{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2020-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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 Whitfield 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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND \r\n \r\nPage \r\ni \r\n1 2 \r\n3 4 5 6 7 8 10 \r\n35 36 37 38 39 \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n40 41 42 43 45 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 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 Whitfield 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 Whitfield County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\n (This page left intentionally blank) \r\n \r\n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2020, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2020, the Whitfield County Board of Education early adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. The cumulative effect of GASB Statement No. 84 is described in the restatement note in the Notes to the Basic Financial Statements. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional \r\n \r\n (This page left intentionally blank) \r\n \r\n procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 26, 2021 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2020 and June 30, 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2020 and 2019 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $92.1 million and $75.3 million, respectively, for the fiscal years ended June 30, 2020 and 2019. \r\n The School District had $154.1 million and $140.5 million, respectively, in expenses for the fiscal years ended June 30, 2020 and June 30, 2019 relating to governmental activities. Only $108.7 million and $103.0 million of the above-mentioned expenses for 2020 and 2019 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $61.8 million and $58.3 million, respectively, for 2020 and 2019 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $61.8 million or 36.3% of all revenues totaling $170.5 million for fiscal year 2020 and $58.3 million or 36.1% of all revenues totaling $161.3 million for fiscal year 2019. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. 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 Whitfield County School District, the general fund, capital projects fund and debt service fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \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 might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all School District's assets, deferred outflows, liabilities and deferred inflows. They use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Position and the Statement of Activities reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. 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 in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the government-wide financial statements because it cannot use these assets to finance its operations. \r\nii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's Net Position for fiscal year 2020 compared to fiscal year 2019. \r\n \r\nTable 1 Net Position \r\n \r\nAssets Current and Other Assets \r\nCapital Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\n$ \r\n \r\n80,676,193 $ \r\n \r\n254,734,325 \r\n \r\n86,320,022 227,173,876 \r\n \r\nTotal Assets \r\n \r\n335,410,518 \r\n \r\n313,493,898 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n35,872,888 6,048,639 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n41,921,527 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n15,512,993 15,977,233 127,073,885 94,030,038 \r\n \r\nTotal Liabilities \r\n \r\n252,594,149 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n4,566,993 28,052,020 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n32,619,013 \r\n \r\nNet Position Net Invested in Capital Assets Restricted Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\n233,469,743 31,381,486 \r\n(172,732,346) \r\n \r\n$ \r\n \r\n92,118,883 $ \r\n \r\n24,489,356 4,259,952 \r\n28,749,308 \r\n12,659,488 16,380,914 109,158,760 98,591,377 \r\n236,790,539 \r\n7,047,448 23,148,706 \r\n30,196,154 \r\n221,152,387 28,302,098 \r\n(174,197,972) 75,256,513 \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the restatement of net position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\nTotal assets and deferred outflows of resources increased by $35.1 million, which was due to the increase in resources related to the defined benefit pension plan and OPEB Plan and the addition of capitalized assets. \r\n \r\nTotal liabilities and deferred inflows of resources increased by $18.2 million. