \r\n \r\n0.00 $ 58,659,539.32 \r\n \r\n0.00 $ 60,681,425.32 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\n$ \r\n30,672.54 6,773.99 \r\n13,448.14 18,411.08 \r\n6,141.84 243,855.08 \r\n \r\n$ \r\n \r\n860,246.20 \r\n319,302.67 6,513.68 \r\n39,143.88 1,225,206.43 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2013, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\nDistrict-wide Capital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ 3,309,708.48 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the current year bond principal and interest payments. \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. \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2012 $ 2013 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n2,483.00 $ 38,490.00 $ \r\n \r\n2,483.00 $ 38,490.00 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: LONG-TERM DEBT \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Refunding - Series 2003 General Government - Series 2010 General Government - Series 2012 \r\n \r\n2.90% 3.0% to 5.0% 2.0% to 3.0% \r\n \r\n$ \r\n \r\n630,000.00 \r\n \r\n10,000,000.00 \r\n \r\n4,255,000.00 \r\n \r\n$ 14,885,000.00 \r\n \r\nVoters have authorized $1,745,000.00 in general obligation debt for capital purchases which was not issued as of June 30, 2013. \r\n \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2013, were as follows: \r\n \r\nBalance July 1, 2012 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2013 \r\n \r\nDue Within One Year \r\n \r\nG.O. Bonds \r\n \r\n$ 13,950,000.00 $ \r\n \r\nBond Premiums Amortized \r\n \r\n560,325.45 \r\n \r\n4,255,000.00 $ 253,579.85 \r\n \r\n3,320,000.00 $ 14,885,000.00 $ \r\n \r\n116,440.29 \r\n \r\n697,465.01 \r\n \r\n2,895,000.00 139,493.00 \r\n \r\n$ 14,510,325.45 $ 4,508,579.85 $ 3,436,440.29 $ 15,582,465.01 $ 3,034,493.00 \r\n \r\nAt June 30, 2013, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2014 2015 2016 2017 2018 \r\n \r\n$ 2,895,000.00 $ 2,870,000.00 2,950,000.00 3,030,000.00 3,140,000.00 \r\n \r\n495,985.00 $ 404,250.00 327,450.00 248,450.00 137,000.00 \r\n \r\n139,493.01 139,493.00 139,493.00 139,493.00 139,493.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 14,885,000.00 $ 1,613,135.00 $ \r\n \r\n697,465.01 \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $2,388,262.84 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 $2,281,260.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $27,474.84 \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 $79,528.00 \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \r\nNOTE 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\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2013, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2013, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2013, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"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\n \r\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 2012 - February 2013 March 2013 - June 2013 \r\n \r\n$912.34 per member per month $937.34 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2012 - June 2013 \r\n \r\n$446.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n3,787,766.48 \r\n \r\n$ \r\n \r\n3,856,777.06 \r\n \r\n$ \r\n \r\n3,282,512.76 \r\n \r\nNOTE 14: RETIREMENT PLANS \r\nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\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 \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nwhich the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2013, were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 11.41% of annual salary as required by the June 30, 2010, actuarial valuation. The employer contribution rate will increase to 12.28% effective July 1, 2013. \r\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$ 2,309,283.34 $ 2,284,521.02 $ 2,331,210.10 \r\n \r\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues under Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \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$ 14,476,680.00 $ 14,476,680.00 $ 14,541,869.31 $ \r\n \r\n65,189.31 \r\n \r\n100,000.00 \r\n \r\n100,000.00 \r\n \r\n203,345.13 \r\n \r\n103,345.13 \r\n \r\n22,026,093.04 \r\n \r\n16,544,911.00 \r\n \r\n16,911,442.97 \r\n \r\n366,531.97 \r\n \r\n4,929,247.54 \r\n \r\n5,403,478.50 \r\n \r\n4,297,946.15 -1,105,532.35 \r\n \r\n709,500.00 \r\n \r\n873,500.00 \r\n \r\n825,716.68 \r\n \r\n-47,783.32 \r\n \r\n11,200.00 \r\n \r\n11,200.00 \r\n \r\n11,811.26 \r\n \r\n611.26 \r\n \r\n1,002,677.10 \r\n \r\n916,237.58 \r\n \r\n1,024,633.58 \r\n \r\n108,396.00 \r\n \r\n$ 43,255,397.68 $ 38,326,007.08 $ 37,816,765.08 $ -509,242.00 \r\n \r\n$ 23,407,340.46 $ 23,633,354.31 $ 24,191,789.42 $ -558,435.11 \r\n \r\n1,358,749.77 875,167.70 803,513.45 700,624.29 \r\n1,977,402.30 264,365.26 \r\n2,380,891.48 2,082,572.39 \r\n263,368.85 543,949.48 \r\n2,244,430.00 \r\n \r\n1,395,527.07 1,357,074.83 \r\n851,551.27 633,974.68 2,140,844.54 367,981.62 2,511,564.37 2,138,770.05 459,099.90 480,008.11 \r\n3,579,032.61 \r\n \r\n1,330,089.38 883,145.00 781,322.91 668,710.36 \r\n1,510,033.35 206,741.26 \r\n2,048,510.14 2,085,958.42 \r\n205,137.22 1,026,825.11 \r\n256,958.84 2,348,832.47 \r\n \r\n65,437.69 473,929.83 \r\n70,228.36 -34,735.68 630,811.19 161,240.36 463,054.23 52,811.63 253,962.68 -546,817.00 -256,958.84 1,230,200.14 \r\n \r\n$ 36,902,375.43 $ 39,548,783.36 $ 37,544,053.88 $ 2,004,729.48 \r\n \r\n$ 6,353,022.25 $ -1,222,776.28 $ \r\n \r\n272,711.20 $ 1,495,487.48 \r\n \r\n0.00 \r\n \r\n-30,690.00 \r\n \r\n0.00 \r\n \r\n30,690.00 \r\n \r\n$ 6,353,022.25 $ -1,253,466.28 $ \r\n \r\n272,711.20 $ 1,526,177.48 \r\n \r\n3,239,884.37 \r\n \r\n3,068,248.51 \r\n \r\n3,068,248.51 \r\n \r\n0.00 \r\n \r\n$ 9,592,906.62 $ 1,814,782.23 $ 3,340,959.71 $ 1,526,177.48 \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- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nSchools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Georgia Department of Education Food Services ARRA - Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Rural Education Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n$ \r\n \r\n2,248,942.58 (1) \r\n \r\n$ \r\n \r\n2,248,942.58 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n10.579 10.582 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n$ \r\n \r\n6,398.00 4,535.34 \r\n10,933.34 \r\n2,259,875.92 \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\n781,744.64 8,593.06 \r\n790,337.70 \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n848,992.33 \r\n \r\n* 84.395 84.048 84.410 84.367 84.358 84.287 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n250,304.97 53,621.55 1,599.00 96,679.14 43,752.44 \r\n538,311.03 \r\n \r\n$ \r\n \r\n984,268.13 \r\n \r\n$ \r\n \r\n2,623,598.16 \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nHealth and Human Services, U. S. Department of Head Start Cluster Pass-Through From Ninth District Opportunity, Incorporated Head Start \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n93.600 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n43,096.08 \r\n \r\n$ \r\n \r\n72,352.48 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n4,998,922.64 \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 $112,193.80. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($363,618.62) were not maintained separately and are included in the 2013 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $42,753.85, do not require reporting of expenditures. \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 White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION 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 English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Charter System Grant Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Vocational Education \r\nHuman Resources, Georgia Department of Mh/Mr Substance Abuse and Violence Prevention Family Connection \r\nOffice of the State Treasurer Public School Employees' Retirement \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 $2,281,260.00 are included as part of the Quality Basic Education revenue allotments above. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\nSCHEDULE \"3\" \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n$ 1,394,960.90 111,718.80 \r\n3,064,560.80 129,155.20 \r\n1,455,504.20 105,300.80 \r\n2,501,642.40 1,941,531.80 \r\n820,131.20 2,786,603.60 \r\n689,306.60 61,406.80 \r\n192,206.00 57,682.80 \r\n420,580.00 129,230.40 \r\n73,696.00 \r\n576,732.80 933,873.00 899,837.90 -2,953,905.00 331,202.00 \r\n503,837.00 72,346.00 \r\n60,180.00 16,784.27 52,086.78 228,658.50 27,474.84 101,901.00 \r\n17,515.52 28,172.06 \r\n79,528.00 \r\n$ 16,911,442.97 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED COST (1) (5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) (4) (5) (6) \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\n2009 SPLOST Referendum (i) acquiring, constructing and equipping one new middle school, \r\n \r\n$ 16,714,070.00 $ 13,453,618.25 \r\n \r\n$ 13,453,618.35 $ 13,453,618.35 $ \r\n \r\n0.00 Completed \r\n \r\nii) adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities, \r\n \r\n1,138,332.00 \r\n \r\n4,302,225.09 $ 500,465.67 \r\n \r\n743,759.42 \r\n \r\nVarious \r\n \r\n(iii) acquiring computers and computer technology equipment, \r\n \r\n1,185,569.00 \r\n \r\n2,377,274.49 \r\n \r\n614,647.93 \r\n \r\n1,087,626.56 \r\n \r\nVarious \r\n \r\n(v) acquiring, constructing and equipping a new gymnasium at the existing intermediate school, \r\n \r\n1,200,000.00 \r\n \r\nVarious \r\n \r\n(vi) acquiring heating, air conditioning and energy efficiency equipment, \r\n \r\n1,706,029.00 \r\n \r\nVarious \r\n \r\n(vii) acquiring textbooks and other instructional materials and transportation equipment, \r\n \r\n136,000.00 \r\n \r\n853,730.00 \r\n \r\n112,662.47 \r\n \r\n124,730.00 \r\n \r\nVarious \r\n \r\n(viii) paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds on August 1, 2013, the maximum amount of such payment not to exceed $320,000 (If needed, see 2006 SPLOST above) \r\n \r\n320,000.00 \r\n \r\n320,000.00 \r\n \r\nAugust 2013 \r\n \r\n$ 22,400,000.00 $ 21,306,847.83 $ 1,227,776.07 $ 15,409,734.33 $ 13,453,618.35 $ \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 continuation of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all costs from project inception to completion. \r\n \r\n(3) The voters of White County approved a continuation of a 1% sales tax to fund the above projects (and retire associated debt). Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 2,483,552.19 \r\n \r\nCurrent Year \r\n \r\n560,942.60 \r\n \r\nTotal \r\n \r\n$ 3,044,494.79 \r\n \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the system issued $10,000,000 of general obligation debt to build the middle school. In October 2012, the School District issued additional bonds in the amount of $4,255,000 of the $6,000,000 outstanding to be used for projects approved in the 2009 SPLOST. \r\n \r\n(6) The School District tore down the existing middle school and built a new middle school and new middle school gymnasium on the site utilizing some 2006 SPLOST funds and other funds of the School District. Amounts are reflected in the 2009 SPLOST funds. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\nTOTAL QBE FORMULA FUNDS \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,495,458.00 $ 1,569,830.77 $ 19,431.58 $ 1,589,262.35 \r\n \r\n135,655.00 \r\n \r\n3,669.50 \r\n \r\n878.40 \r\n \r\n4,547.90 \r\n \r\n3,886,673.00 \r\n \r\n3,308,231.52 \r\n \r\n88,838.60 \r\n \r\n3,397,070.12 \r\n \r\n159,469.00 \r\n \r\n136,962.31 \r\n \r\n777.15 \r\n \r\n137,739.46 \r\n \r\n1,846,420.00 \r\n \r\n1,949,439.48 \r\n \r\n23,014.62 \r\n \r\n1,972,454.10 \r\n \r\n124,523.00 3,160,137.00 2,434,442.00 1,044,431.00 3,551,023.00 \r\n883,815.00 86,928.00 \r\n244,126.00 71,589.00 \r\n \r\n64,828.77 3,516,198.62 3,185,856.60 \r\n647,591.02 \r\n275,399.07 357,424.34 1,474,711.44 597,200.89 \r\n25,488.65 1,353,221.18 \r\n97,788.14 22,502.20 161,918.90 \r\n \r\n106,547.14 199,847.03 \r\n62,258.70 \r\n251.09 25,546.97 \r\n1,137.78 \r\n12,453.59 \r\n1,442.94 \r\n \r\n64,828.77 3,622,745.76 3,385,703.63 \r\n709,849.72 \r\n275,399.07 357,675.43 1,500,258.41 598,338.67 \r\n25,488.65 1,365,674.77 \r\n97,788.14 22,502.20 163,361.84 \r\n \r\n$ \r\n \r\n19,124,689.00 $ 18,748,263.40 $ 542,425.59 $ 19,290,688.99 \r\n \r\n529,765.00 93,355.00 \r\n \r\n669,373.21 1,463.02 \r\n \r\n100,911.07 \r\n \r\n770,284.28 1,463.02 \r\n \r\n$ \r\n \r\n19,747,809.00 $ 19,419,099.63 $ 643,336.66 $ 20,062,436.29 \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- 31 - \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\nOctober 23, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with 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 White County Board of Education as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated October 23, 2014. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered White County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\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 White County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of White Board of Education in a separate letter dated October 23, 2014. \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 White County Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the White County 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:bf 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\nOctober 23, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited White County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of White County Board of Education's major Federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of White County Board of Education's compliance. \r\n2013SA-10 \r\n \r\n  Opinion on Each Major Federal Program \r\nIn our opinion, the White County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2013. \r\nReport on Internal Control over Compliance \r\nManagement of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered White County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:bf 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  WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2013 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7541-11-01 FS-7541-12-01 \r\n \r\nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  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: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 84.395 \r\n \r\nChild Nutrition Cluster Title I, Part A Cluster ARRA Race-to-the-Top Incentive Grants \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\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-be26-bw58-b2014-belec-p-btext","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2014 (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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2014-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","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\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\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \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 4 5 6 7 8 9 11 \r\n27 \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION - 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\n28 29 30 31 \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\nOctober 8, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the Board's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n2014ARL-11 \r\n \r\n  effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2014, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2014 the White County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The School District restated beginning Net Position for the cumulative effect of this accounting change. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\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 27 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \r\n2014ARL-11 \r\n \r\n  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 Governm ent Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated October 8, 2015, on our consideration of the White County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering White County Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2014ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\nINTRODUCTION \r\nOur discussion and analysis of the White County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2014. 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 basic financial statements and the notes to these statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2014 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $55.1 million. Of this amount, $1.9 million is unrestricted and is available for spending at the School District's discretion. \r\n The School District had $40.6 million in expenses relating to governmental activities; only $21.5 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $19.4 million were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $19.4 million or 47% of all revenues totaling $40.9 million. Program specific revenues in the form of charges for services, grants and contributions 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 District-wide 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 shortterm 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 White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are 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\ni \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader can determine if the system is in better financial condition than the previous year. The Statement of Net Position and the Statement of Activities provide the basis for this analysis. These financial statements include all district 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 net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Position and the Statement of Activities reflect 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 scholarship funds, 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 WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \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 assets for this fiscal year. Net position comparisons to fiscal year 2013 are available and have been included in the following analysis. \r\n \r\nTable 1 Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2014 \r\n \r\nYear 2013 (1) \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 11,806,553.19 $ 13,988,658.35 \r\n \r\n60,711,365.08 \r\n \r\n60,681,425.32 \r\n \r\nTotal Assets \r\n \r\n72,517,918.27 \r\n \r\n74,670,083.67 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n4,837,298.60 12,547,971.81 \r\n \r\n4,169,136.64 15,582,465.01 \r\n \r\nTotal Liabilities \r\n \r\n17,385,270.41 \r\n \r\n19,751,601.65 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted \r\n \r\n50,930,881.40 2,257,219.43 1,944,547.03 \r\n \r\n48,725,489.68 2,443,888.95 3,749,103.39 \r\n \r\nTotal Net Position \r\n \r\n$ 55,132,647.86 $ 54,918,482.02 \r\n \r\n(1) Fiscal year 2013 balances do not reflect the effects on the restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \r\nTable 2 shows the Changes in Net Position for this fiscal year. Revenue and expense comparisons to fiscal year 2013 are available and are included in the following analysis. \r\n \r\niii \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2014 \r\n \r\n2013 (1) \r\n \r\n$ \r\n \r\n791,589.71 $ \r\n \r\n829,937.16 \r\n \r\n20,577,501.75 \r\n \r\n20,980,730.63 \r\n \r\n151,940.00 \r\n \r\n228,658.50 \r\n \r\nTotal Program Revenues \r\n \r\n21,521,031.46 \r\n \r\n22,039,326.29 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nSpecial Item Loss on Sale of Building \r\n \r\n14,674,905.36 4,732.69 \r\n \r\n14,800,494.79 312,575.03 \r\n \r\n3,380,569.65 302,384.72 18,492.26 \r\n1,067,532.08 \r\n-26,635.33 \r\n \r\n3,393,148.88 207,673.80 22,536.21 \r\n1,024,633.58 \r\n \r\nTotal General Revenues and Special Item \r\n \r\n19,421,981.43 \r\n \r\n19,761,062.29 \r\n \r\nTotal Revenues \r\n \r\n40,943,012.89 \r\n \r\n41,800,388.58 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n25,289,434.95 \r\n1,348,811.31 1,080,472.11 \r\n786,838.67 769,374.27 2,353,216.96 279,987.27 2,305,492.94 2,326,625.35 350,784.29 521,273.38 \r\n342,074.15 \r\n2,449,611.37 357,032.30 \r\n \r\n25,071,344.24 \r\n1,342,409.63 886,555.94 785,658.43 945,415.23 \r\n1,519,216.90 238,153.31 \r\n2,208,039.96 1,963,773.26 \r\n205,137.22 1,032,466.50 \r\n257,789.29 10,357.00 \r\n2,377,544.11 1,176,789.81 \r\n \r\nTotal Expenses \r\n \r\n40,561,029.32 \r\n \r\n40,020,650.83 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n381,983.57 $ 1,779,737.75 \r\n \r\n(1) Fiscal year 2013 balances do not reflect the effects on the restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \r\n \r\niv \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \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. Cost of service comparisons to fiscal year 2013 are available and have been included in the following analysis. \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 2014 \r\n \r\nYear 2013 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2014 \r\n \r\nYear 2013 (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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\n \r\n$ 25,289,434.95 $ 25,071,344.24 $ 11,690,965.97 $ 10,970,184.95 \r\n \r\n1,348,811.31 1,080,472.11 \r\n786,838.67 769,374.27 2,353,216.96 279,987.27 2,305,492.94 2,326,625.35 350,784.29 521,273.38 \r\n \r\n1,342,409.63 886,555.94 785,658.43 945,415.23 \r\n1,519,216.90 238,153.31 \r\n2,208,039.96 1,963,773.26 \r\n205,137.22 1,032,466.50 \r\n \r\n724,011.60 325,807.34 277,494.73 506,854.49 1,488,561.71 200,050.67 1,123,003.31 1,425,752.44 247,560.28 150,935.58 \r\n \r\n567,032.12 7,172.82 \r\n319,790.97 345,238.69 999,801.37 158,374.79 1,069,946.68 1,189,402.41 124,457.73 664,922.17 \r\n \r\n342,074.15 \r\n2,449,611.37 357,032.30 \r\n \r\n257,789.29 10,357.00 \r\n2,377,544.11 1,176,789.81 \r\n \r\n340,711.17 \r\n181,256.27 357,032.30 \r\n \r\n257,789.29 10,357.00 \r\n120,063.74 1,176,789.81 \r\n \r\n$ 40,561,029.32 $ 40,020,650.83 $ 19,039,997.86 $ 17,981,324.54 \r\n \r\n(1) Fiscal year 2013 balances do not reflect the effects on the restatement of Net Position. See Note 2 in the Notes to the Basic Financial Statements for additional information. \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, special items and other financing sources of $45.0 million and total expenditures and other financing uses of $47.6 million. \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. During the course of fiscal year 2014, the School District amended its general fund budget as needed. \r\nv \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nFor the General Fund, the final actual revenues and other financing sources of $37.87 million were $0.080 million less than the original budgeted amounts of $39.40 million. \r\nThe final actual property and sales tax revenues of $15.09 million exceeded the final budgeted amounts of $14.63 million by $0.46 million. The remaining differences are related to State, Federal and Other revenue increases and/or decreases. \r\nThe final actual expenditures of $38.33 million were $2.22 million less than the final budgeted amount of $40.55 million. The expenditures for the program decreases accounts for this difference. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt fiscal year ended June 30, 2014 the School District had $60.71 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category net of accumulated depreciation. Capital assets comparisons to fiscal year 2013 are available and have been included in the following analysis. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2014 \r\n \r\nYear 2013 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ 2,021,076.00 $ 759,178.40 \r\n54,958,485.29 2,604,491.41 368,133.98 \r\n \r\n2,021,886.00 \r\n55,913,624.39 2,418,319.73 327,595.20 \r\n \r\nTotal \r\n \r\n$ 60,711,365.08 $ 60,681,425.32 \r\n \r\nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \r\n \r\nDebt \r\n \r\nAt fiscal year ended June 30, 2014, the School District had $12.55 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. There was no new debt issued in fiscal year 2014 and payments of principal and interest were timely per the bond amortization schedule. \r\nTable 5 \r\nDebt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2014 \r\n \r\nYear 2013 \r\n \r\nBonds Payable \r\n \r\n$ 12,547,971.81 $ 15,582,465.01 \r\n \r\nvi \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\nCURRENT ISSUES \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations are as follows: \r\n Marginal improvement in the economy and effect on continued austerity - State funding for education has improved in the past 2 years due to the reduction in annual austerity imposed on each LEA. However, total austerity for the state in fiscal year 2014 was still $1.1 billion of which $2.5 million was White County School District's pro rata share. In addition, health care costs continue to increase resulting in higher per person/per month costs to the school system. Another lingering issue has been a reduction in the value of the White County Tax Digest which has resulted in a lower value per Mill. This has reduced the system's ability to mitigate the impact of the reduction in State revenue with local revenues. As a result, continued pressure is being placed on the local school district to prioritize its educational programs and provide additional local funding. Despite these challenges, the White County School District is strong financially and we remain optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \r\n In fiscal year 2015, the School District will adopt Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Based on information provided by the Teacher Retirement System of Georgia (TRS), the School District's liability for its proportionate share of the Net Pension Liability of the pension plan administered through TRS is estimated to be $24.2 million at June 30, 2015. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Mrs. Trish H. Fussell, Finance Director at White County School District, 136 Warriors Path, Cleveland, GA 30528 . Mailing address is same as above. You may also email your question to Mrs. Trish H. Fussell at trish.fussell@white.k12.ga.us. \r\nvii \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2014 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n7,965,297.40 \r\n \r\n988,161.81 2,258,168.19 \r\n529,818.96 65,106.83 \r\n2,780,254.40 57,931,110.68 \r\n \r\n72,517,918.27 \r\n \r\n76,906.05 3,879,501.65 \r\n121,712.50 693,914.40 \r\n65,264.00 \r\n3,009,493.20 9,538,478.61 \r\n17,385,270.41 \r\n \r\n50,930,881.40 \r\n212,034.51 1,311,641.66 \r\n733,543.26 1,944,547.03 \r\n \r\n$ \r\n \r\n55,132,647.86 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2014 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nSpecial Items Loss on Sale of Building \r\nTotal General Revenues and Special Items \r\nChange in Net Position \r\nNet Position - Beginning of Year (Restated) \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n25,289,434.95 $ \r\n \r\n1,348,811.31 1,080,472.11 \r\n786,838.67 769,374.27 2,353,216.96 279,987.27 2,305,492.94 2,326,625.35 350,784.29 521,273.38 \r\n \r\n342,074.15 2,449,611.37 \r\n357,032.30 \r\n \r\n$ \r\n \r\n40,561,029.32 $ \r\n \r\n209,604.37 \r\n4,110.45 577,874.89 791,589.71 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ \r\n \r\n13,388,864.61 \r\n \r\n624,799.71 754,664.77 509,343.94 262,519.78 864,655.25 \r\n79,936.60 1,182,489.63 \r\n744,822.46 $ 103,224.01 370,337.80 \r\n \r\n1,362.98 1,690,480.21 \r\n \r\n$ \r\n \r\n20,577,501.75 $ \r\n \r\n$ 151,940.00 151,940.00 \r\n \r\n-11,690,965.97 \r\n-724,011.60 -325,807.34 -277,494.73 -506,854.49 -1,488,561.71 -200,050.67 -1,123,003.31 -1,425,752.44 -247,560.28 -150,935.58 \r\n-340,711.17 -181,256.27 -357,032.30 \r\n-19,039,997.86 \r\n \r\n14,674,905.36 4,732.69 \r\n3,380,569.65 302,384.72 18,492.26 \r\n1,067,532.08 \r\n-26,635.33 \r\n19,421,981.43 \r\n381,983.57 \r\n54,750,664.29 \r\n \r\n$ \r\n \r\n55,132,647.86 \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2014 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,468,514.62 $ 3,067,642.67 $ 1,429,140.11 $ 7,965,297.40 \r\n \r\n671,027.35 2,258,168.19 \r\n529,818.96 65,106.83 \r\n \r\n312,920.41 \r\n \r\n4,214.05 \r\n \r\n988,161.81 2,258,168.19 \r\n529,818.96 65,106.83 \r\n \r\n$ 6,992,635.95 $ 3,380,563.08 $ 1,433,354.16 $ 11,806,553.19 \r\n \r\nLIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES \r\n \r\nLIABILITIES \r\n \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \r\n \r\n$ \r\n \r\n76,906.05 \r\n \r\n3,879,501.65 \r\n \r\n$ \r\n \r\n693,914.40 65,264.00 \r\n \r\n$ \r\n \r\n76,906.05 \r\n \r\n3,879,501.65 \r\n \r\n693,914.40 \r\n \r\n65,264.00 \r\n \r\nTotal Liabilities \r\n \r\n3,956,407.70 \r\n \r\n759,178.40 \r\n \r\n4,715,586.10 \r\n \r\nDEFERRED INFLOWS OF RESOURCES \r\n \r\nUnavailable Revenue - Property Taxes \r\n \r\n154,573.54 \r\n \r\n154,573.54 \r\n \r\nFUND BALANCES \r\n \r\nNonspendable Restricted Assigned Unassigned \r\n \r\n65,106.83 146,927.68 498,130.23 2,171,489.97 \r\n \r\n2,621,384.68 $ 1,433,354.16 \r\n \r\n65,106.83 4,201,666.52 \r\n498,130.23 2,171,489.97 \r\n \r\nTotal Fund Balances \r\n \r\n2,881,654.71 \r\n \r\n2,621,384.68 \r\n \r\n1,433,354.16 \r\n \r\n6,936,393.55 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources and Fund Balances $ 6,992,635.95 $ 3,380,563.08 $ 1,433,354.16 $ 11,806,553.19 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\n \r\n$ 6,936,393.55 \r\n \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\n \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\n \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\n \r\n$ 2,021,076.00 759,178.40 \r\n2,421,142.19 64,186,382.77 \r\n8,056,441.41 -16,732,855.69 \r\n \r\n60,711,365.08 \r\n \r\nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \r\n \r\nProperty Taxes \r\n \r\n154,573.54 \r\n \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\n \r\nBonds Payable Accrued Interest Payable Bond Premiums, Net of Amortization \r\nTotal Long-Term Liabilities \r\n \r\n$ -11,990,000.00 -121,712.50 -557,971.81 \r\n \r\n-12,669,684.31 \r\n \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 55,132,647.86 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2014 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nSale of Building Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 14,784,646.34 302,384.72 $ \r\n16,439,567.57 4,289,874.18 791,589.71 9,879.13 1,067,532.08 \r\n \r\n$ 3,380,569.65 \r\n5,789.27 \r\n \r\n37,685,473.73 \r\n \r\n3,386,358.92 \r\n \r\n4,732.69 $ 2,823.86 \r\n \r\n14,789,379.03 3,682,954.37 \r\n16,439,567.57 4,289,874.18 791,589.71 18,492.26 1,067,532.08 \r\n \r\n7,556.55 \r\n \r\n41,079,389.20 \r\n \r\n23,696,055.17 \r\n1,304,432.46 1,080,472.11 \r\n774,724.40 707,732.38 2,263,061.68 276,987.27 2,326,399.64 2,260,719.59 350,784.29 519,058.04 342,074.15 2,426,632.55 \r\n38,329,133.73 \r\n-643,660.00 \r\n \r\n711,204.65 \r\n61,641.89 3,000.00 \r\n-55,122.79 188,854.00 \r\n2,215.34 1,204,000.29 \r\n2,115,793.38 1,270,565.54 \r\n \r\n2,895,000.00 550.00 \r\n495,975.50 \r\n3,391,525.50 \r\n-3,383,968.95 \r\n \r\n24,407,259.82 \r\n1,304,432.46 1,080,472.11 \r\n774,724.40 769,374.27 2,263,061.68 279,987.27 2,271,276.85 2,449,573.59 350,784.29 521,273.38 342,074.15 2,426,632.55 1,204,000.29 \r\n2,895,000.00 550.00 \r\n495,975.50 \r\n43,836,452.61 \r\n-2,757,063.41 \r\n \r\n184,355.00 \r\n184,355.00 -459,305.00 3,340,959.71 \r\n \r\n-2,960,459.61 -2,960,459.61 -1,689,894.07 4,311,278.75 \r\n \r\n2,960,459.61 \r\n2,960,459.61 -423,509.34 \r\n1,856,863.50 \r\n \r\n184,355.00 2,960,459.61 -2,960,459.61 \r\n184,355.00 \r\n-2,572,708.41 \r\n9,509,101.96 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,881,654.71 $ 2,621,384.68 $ 1,433,354.16 $ 6,936,393.55 \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 WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2014 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \r\nBond Principal Retirements Amortization of Bond Premiums \r\nTotal Long-Term Debt Repayments \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -2,572,708.41 \r\n \r\n$ 1,489,791.56 -1,248,861.47 \r\n \r\n240,930.09 -210,990.33 -109,740.98 \r\n \r\n$ 2,895,000.00 139,493.20 \r\n \r\n3,034,493.20 \r\n \r\n$ 381,983.57 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\nNET POSITION Held in Trust for Private Purposes \r\n \r\nWHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2014 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n27,331.24 $ 126,548.14 \r\n \r\n39,075.00 \r\n \r\n$ \r\n \r\n66,406.24 $ 126,548.14 \r\n \r\n$ 126,548.14 \r\n \r\n$ \r\n \r\n66,406.24 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2014 \r\nADDITIONS Contributions Donors Other Additions Total Additions \r\nDEDUCTIONS Other Deductions Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n6,252.77 \r\n \r\n4,849.31 \r\n \r\n11,102.08 \r\n \r\n4,500.00 6,602.08 59,804.16 \r\n \r\n$ \r\n \r\n66,406.24 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds. 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. All remaining governmental funds are aggregated and reported as nonmajor funds. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District reports the following fiduciary fund types: \r\n \r\n Private Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship. \r\n \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \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 fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\n \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\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\nRESTATEMENT OF PRIOR YEAR NET POSITION \r\nFor fiscal year 2014, the School District made several prior period adjustments due to the adoption of GASB Statement No. 65, as described in \"New Accounting Pronouncements\" below, which require the restatement of the June 30, 2013, net position in Governmental Activities. The result is a decrease in Net Position at July 1, 2013 of $167,817.73. This change is in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2013, as previously reported Reclassification of Bond Issuance Costs \r\n \r\n$ 54,918,482.02 -167,817.73 \r\n \r\nNet Position, July 1, 2013, as restated \r\n \r\n$ 54,750,664.29 \r\n \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2014, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The provisions of this Statement establish accounting and financial reporting standards that reclassify, as deferred outflows or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows or inflows of resources, certain items that were previously reported as assets and liabilities. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \r\nFUTURE ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2015, the School District will adopt Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Based on information provided by the Teacher Retirement System of Georgia (TRS), the School District's liability for its proportionate share of the Net Pension Liability of the pension plan administered through TRS is estimated to be $24.2 million at June 30, 2015. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits \r\nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\nThe White County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on July 29, 2013 (levy date) based on property values as of January 1, 2013. Taxes were due on November 15, 2013 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2013 tax digest are reported as revenue in the governmental funds for fiscal year 2014. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.50% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2014, for maintenance and operations amounted to $14,784,646.34 and for school bonds amounted to $4,732.69. \r\nThe tax millage rate levied for the 2013 tax year (calendar year) for the White County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n17.523 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $528,209.79 during fiscal year ended June 30, 2014. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,380,569.65 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nAny Amount \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nBuildings and Improvements \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nEquipment \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nComputer Applications \r\n \r\n$ \r\n \r\n45,000.00 \r\n \r\nN/A 20 years \r\n10 to 80 years 5 to 20 years 6 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 10 to 20 years. \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of net position and/or the balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. The School District did not have any items that qualified for reporting in this category for the year ended June 30, 2014. \r\nIn addition to liabilities, the statement of net position and/or the balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. The School District has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reporting only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and grants and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \r\n \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNET POSITION \r\nThe School District's net position in the District-wide Statements is classified as follows: \r\nNet investment in capital assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2014, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\n \r\n$ \r\n \r\n65,106.83 \r\n \r\n$ \r\n \r\n146,927.68 \r\n \r\n2,621,384.68 \r\n \r\n1,433,354.16 \r\n \r\n4,201,666.52 \r\n \r\nAssigned School Activity Accounts \r\n \r\n498,130.23 \r\n \r\nUnassigned \r\n \r\n2,171,489.97 \r\n \r\nFund Balance, June 30, 2014 \r\n \r\n$ 6,936,393.55 \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, 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 Official Code of Georgia Annotated section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10 percent of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 10 percent of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 4: DEPOSITS \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\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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\n \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \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\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2014, the School District had deposits with a carrying amount of $8,158,251.78, which includes $39,075.00 in Certificates of Deposit that are reported as Investments, and a bank balance of $9,593,341.77. The bank balances insured by Federal depository insurance were $278,267.20. \r\n \r\nThe amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2014, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n9,315,074.57 \r\n \r\nTotal \r\n \r\n$ 9,315,074.57 \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2013 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nTransfers \r\n \r\nBalances June 30, 2014 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,021,886.00 0.00 $ \r\n \r\n$ 759,178.40 \r\n \r\n0.00 $ \r\n \r\n-810.00 $ 2,021,076.00 759,178.40 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n2,021,886.00 \r\n \r\n759,178.40 \r\n \r\n0.00 \r\n \r\n-810.00 \r\n \r\n2,780,254.40 \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\n64,264,889.81 7,539,873.20 2,357,323.54 \r\n \r\n353,748.51 313,046.00 \r\n63,818.65 \r\n \r\n229,649.34 \r\n \r\n-202,606.21 203,522.21 \r\n \r\n64,186,382.77 8,056,441.41 2,421,142.19 \r\n \r\n8,351,265.42 5,121,553.47 2,029,728.34 \r\n \r\n805,033.88 420,547.72 \r\n23,279.87 \r\n \r\n18,659.01 \r\n \r\n90,257.19 -90,151.19 \r\n \r\n9,227,897.48 5,451,950.00 2,053,008.21 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n58,659,539.32 \r\n \r\n-518,248.31 \r\n \r\n210,990.33 \r\n \r\n810.00 57,931,110.68 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 60,681,425.32 $ 240,930.09 $ 210,990.33 $ \r\n \r\n0.00 $ 60,711,365.08 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nEducational Media Services \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$ \r\n39,075.12 10,666.49 79,380.73 30,274.15 192,955.86 \r\n \r\n867,313.67 \r\n352,352.35 29,195.45 \r\n \r\n$ 1,248,861.47 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2014, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From District-wide Capital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ 2,960,459.61 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the current year bond principal and interest payments. \r\n \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\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\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\n2013 $ 2014 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n38,490.00 $ 1,447.00 $ \r\n \r\n38,490.00 $ 1,447.00 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nby Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. In addition to the $550,000 per occurrence retention, the Fund also retains an additional $150,000.00 per year corridor retention. \r\nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: LONG-TERM LIABILITIES \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2010 General Government - Series 2012 \r\n \r\n3.0% to 5.0% $ 8,135,000.00 \r\n \r\n2.0% to 3.0% \r\n \r\n3,855,000.00 \r\n \r\n$ 11,990,000.00 \r\n \r\nVoters have authorized $1,745,000.00 in general obligation debt for Capital purchases which was not issued as of June 30, 2014. \r\nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2014, were as follows: \r\n \r\nBalance July 1, 2013 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2014 \r\n \r\nDue Within One Year \r\n \r\nG. O. Bonds \r\n \r\n$ 14,885,000.00 $ \r\n \r\nBond Premiums Amortized \r\n \r\n697,465.01 \r\n \r\n0.00 $ 2,895,000.00 $ 11,990,000.00 $ 2,870,000.00 \r\n \r\n139,493.20 \r\n \r\n557,971.81 \r\n \r\n139,493.20 \r\n \r\n$ 15,582,465.01 $ \r\n \r\n0.00 $ 3,034,493.20 $ 12,547,971.81 $ 3,009,493.20 \r\n \r\nAt June 30, 2014, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2015 2016 2017 2018 \r\n \r\n$ 2,870,000.00 $ 2,950,000.00 3,030,000.00 3,140,000.00 \r\n \r\n404,250.00 $ 327,450.00 248,450.00 137,000.00 \r\n \r\n139,493.20 139,493.00 139,493.00 139,492.61 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 11,990,000.00 $ 1,117,150.00 $ 557,971.81 \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $1,811,250.16 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,699,188.00 \r\n \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $29,715.16 \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 $82,347.00 \r\n \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2014: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nJP Nix Primary School Modifications \r\n \r\n$ \r\n \r\n409,105.35 \r\n \r\nThe amount described in this note is not reflected in the basic financial statements. \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: SUBSEQUENT EVENTS \r\nIn the subsequent fiscal year, voters of the White County School District authorized a special one percent sales tax for a period not to exceed twenty (20) calendar quarters and for the purpose of raising not more than $24,000,000.00 for the purpose of (i) acquiring, constructing and equipping one new ninth grade academy and an auxiliary gym at White County High School, (ii) adding to, constructing, renovating, repairing, improving and equipping existing school buildings and school system facilities, including athletic facilities, (iii) acquiring computers and computer technology equipment and software, including tablets and laptops, (iv) acquiring heating, air conditioning and energy efficiency equipment, (v) acquiring textbooks and other instructional materials and electronic media, as well as school buses, transportation and maintenance equipment and band equipment, (vi) paying any general obligation debt of the School District issued in conjunction with the imposition of such sales and use tax, and (vii) paying the expenses incident to accomplish the foregoing. Voters also authorized the issuance of $15,000,000.00 in general obligation debt to be expended on projects (i) - (v) and (vii) and for payment of a portion of interest on such debt. \r\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 14: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2014: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\nJuly 1, 2013 - June 30, 2014 $945.00 per member per month \r\nFor non-certificated school personnel: \r\nJuly 1, 2013 - June 30, 2014 $596.20 per member per month \r\nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n4,242,888.80 \r\n \r\n$ \r\n \r\n3,787,766.48 \r\n \r\n$ \r\n \r\n3,856,777.06 \r\n \r\nNOTE 15: 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, 2014, were 6.00% of annual salary. Employer contributions required for fiscal year 2014 were 12.28% of annual salary as required by the June 30, 2011, actuarial valuation. \r\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"I\" \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2,386,618.83 \r\n \r\n$ \r\n \r\n2,309,283.34 \r\n \r\n$ \r\n \r\n2,284,521.02 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers From Other Funds Sale of Building Operating Transfers To Other Funds \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$ 14,476,680.00 $ 14,476,680.00 $ 14,784,646.34 $ \r\n \r\n307,966.34 \r\n \r\n150,000.00 \r\n \r\n150,000.00 \r\n \r\n302,384.72 \r\n \r\n152,384.72 \r\n \r\n18,218,210.77 \r\n \r\n18,045,954.52 \r\n \r\n16,439,567.57 \r\n \r\n-1,606,386.95 \r\n \r\n4,635,667.53 \r\n \r\n4,203,372.54 \r\n \r\n4,289,874.18 \r\n \r\n86,501.64 \r\n \r\n626,555.00 \r\n \r\n626,555.00 \r\n \r\n791,589.71 \r\n \r\n165,034.71 \r\n \r\n7,620.00 \r\n \r\n7,620.00 \r\n \r\n9,879.13 \r\n \r\n2,259.13 \r\n \r\n1,072,529.62 \r\n \r\n1,071,384.00 \r\n \r\n1,067,532.08 \r\n \r\n-3,851.92 \r\n \r\n39,187,262.92 \r\n \r\n38,581,566.06 \r\n \r\n37,685,473.73 \r\n \r\n-896,092.33 \r\n \r\n24,402,241.21 \r\n1,173,179.22 959,822.55 739,585.23 739,984.73 \r\n2,342,110.63 283,627.07 \r\n2,335,406.45 2,271,935.62 \r\n327,902.61 351,819.45 \r\n2,425,980.98 \r\n38,353,595.75 \r\n833,667.17 \r\n \r\n25,931,710.76 \r\n1,442,756.14 1,312,081.22 \r\n740,729.57 750,922.73 2,350,397.72 283,627.07 2,334,522.29 2,259,427.86 336,002.61 463,938.95 \r\n2,346,993.46 \r\n40,553,110.38 \r\n-1,971,544.32 \r\n \r\n23,696,055.17 \r\n1,304,432.46 1,080,472.11 \r\n774,724.40 707,732.38 2,263,061.68 276,987.27 2,326,399.64 2,260,719.59 350,784.29 519,058.04 342,074.15 2,426,632.55 \r\n38,329,133.73 \r\n-643,660.00 \r\n \r\n2,235,655.59 \r\n138,323.68 231,609.11 -33,994.83 \r\n43,190.35 87,336.04 \r\n6,639.80 8,122.65 -1,291.73 -14,781.68 -55,119.09 -342,074.15 -79,639.09 \r\n2,223,976.65 \r\n1,327,884.32 \r\n \r\n105,000.00 184,302.50 -105,000.00 \r\n184,302.50 \r\n1,017,969.67 \r\n3,832,948.17 \r\n24,901.73 \r\n \r\n129,000.00 184,302.50 -129,000.00 \r\n184,302.50 \r\n-1,787,241.82 \r\n4,239,098.32 \r\n-28,085.91 \r\n \r\n184,355.00 \r\n184,355.00 -459,305.00 3,340,959.71 \r\n \r\n-129,000.00 52.50 \r\n129,000.00 \r\n52.50 \r\n1,327,936.82 \r\n-898,138.61 \r\n28,085.91 \r\n \r\nFund Balances - Ending \r\n \r\n$ 4,875,819.57 $ 2,423,770.59 $ 2,881,654.71 $ \r\n \r\n457,884.12 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nForest Service Schools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Rural Education Title 1 Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \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 $ 2,339,856.24 (1) \r\n \r\n2,339,856.24 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) 2,339,856.24 \r\n \r\n* 84.027 \r\n \r\nN/A \r\n \r\n* 84.173 \r\n \r\nN/A \r\n \r\n84.395 \r\n \r\nN/A \r\n \r\n84.048 \r\n \r\nN/A \r\n \r\n84.367 \r\n \r\nN/A \r\n \r\n84.358 \r\n \r\nN/A \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n84.287 \r\n \r\nN/A \r\n \r\n664,534.88 21,851.31 \r\n686,386.19 \r\n405,098.01 47,869.51 \r\n140,215.67 101,471.84 990,284.11 380,469.25 \r\n2,065,408.39 \r\n2,751,794.58 \r\n \r\n134,465.51 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 5,226,116.33 \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 $120,174.53. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($392,442.98) were not maintained separately and are included in the 2014 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $41,774.05, do not require reporting of expenditures. \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 White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \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 English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Other State Programs Food Services Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Technology to Support Digital Learning Bonds Vocational Education \r\nOffice of the State Treasurer Public School Employees' Retirement \r\nCONTRACTS Human Resources, Georgia Department of Mh/Mr Substance Abuse and Violence Prevention Family Connection \r\n \r\n(1) Payments to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District in the amount of $1,699,188.00 are included as part of the Quality Basic Education revenue allotments above. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\nSCHEDULE \"3\" \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n$ 1,241,139.40 115,041.00 \r\n2,811,806.00 250,840.00 \r\n1,294,530.00 285,563.00 \r\n2,380,012.00 1,870,929.00 \r\n803,581.00 2,664,479.00 \r\n537,581.00 36,046.00 \r\n164,196.00 54,362.00 \r\n400,002.60 123,913.00 \r\n75,202.00 \r\n493,268.00 899,412.00 909,977.00 \r\n17,857.00 -2,437,482.00 \r\n306,038.00 \r\n492,321.00 75,542.00 13,367.00 \r\n56,833.00 50,941.77 151,940.00 29,715.16 19,000.00 83,600.15 \r\n82,347.00 \r\n36,422.31 49,245.18 \r\n$ 16,439,567.57 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED COST (1) (5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) (5) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n2009 SPLOST Referendum \r\n \r\n(ii) adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities, \r\n \r\n$ 1,138,332.00 $ 4,102,225.09 $ 1,257,627.56 $ 1,244,225.09 \r\n \r\n(iii) acquiring computers and computer technology equipment, \r\n \r\n1,185,569.00 2,727,274.49 \r\n \r\n684,874.33 \r\n \r\n1,702,274.49 \r\n \r\n(v) acquiring, constructing and equipping new gymnasium at the existing intermediate school, \r\n \r\n1,200,000.00 \r\n \r\n(vi) acquiring heating, air conditioning and energy efficiency equipment, \r\n \r\n1,706,029.00 \r\n \r\n(vii) acquiring textbooks and other instructional materials and transportation equipment, \r\n \r\n136,000.00 \r\n \r\n703,730.00 \r\n \r\n254,547.28 \r\n \r\n237,392.47 \r\n \r\n(viii) paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds on August 1, 2013, the maximum payment not to exceed $320,000.00. \r\n \r\n320,000.00 \r\n \r\n127,090.23 \r\n \r\n127,090.23 \r\n \r\n$ 127,090.23 \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nJuly 2016 May 2017 Completed Completed May 2017 \r\nCompleted \r\n \r\n$ 5,685,930.00 $ 7,660,319.81 $ 2,324,139.40 $ 3,183,892.05 $ 127,090.23 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all costs from project inception to completion. \r\n \r\n(3) The voters of White County approved a continuation of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 3,044,494.79 \r\n \r\nCurrent Year Total \r\n \r\n495,975.50 $ 3,540,470.29 \r\n \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000.00 in general obligation debt. Initially, the system issued $10,000,000.00 of general obligation debt to build the middle school. In October 2012, the School District issued additional bonds in the amount of $4,255,000.00 of the $6,000,000.00 outstanding to be used for projects approved in the 2009 SPLOST. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,558,976.00 $ 1,576,918.46 $ 20,358.89 $ 1,597,277.35 \r\n \r\n144,585.00 \r\n \r\n107,073.79 \r\n \r\n409.05 \r\n \r\n107,482.84 \r\n \r\n3,614,871.00 \r\n \r\n3,317,686.65 \r\n \r\n92,755.01 \r\n \r\n3,410,441.66 \r\n \r\n296,074.00 \r\n \r\n224,676.86 \r\n \r\n430.70 \r\n \r\n225,107.56 \r\n \r\n1,672,495.00 \r\n \r\n1,846,347.58 \r\n \r\n25,787.04 \r\n \r\n1,872,134.62 \r\n \r\n328,961.00 3,041,749.00 2,384,521.00 1,023,955.00 3,405,029.00 \r\n710,800.00 51,575.00 \r\n213,546.00 69,373.00 \r\n \r\n682.78 3,170,960.28 3,003,288.02 \r\n786,362.58 \r\n312,927.18 369,130.30 1,641,110.22 346,904.26 \r\n27,996.44 1,104,311.69 \r\n20,405.12 15,360.97 178,178.62 \r\n \r\n120,540.63 170,499.56 \r\n59,923.50 \r\n569.50 23,158.24 \r\n1,563.79 \r\n10,431.53 \r\n348.61 \r\n \r\n682.78 3,291,500.91 3,173,787.58 \r\n846,286.08 \r\n312,927.18 369,699.80 1,664,268.46 348,468.05 \r\n27,996.44 1,114,743.22 \r\n20,405.12 15,360.97 178,527.23 \r\n \r\n18,516,510.00 \r\n \r\n18,050,321.80 \r\n \r\n526,776.05 \r\n \r\n18,577,097.85 \r\n \r\n510,727.00 93,068.00 \r\n \r\n627,431.77 2,384.27 \r\n \r\n102,043.45 13,496.23 \r\n \r\n729,475.22 15,880.50 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n19,120,305.00 $ 18,680,137.84 $ 642,315.73 $ 19,322,453.57 \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- 31 - \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\nOctober 8, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated October 8, 2015. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered White County Board of Education's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control. \r\nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be a material weakness and a significant deficiency. \r\n \r\n2014YB-40 \r\n \r\n  A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2014-002 to be a material weakness. \r\nA significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2014-001 to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of White County Board of Education in a separate letter dated October 8, 2015. \r\nWhite County Board of Education's Response to Findings \r\nWhite County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. White County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2014YB-40 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 8, 2015 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited White County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. White County Board of Education's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of White County Board of Education's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of White County Board of Education's compliance. \r\n2014SA-10 \r\n \r\n  Opinion on Each Major Federal Program \r\nIn our opinion, the White County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2014. \r\nReport on Internal Control over Compliance \r\nManagement of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered White County Board of Education's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2014SA-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  WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \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  WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nYes \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.027, 84.173 \r\n \r\nChild Nutrition Cluster Special Education Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-001 Inadequate Internal Control Procedures \r\n \r\nControl Category: \r\n \r\nCash and Cash Equivalents \r\n \r\nExpenditures/Liabilities/Disbursements \r\n \r\nGeneral Ledger \r\n \r\nInternal Control Impact: \r\n \r\nSignificant Deficiency \r\n \r\nDescription: The accounting procedures of the School District were insufficient to ensure that transactions were recorded accurately on the general ledger. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed and recorded completely and accurately. \r\n \r\nCondition: The following deficiencies were noted during our audit procedures: Cash and Cash Equivalents \r\n Bank reconciliations for several accounts did not show dates that evidenced a timely reconciliation occurred. \r\n The School Nutrition account was not reconciled to the general ledger. An unidentified variance of $14,820.51 was noted on the bank reconciliation. \r\n Several club accounts maintained a negative balance at year-end. As a result, funds from other agency accounts were used to cover the balances. This use of funds violates the custodial nature of agency funds. \r\n \r\nExpenditures/Liabilities/Disbursements  The process of writing, approving, and recording checks is performed by one individual with no evidence of review by someone independent of the cash disbursements process.  No supporting documentation was on file to show evidence that credit card transactions, exceeding card holder limits, were preapproved. \r\n \r\nGeneral Ledger \r\n A test of journal entries, created at the school level, did not show evidence of review or approval by the school principal. \r\n Several federal program funds maintained negative balances at year-end. Auditors were unable to determine if these balances were the result of excessive grant spending or under claims of requests for reimbursements from current/prior year grants. Grant activity was not separated by specific fund identifiers, which inhibited the auditors ability to determine (if true statement) which fiscal year grant expenditures related to. \r\n \r\nCause: In discussing this condition with the School District, management indicated that procedures were lacking to document the new paperless flow of transactions and approvals which resulted in inadequate documentation available for auditors to verify that procedures were in place and adhered to. Changes in personnel and inadequate training resulted in inconsistent review of day-to-day activities performed by school nutrition and accounting personnel. \r\n \r\n- 2 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nEffect or Potential Effect: Errors and/or irregularities may not be detected in a timely manner. \r\n \r\nRecommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions. Additionally, training should be provided to the personnel responsible for performing and monitoring these functions. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with expenditures needing additional written procedures to ensure evidence of compliance with procedures. The Chief Financial Officer had already implemented procedures for the FY 15 fiscal year that addressed their new paperless flow of documents in payroll, HR and accounts payable to ensure there is written evidence that procedures are being followed in the day-to-day operations. This includes written approval of check register listing prior to cutting checks, updated written approvals of credit card transactions and improved procedures of dating and signing final payroll registers. Bank reconciliations are prepared and approved on a timely basis each month after month-end close. In the FY 13 audit, there was a management comment recommending that someone in addition to the Chief Financial Officer review and approve bank reconciliations that are prepared by the Finance Department's staff accountant. That audit report was completed and released in the Fall of 2014. As a result, the School District did not have time to correct procedures for FY 14. On the other hand, the Chief Financial Officer did go back for all 12 months to have the Superintendent review and sign all bank account reconciliations. In this process, in some months, dates were not entered with the Superintendent's signature. In addition, there were some bank reconciliations that did not have a date next to the approver's signature. The Chief Financial Officer has since developed a form for ALL accounts to be used for the approval process that will facilitate the dating and signing of these reconciliations to provide the necessary documentation and proof that procedures are being followed. There was a change in personnel in the bookkeeping position in School Nutrition at the end of FY 2014 which temporarily affected procedures relating to the accurate reconciliation of the bank account. Once the new staff member was in place and trained, the bank account was reconciled accurately and updated procedures have been put in place to ensure the bank account is reconciled accurately and on a timely basis. In the process of preparing the financial statements for FY 2014, the Chief Financial Officer discussed with Brad Freeman at the DOAA that many of the Federal Programs had negative fund balances relating to prior years federal programs. Mr. Freeman commented that this wasn't uncommon and that for FY 14 these balances should be cleared. The Chief Financial Officer made journal entries to correct the balances but still had challenges with reconciling the federal programs for this fiscal year due to prior year balances and issues from the previous software conversion. All FY 14 grants were reconciled for current year revenue and expenditures and accurate completion reports were filed. The Chief Financial Officer is obtaining training and assistance to establish correcting entries for federal programs beginning fund balances for FY 2015 and will establish more detailed procedures to reconcile federal program activity on a monthly basis. Lastly, both the Chief Financial Officer and the Staff Accountant will be attending an all day workshop on Developing a School System's Financial Policies and Procedures in November 2015 at the GASBO conference. \r\n \r\nContact Person: Title: Telephone: Fax: E-mail: \r\n \r\nTrish Harris-Fussell Chief Financial Officer (706) 865-2315, ext. 1007 (706) 865-7784 trish.fussell@white.k12.ga.us \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2014-002 Inadequate Controls over the Financial Reporting Process \r\n \r\nControl Category: \r\n \r\nFinancial Reporting \r\n \r\nInternal Control Impact: \r\n \r\nMaterial Weakness \r\n \r\nDescription: The School District's financial statements as presented for audit contained significant errors and omissions in accordance with generally accepted accounting principles (GAAP). \r\n \r\nCriteria: The School District is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\n \r\nGASB Statement No. 34, Basic Financial Statements - Management's Discussion and Analysis - for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the Statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\n \r\nChapter 22A, Annual Financial Reporting, of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition: The following deficiencies were noted with the School District's financial statements: \r\n Net Investment in Capital Assets was understated by $3,585,432.88. An adjustment was proposed and accepted to correct this error. \r\n The trial balance for Private Purpose Trust Funds did not balance and included an unidentified account. The ending balance for \"Held in Trust for Private Purpose\" did not agree to total assets recorded on the trial balance. Adjustments were proposed and accepted to correct these errors. \r\n The Notes to the Basic Financial Statements did not include an analysis of significant outstanding construction contracts executed by the School District as of June 30, 2014 (JP Nix Primary Renovations). A note disclosure was proposed and accepted to correct this omission. \r\n The Notes to the Basic Financial Statements did not include payments made on the School District's behalf by the Georgia Department of Education to the Department of Community Health for health insurance in the amount of $1,699,188.00. An adjustment was proposed and accepted to correct this note. \r\n The bank balance for cash was understated by $1,629,761.25 in the Notes to the Basic Financial Statements. An adjustment was proposed and accepted to correct this note. \r\n The Schedule of Expenditures of Federal Awards understated total Federal expenditures by $432,019.07. Adjustments were proposed and accepted to correct the errors made to the various Federal programs. \r\n \r\n- 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCause: The Finance Director indicated that the items noted were instances of oversight, not following an entry made in the financial statements through to inclusion in the Notes to the Basic Financial Statements or a lack of understanding of the nature of the entry and/or note. \r\n \r\nEffect or Potential Effect: The School District's management or its employees, in the normal course of performing their assigned functions, may not prevent or detect financial statement misstatements and disclosure omissions in a timely manner. Significant misstatements were noted in the current year financial statements presented for audit. \r\n \r\nRecommendation: As part of internal control over the preparation of financial statements, including disclosures, the School District should continue to implement comprehensive preparation and/or review procedures to ensure that the financial statements are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of the applicable GAAP, GASB pronouncements, and knowledge of the School District's activities and operations. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The Chief Financial Officer will implement procedures to ensure that all activity is included in the financial statements and Notes to the Financial Statements in the correct classifications. We will continue seeking guidance from the Georgia Department of Education and the Georgia Department of Audits and Accounts to make sure correct procedures are followed and financial transactions are reflected properly in the Notes to the Financial Statements. In addition, the Chief Financial Officer will attend the DOAA's annual Financial Statement Preparation workshop in November 2015. \r\n \r\nContact Person: Title: Telephone: Fax: E-mail: \r\n \r\nTrish Harris-Fussell Chief Financial Officer (706) 865-2315, ext. 1007 (706) 865-7784 trish.fussell@white.k12.ga.us \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n- 5 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2011-h2012-belec-p-btext","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n25 26 28 \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n29 31 \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  WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \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\nNovember 5, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2012, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nManagement has omitted Management's Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an \r\n2012ARL-11 \r\n \r\n  essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated November 5, 2013, on our consideration of the White County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, 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 White County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories Capitalized Bond and Other Debt Issuance Costs Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n$ 5,916,640.41 \r\n772,527.20 2,715,228.95 \r\n622,516.89 639.12 \r\n82,062.58 105,634.57 2,021,886.00 59,163,628.49 \r\n$ 71,400,764.21 \r\n \r\n$ \r\n \r\n37,143.35 \r\n \r\n3,791,922.75 \r\n \r\n3,413,387.58 11,096,937.87 \r\n \r\n$ 18,339,391.55 \r\n \r\n$ 46,990,880.46 \r\n472,898.91 1,923,537.40 1,212,186.12 2,461,869.77 \r\n$ 53,061,372.66 \r\n \r\n$ 71,400,764.