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows of resources yielded an increase in net position of $16.9 million, without consideration of the restatement. \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2020 and June 30, 2019. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\n$ \r\n \r\n1,651,235 $ \r\n \r\n100,517,124 \r\n \r\n6,506,226 \r\n \r\n2,225,662 95,918,867 \r\n4,866,477 \r\n \r\nTotal Program Revenues \r\n \r\n108,674,585 \r\n \r\n103,011,006 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n33,106,525 834,709 \r\n12,190,536 587,090 \r\n10,360,413 650,596 \r\n4,092,048 \r\n \r\n31,163,190 800,356 \r\n11,204,703 493,056 \r\n10,168,496 750,889 \r\n3,680,417 \r\n \r\nTotal General Revenues \r\n \r\n61,821,917 \r\n \r\n58,261,107 \r\n \r\nTotal Revenues \r\n \r\n170,496,502 \r\n \r\n161,272,113 \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administrative School Administrative Business Administrative Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Long-Term Debt \r\n \r\n95,994,864 \r\n7,371,272 4,340,845 2,588,904 1,247,564 10,825,603 1,290,503 12,125,626 5,543,124 3,304,932 \r\n397,539 \r\n355,475 8,449,501 \r\n298,897 \r\n \r\n86,468,262 \r\n8,387,715 4,216,588 2,786,846 1,163,750 9,777,627 \r\n841,983 6,748,933 5,808,969 2,693,420 \r\n335,589 \r\n436,911 10,701,134 \r\n158,383 \r\n \r\nTotal Expenses \r\n \r\n154,134,649 \r\n \r\n140,526,110 \r\n \r\nIncrease in Net Position \r\n \r\n$ 16,361,853 $ 20,746,003 \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the restatement of net position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $5.7 million for governmental activities. This increase is due to the School District receiving additional state funding in fiscal year 2020, including, capital outlay reimbursements for on-going capital projects. \r\nGeneral revenues increased by $3.6 million during fiscal year 2020. This is a result due to the increase of revenue received from the one cent sales tax and an increase in property tax revenue. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administrative School Administrative Business Administrative Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Long-Term Debt \r\n \r\n$ 95,994,864 $ \r\n7,371,272 4,340,845 2,588,904 1,247,564 10,825,603 1,290,503 12,125,626 5,543,124 3,304,932 \r\n397,539 \r\n355,475 8,449,501 \r\n298,897 \r\n \r\n86,468,262 $ \r\n8,387,715 4,216,588 2,786,846 1,163,750 9,777,627 \r\n841,983 6,748,933 5,808,969 2,693,420 \r\n335,589 \r\n436,911 10,701,134 \r\n158,383 \r\n \r\n17,079,009 $ 13,319,791 \r\n \r\n6,402,334 1,484,765 \r\n514,663 (2,286,121) 6,408,867 1,246,305 7,463,690 4,010,475 3,107,131 \r\n132,068 \r\n \r\n7,095,921 1,488,742 \r\n776,847 (1,240,070) 5,592,013 \r\n806,884 2,401,704 3,615,527 2,612,980 \r\n82,820 \r\n \r\n355,393 (757,412) 298,897 \r\n \r\n436,815 366,747 158,383 \r\n \r\nTotal Expenses \r\n \r\n$ 154,134,649 $ 140,526,110 $ 45,460,064 $ 37,515,104 \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the restatement of net position. See Note 14 in the Notes to the Basic Financial Statements for more information. \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2020, 29.5% of total expenses were supplemented by taxes and other general revenues compared to 26.7% in 2019. \r\n \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nExpenses increased $13.6 million from the prior year; the net costs of providing services increased $7.9 million. This situation occurred largely due to instructional cost increases due to COVID-19 and school closure in March 2020, along with capital outlay reimbursements from the state for on-going district capital projects. \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 of $169.1 million and total expenditures of $179.6 million for fiscal year 2020 and total revenues of $160.8 million and total expenditures of $155.7 million for fiscal year 2019. \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 years 2020 and 2019, the School District amended its general fund budget as needed. \r\nDuring fiscal year 2020, the general fund had final actual revenues totaling $150.9 million, which was more than the final budgeted amounts of $147.2 million by $3.7 million. This difference (final actual vs. final budget) was due to unbudgeted revenues from the local school activity accounts. Also, the School District received $755 thousand in private donations and reimbursement for special education services (Medicaid) of $416 thousand that were not budgeted. \r\nDuring fiscal year 2019, the general fund had final actual revenues totaling $144.4 million, which was more than the final budgeted amounts of $141.3 million by $3.1 million. This difference (final actual vs. final budget) was due to unbudgeted revenues from school activity accounts. Also, the school district received $555 thousand in private donations that were not budgeted. \r\nDuring the fiscal year 2020, the general fund had final actual expenditures totaling $147.2 million, which was less than the final budgeted amount of $151.7 million by $4.5 million. The difference is primarily due to school closure (March 13, 2020) as related to COVID-19. \r\nDuring the fiscal year 2019, the general fund had final actual expenditures totaling $142.1 million, which was more than the final budgeted amount of $145.5 million by $3.4 million. The difference is primarily due to maintenance and operation line items coming in under budget (fuel, utility costs, etc.) \r\nGeneral fund revenues exceeded expenditures and other financing uses by $3.7 million for the fiscal year 2020. General fund revenues exceeded expenditures and other financing uses by $2.2 million for the fiscal year 2019. \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2020 and June 30, 2019, the School District had $254.7 million and $227.2 million, respectively, invested in capital assets, net of accumulated depreciation, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District funded several capital projects through the Education Special Purpose Local Option Sales Tax (ESPLOST). \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\n$ \r\n \r\n6,856,716 $ \r\n \r\n45,055,651 \r\n \r\n187,158,145 \r\n \r\n5,963,965 \r\n \r\n9,699,848 \r\n \r\n6,833,691 13,944,100 189,843,039 \r\n6,515,394 10,037,652 \r\n \r\nTotal \r\n \r\n$ 254,734,325 $ \r\n \r\n227,173,876 \r\n \r\nThe overall capital assets increased in the fiscal year 2020 by $27.6 million. \r\nLONG-TERM LIABILITIES \r\nAt the fiscal years ended June 30, 2020 and June 30, 2019, the School District had $16.0 million and $16.4 million, respectively, in long-term liabilities. Table 5 summarizes the School District's longterm liabilities. \r\nTable 5 Long-Term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nCompensated Absences Bonds Payable Unamortized Bond Premium \r\n \r\n$ \r\n \r\n235,959 $ \r\n \r\n231,904 \r\n \r\n14,620,000 \r\n \r\n14,620,000 \r\n \r\n1,121,274 \r\n \r\n1,529,010 \r\n \r\nTotal \r\n \r\n$ 15,977,233 $ 16,380,914 \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \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. \r\n The School District is financially stable. The School District's operating millage for fiscal year 2020 was 18.756, generating slightly under $1,766,000 per mill. Fiscal year 2020 is the ninth consecutive year with the same operating millage rate. The Whitfield County Board of Education continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our stakeholders. With use of local revenue, the School District continues to provide a quality education to our students. \r\n The economy was shaken due to COVID-19. The pandemic resulted in our School District closing March 13, 2020. The state did not cut funding for local school districts as employees continued to be paid during this time. As a result of closing school early, and reducing student instructional days, the expenses for maintenance/operations and transportation were reduced resulting in an increase to the School District fund balance. Our community faced economic challenges associated with the mandatory shelter-in-place and small business closure. \r\n The School District Strategic Plan guides budget and spending decisions made by the Board of Education. \r\n Capital Improvements - The Board faces challenges from years of deferred facility needs. Along with addressing some of