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2012 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 26,050,806.87 $ \r\n1,211,549.50 1,138,392.90 \r\n989,523.58 725,306.99 2,299,430.07 275,210.83 2,310,612.83 1,951,550.30 266,577.60 259,186.60 \r\n300,822.11 3,790.00 \r\n2,184,162.11 535,624.02 \r\n$ 40,502,546.31 $ \r\n \r\n178,725.41 \r\n25,000.00 11,329.07 \r\n649,388.84 864,443.32 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ 13,422,379.85 $ 1,131,247.34 $ -11,318,454.27 \r\n \r\n674,201.25 977,687.67 521,864.06 268,862.47 1,023,169.08 106,211.99 1,221,660.62 712,948.67 106,807.95 \r\n91,782.44 \r\n \r\n40,750.65 \r\n7,716.10 14,427.77 33,496.87 \r\n9,578.36 408,120.92 \r\n \r\n-496,597.60 -160,705.23 -459,943.42 -442,016.75 -1,242,764.12 -168,998.84 -1,054,373.85 -819,151.64 -159,769.65 -167,404.16 \r\n \r\n1,430,562.75 \r\n \r\n6,704.69 44,587.88 \r\n \r\n-294,117.42 -3,790.00 \r\n-59,622.64 -535,624.02 \r\n \r\n$ 20,558,138.80 $ 1,696,630.58 $ -17,383,333.61 \r\n \r\n$ 15,016,524.56 338,719.88 \r\n3,383,189.77 162,205.48 32,070.29 \r\n1,283,506.94 $ 20,216,216.92 $ 2,832,883.31 \r\n50,228,489.35 \r\n$ 53,061,372.66 \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2012 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,564,110.56 $ \r\n453,125.03 2,251,437.45 \r\n622,516.89 639.12 \r\n82,062.58 \r\n \r\n439,024.65 $ 1,913,505.20 $ 5,916,640.41 \r\n \r\n309,369.97 463,791.50 \r\n \r\n10,032.20 \r\n \r\n772,527.20 2,715,228.95 \r\n622,516.89 639.12 \r\n82,062.58 \r\n \r\n$ 6,973,891.63 $ 1,212,186.12 $ 1,923,537.40 $ 10,109,615.15 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n37,143.35 \r\n \r\n3,791,922.75 \r\n \r\n76,577.02 \r\n \r\n$ 3,905,643.12 \r\n \r\n$ \r\n \r\n37,143.35 \r\n \r\n3,791,922.75 \r\n \r\n$ \r\n \r\n1,782.03 \r\n \r\n78,359.05 \r\n \r\n$ \r\n \r\n1,782.03 $ 3,907,425.15 \r\n \r\n$ \r\n \r\n82,062.58 \r\n \r\n$ \r\n \r\n82,062.58 \r\n \r\n472,898.91 $ 1,212,186.12 $ 1,921,755.37 \r\n \r\n3,606,840.40 \r\n \r\n440,052.78 \r\n \r\n440,052.78 \r\n \r\n2,073,234.24 \r\n \r\n2,073,234.24 \r\n \r\n$ 3,068,248.51 $ 1,212,186.12 $ 1,921,755.37 $ 6,202,190.00 \r\n \r\n$ 6,973,891.63 $ 1,212,186.12 $ 1,923,537.40 $ 10,109,615.15 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand 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\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Deferred Charge for Bond Issuance Costs Unamortized Bond Premiums \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 6,202,190.00 \r\n \r\n$ 2,021,886.00 2,357,323.54 \r\n64,342,548.07 7,273,087.49 \r\n-14,809,330.61 \r\n \r\n61,185,514.49 \r\n \r\n78,359.05 \r\n \r\n$ -13,950,000.00 105,634.57 -560,325.45 \r\n \r\n-14,404,690.88 \r\n \r\n$ 53,061,372.66 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 15,357,822.62 158,578.99 $ \r\n16,444,874.16 4,265,703.65 864,443.32 17,256.45 1,004,741.53 \r\n \r\n$ 3,383,189.77 1,544,191.57 \r\n10,051.58 278,765.40 \r\n \r\n$ 38,113,420.72 $ 5,216,198.32 $ \r\n \r\n343,525.97 $ 3,626.49 \r\n4,762.26 \r\n \r\n15,701,348.59 3,545,395.25 \r\n17,989,065.73 4,265,703.65 864,443.32 32,070.29 1,283,506.93 \r\n \r\n351,914.72 $ 43,681,533.76 \r\n \r\n$ 24,317,461.16 $ 1,532,090.86 \r\n \r\n$ 25,849,552.02 \r\n \r\n1,180,417.11 1,138,392.90 \r\n859,313.09 714,465.15 2,274,182.94 257,605.07 2,293,861.25 1,923,189.66 266,577.60 259,186.60 296,398.13 \r\n2,162,396.50 \r\n \r\n125,091.31 \r\n9,009.50 20,163.00 \r\n3,790.00 3,992,043.04 \r\n \r\n1,180,417.11 1,138,392.90 \r\n984,404.40 714,465.15 2,274,182.94 257,605.07 2,302,870.75 1,943,352.66 266,577.60 259,186.60 296,398.13 \r\n3,790.00 2,162,396.50 3,992,043.04 \r\n \r\n$ 382,000.00 \r\n \r\n3,190,000.00 3,175.00 \r\n243,836.60 \r\n \r\n3,190,000.00 3,175.00 \r\n625,836.60 \r\n \r\n$ 37,943,447.16 $ 6,064,187.71 $ 3,437,011.60 $ 47,444,646.47 \r\n \r\n$ \r\n \r\n169,973.56 $ -847,989.39 $ -3,085,096.88 $ -3,763,112.71 \r\n \r\n$ 3,466,188.22 $ -3,466,188.22 \r\n \r\n3,466,188.22 -3,466,188.22 \r\n \r\n$ -3,466,188.22 $ 3,466,188.22 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n169,973.56 $ -4,314,177.61 $ \r\n \r\n381,091.34 $ -3,763,112.71 \r\n \r\n2,898,274.95 \r\n \r\n5,526,363.73 \r\n \r\n1,540,664.03 \r\n \r\n9,965,302.71 \r\n \r\n$ 3,068,248.51 $ 1,212,186.12 $ 1,921,755.37 $ 6,202,190.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2012 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\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\nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nBond Principal Retirements Amortization of Bond Premiums \r\nTotal Long-Term Debt Repayments \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -3,763,112.71 \r\n \r\n$ 5,064,173.74 -1,252,338.39 \r\n \r\n3,811,835.35 \r\n \r\n-135,517.00 \r\n \r\n-346,104.15 \r\n \r\n-17,605.76 \r\n \r\n$ 3,190,000.00 93,387.58 \r\n \r\n3,283,387.58 \r\n \r\n$ 2,832,883.31 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2012 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n17,191.21 $ \r\n \r\n159,937.45 \r\n \r\n39,075.00 \r\n \r\n$ \r\n \r\n56,266.21 $ \r\n \r\n159,937.45 \r\n \r\n$ \r\n \r\n159,937.45 \r\n \r\n$ \r\n \r\n56,266.21 \r\n \r\n$ \r\n \r\n56,266.21 $ \r\n \r\n159,937.45 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2012 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Other Deductions Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n360.02 \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n360.02 \r\n \r\n55,906.19 \r\n \r\n$ \r\n \r\n56,266.21 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange 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. All remaining governmental funds are aggregated and reported as non-major 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), Bond Proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. - 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship. \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Non-exchange 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, 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 are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\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 \r\n \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nreported 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 \r\n1. Obligations issued by the State of Georgia or by other states, \r\n \r\n2. Obligations issued by the United States government, \r\n \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n4. Obligations of any corporation of the United States government, \r\n \r\n5. Prime banker's acceptances, \r\n \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n \r\n7. Repurchase agreements, and \r\n \r\n8. Obligations of other political subdivisions of the State of Georgia. \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 White County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on July 29, 2011 (levy date). Taxes were due on November 15, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2012, for maintenance and operations amounted to $15,357,822.62 and for school bonds amounted to $343,525.97. \r\n \r\nTax millage rates levied for the 2011 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n15.59 mills 0.34 mills \r\n \r\n15.93 mills \r\n \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,383,189.77 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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 where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Computer Applications \r\n \r\nAny Amount \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n45,000.00 \r\n \r\nN/A 20 years \r\n10 to 80 years 5 to 20 years 6 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 10 to 20 years. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs, during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In addition, general obligation bonds have been \r\n \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nissued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \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, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \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, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n82,062.58 \r\n \r\n$ \r\n \r\n472,898.91 \r\n \r\n1,212,186.12 \r\n \r\n1,921,755.37 \r\n \r\n3,606,840.40 \r\n \r\n440,052.78 2,073,234.24 \r\n \r\nFund Balance, June 30, 2012 \r\n \r\n$ 6,202,190.00 \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, 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. 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\nSee Schedule 1  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\ninsurance. 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\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \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\n \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \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\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2012, the bank balances were $6,908,221.74. The amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2012, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n6,613,543.75 \r\n \r\nTotal \r\n \r\n$ 6,613,543.75 \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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 Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,021,886.00 \r\n \r\n$ 2,021,886.00 \r\n \r\n9,511,197.28 $ 4,526,377.00 $ 14,037,574.28 \r\n \r\n0.00 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 11,533,083.28 $ 4,526,377.00 $ 14,037,574.28 $ 2,021,886.00 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 50,304,973.79 $ 14,037,574.28 \r\n \r\n6,903,367.75 \r\n \r\n537,796.74 $ \r\n \r\n2,357,323.54 \r\n \r\n$ 168,077.00 \r\n \r\n64,342,548.07 7,273,087.49 2,357,323.54 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n7,358,682.24 4,247,579.00 1,983,290.98 \r\n \r\n712,302.79 446,275.99 \r\n93,759.61 \r\n \r\n32,560.00 \r\n \r\n8,070,985.03 4,661,294.99 2,077,050.59 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 45,976,112.86 $ 13,323,032.63 $ \r\n \r\n135,517.00 $ 59,163,628.49 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 57,509,196.14 $ 17,849,409.63 $ 14,173,091.28 $ 61,185,514.49 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Enterprise Operations Food Services \r\n \r\n$ \r\n \r\n$ \r\n \r\n33,048.75 \r\n \r\n6,257.75 \r\n \r\n11,700.91 \r\n \r\n27,165.94 \r\n \r\n7,768.04 \r\n \r\n207,357.88 \r\n \r\n917,440.88 \r\n293,299.27 5,437.50 \r\n36,160.74 \r\n \r\n$ \r\n \r\n1,252,338.39 \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\nDistrict-wide Capital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ 3,466,188.22 \r\n \r\nTransfers are used to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the current year bond principal and interest payments. \r\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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 liabilities 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\n2011 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n14,898.00 $ 2,483.00 $ \r\n \r\n14,898.00 $ 2,483.00 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000 loss per occurrence, up to $2,000,000. \r\n \r\nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: SHORT-TERM DEBT \r\nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nTemporary Loans \r\n \r\n$ \r\n \r\n0.00 $ 2,500,000.00 $ 2,500,000.00 $ \r\n \r\nEnding Balance \r\n0.00 \r\n \r\nNOTE 10: LONG-TERM DEBT \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nGeneral Government - Refunding - Series 2003 General Government - Series 2006 General Government - Series 2007 General Government - Series 2010 \r\n \r\n2.90% 3.6% - 3.73% \r\n3.85% 3.0% - 5.0% \r\n \r\nAmount \r\n$ 1,240,000.00 2,150,000.00 560,000.00 \r\n10,000,000.00 \r\n$ 13,950,000.00 \r\n \r\nVoters have authorized $6,000,000.00 in general obligation debt for capital purchases which was not issued as of June 30, 2012. \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2012, were as follows: \r\n \r\nBalance July 1, 2011 \r\n \r\nAdditions \r\n \r\nGovernmental Funds \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2012 \r\n \r\nDue Within One Year \r\n \r\nG. O. Bonds \r\n \r\n$ 17,140,000.00 $ \r\n \r\nBond Premiums Amortized \r\n \r\n653,713.03 \r\n \r\n0.00 $ 3,190,000.00 $ 13,950,000.00 $ 3,320,000.00 \r\n \r\n93,387.58 \r\n \r\n560,325.45 \r\n \r\n93,387.58 \r\n \r\n$ 17,793,713.03 $ \r\n \r\n0.00 $ 3,283,387.58 $ 14,510,325.45 $ 3,413,387.58 \r\n \r\nAt June 30, 2012, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2013 2014 2015 2016 2017 - 2018 \r\n \r\n$ \r\n \r\n3,320,000.00 $ \r\n \r\n2,495,000.00 \r\n \r\n1,940,000.00 \r\n \r\n2,000,000.00 \r\n \r\n4,195,000.00 \r\n \r\n510,847.60 $ 391,135.00 307,400.00 249,200.00 296,200.00 \r\n \r\n93,387.58 93,387.58 93,387.58 93,387.58 186,775.16 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n13,950,000.00 $ \r\n \r\n1,754,782.60 $ \r\n \r\n560,325.48 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $2,609,911.70 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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 $2,542,621.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $26,583.70 \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 $40,707.00 \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"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 $296.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the \r\n \r\nSchool OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined \r\n \r\nannually by the Board in accordance with the School plan for other post-employment benefits and \r\n \r\nare subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n3,856,777.06 \r\n \r\n$ \r\n \r\n3,282,512.76 \r\n \r\n$ \r\n \r\n3,669,921.20 \r\n \r\nNOTE 14: RETIREMENT PLANS \r\nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand-alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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 Contributed \r\n \r\nRequired Contribution \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2,284,521.02 \r\n \r\n$ \r\n \r\n2,331,210.10 \r\n \r\n$ \r\n \r\n2,137,946.25 \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- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers From Other Funds Operating Transfers To Other Funds \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$ 15,205,057.00 $ 15,252,885.00 $ \r\n \r\n100,000.00 \r\n \r\n100,000.00 \r\n \r\n16,552,366.00 16,562,348.00 \r\n \r\n4,416,524.00 \r\n \r\n4,524,553.08 \r\n \r\n912,800.00 \r\n \r\n912,800.00 \r\n \r\n18,600.00 \r\n \r\n18,600.00 \r\n \r\n975,280.00 \r\n \r\n975,280.00 \r\n \r\n15,357,822.62 $ 158,578.99 \r\n16,444,874.16 4,265,703.65 864,443.32 17,256.45 1,004,741.53 \r\n \r\n$ 38,180,627.00 $ 38,346,466.08 $ 38,113,420.72 $ \r\n \r\n104,937.62 58,578.99 \r\n-117,473.84 -258,849.43 \r\n-48,356.68 -1,343.55 29,461.53 \r\n-233,045.36 \r\n \r\n$ 25,392,475.00 $ 25,327,319.00 $ 24,317,461.16 $ \r\n \r\n1,194,363.00 1,236,203.00 \r\n884,210.00 806,760.00 2,252,835.00 237,890.00 2,340,815.00 1,913,864.00 259,340.00 367,485.00 236,100.00 2,244,430.00 \r\n \r\n1,186,058.00 1,300,006.00 \r\n876,560.00 804,085.00 2,238,564.00 237,890.00 2,339,310.00 1,913,499.00 258,740.00 367,485.00 236,100.00 2,271,047.08 \r\n \r\n1,180,417.11 1,138,392.90 \r\n859,313.09 714,465.15 2,274,182.94 257,605.07 2,293,861.25 1,923,189.66 266,577.60 259,186.60 296,398.13 2,162,396.50 \r\n \r\n$ 39,366,770.00 $ 39,356,663.08 $ 37,943,447.16 $ \r\n \r\n$ -1,186,143.00 $ -1,010,197.00 $ \r\n \r\n169,973.56 $ \r\n \r\n1,009,857.84 \r\n5,640.89 161,613.10 \r\n17,246.91 89,619.85 -35,618.94 -19,715.07 45,448.75 -9,690.66 -7,837.60 108,298.40 -60,298.13 108,650.58 \r\n1,413,215.92 \r\n1,180,170.56 \r\n \r\n$ 258,150.00 $ 258,150.00 \r\n \r\n$ \r\n \r\n-258,150.00 \r\n \r\n-258,150.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n$ -1,186,143.00 $ -1,010,197.00 $ \r\n \r\n169,973.56 $ \r\n \r\n3,154,260.22 \r\n \r\n2,687,308.79 \r\n \r\n2,898,274.95 \r\n \r\n-46,193.41 \r\n \r\n-258,150.00 258,150.00 \r\n0.00 1,180,170.56 \r\n210,966.16 46,193.41 \r\n \r\nFund Balances - Ending \r\n \r\n$ 1,968,117.22 $ 1,630,918.38 $ 3,068,248.51 $ \r\n \r\n1,437,330.13 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nSchools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Georgia Department of Education Food Services ARRA - Child Nutrition Discretionary Grants Limited Availability Fresh Fruit and Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Rural Education Safe and Drug-Free Schools and Communities - State Grants Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n$ \r\n \r\n2,013,787.60 (1) \r\n \r\n$ \r\n \r\n2,013,787.60 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n10.579 10.582 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n6,398.00 26,642.13 \r\n33,040.13 \r\n2,046,827.73 \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\n683,184.37 21,757.00 \r\n704,941.37 \r\n \r\n* 84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n968,387.46 \r\n \r\n* 84.395 84.048 84.410 84.367 84.358 84.186 84.287 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n346,912.54 46,191.48 9,880.00 \r\n116,820.69 79,100.92 410.29 \r\n467,045.30 \r\n \r\n$ \r\n \r\n1,066,361.22 \r\n \r\n$ \r\n \r\n2,739,690.05 \r\n \r\n- 26 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nHealth and Human Services, U. S. Department of Head Start Cluster Pass-Through From Ninth District Opportunity, Incorporated Head Start \r\nOther Programs Pass-Through From State of Georgia Department of Behavioral Health and Developmental Disabilities Block Grant for Prevention and Treatment of Substance Abuse \r\nTotal U. S. Department of Health and Human Services \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n93.600 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n56,833.87 \r\n \r\n93.959 \r\n \r\nN/A $ \r\n \r\n9,093.13 65,927.00 \r\n \r\n$ \r\n \r\n51,019.54 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n4,903,464.32 \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 $51,558.37. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($312,864.90) were not maintained separately and are included in the 2012 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $39,442.73, do not require reporting of expenditures. \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 XXX County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Charter System Adjustment Categorical Grants Pupil Transportation Regular Food Services Nursing Services QBE Contra Account-Special Ed Programs Special Education Programs Other State Programs Dual Enrollment Funding Health Insurance Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Vocational Education Vocational Supervisors \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects-Capital Outlay \r\nOffice of the State Treasurer Public School Employees' Retirement \r\nHuman Resources, Georgia Department of Mh/Mr Substance Abuse and Violence Prevention Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n177,510.65 \r\n \r\n$ \r\n \r\n177,510.65 \r\n \r\n1,064,777.00 59,431.00 \r\n2,490,718.00 86,094.00 \r\n1,183,536.00 44,719.00 \r\n1,985,635.00 1,458,139.00 \r\n698,652.00 2,375,722.00 \r\n612,735.00 86,106.00 \r\n158,575.00 38,291.00 \r\n345,100.00 103,653.00 \r\n70,063.00 \r\n476,694.00 772,408.00 867,023.00 -2,749,964.00 331,202.00 \r\n501,356.00 58,248.00 71,297.00 -2,107.00 8,652.00 \r\n14,988.00 2,542,621.00 \r\n15,390.70 68,904.00 152,439.00 26,583.70 129,787.00 14,094.00 \r\n \r\n1,064,777.00 59,431.00 \r\n2,490,718.00 86,094.00 \r\n1,183,536.00 44,719.00 \r\n1,985,635.00 1,458,139.00 \r\n698,652.00 2,375,722.00 \r\n612,735.00 86,106.00 \r\n158,575.00 38,291.00 \r\n345,100.00 103,653.00 \r\n70,063.00 \r\n476,694.00 772,408.00 867,023.00 -2,749,964.00 331,202.00 \r\n501,356.00 58,248.00 71,297.00 -2,107.00 8,652.00 \r\n14,988.00 2,542,621.00 \r\n15,390.70 68,904.00 152,439.00 26,583.70 129,787.00 14,094.00 \r\n \r\n40,707.00 \r\n21,094.11 44,000.00 \r\n \r\n1,544,191.57 \r\n \r\n1,544,191.57 \r\n40,707.00 \r\n21,094.11 44,000.00 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n$ 16,444,874.16 $ \r\n \r\n1,544,191.57 $ 17,989,065.73 \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED COST (1) (5) \r\n \r\nCURRENT ESTIMATED COSTS (2) (7) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) (4) (5) (6) \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\n2006 SPLOST Referendum v. adding to, constructing, renovating, repairing, improving, and equipping school system buildings and facilities; including but not limited to athletic and fine arts facilities and security improvements and equipment (Batting facility, Security cameras, technology, weight rm/fieldhouse, PE fields) \r\n \r\n$ 370,052.00 $ 4,055,051.86 $ 376,448.32 $ 3,678,603.54 \r\n \r\nCompleted \r\n \r\nPaying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds from August 1, 2008 through and including February 1, 2013 (the maximum amount of such payments not to exceed $1,600,000.00) and paying any genera obligation debt of the School District in conjunction with the imposition of such sales and use tax \r\n \r\n1,600,000.00 \r\n \r\n1,600,000.00 \r\n \r\n290,497.00 1,309,503.00 \r\n \r\nCompleted \r\n \r\n$ 1,970,052.00 $ 5,655,051.86 $ 666,945.32 $ 4,988,106.54 \r\n \r\n2009 SPLOST Referendum (i) acquiring, constructing and equipping one new middle school $ 16,714,070.00 $ 13,453,618.25 $ 7,164,067.76 $ 6,289,550.59 \r\n \r\nOngoing \r\n \r\nii) adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities \r\n \r\n1,138,332.00 \r\n \r\n818,759.42 \r\n \r\n243,674.00 \r\n \r\n500,085.42 \r\n \r\nOngoing \r\n \r\n(iii) acquiring computers and computer technology equipment, \r\n \r\n1,185,569.00 \r\n \r\n1,262,626.56 \r\n \r\n333,017.00 \r\n \r\n754,609.56 \r\n \r\nOngoing \r\n \r\n(v) acquiring, constructing and equipping a new gymnasium at the existing intermediate school, \r\n \r\n1,200,000.00 \r\n \r\nOngoing \r\n \r\n(vi) acquiring heating, air conditioning and energy efficiency equipment, \r\n \r\n1,706,029.00 \r\n \r\nOngoing \r\n \r\n(vii) acquiring textbooks and other instructional materials and transportation equipment, \r\n \r\n136,000.00 \r\n \r\n212,730.00 \r\n \r\n80,264.00 \r\n \r\n44,466.00 \r\n \r\nOngoing \r\n \r\n(viii) paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds on August 1, 2013 the maximum amount of such payment not to exceed $320,000 (If needed, see 2006 SPLOST above) \r\n \r\n320,000.00 \r\n \r\n320,000.00 \r\n \r\nOngoing \r\n \r\n$ 22,400,000.00 $ 16,067,734.23 $ 7,821,022.76 $ 7,588,711.57 \r\n \r\n$ 24,370,052.00 $ 21,722,786.09 $ 8,487,968.08 $ 12,576,818.11 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the continuation of the Local Optio Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the project(s). Includes all costs from project inception to completion \r\n \r\n(3) The voters of White County approved a continuation of a 1% sales tax to fund the above project(s) (and retire associated debt). Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project(s) \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance fundin for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 2,239,715.59 \r\n \r\nCurrent Year Total \r\n \r\n243,836.60 $ 2,483,552.19 \r\n \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000 in general obligation debt. At this time, only $10,000,000 of general obligation debt has been issued with a balance of $6,000,000 to be issued at th School District's discretion. \r\n \r\n(6) The School District tore down the existing middle school and built a new middle school and new middle school gymnasium on the site utilizing some 2006 Splost funds and other funds of the District. Amounts are reflected in the 2009 Splost funds \r\n \r\n(7) The School District expended 2006 Splost funds and funds from ad valorem tax to pay debt service on the series 2003 Bonds. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Programs Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students With Disabilities CATEGORY I CATEGORY II CATEGORY III CATEGORY IV CATEGORY V Gifted Student - CATEGORY VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,398,342.00 $ 1,591,427.11 $ 19,899.64 $ 1,611,326.75 \r\n \r\n84,032.00 3,302,791.00 \r\n112,936.00 1,572,099.00 \r\n59,285.00 2,618,632.00 1,934,733.00 \r\n937,295.00 3,101,622.00 \r\n799,749.00 120,035.00 209,267.00 \r\n52,553.00 \r\n \r\n40,984.37 3,999,222.51 \r\n263,390.73 1,809,480.98 \r\n133,180.67 3,777,040.59 3,509,224.32 \r\n848,164.14 \r\n \r\n1,992.44 64,932.75 \r\n198.5 30,729.22 \r\n82,194.51 168,943.05 \r\n66,595.83 \r\n \r\n154,886.68 258,109.38 2,112,507.29 567,432.51 \r\n98,949.58 672,452.56 \r\n88,530.52 103,096.74 165,720.71 \r\n \r\n247.63 24,690.25 \r\n2,036.23 8,612.32 \r\n1,726.35 \r\n \r\n42,976.81 4,064,155.26 \r\n263,589.23 1,840,210.20 \r\n133,180.67 3,859,235.10 3,678,167.37 \r\n914,759.97 \r\n154,886.68 258,357.01 2,137,197.54 569,468.74 \r\n98,949.58 681,064.88 \r\n88,530.52 103,096.74 167,447.06 \r\n \r\n$ 16,303,371.00 $ 20,193,801.39 $ 472,798.72 $ 20,666,600.11 \r\n \r\n456,538.00 92,616.00 \r\n \r\n717,066.63 1,574.40 \r\n \r\n95,100.97 5,330.87 \r\n \r\n812,167.60 6,905.27 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 16,852,525.00 $ 20,912,442.42 $ 573,230.56 $ 21,485,672.98 \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- 31 - \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\nNovember 5, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2012, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated November 5, 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 White County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered White County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\n \r\n2012YB-30 \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. However, we consider item FS-7541-12-01, described in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of White County Board of Education in a separate letter dated November 5, 2013. \r\nWhite County Board of Education's response to the finding identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit White County Board of Education's response and, accordingly, we express no opinion on the response. \r\nThis report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012YB-30 \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\nNovember 5, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited White County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \r\nIn our opinion, the White County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2012. \r\n \r\n2012SA-10 \r\n \r\n  Internal Control Over Compliance \r\nManagement of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. \r\nThis report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER \r\n \r\nAUDITEE'S RESPONSE/STATUS \r\n \r\nFS-7541-11-01 \r\n \r\nPartially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Significant Deficiency Finding Control Number: FS-7541-11-01 \r\n \r\nThe Finance Department acknowledges that depreciation expense and accumulated depreciation has been calculated incorrectly for many assets since their inception due to misstatement of the useful life of the asset in our SSUI fixed asset program. We recognize that maintaining accurate records is critical and must be corrected. A complete internal audit will be done beginning October 22, 2012 to ensure the accuracy of each asset record. In addition, as part of our conversion from SSUI to CSI software in November of 2012, these assets will be manually entered into the new system to avoid any misstatements that may occur from conversion from the existing database. Procedures have been put in place for the current fiscal year to identify capital purchases on a timely basis for inclusion in the capital asset module. This will facilitate accurate calculation of depreciation expense, ensure compliance with the capitalization thresholds identified in our capital asset policy and result in assets that are properly maintained and correctly reported. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER \r\n \r\nAUDITEE'S RESPONSE/STATUS \r\n \r\nSEE AUDITOR'S COMMENTS \r\n \r\nFA-7541-11-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFA-7541-11-02 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n(1) \r\n \r\nAUDITOR'S COMMENTS \r\n \r\n(1) Findings/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Office of Management and Budget (OMB) Circular A-133, will be communicated in a management letter. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnqualified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\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: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 84.395 \r\n \r\nChild Nutrition Cluster Title I, Part A Cluster Race-to-the-Top Incentive Grants \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Significant Deficiency Finding Control Numbers: FS-7541-12-01 \r\n \r\nCondition: The School District failed to adequately maintain the capital assets records. \r\n \r\n- 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2012 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Criteria: Chapter 37, Implementing a Capital Assets Management System, of the Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. Questioned Cost: N/A Information: The capital asset listing within the financial system was not modified for additions and deletions in previous fiscal years. The School District maintained a separate listing of modifications that was provided for audit and agreed to the capital asset totals presented in the financial statements and the notes to the financial statements. The detailed listing provided included the following variances: Buildings and Improvements was overstated $611,516.93, Equipment was overstated $2,090,438.21, and Land Improvements were overstated $425,877.55. Cause: The School District did not ensure that adequate accounting procedures were in place to process, record, and report capital assets and related activity. Effect: The failure of the School District to maintain an accurate capital asset listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. Recommendation: The School District should review its capital asset records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly recorded and reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 2 - \r\n \r\n SECTION V MANAGEMENT'S RESPONSES \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nFinding Control Number: FS-7541-12-01 \r\n \r\nWe concur with this finding. The School District will review its capital assets listing to ensure all activity is properly reflected within the accounting system in accordance with School District policy and generally accepted accounting principles. In fiscal year 2012, due to changes in the Finance Director position dealing with a long-term illness, the fixed asset additions and deletions were not recorded consistently in the fixed asset module and the result was the inability to tie the balances on the financial statements to the fixed asset detail listings from the subsidiary system. In November of 2012, the School District converted their financial system to CSI from SSUI. The new financial software system has an in depth and easy to use Fixed Asset Module that will be used to track assets, depreciation and accumulated depreciation. The School District has inputted all assets from the old system into the new system one at a time to ensure that the asset is in use and that the accumulated depreciation and other financial information is correct for each asset. An additional procedure has been put in place to control recording of deletions. Currently, the Board approves a letter of recommendation from our Director of Federal Programs as to which assets are being recommended for disposal. The Director matches information in their letter to information from the Finance Department on original cost, life of the asset and amount of accumulated depreciation, if applicable, prior to the Board approval. Once approved, the Director of Federal Programs sends the spreadsheet with item details and letter of approval to the Finance Director for entry into the Fixed Asset Module. Lastly, a physical inventory will be done every two years by the school principals and department heads to ensure capital assets are properly maintained and recorded. \r\n \r\nContact Person: Title: Telephone: Fax: Email: \r\n \r\nTrish Harris Fussell Finance Director (706) 865-2315 X1007 (706) 865-7784 tharris@white.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2010-h2011-belec-p-btext","title":"White County Board of Education, Cleveland, 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, White County, 34.64636, -83.74711"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2011-06-30"],"dcterms_description":["Began with: Fiscal year ended June 30, 2009, released in 2010.","Issued by State of Georgia Department of Audits and Accounts.","Description based on: Fiscal year ended June 30, 2009, released 2010; title from cover.","Latest issue consulted: Fiscal year ended June 30, 2014, released in 2016 (online surrogate) (received via FTP on November 2, 2015 from Georgia Department of Audits and Accounts); (Georgia Government Publications database, viewed June 13, 2016)."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : Dept. of Audits and Accounts"],"dc_relation":null,"dc_right":["http://rightsstatements.org/vocab/InC/1.0/"],"dcterms_is_part_of":null,"dcterms_subject":["White County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--White County--Auditing--Periodicals.","Education--Georgia--White County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Georgia Government Documents--Serial"],"dcterms_title":["White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-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","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n27 28 30 \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n32 35 \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  WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \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\nOctober 8, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2011, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Board's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \r\nIn our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the White County Board of Education, as of June 30, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n2011ARL-11 \r\n \r\n  The White County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated October 8, 2012, on our consideration of the White County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the White County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2011ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories Capitalized Bond and Other Debt Issuance Costs 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 Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal 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\n10,977,802.63 \r\n \r\n1,047,648.52 2,516,798.31 \r\n754,390.62 1,102.58 \r\n93,189.96 123,240.33 11,533,083.28 45,976,112.86 \r\n \r\n$ \r\n \r\n73,023,369.09 \r\n \r\n$ \r\n \r\n28,270.84 \r\n \r\n4,237,658.87 \r\n \r\n735,237.00 \r\n \r\n3,283,387.58 14,510,325.45 \r\n \r\n$ \r\n \r\n22,794,879.74 \r\n \r\n$ \r\n \r\n43,453,461.25 \r\n \r\n499,268.67 2,113,664.03 1,531,077.01 2,631,018.39 \r\n \r\n$ \r\n \r\n50,228,489.35 \r\n \r\n$ \r\n \r\n73,023,369.09 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2011 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nSpecial Items Loss on Disposal of Building \r\nTotal General Revenues and Special Items \r\nChange in Net Assets \r\nNet Assets - Beginning of Year (Restated) \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n26,702,703.87 $ \r\n \r\n1,310,383.81 744,323.81 869,373.43 849,179.83 \r\n2,344,939.67 244,473.73 \r\n2,224,966.38 1,901,339.37 \r\n268,362.86 361,432.89 \r\n \r\n338,625.92 2,068,958.52 \r\n645,160.02 \r\n \r\n$ \r\n \r\n40,874,224.11 $ \r\n \r\n256,494.79 \r\n37,000.00 4,519.01 \r\n660,460.25 958,474.05 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n15,656,793.13 $ \r\n \r\n726,311.07 560,681.67 521,688.24 414,679.40 907,540.84 \r\n87,927.60 1,138,610.20 \r\n637,992.24 108,371.26 109,192.23 \r\n \r\n1,403,636.04 \r\n \r\n$ \r\n \r\n22,273,423.92 $ \r\n \r\n2,715,201.11 $ 95,869.10 21,172.58 42,033.07 57,545.08 19,196.72 \r\n228,876.00 \r\n38,095.32 104,610.45 \r\n3,322,599.43 $ \r\n \r\n-8,074,214.84 \r\n-488,203.64 -183,642.14 -326,512.61 -392,467.36 -1,379,853.75 -156,546.13 -1,030,159.46 -1,029,952.12 -159,991.60 -252,240.66 \r\n-300,530.60 99,748.22 \r\n-645,160.02 \r\n-14,319,726.71 \r\n \r\n$ \r\n \r\n15,292,355.25 \r\n \r\n366,095.03 \r\n \r\n3,361,732.35 181,456.73 49,272.79 \r\n1,014,822.90 \r\n \r\n-100,919.54 \r\n \r\n$ \r\n \r\n20,164,815.51 \r\n \r\n$ \r\n \r\n5,845,088.80 \r\n \r\n44,383,400.55 \r\n \r\n$ \r\n \r\n50,228,489.35 \r\n \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2011 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,576,117.19 $ 5,869,232.31 $ 1,532,453.13 $ 10,977,802.63 \r\n \r\n640,481.08 2,516,798.31 \r\n754,390.62 1,102.58 \r\n93,189.96 \r\n \r\n392,368.42 \r\n \r\n14,799.02 \r\n \r\n1,047,648.52 2,516,798.31 \r\n754,390.62 1,102.58 \r\n93,189.96 \r\n \r\n$ 7,582,079.74 $ 6,261,600.73 $ 1,547,252.15 $ 15,390,932.62 \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 Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 28,270.84 4,237,658.87 $ 417,875.08 \r\n \r\n735,237.00 $ \r\n \r\n$ 4,683,804.79 $ 735,237.00 $ \r\n \r\n$ 6,588.12 \r\n \r\n28,270.84 4,237,658.87 \r\n735,237.00 424,463.20 \r\n \r\n6,588.12 $ 5,425,629.91 \r\n \r\n$ 93,189.96 \r\n \r\n$ \r\n \r\n406,078.71 $ 5,526,363.73 $ 1,540,664.03 \r\n \r\n438,072.01 \r\n \r\n1,960,934.27 \r\n \r\n93,189.96 7,473,106.47 \r\n438,072.01 1,960,934.27 \r\n \r\n$ 2,898,274.95 $ 5,526,363.73 $ 1,540,664.03 $ 9,965,302.71 \r\n \r\n$ 7,582,079.74 $ 6,261,600.73 $ 1,547,252.15 $ 15,390,932.62 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nOther Long-Term Assets are not available to pay for current period expenditures and therefore, are deferred on the Statement of Net Assets. \r\nDeferred Charges - Capitalized Bond Issuance Costs \r\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Unamortized Bond Premiums \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 9,965,302.71 \r\n \r\n$ 2,021,886.00 9,511,197.28 2,357,323.54 \r\n50,304,973.79 6,903,367.75 \r\n-13,589,552.22 \r\n \r\n57,509,196.14 \r\n \r\n424,463.20 \r\n \r\n123,240.33 \r\n \r\n$ -17,140,000.00 -653,713.03 \r\n \r\n-17,793,713.03 \r\n \r\n$ 50,228,489.35 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 15,138,516.65 177,841.48 $ \r\n17,073,483.77 5,428,816.15 958,474.05 15,880.21 1,014,822.90 \r\n \r\n$ 3,361,732.35 3,093,723.43 \r\n29,538.75 \r\n \r\n365,797.78 $ 3,615.25 \r\n3,853.83 \r\n \r\n15,504,314.43 3,543,189.08 \r\n20,167,207.20 5,428,816.15 958,474.05 49,272.79 1,014,822.90 \r\n \r\n$ 39,807,835.21 $ 6,484,994.53 $ 373,266.86 $ 46,666,096.60 \r\n \r\n$ 25,579,021.43 $ 1,042,921.09 \r\n \r\n$ 26,621,942.52 \r\n \r\n1,279,928.68 744,323.81 862,647.45 829,642.87 \r\n2,282,254.28 226,867.97 \r\n2,216,072.11 1,923,319.89 \r\n268,362.86 361,432.89 332,158.41 2,030,092.09 \r\n \r\n18,821.46 \r\n4,156.70 14,436.28 167,281.82 \r\n11,563.75 172,328.74 \r\n3,996.96 24,019.71 8,401,751.62 \r\n \r\n1,298,750.14 744,323.81 866,804.15 844,079.15 \r\n2,449,536.10 226,867.97 \r\n2,227,635.86 2,095,648.63 \r\n268,362.86 361,432.89 336,155.37 2,054,111.80 8,401,751.62 \r\n \r\n$ 382,000.00 \r\n \r\n3,070,000.00 2,175.00 \r\n354,372.60 \r\n \r\n3,070,000.00 2,175.00 \r\n736,372.60 \r\n \r\n$ 38,936,124.74 $ 10,243,278.13 $ 3,426,547.60 $ 52,605,950.47 \r\n \r\n$ 871,710.47 $ -3,758,283.60 $ -3,053,280.74 $ -5,939,853.87 \r\n \r\n$ 315,313.11 \r\n \r\n$ 3,314,138.69 $ 3,629,451.80 \r\n \r\n$ -3,629,451.80 \r\n \r\n-3,629,451.80 \r\n \r\n$ 315,313.11 $ -3,629,451.80 $ 3,314,138.69 $ \r\n \r\n0.00 \r\n \r\n$ 1,187,023.58 $ -7,387,735.40 $ 260,857.95 $ -5,939,853.87 \r\n \r\n1,711,251.37 12,914,099.13 \r\n \r\n1,279,806.08 15,905,156.58 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,898,274.95 $ 5,526,363.73 $ 1,540,664.03 $ 9,965,302.71 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \r\nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nAmortization of Bond Premium Redemption of Principal \r\nTotal Long-Term Debt Repayments \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -5,939,853.87 \r\n \r\n$ 9,629,092.07 -1,043,147.53 \r\n \r\n8,585,944.54 \r\n \r\n154,135.85 \r\n \r\n-100,919.54 \r\n \r\n-17,605.76 \r\n \r\n$ \r\n \r\n93,387.58 \r\n \r\n3,070,000.00 \r\n \r\n3,163,387.58 \r\n \r\n$ 5,845,088.80 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS JUNE 30, 2011 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n26,861.74 $ 126,935.80 \r\n \r\n29,044.45 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n55,906.19 $ 126,935.80 \r\n \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\nTotal Liabilities and Net Assets \r\n \r\n$ 126,935.80 \r\n \r\n$ \r\n \r\n55,906.19 \r\n \r\n$ \r\n \r\n55,906.19 $ 126,935.80 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2011 \r\nADDITIONS Other Additions \r\nDEDUCTIONS Other Deductions Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n10,109.96 \r\n \r\n1,614.48 \r\n \r\n$ \r\n \r\n8,495.48 \r\n \r\n47,410.71 \r\n \r\n$ \r\n \r\n55,906.19 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \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), Bond Proceeds, and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n \r\n- 11 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (property and sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship. \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, 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 are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\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 \r\n- 12 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\n \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\nRESTATEMENT OF PRIOR YEAR NET ASSETS \r\n \r\nFor fiscal year 2011, the School District restated various Capital Assets accumulated depreciation balances due to errors and omissions. The result is a decrease in Net Assets at July 1, 2010, of $1,122,309.86. This change is in accordance with generally accepted accounting principles. \r\n \r\nNet assets, July 1, 2010 as previously reported \r\n \r\n$ 45,50 5,7 10.41 \r\n \r\nAdjustm ent to Accum ulated Depreciation Net assets, July 1, 2010, as restated \r\n \r\n-1,12 2,3 09.86 $ 44,38 3,4 00.55 \r\n \r\nCASH AND CASH EQUIVALENTS Composition of Deposits \r\nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS Composition of Investments \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States 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\n- 13 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \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\nPROPERTY TAXES \r\n \r\nThe White County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on July 29, 2010 (levy date). Taxes were due on November 15, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2011, for maintenance and operations amounted to $15,138,516.65 and for school bonds amounted to $365,797.78. \r\n \r\nTax millage rates levied for the 2010 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n14.650 m ills 0.339 m ills \r\n \r\n14.989 m ills \r\n \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,361,732.35 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\n- 14 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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 statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Computer Applications \r\n \r\nAny Amount \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\n$ \r\n \r\n45,000.00 \r\n \r\nN/A 20 years 10 to 80 years 5 to 20 years 6 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 10 to 20 years. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\n \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, the 2003 Refunding Series, 2006 Series and 2007 Refunding Series general obligation bond issuance costs should be amortized over the life of the bonds on the District-wide statements. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\n \r\n- 15 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \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, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 16 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n$ \r\n \r\n406,078.71 \r\n \r\n4,953,363.73 \r\n \r\n2,113,664.03 \r\n \r\nFund Balance, June 30, 2011 \r\n \r\n$ \r\n \r\n93,189.96 \r\n7,473,106.47 438,072.01 \r\n1,960,934.27 9,965,302.71 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: DEPOSITS COLLATERALIZATION 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\n \r\n- 17 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \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\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, 2011, the bank balances were $12,892,546.88. The amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2011, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0 .0 0 \r\n \r\n2 \r\n \r\n0 .0 0 \r\n \r\n3 \r\n \r\n1 2 ,5 8 5 ,2 2 0 .1 5 \r\n \r\nTotal \r\n \r\n$ 12,585,220.15 \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\n \r\n- 18 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS The following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2010 (Restated) \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2011 \r\n \r\n$ 2,021,886.00 1,462,541.88 $ 8,603,571.17 $ \r\n \r\n$ 554,915.77 \r\n \r\n2,021,886.00 9,511,197.28 \r\n \r\nTotal Capital Assets, Not Being Depreciated \r\n \r\n$ 3,484,427.88 $ 8,603,571.17 $ 554,915.77 $ 11,533,083.28 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 49,524,702.13 $ 6,462,122.75 2,643,738.16 \r\n \r\n834,453.25 $ 606,520.49 139,462.93 \r\n \r\n54,181.59 $ 165,275.49 425,877.55 \r\n \r\n50,304,973.79 6,903,367.75 2,357,323.54 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n6,739,148.75 3,972,881.57 2,378,789.46 \r\n \r\n622,668.09 400,747.33 \r\n19,732.11 \r\n \r\n3,134.60 126,049.90 415,230.59 \r\n \r\n7,358,682.24 4,247,579.00 1,983,290.98 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n$ 45,539,743.26 $ 537,289.14 $ 100,919.54 $ 45,976,112.86 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 49,024,171.14 $ 9,140,860.31 $ 655,835.31 $ 57,509,196.14 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nEnterprise Operations \r\n \r\nFood Services \r\n \r\n$ \r\n2 6 ,7 0 3 .7 2 5 ,8 9 7 .4 9 \r\n1 1 ,7 0 8 .0 5 1 6 ,0 2 8 .8 2 \r\n5 ,3 4 7 .1 2 1 8 1 ,4 1 0 .4 8 \r\n$ \r\n \r\n7 5 6 ,3 0 2 .0 6 \r\n2 4 7 ,0 9 5 .6 8 5 ,6 7 0 .8 5 \r\n3 4 ,0 7 8 .9 4 1 ,0 4 3 ,1 4 7 .5 3 \r\n \r\n- 19 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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 District-wide Capital Projects \r\n \r\nGeneral Fund Debt Service Fund \r\n \r\n$ 315,313.11 3,314,138.69 \r\n \r\nTotal \r\n \r\n$ 3,629,451.80 \r\n \r\nTransfers are used (1) to move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the current year bond principal and interest payments and (2) to transfer unspent local Capital Project Funds back to the General Fund at project completion. \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 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 follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estim ates \r\n \r\nClaim s Paid \r\n \r\nEnd of Year Liability \r\n \r\n2010 \r\n \r\n$ \r\n \r\n2011 \r\n \r\n$ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n13,065.00 $ 14,898.00 $ \r\n \r\n13,0 65.00 $ 14,8 98.00 $ \r\n \r\n0 .0 0 0 .0 0 \r\n \r\n- 20 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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 general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \r\n \r\nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n5 0 ,0 0 0 .0 0 \r\n \r\nNOTE 8: SHORT-TERM DEBT \r\n \r\nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nB e gi n n i n g Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTemporary Loans \r\n \r\n$ \r\n \r\n0.00 $ 3,300,000.00 $ 3,300,000.00 $ \r\n \r\n0.00 \r\n \r\nNOTE 9: LONG-TERM DEBT \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nGeneral Governm ent - Refunding - Series 2003 General Governm ent - Series 2006 General Governm ent - Series 2007 General Governm ent - Series 2010 \r\n \r\n2 .9 0 % 3.6% - 3.73% \r\n3 .8 5 % 3.0% - 5.0% \r\n \r\nAmount \r\n$ 1,830,000 .0 0 4,225,000 .0 0 1,085,000 .0 0 \r\n1 0 ,0 0 0 ,0 0 0 .0 0 \r\n$ 17,140,000.00 \r\n \r\nVoters have authorized $6,000,000.00 in general obligation debt for designated capital purchases which was not issued as of June 30, 2011. \r\n \r\n- 21 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \r\n \r\nBalance July 1, 2010 \r\n \r\nAdditions \r\n \r\nGovernmental Funds \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2011 \r\n \r\nDue Within One Year \r\n \r\nG. O. Bonds \r\n \r\n$ 20,210,000.00 $ \r\n \r\nBond Premiums Amortized \r\n \r\n747,100.61 \r\n \r\n0.00 $ 3,070,000.00 $ 17,140,000.00 $ 3,190,000.00 \r\n \r\n93,387.58 \r\n \r\n653,713.03 \r\n \r\n93,387.58 \r\n \r\n$ 20,957,100.61 $ \r\n \r\n0.00 $ 3,163,387.58 $ 17,793,713.03 $ 3,283,387.58 \r\n \r\nAt June 30, 2011, payments due by fiscal year which includes principal and interest for these items \r\n \r\nare as follows: \r\n \r\nGeneral Obligation Debt \r\n \r\nU n a m o r ti z e d \r\n \r\nPrincipal \r\n \r\nI n te r e s t \r\n \r\nBond Premium \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2012 2013 2014 2015 2016 2017 - 2018 \r\n \r\n$ 3,190,000.00 $ 3,320,000.00 2,495,000.00 1,940,000.00 2,000,000.00 4,195,000.00 \r\n \r\n625,836.60 $ 510,847.60 391,135.00 307,400.00 249,200.00 296,200.00 \r\n \r\n93,387.58 93,387.58 93,387.58 93,387.58 93,387.58 186,775.13 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 17,140,000.00 $ 2,380,619.20 $ 653,713.03 \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $127,944.69 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 Non-Certificated Personnel In the amount of $82,985.68 \r\n \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $26,805.01 \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 $18,154.00 \r\nNOTE 11: SPECIAL ITEM \r\nIn the process of demolishing the existing middle school structure, in order to build a new middle school, assets were retired from the books that had a net book value. These items were leasehold improvements and other items that were permanent components of the middle school building and could not be separated from the structure prior to demolition. The amount of $100,919.54 was recorded as a loss for those assets. \r\n \r\n- 22 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed C o ntra cts \r\n \r\nFunding Available From State \r\n \r\nWhite County M iddle School \r\n \r\n$ \r\n \r\n5,204,197.90 $ \r\n \r\n1 ,5 44,191 .5 7 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\nNOTE 13: 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 14: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. 