the School District's top priority needs using ESPLOST dollars, the general fund reserves were also tapped for capital project improvements. In March 2017, the Whitfield County voters approved ESPLOST V to begin collections January 1, 2018, and the issuance of General Obligation bonds to help fund the replacement of Valley Point Middle and North Whitfield Middle Schools. Valley Point Middle School opened school year 2020-2021. North Whitfield Middle School is slated to open school year 2021-2022. \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 demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \r\nASSETS \r\nCash and Cash Equivalents Investments 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 Plan 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 Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n61,151,982.06 \r\n \r\n2,602.64 \r\n \r\n5,669,944.36 11,412,566.24 \r\n1,872,425.78 98,562.77 \r\n468,109.20 51,912,367.09 202,821,957.71 \r\n \r\n335,410,517.85 \r\n \r\n35,872,888.19 6,048,639.00 \r\n41,921,527.19 \r\n \r\n771,900.91 9,035,034.71 \r\n182,750.00 2,746,408.24 2,776,899.16 127,073,885.00 94,030,038.00 \r\n407,736.13 15,569,496.65 \r\n252,594,148.80 \r\n \r\n4,566,993.00 28,052,020.00 \r\n32,619,013.00 \r\n \r\n233,469,743.16 \r\n1,201,884.01 182,750.01 \r\n29,996,852.45 (172,732,346.39) \r\n \r\n$ \r\n \r\n92,118,883.24 \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 WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"B\" \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Long-Term Debt \r\n \r\n$ \r\n \r\n95,994,864.31 $ \r\n \r\n451,176.40 $ 73,842,313.76 $ \r\n \r\n7,371,271.40 4,340,844.76 2,588,903.65 1,247,563.66 10,825,603.34 1,290,502.77 12,125,526.36 5,543,124.30 3,304,932.26 \r\n397,538.75 \r\n \r\n27,615.95 - \r\n \r\n949,884.43 2,846,060.14 1,870,609.84 3,118,793.11 4,151,222.91 \r\n3,869.78 4,544,414.69 1,378,209.25 \r\n20,030.91 265,471.13 \r\n \r\n355,474.72 8,449,501.33 \r\n298,897.19 \r\n \r\n1,172,442.63 \r\n- \r\n \r\n81.25 7,526,162.70 \r\n- \r\n \r\n4,622,365.13 $ \r\n19,053.16 10,019.69 203,630.84 414,891.29 265,513.50 40,328.47 89,905.24 154,440.00 177,770.70 \r\n- \r\n508,307.85 \r\n- \r\n \r\n(17,079,009.02) \r\n(6,402,333.81) (1,484,764.93) \r\n(514,662.97) 2,286,120.74 (6,408,866.93) (1,246,304.52) (7,463,590.48) (4,010,475.05) (3,107,130.65) \r\n(132,067.62) \r\n(355,393.47) 757,411.85 (298,897.19) \r\n \r\nTotal Governmental Activities General Revenues \r\nTaxes \r\n \r\n$ 154,134,548.80 $ 1,651,234.98 $ 100,517,123.90 $ \r\n \r\n6,506,225.87 \r\n \r\n(45,459,964.05) \r\n \r\nProperty Taxes For Maintenance and Operations Other Taxes \r\nSales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax \r\nGrants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n33,106,525.38 834,708.56 \r\n12,190,536.34 587,090.36 \r\n10,360,413.00 650,596.16 \r\n4,092,047.86 \r\n \r\nTotal General Revenues \r\n \r\n61,821,917.66 \r\n \r\nChange in Net Position \r\n \r\n16,361,953.61 \r\n \r\nNet Position - Beginning of Year, Restated \r\n \r\n75,757,029.63 \r\n \r\nNet Position - End of Year \r\n \r\n$ \r\n \r\n92,118,983.24 \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 WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\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$ 29,037,181.18 $ 2,602.64 \r\n \r\n32,114,800.87 $ - \r\n \r\n3,833,544.20 11,412,566.24 \r\n1,872,425.78 98,562.77 \r\n468,109.20 \r\n \r\n1,836,400.16 - \r\n \r\n0.01 $ - \r\n- \r\n \r\n61,151,982.06 2,602.64 \r\n5,669,944.36 11,412,566.24 \r\n1,872,425.78 98,562.77 \r\n468,109.20 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Sales Taxes \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 46,724,992.01 $ 33,951,201.03 $ \r\n \r\n$ \r\n \r\n626,244.30 $ \r\n \r\n9,035,034.71 \r\n \r\n- \r\n \r\n- \r\n \r\n9,661,279.01 \r\n \r\n145,656.61 $ - \r\n2,746,408.24 2,776,899.16 \r\n5,668,964.01 \r\n \r\n2,008,429.28 - \r\n2,008,429.28 \r\n \r\n845,091.27 \r\n845,091.27 \r\n \r\n468,109.20 733,774.81 1,915,102.39 31,938,297.32 \r\n35,055,283.72 \r\n \r\n23,993,953.88 \r\n3,443,191.87 - \r\n27,437,145.75 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 46,724,992.01 $ 33,951,201.03 $ \r\n \r\n0.01 $ \r\n \r\n80,676,193.05 \r\n \r\n- $ - \r\n- \r\n \r\n771,900.91 9,035,034.71 2,746,408.24 2,776,899.16 \r\n15,330,243.02 \r\n \r\n- \r\n \r\n2,008,429.28 \r\n \r\n- \r\n \r\n845,091.27 \r\n \r\n- \r\n \r\n2,853,520.55 \r\n \r\n0.01 \r\n- \r\n0.01 \r\n \r\n468,109.20 24,727,728.70 \r\n5,358,294.26 31,938,297.32 \r\n62,492,429.48 \r\n \r\n0.01 $ \r\n \r\n80,676,193.05 \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 WHITFIELD 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\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nProperty tax Sales tax \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$ \r\n \r\n62,492,429.48 \r\n \r\n$ \r\n \r\n6,856,716.36 \r\n \r\n45,055,650.73 \r\n \r\n234,924,262.90 \r\n \r\n23,985,403.57 \r\n \r\n20,101,618.57 \r\n \r\n(76,189,327.33) \r\n \r\n254,734,324.80 \r\n \r\n$ (127,073,885.00) (94,030,038.00) \r\n \r\n(221,103,923.00) \r\n \r\n$ 31,305,895.19 (22,003,381.00) \r\n \r\n9,302,514.19 \r\n \r\n$ \r\n \r\n2,008,429.28 \r\n \r\n845,091.27 \r\n \r\n2,853,520.55 \r\n \r\n$ (14,620,000.00) (182,750.00) (235,958.44) \r\n(1,121,274.34) \r\n \r\n(16,159,982.78) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n92,118,883.24 \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 WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay Debt Service \r\nInterest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning, Restated \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n33,265,219.87 $ \r\n \r\n587,090.36 \r\n \r\n95,256,601.97 \r\n \r\n15,904,316.22 \r\n \r\n1,651,234.98 \r\n \r\n144,357.61 \r\n \r\n4,082,047.86 \r\n \r\n150,890,868.87 \r\n \r\n- $ 11,345,445.07 \r\n6,351,785.87 - \r\n506,238.55 10,000.00 \r\n18,213,469.49 \r\n \r\n- $ - \r\n- \r\n \r\n33,265,219.87 11,932,535.43 101,608,387.84 15,904,316.22 \r\n1,651,234.98 650,596.16 \r\n4,092,047.86 \r\n169,104,338.36 \r\n \r\n93,162,422.31 \r\n7,267,863.03 4,233,734.67 2,850,950.77 1,126,087.97 10,374,209.55 \r\n584,514.01 9,151,022.32 6,318,943.48 3,154,168.02 \r\n395,937.18 355,474.72 8,151,598.92 \r\n47,800.00 \r\n- \r\n147,174,726.95 \r\n3,716,141.92 \r\n \r\n- \r\n8,375.00 35,565.00 326,175.23 31,371,818.43 \r\n- \r\n31,741,933.66 \r\n(13,528,464.17) \r\n \r\n- \r\n- \r\n682,266.66 \r\n682,266.66 \r\n(682,266.66) \r\n \r\n93,162,422.31 \r\n7,267,863.03 4,233,734.67 2,850,950.77 1,126,087.97 10,374,209.55 \r\n592,889.01 9,186,587.32 6,318,943.48 3,480,343.25 \r\n395,937.18 355,474.72 8,151,598.92 31,419,618.43 \r\n682,266.66 \r\n179,598,927.27 \r\n(10,494,588.91) \r\n \r\n2,583.31 - \r\n2,583.31 \r\n3,718,725.23 \r\n31,336,558.49 \r\n \r\n(684,849.98) \r\n(684,849.98) \r\n(14,213,314.15) \r\n41,650,459.90 \r\n \r\n682,266.67 - \r\n682,266.67 \r\n0.01 \r\n- \r\n \r\n684,849.98 (684,849.98) \r\n- \r\n(10,494,588.91) \r\n72,987,018.39 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n35,055,283.72 $ 27,437,145.75 $ \r\n \r\n0.01 $ \r\n \r\n62,492,429.48 \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 WHITIFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to increase net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nAmortization of bond premiums \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n(10,494,588.91) \r\n \r\n$ \r\n \r\n32,593,503.48 \r\n \r\n(5,135,728.24) \r\n \r\n27,457,775.24 102,673.16 \r\n1,521,105.34 \r\n \r\n407,736.13 \r\n \r\n$ \r\n \r\n(4,051,137.78) \r\n \r\n1,446,712.00 \r\n \r\n(2,604,425.78) \r\n \r\n$ \r\n \r\n(24,366.66) \r\n \r\n(4,054.91) \r\n \r\n(28,421.57) \r\n \r\n$ \r\n \r\n16,361,853.61 \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 WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2020 \r\nASSETS Cash and Cash Equivalents \r\nNET POSITION Restricted \r\nIndividuals, Organizations, and Other Governments \r\n \r\nEXHIBIT \"G\" \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n67,812.91 \r\n \r\n$ \r\n \r\n67,812.91 \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 WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2020 \r\n \r\nEXHIBIT \"H\" \r\n \r\nADDITIONS Contributions Donors Miscellaneous Total Additions \r\nDEDUCTIONS Other Deductions Change in Net Position \r\nNet Position - Beginning, Restated \r\nNet Position - Ending \r\n \r\nCUSTODIAL FUNDS \r\n \r\n$ \r\n \r\n102,278.07 \r\n \r\n16.43 \r\n \r\n102,294.50 \r\n \r\n50,371.48 51,923.02 15,889.89 \r\n \r\n$ \r\n \r\n67,812.91 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit \r\nThe Northwest Georgia College and