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\n- 23 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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 $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \r\n \r\nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntrib ute d \r\n \r\nRequired C o ntribu tio n \r\n \r\n2011 2010 2009 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n3 ,2 8 2 ,5 1 2 .7 6 \r\n \r\n$ \r\n \r\n3 ,6 6 9 ,9 2 1 .2 0 \r\n \r\n$ \r\n \r\n2 ,3 1 8 ,9 8 4 .7 6 \r\n \r\nNOTE 15: 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\n \r\n- 24 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntrib ute d \r\n \r\nRequired C o ntribu tio n \r\n \r\n2011 2010 2009 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2 ,3 3 1 ,2 1 0 .1 0 \r\n \r\n$ \r\n \r\n2 ,1 3 7 ,9 4 6 .2 5 \r\n \r\n$ \r\n \r\n2 ,0 4 5 ,7 0 7 .7 7 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"1\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers From Other Funds Other Sources Operating Transfers To Other Funds 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\n$ \r\n \r\n15,252,885.00 $ \r\n \r\n15,252,885.00 $ \r\n \r\n15,138,516.65 \r\n \r\n100,000.00 \r\n \r\n100,000.00 \r\n \r\n177,841.48 \r\n \r\n16,448,907.00 \r\n \r\n16,978,508.50 \r\n \r\n17,109,781.12 \r\n \r\n5,239,751.50 \r\n \r\n5,773,522.06 \r\n \r\n5,392,518.80 \r\n \r\n854,300.00 \r\n \r\n854,300.00 \r\n \r\n958,474.05 \r\n \r\n18,610.00 \r\n \r\n18,600.00 \r\n \r\n15,880.21 \r\n \r\n1,027,525.00 \r\n \r\n995,280.00 \r\n \r\n1,014,822.90 \r\n \r\n$ \r\n \r\n38,941,978.50 $ \r\n \r\n39,973,095.56 $ \r\n \r\n39,807,835.21 \r\n \r\n$ \r\n \r\n25,834,578.00 $ \r\n \r\n26,661,425.89 $ \r\n \r\n25,579,021.43 \r\n \r\n1,252,647.00 913,662.50 873,530.00 925,345.00 \r\n2,415,210.00 231,650.00 \r\n2,287,065.00 1,727,910.00 \r\n282,395.00 377,991.00 2,102,315.00 236,100.00 \r\n \r\n1,336,653.13 921,088.62 864,153.92 983,928.40 \r\n2,290,102.72 241,121.00 \r\n2,291,922.00 1,968,434.88 \r\n280,029.00 378,698.00 2,108,713.00 236,100.00 \r\n \r\n1,279,928.68 744,323.81 862,647.45 829,642.87 \r\n2,282,254.28 226,867.97 \r\n2,216,072.11 1,923,319.89 \r\n268,362.86 361,432.89 2,030,092.09 332,158.41 \r\n \r\n$ \r\n \r\n39,460,398.50 $ \r\n \r\n40,562,370.56 $ \r\n \r\n38,936,124.74 \r\n \r\n$ \r\n \r\n-518,420.00 $ \r\n \r\n-589,275.00 $ \r\n \r\n871,710.47 \r\n \r\n$ \r\n \r\n452,075.00 $ \r\n \r\n452,075.00 $ \r\n \r\n500.00 \r\n \r\n-136,800.00 \r\n \r\n-136,800.00 \r\n \r\n-500.00 \r\n \r\n315,313.11 \r\n \r\n$ \r\n \r\n315,275.00 $ \r\n \r\n315,275.00 $ \r\n \r\n315,313.11 \r\n \r\n$ \r\n \r\n-203,145.00 $ \r\n \r\n-274,000.00 $ \r\n \r\n1,187,023.58 \r\n \r\n1,448,869.38 \r\n \r\n1,448,869.38 \r\n \r\n1,711,251.37 \r\n \r\n-1,801.77 \r\n \r\n$ \r\n \r\n1,245,724.38 $ \r\n \r\n1,173,067.61 $ \r\n \r\n2,898,274.95 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nSchools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Educational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Title I, Part A Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Safe and Drug-Free Schools and Communities - State Grants Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 1,993,399.67 (1) \r\n \r\n$ 1,993,399.67 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n$ 1,993,399.67 \r\n \r\n84.318 \r\n \r\nN/A $ \r\n \r\n228.34 \r\n \r\n* 84.391 * 84.392 * 84.027 * 84.173 \r\n \r\nN/A $ N/A N/A N/A \r\n \r\n355,654.00 14,194.06 \r\n669,157.20 20,451.99 \r\n \r\n$ 1,059,457.25 \r\n \r\n84.389 84.010 \r\n \r\nN/A $ N/A \r\n \r\n207,354.00 930,050.95 \r\n \r\n$ 1,137,404.95 \r\n \r\n* 84.395 84.048 \r\n* 84.410 84.367 84.186 84.287 \r\n \r\nN/A $ N/A N/A N/A N/A N/A \r\n \r\n128,646.52 47,627.18 \r\n812,271.00 145,524.73 \r\n3,504.82 567,642.39 \r\n \r\n$ 1,705,216.64 \r\n \r\n$ 3,902,307.18 \r\n \r\n- 28 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nHealth and Human Services, U. S. Department of Head Start Cluster Pass-Through From Ninth District Opportunity, Incorporated Head Start Other Programs Pass-Through From State of Georgia Department of Behavioral Health and Developmental Disabilities Block Grant for Prevention and Treatment of Substance Abuse \r\nTotal U. S. Department of Health and Human Services \r\nDefense, U. S. Department of Direct Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n93.600 \r\n \r\nN/A $ \r\n \r\n73,226.29 \r\n \r\n93.959 \r\n \r\nN/A $ \r\n \r\n33,383.69 106,609.98 \r\n \r\n$ \r\n \r\n126,535.85 \r\n \r\nTotal Expenditures of Federal Awards N/A = Not Available \r\n \r\n$ 6,128,852.68 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $102,053.83. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($295,953.08) were not maintained separately and are included in the 2011 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $42,241.41, do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the White County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Mid-term Adjustment Hold-Harmless Nursing Services Vocational Supervisors Food Services Vocational Education Amended Formula Adjustment Other State Programs Charter Schools - State Planning Grant CTAE - Middle School Support Grant Dual Enrollment Funding Health Insurance Math and Science Supplements Move On When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Virtual Schools Grant \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 216,639.71 \r\n \r\n$ 216,639.71 \r\n \r\n1,209,541.00 109,809.00 \r\n3,033,564.00 99,545.00 \r\n1,458,379.00 52,103.00 \r\n2,349,426.00 1,782,967.00 \r\n906,948.00 \r\n2,603,730.00 692,492.00 130,823.00 188,639.00 55,319.00 409,639.00 126,575.00 72,027.00 \r\n554,951.00 917,407.00 902,300.00 \r\n522,208.00 141,193.00 \r\n72,346.00 14,635.00 64,800.00 109,104.00 -2,592,843.00 \r\n358,047.00 4,218.00 9,794.00 \r\n82,985.68 21,411.50 \r\n134.00 72,726.00 228,876.00 26,805.01 \r\n25.00 \r\n \r\n1,209,541.00 109,809.00 \r\n3,033,564.00 99,545.00 \r\n1,458,379.00 52,103.00 \r\n2,349,426.00 1,782,967.00 \r\n906,948.00 \r\n2,603,730.00 692,492.00 130,823.00 188,639.00 55,319.00 409,639.00 126,575.00 72,027.00 \r\n554,951.00 917,407.00 902,300.00 \r\n522,208.00 141,193.00 \r\n72,346.00 14,635.00 64,800.00 109,104.00 -2,592,843.00 \r\n358,047.00 4,218.00 9,794.00 \r\n82,985.68 21,411.50 \r\n134.00 72,726.00 228,876.00 26,805.01 \r\n25.00 \r\n \r\n$ 3,093,723.43 \r\n \r\n3,093,723.43 \r\n \r\n- 30 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Office of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nOTHER Community Affairs, Georgia Department of Headstart - Basic Grant \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\n18,154.00 \r\n \r\n$ \r\n \r\n18,154.00 \r\n \r\n43,750.00 \r\n \r\n43,750.00 \r\n \r\n2,290.87 \r\n \r\n2,290.87 \r\n \r\n$ 17,073,483.77 $ 3,093,723.43 $ 20,167,207.20 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n2006 SPLOST Referendum \r\nii. acquiring, constructing and equipping a new gymnasium at the existing middle school \r\nv. adding to, constructing, renovating, repairing, improving, and equipping school system buildings and facilities; including but not limited to athletic and fine arts facilities and security improvements and equipment (Batting facility, Security cameras, weight room/fieldhouse, PE fields) \r\nPaying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds from August 1, 2008 through and including February 1, 2013 (the maximum amount of such payments not to exceed $1,600,000.00) and paying any general obligation debt of the School District in conjunction with the imposition of such sales and use tax. \r\n2009 SPLOST Referendum \r\n(i) acquiring, constructing and equipping one new middle school, \r\nii) adding to, constructing, renovating, repairing, improving, and equipping existing school buildings and facilities, \r\n(iii) acquiring computers and computer technology equipment, \r\n(iv) acquiring, constructing and equipping a new central office facility \r\n(v) acquiring, constructing and equipping a new gymnasium at the existing intermediate school, \r\n(vi) acquiring heating, air conditioning and energy efficiency equipment, \r\n(vii) acquiring textbooks and other instructional materials and transportation equipment, \r\n(viii) paying a portion of the principal and interest due on the School District's Series 2003 General Obligation Bonds on August 1, 2013, the maximum amount of such payment not to exceed $320,000.00 (If needed, see 2006 SPLOST above) \r\n \r\nORIGINAL ESTIMATED COST (1) (5) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\n$ 3,200,000.00 $ \r\n \r\n25,261.00 \r\n \r\n$ \r\n \r\n25,261.00 Completed \r\n \r\n370,052.00 \r\n \r\n3,678,603.54 \r\n \r\n2,426,187.54 \r\n \r\n1,252,416.00 Completed \r\n \r\n1,600,000.00 $ 5,170,052.00 \r\n \r\n1,600,000.00 5,303,864.54 \r\n \r\n333,392.50 2,759,580.04 \r\n \r\n1,266,607.50 Completed 2,544,284.50 \r\n \r\n$ 16,714,070.00 $ 15,045,866.00 $ 6,257,281.10 $ \r\n \r\n32,269.49 Ongoing \r\n \r\n1,138,332.00 1,185,569.00 \r\n600,000.00 \r\n \r\n534,571.00 935,569.00 627,994.00 \r\n \r\n264,722.00 714,343.00 154,278.00 \r\n \r\n235,363.42 Ongoing 40,266.56 Ongoing \r\n473,715.90 Completed \r\n \r\n1,200,000.00 1,706,029.00 \r\n \r\nOngoing Ongoing \r\n \r\n136,000.00 \r\n \r\n136,000.00 \r\n \r\n44,466.00 \r\n \r\nOngoing \r\n \r\n320,000.00 \r\n \r\n320,000.00 \r\n \r\nOngoing \r\n \r\n$ 23,000,000.00 $ 17,600,000.00 $ 7,435,090.10 $ 781,615.37 \r\n \r\n$ 28,170,052.00 $ 22,903,864.54 $ 10,194,670.14 $ 3,325,899.87 \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 White County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 1,564,750.49 \r\n \r\nCurrent Year \r\n \r\n674,965.10 \r\n \r\nTotal \r\n \r\n$ 2,239,715.59 \r\n \r\n- 32 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2011 \r\n(5) In the 2009 Resolution, the School District obtained approval to issue a total of $16,000,000 in general obligation debt. At this time, only $10,000,000.00 of general obligation debt has been issued with a balance of $6,000,000.00 to be issued at the School District's discretion. \r\n(6) The School District tore down the existing middle school and built a new middle school and new middle school gymnasium on the site utilizing some 2006 SPLOST funds and other funds of the District. Amounts shown include only 2006 SPLOST funds. \r\n(7) The School District expended 2006 SPLOST funds and funds from ad valorem tax to pay debt service on the series 2003 Bonds. \r\n \r\nSCHEDULE \"4\" \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,535,719.00 $ \r\n \r\n126,622.00 \r\n \r\n3,807,853.00 \r\n \r\n123,298.00 \r\n \r\n1,827,806.00 \r\n \r\n68,344.00 2,937,375.00 2,233,345.00 1,137,981.00 3,244,479.00 \r\n \r\n849,287.00 171,757.00 235,701.00 \r\n70,721.00 \r\n$ 18,370,288.00 $ \r\n513,765.00 90,704.00 \r\n \r\n1,462,731.93 $ 107,613.81 \r\n3,625,754.49 340,556.24 \r\n1,922,800.93 \r\n118,976.84 3,773,419.01 3,180,821.06 \r\n903,540.98 \r\n21,947.84 434,360.69 2,332,065.26 286,700.05 644,496.36 \r\n90,622.78 189,376.71 161,324.09 \r\n19,597,109.07 $ \r\n683,454.57 \r\n \r\n22,599.36 $ 1,907.18 \r\n89,135.45 232.61 \r\n39,372.63 \r\n \r\n1,485,331.29 109,520.99 \r\n3,714,889.94 340,788.85 \r\n1,962,173.56 \r\n \r\n124,202.94 156,772.53 \r\n97,411.81 \r\n \r\n118,976.84 3,897,621.95 3,337,593.59 1,000,952.79 \r\n \r\n509.10 25,719.43 \r\n1,496.06 10,710.20 \r\n1,440.15 \r\n \r\n21,947.84 434,869.79 2,357,784.69 288,196.11 655,206.56 \r\n90,622.78 189,376.71 162,764.24 \r\n \r\n571,509.45 $ 20,168,618.52 \r\n \r\n120,538.19 \r\n \r\n803,992.76 10,110.87 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 18,974,757.00 $ 20,280,563.64 $ 692,047.64 $ 20,982,722.15 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 35 - \r\n \r\n  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\nOctober 8, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of White County Board of Education as of and for the year ended June 30, 2011, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated October 8, 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 White County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered White County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\n \r\n2011YB-30 \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. However, we consider item FS-7541-11-01, described in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nWe noted certain matters that we have reported to management of White County Board of Education in a separate letter dated October 8, 2012. \r\nWhite County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit White County Board of Education's response and, accordingly, we express no opinion on it. \r\nThis report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2011YB-30 \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\nOctober 8, 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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited White County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \r\nIn our opinion, the White County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. \r\n \r\n2011SA-35 \r\n \r\n  Internal Control Over Compliance \r\nManagement of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over compliance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified a certain deficiency in internal control over compliance that we consider to be a material weakness and another deficiency that we consider to be a significant deficiency. \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. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item FA-7541-11-01, to be a material weakness. \r\nA significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying Schedule of Findings and Questioned Costs as item FA-7541-11-02, to be a significant deficiency. \r\nWhite County Board of Education's responses to the findings identified in our audit is described in the accompanying Schedule of Management's Responses. We did not audit White County Board of Education's responses and, accordingly, we express no opinion on the responses. \r\nThis report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2011SA-35 \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  WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.027, 84.173, 84.391, 84.392 84.410 84.395 \r\n \r\nChild Nutrition Cluster Special Education Cluster Education Jobs Fund Race-to-the-Top Incentive Grants \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 AND QUESTIONED COSTS \r\n \r\nCAPITAL ASSETS Failure to Adequately Maintain Capital Assets Significant Deficiency Finding Control Numbers: FS-7541-11-01 \r\n \r\nCondition: The School District failed to adequately maintain the capital assets records. \r\n \r\nUnqualified No Yes No \r\nYes Yes Unqualified Yes \r\n$300,000.00 No \r\n \r\n- 1 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Criteria: Chapter 37, Implementing a Capital Assets Management System, of the Financial Management for Georgia Local Units of Administration indicates that School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system and maintain fixed asset inventory records. Questioned Cost: N/A Information: A review of the School District's capital assets records noted the following deficiencies and errors or omissions: \r\n Based on our analysis, the School District incorrectly calculated its depreciation resulting in an overstatement of capital assets (net). The auditors proposed and the entity accepted an adjusting entry to correct this overstatement in the amounts of $1,058,586.42, $1,122,309.86, and $63,723.44 for capital assets, beginning net assets and depreciation expense, respectively. \r\n The School District improperly capitalized an item with an acquisition cost below the capitalization threshold of $10,000.00 as determined by the School District's capital assets policy. \r\nCause: The School District failed to ensure that adequate accounting procedures were in place to process, record, and report capital assets and related activity. Effect: The failure of the School District to accurately calculate depreciation, the value of its intangible assets and to properly capitalize assets in accordance with its policy can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepted accounting principles. Recommendation: The School District should review its capital assets records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. \r\n- 2 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utilized Material Weakness U. S. Department of Education Through Georgia Department of Education Race to the Top (CDFA 84.395) Finding Control Number: FA-7541-11-01 \r\nCondition: A review of salaries charged to the Race to the Top (CDFA 84.395) program revealed that the hours charged to this Federal program, for one split funded employee, were not supported by time and attendance records as required by OMB Circular A-87. \r\nCriteria: Provisions of the OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, Attachment B, Selected items of Cost, require that: \r\n\"Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation that meets the following standards: \r\n(a) They must reflect an after-the-fact distribution of the actual activity of each employee, (b) They must account for the total activity for which the employee is compensated, (c) They must be prepared at least monthly and must coincide with one or more pay periods, \r\nand (d) They must be signed by the employee. \r\nSuch documentary support will be required where employees work on: \r\n(a) More than one Federal award, or (b) A Federal award and a non-Federal award\" \r\nQuestioned Cost: $18,234.00 \r\nInformation: A review of one split-funded employee's time records identified an average time worked on Race to the Top to be 50% with the other 50% of time worked on a non-Federal award. Actual employee compensation charged to the Race to the Top program equated to 97.45% of the employee's annual salary. \r\nCause: Management failed to implement controls for monitoring compliance with Federal guidelines to ensure that employee compensation expenses paid from Federal award programs were properly supported by time and attendance documentation. \r\n- 3 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nEffect: Failure to adequately monitor compliance related to employee compensation expense paid from Federal award programs could result in material noncompliance with the requirements of this Federal grant. \r\nRecommendation: The School District should strengthen controls to ensure that employee compensation expenses paid from Federal award programs are allowable and properly documented in accordance with OMB Circular A-87. The Georgia Department of Education should review this matter to determine if a reclaim of funds is appropriate. \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Expenditures Not Properly Supported Significant Deficiency U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553, 10.555) Finding Control Number: FA-7541-11-02 \r\nCondition: A review of the Child Nutrition Cluster revealed unapproved, undocumented and unsupported expenditures. \r\nCriteria: OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, guidelines require that: \"Governmental units assume responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. To be allowable under Federal awards, costs must meet the following general criteria:... Be necessary and reasonable for proper and efficient performance and administration of Federal Awards... Be authorized or not prohibited under State and local laws or regulations. Be consistent with policies, regulations, and procedures that apply uniformly to both Federal awards and other activities of the governmental unit... Be adequately documented.\" \r\nQuestioned Cost: N/A \r\nInformation: A review of expenditures charged to the Child Nutrition Cluster program identified numerous instances of expenditure payments for goods and services that did not show evidence of approval or authorization by appropriate management \r\nCause: Management failed to implement internal controls for monitoring compliance with Federal grant requirements and School District policies. \r\n- 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Effect: Failure to monitor expenditures for compliance can result in noncompliance with the requirements of the Federal grant. Recommendation: The School District should implement procedures to ensure that all expenditures are reviewed and approved by the Program Director for allowability. \r\n- 5 - \r\n \r\n  SECTION V MANAGEMENT'S RESPONSES \r\n \r\n  WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nFinding Control Number: FS-7541-11-01 \r\n \r\nWe concur with this finding. The Finance department acknowledges that depreciation expense and accumulated depreciation has been calculated incorrectly for many assets since their inception due to misstatement of the useful life of the asset in our SSUI fixed asset program. We recognize that maintaining accurate records is critical and must be corrected. A complete internal audit will be done beginning October 22, 2012 to ensure the accuracy of each asset record. In addition, as part of our conversion from SSUI to CSI software in November of 2012, these assets will be manually entered into the new system to avoid any misstatements that may occur from conversion from the existing database. Procedures have been put in place for the current fiscal year to identify capital purchases on a timely basis for inclusion in the capital asset module. This will facilitate accurate calculation of depreciation expense, ensure compliance with the capitalization thresholds identified in our capital asset policy and result in assets that are properly maintained and correctly reported. \r\n \r\nFinding Control Number: FA-7541-11-01 \r\n \r\nWe concur with this finding. The White County School System understands that when employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports or equivalent documentation that meets state and federally outlined standards. We have implemented controls for monitoring compliance with Federal guidelines to ensure that employee compensation expenses paid from Federal award programs are properly supported by time and attendance documentation. Documentation will be maintained when an employee works on more than one federal award or one federal and one non-federal award that meets the following standards: they will reflect an after the fact distribution of the actual activity of each employee, they will account for the total activity for which the employee was compensated, they will be prepared monthly and coincide with one or more pay periods, and they will be signed by the employee. \r\n \r\nFinding Control Number: FA-7541-11-02 \r\n \r\nWe concur with this finding. The Nutrition Department acknowledges that expenditures charged to the Child Nutrition Cluster should have proper documentation and show clear evidence of approval or authorization by the School Nutrition Director. We have implemented controls for approval of invoices to include an approval stamp that will be put on each invoice to allow for coding of the invoice to the appropriate cost center and to facilitate evidence of appropriate approval by the Nutrition Director of both the coding of the expense and the appropriateness of the expenditure under federal award guidelines. There will also be procedures that will allow for batch approval of certain types of invoices where significant volume is present. \r\n \r\nContact Person: Telephone: Fax: Email: \r\n \r\nTrish Harris Fussell (706) 865-2315 (706) 865-7784 tharris@white.k12.ga.us \r\n \r\n  "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2009-h2010","title":"White County Board of Education, Cleveland, Georgia, annual financial report for the fiscal year ended June 30, 2010 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. 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Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw58-b2009-h2010"],"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","Education--Finance--fast","Expenditures, Public--fast","Georgia--White County--fast--https://id.oclc.org/worldcat/entity/E39PBJkT93vhF4cbMJ7vMWVKVC","Periodicals--fast","Statistics--fast"],"fulltext":"WHITE COUNTY BOARD OF EDUCATION \r\nCLEVELAND, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED \r\nJUNE 30,2010 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSIONAND 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 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, EXPENDITURESAND 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\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \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 \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\n \r\n WHITE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WlTH GOVERNMENTAUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \r\nSECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404)656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 9 , 2 0 1 1 \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 White County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the White County Board of Education, as of and for the year ended June 30, 2010, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the White County Board of Education's management. Our responsibility is to express opinions on these financial statements based on our audit. \r\nWe conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in GovernmentAuui'ting Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. \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 White County Board of Education, as of June 30, 2010, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated August 9, 2011, on our consideration of the White County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and \r\n \r\n not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Audifng Standards and should be considered in assessingthe results of our audit. \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussionand Analysis and the Schedule of Revenues, Expendituresand Changes in Fund Balances - Budget and Actual, as presented on pages i through vii and page 25 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence 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 White County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Nun-Profit Organizattons, are presented for purposes of additional analysis and are not a required part of the financial statements. Such information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. \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~ u \u0026 e l lW. Hinton. CPA, CGFM State Auditor \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\nINTRODUCTION \r\nOur discussion and analysis of the White County School District's financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2010. 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 basic financial statements and the notes to these statements to enhance their understandingof the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for fiscal year 2010 are as follows: \r\nOn the District-wide financial statements, the assets of the School District exceeded liabilities by $45.5 million. Of this amount, $1.82 million is unrestricted and is available for spending at the School District's discretion. \r\nThe School District had $40.5 million in expenses relating to governmental activities; only $21.9 million of these expenses are offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) of $20.4 million were adequate to provide for these programs. \r\nAs stated above, general revenues accounted for $20.4 million or 48.2% of all revenues totaling $42.4 million. Program specific revenues in the form of charges for services, grants and contributions 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 Assets and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \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 White County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are 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\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDED JUNE 30,2010 \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the School District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provide the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net assets and any changes in those assets. The change in net assets is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Assets and the Statement of Activities reflect 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 Assets 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 scholarship funds, 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\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Assets provides the perspective of the School District as a whole. Table 1provides a summary of the School District's net assets for this fiscal year. Net asset comparisons to fiscal year 2009 are available and have been included in the following analysis. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\n \r\nTable 1 Net Assets \r\nAssets Current and Other Assets Capital Assets, Net \r\nTotal Assets \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\nTotal Liabilities \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\nTotal Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2010 \r\n \r\nYear 2009 \r\n \r\nTable 2 shows the Changes in Net Assets for this fiscal year. Revenue and Expense comparisons to fiscal year 2009 are available and are included in the following analysis. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDED JUNE 30,2010 \r\n \r\nTable 2 Change in Net Assets \r\nRevenues Program Revenues: Charges for Services and Sales Operating Grants and Contributions Capital Grants and Contributions \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations For Debt Services Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \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 ExDenSeS \r\nIncrease in Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2010 \r\n \r\n2009 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \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. Cost of service comparisons to fiscal year 2009 are available and have been included in the following analysis. \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 2010 \r\n \r\nYear 2009 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2010 \r\n \r\nYear 2009 \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\nTotal Expenses \r\n \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 $56.5 million and total expenditures and other financing uses of $47.1 million. \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. During the course of fiscal year 2010, the School District amended its General Fund budget as needed. \r\nFor the General Fund, the final actual revenues and other financing sources of $38.71 million were $1.09million less than the original budgeted amounts of $39.80 million. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\n \r\nThe actual revenues of $38.59 million were less than the final budgeted amounts of $38.89 million by $0.3 million. The difference is the State and Federal revenue decreases. \r\nThe final actual expenditures of $38.55 million were $1.65 million less than the original budgeted amount of $40.20 million. The expenditures for the program decreases accounts for this difference. \r\nThe final actual expenditures of $38.55 million were $0.84 million less than the final budgeted amount of $39.39 million for budgeted programs not being spent. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt fiscal year ended June 30, 2010, the School District had $50.15 million invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances by category and accumulated depreciation. Capital assets comparisons to fiscal year 2009 are available and have been included in the following analysis. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2010 \r\n \r\nYear 2009 \r\n \r\nLand Construction In Progress Buildingand Improvements Equipment Land Improvements \r\n \r\n$ 2,021,886.00 $ 1,462,541.88 \r\n43,195,646.26 2,676,151.43 790,255.43 \r\n \r\n2,021,886.00 25,261.12 \r\n44,227,879.96 2,902,670.57 922,442.28 \r\n \r\nTota I \r\n \r\nDue to the ongoing growth in the county, the School District has construction projects including new buildings, additions and renovations. \r\nDebt \r\nAt fiscal year ended June 30, 2010, the School District had $21.0 million in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION MANAGEMENTS DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \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 2010 \r\n \r\nYear 2009 \r\n \r\nBonds Payable Unamortized Bond Premium \r\nTotal \r\nCURRENT ISSUES \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations are as follows: \r\nEconomic Slowdown - State funding for education has been stagnant and as a result more pressure is being placed on the local school districts to prioritize its educational programs and provide additional local funding. Additional costs to the School District will be required with the continued implementation of House Bill 1187, which mandates lower teacher to student ratios, requiring additional teachers and additional classrooms. Despite these challenges, the White County School District is strong financially and we remain optimistic about the ability of the School District to maximize all of the financial resources to provide a quality education to our students. \r\nCapital Improvements - The School District plans capital improvements as future capital needs arise due to increased student population and facility repair and maintenance needs. Specific capital expenditure plans are formalized in conjunction with individual general obligation bond issues and anticipated annual receipts of capital outlay funds from the State of Georgia Department of Education. The School District regularly monitors anticipated capital outlay needs. \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 Mr. Tom McLean, Finance Director at White County School District, 136 Warriors Path, Cleveland, GA 30528. Mailing address is same as above. You may also email your question to Mr. McLean at tmclean@white.kl2.ga.u~. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30.2010 \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventones Capitalized Bond and Other Debt Issuance Costs Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Serv~ce Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \" A \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nThe notes to the basic financial statements are an ~ntegrapl art of this statement. - 1- \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDEDJUNE 30,2010 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nlnstruct~on Support Sewlces \r\nPup11Servlces Improvement of Instructional Se~vlces Educat~onaMl edla Servlces General Adrn~nlstrat~on School Admlnlstratlon Busmess Admlnlstrat~on Ma~ntenanceand Operation of Plant Student Transportation Servlces Central Support Serv~ces Other Support S e ~ i c e s Operat~onsof Non-lnstruct~onaSl ervlces Enterprise Operat~ons Food Services Interest on Short-Term and Long Term Debt \r\nTotal Governmental Activ~t~es \r\nGeneral Revenues Taxes Property Taxes For Malntenance and Operat~ons For Debt Servlces Sales Taxes Spec~aPl urpose Local OpQonSales Tax For Capital Projects Other Sales Tax Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange In Net Assets \r\nNet Assets - Beginningof 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\nNet Assets - End of Year \r\n \r\nThe notes tothe bas~cfinancial statements are an Integral part of t h ~ statement. \r\n- 2 \r\n \r\n WHITE COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30.2010 \r\n \r\nASSETS \r\nCash and Cash Equivalents Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Deoosits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nResewed for: Cont~nuat~oonf Federal Programs Debt Service Capital Projects \r\nUnre~ewed Designated for Student Activities Undesignated Reported in: General Fund Capital Projects \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -3- \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30,2010 \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: Capital Assets used in GovernmentalActivities are not financial resources and therefore are not reported in the funds. These assets conslst of: Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation Total Cap~taAl ssets Taxes that are not ava~lableto pay for current period expenditures are deferred in the funds. Other Long-Term Assets that are not available to pay for current period exoenditures and therefore. are deferred on the Statement of Net Assets. Capitalized Bond Issuance Costs Long-TermLiabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at yearend consist of: Bonds Payable Unamortized Bond Premiums Total Long-Term Liabilities \r\nNet Assets of GovernmentalActiv~ties(Exhibit\"A\") \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 4 - \r\n \r\n WHITE COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDEDJUNE30,2010 \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 lnstructlon Support Servlces Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees interest \r\nTotal hpenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\n- Fund Balances Beginning \r\n \r\nGENERAL FUND \r\n \r\nFund Balances- Ending \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n WHITE COUNTY BOARD OF EDUCATION RECONClLlATiON OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30,2010 \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit\"E\") Amounts 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: Cap~taOl utlay Depreciation Expense Excess of Capital Outlay over Depreciation Expense \r\nTaxes reported in the Statement of Activities that do not provide current f~nanciarlesourcesare not reported as revenues in the funds. \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \r\nBond proceeds provide Current financial resourcesto Governmental Funds; however, issuing debt increases Long-Term Liabilities in the Statement of Net Assets. In the current period, proceeds were receivedfrom: General Obligation Bonds Issued, Includinga Premium of $793,794.40 \r\nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt using the straight-line method. The details of this difference in the current period are as follows: Deferral of bond issuance costs Amortization of bond premium Total Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities In the Statement of Net Assets. In the current year, these amounts consist of: Bond Principal Retirements \r\nChange in Net Assets of GovernmentalActivities (Exhibit \"B\") \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 6 - \r\n \r\n WHITE COUNN BOARD OF EDUCATION STATEMENT OF FIDUCIARY ENT ASSETS \r\nFIDUCIARY FUNS JUNE 30,2010 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private PulpOSeS \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\nThe notesto 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 WHITE COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30,2010 \r\nADDITIONS Contributions Donors Investment Earnings Interest Total Additions \r\nDEDUCTIONS Other Deductions Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -9- \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe White County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the White County Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchangetransactions. \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 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\nGeneral Fund is the School District's primary operating fund. It accounts for all financial resources of the School District, except those resources required to be accounted for in another fund. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nDistrict-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds to be used for the acquisition, construction or renovation of major capital facilities. \r\nDebt Service Fund accounts for taxes (property and sales) legally restricted for the payment of general long-term principal, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\nPrivate Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship. \r\nAgency 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 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-balancingset 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, 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 net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe State of Georgia reimburses the School District for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1- June 30) and paid over a twelve month contract period, generally September 1through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School District over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2010, the School District adopted the Governmental Accounting and Standards Board (GASB) Statement No. 51,Accounting and Reporting for Intangible Assets. The provisions of this Statement generally require retroactive reportingfor intangible assets acquired after June 30, 1980, with the exception of those intangible assets that have indefinite useful lives and those that are considered internally generated. \r\nIn addition, the School District adopted GASB Statement No. 53, Accounting and Financial Reporting for Derivative Instrumen\u0026. The provisions of this Statement impacts disclosure regarding derivative instruments entered into by the state and local governments. Derivative disclosures, if any, will be identified in Note 3. \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 lnvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30.2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\n5 . Prime banker's acceptances, 6. The Georgia Fund 1administered by the State of Georgia, Office of Treasury and Fiscal \r\nServices, 7. Repurchase agreements, and 8. Obligations of other political subdivisions of the State of Georgia. The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \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 White County Board of Commissioners fixed the property tax levy for the 2009 tax digest year (calendar year) on July 27, 2009 (levy date). Taxes were due on November 15, 2009 (lien date). Taxes collected within the current fiscal year or within 6 0 days after year-end on the 2009 tax digest are reported as revenue in the governmental funds for fiscal year 2010. The White County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2010, for maintenance and operations amounted to $15,341,787.07 and for school bonds amounted to $367,686.74. \r\nTax millage rates levied for the 2009 tax year (calendar year) for the White County Board of Education were as follows (a mill equals $ 1 per thousand dollars of assessed value): \r\n \r\nSchool Operations School Bonds \r\n \r\n14.650 mills 0.339 mills \r\n \r\nSALES TAXES \r\n \r\n14.989 mills \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $3,322,708.94 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nat cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and 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 \r\nfinancial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization \r\n \r\nEstimated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAny Amount $ 5,000.00 $ 5,000.00 $ 5,000.00 \r\n \r\nN/A 2 0 to 8 0 years 1 0 to 8 0 years \r\n3 to 20 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\n \r\nGENERAL OBLIGATION BONDS \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\n \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financingsources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. To conform to generally accepted accounting principles, the 2003 Refunding Series, 2006 Series and 2007 Refunding Series general obligation bond issuance costs should be amortized over the life of the bonds on the District-wide statements. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nstatements. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\nNET ASSETS \r\nThe School District's net assets in the District-wideStatements are classified as follows: \r\nInvested in capital assets, net of related debt -This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \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, debt service, 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\nReserved Reserves represent those portions of fund balance equity that are legally segregated for a specific future use. \r\nUnreserved - Designated Designatedfund balances represent tentative plans for future use of financial resources. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \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. lnsurance on accounts provided by the Federal Deposit lnsurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2010, the bank balances were $18,110,458.15. The bank balances were entirely covered by Federal depository insurance. \r\nNOTE 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally \r\nassigned value. See Note 2 - Inventories \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS The following is a summary of changes in the CapitalAssets during the fiscal year: \r\n \r\n~alances July 1.2009 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30.2010 \r\n \r\nGovernmental Activities Capital Assets. Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 2,021,886.00 \r\n \r\n$ \r\n \r\n25,261.12 $ 1,437,280.76 \r\n \r\n0.00 $ \r\n \r\n2,021,886.00 1,462,541.88 \r\n \r\nTotal Capital Assets, Not Being Depreciated \r\n \r\n$ 2,047,147.12 $ 1,437,280.76 $ \r\n \r\n0.00 $ 3,484,427.88 \r\n \r\nCapitalAssets Being Depreciated Buildings and lmprovements Equipment Land lmprovements \r\n \r\nLess Accumulated Depreciationfor: Bulldings and Improvements Equipment Land Improvements \r\n \r\n6,355,522.17 3,382,271.21 1,721,295.88 \r\n \r\n624.834.34 442,793.11 132,186.85 \r\n \r\n651,300.64 39,093.00 \r\n \r\n6,329,055.87 3,785,971.32 1,853.482.73 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\nGovernmentalActivity Capital Assets - Net \r\n \r\n$ 48,052,992.81 $ -977,344.33 $ 413.595.36 $ 46,662,053.12 $ 50,100,139.93 $ 459,936.43 $ 413,595.36 $ 50,146,481.00 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\nInstruction Support Services \r\nPupil Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Enterprise Operations Food Services \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30,2010, 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 Debt Service Fund \r\n \r\n$ 117,000.00 \r\n \r\nTotal \r\nTransfers are used (1) t o move Special Purpose Local Option Sales Tax (SPLOST) revenues collected by the District-wide Capital Projects Fund as well as capitalized interest to the Debt Service Fund for the current year bond principal and interest payments and (2)to reimburse Capital Projects Fund for the purchase of School Food Equipment. \r\nNOTE 7: 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. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginningof Year Changes in \r\n \r\nLiability \r\n \r\nEstimates \r\n \r\nClaims Pa id \r\n \r\nEnd of Year Liability \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 general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $500,000.00 loss per occurrence, up to $2,000,000.00. \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\nAll Employees Superintendent \r\nNOTE 8:SHORT-TERM DEBT \r\nThe School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 3 1of the calendar year in which the debt was incurred. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nTemporary Loans \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nNOTE 9: LONG-TERM DEBT \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nGeneral Government - Refunding - Series 2003 General Government -Series 2006 General Government - Series 2007 General Government - Series 2010 \r\n \r\n2.9% 3.6% - 3.73% \r\n3.846% 3.0% - 5.0% \r\n \r\nEXHIBIT \"I\" Amount \r\n \r\nVoters have authorized $6,000,000.00 in general obligation debt for designated capital purchases which was not issued as of June 30,2010. \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30,2010, were as follows: \r\n \r\nBalance July 1,2009 \r\n \r\nAdditions \r\n \r\nGovernmental Funds Deductions \r\n \r\nBalance June 30,2010 \r\n \r\nDue Within One Year \r\n \r\nG. 0. Bonds Bond Premiums Amortized \r\n \r\n$ 13,165,000.00 $ 10,000,000.00 $ 2,955,000.00 $ 20,210,000.00 $ 3,070,000.00 \r\n \r\n0.00 \r\n \r\n793,794.40 \r\n \r\n46,693.79 \r\n \r\n747,100.61 \r\n \r\n93,387.58 \r\n \r\nAt June 30, 2010, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nGeneral Obligation Debt \r\n \r\nUnamortized \r\n \r\nPrinc~pal \r\n \r\nInterest \r\n \r\nBond Premium \r\n \r\nFiscal Year Ended June 30: \r\n \r\nTotal Principal and Interest \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $113,160.35 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health lnsurance of Non-Certified Personnel In the amount of $73,464.77 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $26,328.49 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $13,367.09 \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2010: \r\n \r\nUnearned \r\n \r\nExecuted \r\n \r\nProject \r\n \r\nContracts \r\n \r\nWhite County Administration Building White County Middle School Replacement \r\n \r\n$ \r\n \r\n29,238.00 \r\n \r\n840,348.00 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL 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 Fun provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health lnsurance Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (OCGA) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 of the cost of 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, 2010: \r\nFor certificated teachers, librarians and regional educational service agencies: \r\n \r\nJuly 2009 August 2 0 0 9 -October 2009 November 2009 -June 2010 \r\n \r\n18.534% of covered payroll for August Coverage 14.492% of covered payroll for September - November Coverage \r\n18.534% of covered payroll for December - July Coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2009 -June 2010 \r\n \r\n$162.72 per member per month plus Department of Education contribution of $22,838,311.00 \r\n \r\nNo additional contribution was required by the Board for fiscal year 2010 nor contributed to the State OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the State plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\nNOTE 14: RETIREMENT PLANS \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"I\" \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 3 0 years of creditable service, regardless of age, or after 1 0 years of service and attainment of age 60. A member is eligible for early retirement after 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 4 0 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 6 0 or by 7% for each year or fraction thereof by which the member has less than 3 0 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \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 1 0 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, 2010, were 5.25% of annual salary. The member contribution rate will increase to 5.53%effective July 1,2010. Employer contributions required for fiscal year 2010 were 9.74%of annual salary as required by the June 30, 2007, actuarial valuation. The employer contribution rate will increase to 10.28% effective July 1, 2010. \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\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDEDJUNE 30,2010 \r\n \r\nREVENUES \r\nPropew Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnlngs M~scellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Servlces Pup11Services Improvement of Instructional Servlces Educational Medla Services General Admlnlstration School Administration Buslness Administration Malntenance and Operation of Plant Student Transportat~onServlces Central Support Services Other Support Services Food Servlces Operation Enterprise Operations \r\nTotal Expend~tures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCINGSOURCES (USES) \r\nOperating Transfers From Other Funds Other Sources Operating Transfers To Other Funds Other Uses \r\nTotal Other Flnanclng Sources (Uses) \r\nNet Change In Fund Balances \r\nFund Balances - Beglnnlng \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL \r\n \r\nFINAL \r\n \r\nACTUAL AMOUNTS \r\n \r\nFund Balances - Endlng \r\nNotes to the Schedule of Revenues. Exoendltures and Changes In Fund Balances Budst and Actual The accompanylng schedule of revenues, expenditures and changes In fund balances budget and actual is presented on the mod~fiedaccrual bas6 of accounting whlch IS the bass of accounting used In the presentation of the fund financ~asl tatements. \r\n \r\nSee notes to the basic f~nanc~satlatements. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 3 0 , 2 0 1 0 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture. U. S. Department of Child Nutrit~onCluster Pass-Through From Georgia Department of Education Food Setv~ces School Breakfast Program National School Lunch Program \r\nTotal Child Nutr~tionCluster \r\nSchools and Roads Cluster Pass-Through From Office of Treasury and Fiscal S e ~ l c e s Schools and Roads -Grants to States \r\nOther Programs Pass-ThroughFrom Georg~aDepartment of Educat~on Food S e ~ ~ c e s ARRA Child Nutrltlon Dlscret~onaryGrants L~m~teAdva~lab~l~ty Fresh Fru~at nd Vegetable Program \r\nTotal Other Programs \r\nTotal U. S. Department of Agriculture \r\nEducat~onU, . S. Department of Educatlon TechnologyState Grants Cluster Pass-ThroughFrom Georgia Department of EducaUon Educat~onTechnology State Grants \r\nSpeclal Educatlon Cluster Pass-ThroughFrom Georgia Department of Education Special Educatlon ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nState F~scaSl tab~llzatlonFund Cluster Pass-ThroughFrom Georg~aDepartment of Educatlon \r\nARRA - Educatlon State Grants \r\nTitle I, Part A Cluster Pass-ThroughFrom Georg~aDepartment of Educat~on ARRA -T~tleI Grants to Local Educat~onaAl gencles T~tleI Grants to Local Educat~onaAl gencles \r\nTotal Title I. Part A Cluster \r\nOther Programs Pass-ThroughFrom Georgia Department of Education \r\nCareer and Technical Educat~on- Basic Grants to States \r\nImprovingTeacher QualityState Grants Migrant EducationS t a t e Grant Program Safe and Drug-Free Schools and Communities -State Grants Twenv-Flrst Century Community Learnlngcenters \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 WHITE COUNN BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDEDJUNE 30.2010 \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nHealth and Human S e ~ l c e sU. . S. Department of Head Start Cluster Other Programs Pass-Through From State of Georgia Department of Behavioral Health and Developmental Disab~lities Block Grant for Prevention and Treatment of Substance Abuse Pass-Througl\" From Ninth Distrlct Opportunity, Incorporated Head Start \r\nTotal U. S. Department of Health and Human Services \r\nDefense. U. S. Department of Dlrect Department of the Army R.O.T.C. Program \r\n \r\nCFDA NUMBER \r\n \r\nPASS THROUGH \r\nENTIN ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nTotal Federal Financ~aAl sslstance \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Exwendltures of Federal Awsr\u0026 \r\n \r\n(1) Includes the Federally asslgned value of donated commodities for the Food Donation Program in the amount of $135.011.34. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($277,941.12w)ere not malntalned separately and are included In the 2010 National School Lunch Program. \r\n(3) Funds earned on this program, in the amount of $44,913.42, do not require reporting of expenditures. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Asslstance to any Subrecipient. \r\nThe accompanylng schedule of expend~turesof Federal awards Includes the Federal grant acuvity of the White County Board of Education and IS presented on the modlfled accrual basls of accountlng whlch is the bass of accountlng used In the presentation of the fund financial statements. \r\n \r\nSee notes to the bas~cfinancial statements. \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OFSTATE REVENUE YEAR ENDED JUNE 30,2010 \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost K~ndergartenProgram \r\nKindergarten Program - Early Intervention Program \r\nPrimary Grades (1-3) Program \r\nPrimary Grades - Early Intervention (1-3) Program \r\nPrimaty Grades - Early Intervention (4-5) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8P)rogram M~ddleSchool (6-8) Program High School General Education (9-12) Program Vocational Laboratoty (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 2 0 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Sparsity Nursing Services Food Sewices Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Health Insurance Middle School Summer Remedial Program National Teacher Certif~cat~on Preschool Handicapped Program Teachers' Retirement \r\nOffice of Treasuty and Fiscal Services Public School Employees Retirement \r\nCONTRACT Human Resources, Georg~aDepartment of Fam~lyConnection \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE '3\" \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDEDJUNE 30.2010 \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) (5) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) (5) \r\n \r\nPROJECT STATUS \r\n \r\n2006 SPLOST Referendum I. Acquiring, construction and equlpplng one new elementary \r\n \r\nschool; \r\n \r\n$ \r\n \r\nli. acquiring, constructingand equipping a new gymnas~umat the \r\n \r\nexlsting middle school; \r\nii~a. cquiringcomputers and computer technologyequipment; IV. acqulrlngconstrudlngand equlpplnga new agrlculture \r\n \r\nexhlbltlon facility: v. addingto, constructlng. renovating,repairing, improvln\u0026 and \r\n \r\nequlpplngschool system bulldings and facilities; lncludlngbut not \r\n \r\nlimited to athletlc and fine arts faCllltleS and SeCurlty \r\n \r\nimprovementsand equipment VI. acquirlngtextbooks and other lnstructlonal materialsand \r\n \r\ntransportation equipment; \r\n \r\nVII. Pay~ngaportlon of the principal and interest due on the Schwl District'sSeries 2003 General Obl~gatlonBonds from August 1. \r\n \r\n2008 through and including February 1,2013 (the maxlmum \r\n \r\namount of such payments not to exceed $1,600,000.00) and \r\n \r\npaylnganygeneralobligation debt of the School District in \r\n \r\nconjunct~onw~ththe impos~tlonof such sales and use tax. \r\n \r\n11.204.000.00 $ 3,200.000.00 1.154.358.00 908,233.00 \r\n370,052.00 563.357.00 \r\n1,600.000.00 \r\n \r\n11.194.678.00 3,200.000.00 1,235,218.60 908,233.00 \r\n370.052.00 572,679.00 \r\n1,600.000.00 $ \r\n \r\n5 11,194,678.00 Completed 25.261.00 Ongolng \r\n1,235.218.60 Completed 908.233.00 Completed \r\n370.052.00 Completed 572,679.00 Completed \r\n \r\n637,865.00 \r\n \r\n628.742.50 \r\n \r\n2009 SPLOSTReferendum \r\n(I) acqulrlng, constructlng and equlpplng one new rnlddle school, (11)aaalng to, construnlng, renovating, repalrlng ~rnprov~nagn, d equ~ppingexlst~nsgchool bulldlngsand facllltles, (111)acqulrlngcomputers and computer technology equlpment. (IV)acqulrlng, consrrucrlngano equlpplng a new central onlce faclllty. (v) acqulrlng, constructlngand equlpplnga new gymnasium at the exlstlng lntermedlate school, (VI) acqulrlngnearlng. air conolrlonlngana energy errlclency equipment. (VII)acqulrlngtextbooks and other insfruct~onalmater~alsand transportatlon equlpment. \r\n(VIII) paylnga portlon of the pr~nc~paanld Interestdue on the School Dlstrlct's Ser~es2003 General Obllgat~onBonds on August 1.2013. the maxlmum amount of such payment not to exceed 5320.000.00. \r\n \r\nOngolng Ongolng Ongolng Ongolng \r\nOngolng \r\n \r\n(1) The School Dlstr~ct'sorlglnal cost estimate as specifled in the resolutioncalling for the cont~nuationof the Local Option Sales Tax. \r\n \r\n(2) The School District's current estlmate of total cost for the projects. Includesall costs from project inception to completion. \r\n \r\n(3) The voters of Whlte County approved a contlnuatlon of a 196salestax to fund the above projects and retlre associated debt Amounts expended for these projects may Include sales tax proceeds, state, local property taxes and/or other funds over the l ~ f eof the projects \r\n \r\n(4) In additlon to the expend~turesshown above, the School Dlstrict has Incurred Interestto provlde advance fundlng \r\n \r\nfor the above projects as follows: \r\n \r\nPr~oYr ears \r\n \r\n$ 1,143.706.69 \r\n \r\nCurrent Year \r\n \r\n421.043.80 \r\n \r\nTotal \r\n \r\n(5) In add~t~otonthe expenditures shown above. the School District has incurred $154.546.67 of bond Issuancecosts relatedto the 2010 GeneralObligation Bond IsSue. \r\n \r\nSee notes to the basic financ~asl tatements. \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITE COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30.2010 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDlrect lnstructlonal Programs Kindergarten Program Kindergarten Program Early lnterventlon Program Prlmary Grades ( 13) Program Prlmary Grades-Early lnterventlon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades Early lnterventlon (4 5) Program Middle Grades (6-8)Program Mlddle School (6-8) Program H~ghSchool General Educat~on(9-12) Program Vocat~onaLl aboratory (9-12) Program Students wlth D~sabll~t~es Category I Category II Category Ill Category Iv Glfted Student - Category VI Remed~aEl ducation Program Alternative Education Program Engl~shSpeakers of Other Languages (ESOL) \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMed~aCenter Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nTOTALQBE FORMULA FUNDS \r\n \r\n(1) Compr~sedof State Funds plus Local F~veMlll Share. (2) Allotments do not Include the Impact of the State amended formula adjustment. \r\n \r\nSee notes to the bas~cfinanc~asl tatements. \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\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 9 , 2 0 1 1 \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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MAlTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING 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 White County Board of Education as of and for the year ended June 30, 2010, which collectively comprise White County Board of Education's basic financial statements and have issued our report thereon dated August 9, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Re~orting \r\nIn planning and performing our audit, we considered White County Board of Education's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the White County Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\nOur consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\n \r\n Complianceand Other Matters \r\nAs part of obtaining reasonable assurance about whether White County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards, \r\nWe noted a certain matter that we have reported to management of White County Board of Education in a separate letter dated August 9, 2011. \r\nThis report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\ns t d e Auditor \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 9,2011 \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 White County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MNOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WlTH OMB CIRCULAR A-133 \r\nLadies and Gentlemen: \r\n \r\nWe have audited White County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2010. White County Board of Education's major Federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major Federal programs is the responsibility of White County Board of Education's management. Our responsibility is to express an opinion on White County Board of Education's compliance based on our audit. \r\nWe conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Low1 Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the White County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on White County Board of Education's compliance with those requirements. \r\nIn our opinion, the White County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30,2010. \r\n \r\n Internal Control Over Compliance \r\nManagement of White County Board of Education is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to Federal programs. In planning and performing our audit, we considered White County Board of Education's internal control over compliance with the requirements that could have a direct and material effect on a major Federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OM6 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 White County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses,as defined above. \r\nThis report is intended solely for the information and use of management, members of the White County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n~ u s $ l l W. Hinton, CPA. CGFM State Auditor \r\n \r\n SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 3 0 , 2 0 1 0 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7541 - 0 8 - 01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30.2010 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\nInternal control over financial reporting: Material weakness identified? Significant deficiency identified? \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs: Material weakness identified? Significant deficiency identified? \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nAny audit findings disclosed that are required to be reported in accordance with OMB Circular A-133, Section 510(a)? \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Number(s1 \r\n \r\nName of Federal Program or Cluster \r\n \r\n84.287 \r\n \r\nTitle I, Part A Cluster Special Education Cluster State Fiscal Stabilization Fund Cluster Twenty-First Century Community Learning Centers \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\nII FINANCIAL STATEMENT FINDINGSAND QUESTIONEDCOSTS \r\n \r\nNo matters were reported. Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\nUnqualified N 0 \r\nNone Reported \r\nN 0 None Reported \r\nUnqualified \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":11,"first_page?":true,"last_page?":false},"facets":[{"name":"type_facet","items":[{"value":"Text","hits":11}],"options":{"sort":"count","limit":16,"offset":0,"prefix":null}},{"name":"creator_facet","items":[{"value":"Georgia. Department of Audits","hits":6},{"value":"Georgia. 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