Career Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby certain State funding associated with the students attending the Charter School and specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been included with the School District's general fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component units, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net position often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), 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, \r\ncommitted, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Custodial funds are used to report resources held by the School District in a purely custodial capacity. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\n \r\n- 11 - \r\n \r\n WHITFIELD 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 uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on 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 resources available to finance the program. It is the school districts 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 (GASS) 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 C0VID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. \r\nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 is described in the restatement note. \r\nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 90, Majority Equity Interests. It defines a majority equity interest and specifies that majority equity interest in a legal separate organization should be reported as an investment. A majority equity interest that meets the definition of an investment should be measured using the equity method, unless it is held by a special-purpose government engaged only in fiduciary activities, a fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund. Those governments and funds should measure the majority equity interest at fair value. The adoption of this statement did not have an impact on the School District's financial statements. \r\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- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \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\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \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 Intangible Assets \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 $ 50,000.00 \r\n \r\nN/A 15 Years 70 Years 10 to 12 Years 15 Years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\ndetermined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Whitfield County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on October 20, 2019 (levy date) based on property values as of January 1, 2019. Taxes were due on December 20, 2019 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2019 tax digest are reported as revenue in the governmental funds for fiscal year 2020. The Whitfield 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 \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nbalance 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 $29,157,900.50. \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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $3,272,610.81 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 $11,345,445.07 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund. 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\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\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2020, the School District had deposits with a carrying amount of $25,491,087.74, and a bank balance of $31,384,922.36. The bank balances insured by Federal depository insurance were $1,177,730.22 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $10,797.76. \r\nAt June 30, 2020, $30,196,394.38 of the School District's bank balances was exposed to custodial credit risk. This balance was in the State's Secure Deposit Program (SDP). \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 61,151,982.06 67,812.91 \r\n \r\nTotal cash and cash equivalents \r\n \r\n61,219,794.97 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n2,602.64 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n35,731,309.87 \r\n \r\nTotal carrying value of deposits - June 30, 2020 \r\n \r\n$ 25,491,087.74 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $35,731,309.87 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 6,833,691.36 $ \r\n \r\n23,025.00 $ \r\n \r\n- $ 6,856,716.36 \r\n \r\n13,944,099.77 \r\n \r\n32,003,885.46 \r\n \r\n892,334.50 \r\n \r\n45,055,650.73 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n20,777,791.13 \r\n \r\n32,026,910.46 \r\n \r\n892,334.50 \r\n \r\n51,912,367.09 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n234,233,619.90 24,010,756.72 19,726,137.39 \r\n \r\n690,643.00 392,803.34 375,481.18 \r\n \r\n418,156.49 \r\n- \r\n \r\n234,924,262.90 23,985,403.57 20,101,618.57 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n44,390,581.27 17,495,362.27 \r\n9,688,485.20 \r\n \r\n3,375,536.06 1,046,906.49 \r\n713,285.69 \r\n \r\n520,829.65 \r\n- \r\n \r\n47,766,117.33 18,021,439.11 10,401,770.89 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n206,396,085.27 \r\n \r\n(3,676,800.72) \r\n \r\n(102,673.16) \r\n \r\n202,821,957.71 \r\n \r\nGovernmental Activities Capital Assets - Net \r\n \r\n$ 227,173,876.40 $ 28,350,109.74 $ 789,661.34 $ 254,734,324.80 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nImprovements of Instructional Services $ Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \r\n \r\n8,101.41 164,645.45 \r\n80,155.96 214,680.60 \r\n32,607.53 69,207.38 479,858.85 46,610.19 \r\n \r\n$ 3,640,637.92 \r\n1,095,867.37 399,222.95 \r\n$ 5,135,728.24 \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nNOTE 6: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2020, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\nCapital Projects Fund \r\n \r\nGeneral Fund Debt Service Fund \r\n \r\n$ \r\n \r\n2,583.31 \r\n \r\n682,266.67 \r\n \r\nEXHIBIT \"I\" \r\n \r\nTotal \r\n \r\n$ \r\n \r\n684,849.98 \r\n \r\nTransfers are used to move ESPLOST revenue from the capital projects fund to the debt service fund for payment of bonds and remaining additional local funds from the capital projects fund back to the general fund. \r\n \r\nNOTE 7: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2019 \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nJune 30, 2020 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation (G.O.) Bonds Unamortized Bond Premiums Compensated Absences(1) \r\n \r\n$ 14,620,000.00 $ \r\n \r\n- $ \r\n \r\n- $ 14,620,000.00 $ \r\n \r\n- \r\n \r\n1,529,010.47 \r\n \r\n- \r\n \r\n407,736.13 \r\n \r\n1,121,274.34 407,736.13 \r\n \r\n231,903.53 227,566.47 223,511.56 \r\n \r\n235,958.44 \r\n \r\n- \r\n \r\n$ 16,380,914.00 $ 227,566.47 $ 631,247.69 $ 15,977,232.78 $ 407,736.13 \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\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of general obligation bonds that are generally callable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2020. In the event the School District is unable to make the principal and interest payments using proceeds of the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \r\n \r\nOf the total amount originally authorized, $26,380,000.00 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 2019 \r\n \r\n5.00% 4/25/2019 \r\n \r\n4/1/2023 $ 14,620,000.00 $ 14,620,000.00 \r\n \r\n- 20 - \r\n \r\n WHITFIELD 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$ \r\n \r\n- $ \r\n \r\n731,000.00 \r\n \r\n$ \r\n \r\n407,736.13 \r\n \r\n7,130,000.00 \r\n \r\n731,000.00 \r\n \r\n407,736.13 \r\n \r\n7,490,000.00 \r\n \r\n374,500.00 \r\n \r\n305,802.08 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n14,620,000.00 $ 1,836,500.00 \r\n \r\n$ \r\n \r\n1,121,274.34 \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 exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk Management Fund \r\nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program to reduce the risk of loss from employee accidents. The School District pays an annual contribution to the Fund for coverage. The Fund provides statutory limits of coverage for Workers' Compensation coverage and a $2,000,000 limit per occurrence for Employers' Liability coverage. Excess insurance coverage is provided through an agreement between the Fund and the Safety National Casualty Corporation to limit the Fund's exposure to large losses. \r\n \r\n- 21 - \r\n \r\n WHITFIELD 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 has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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 workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2019 $ 63,709.26 $ \r\n \r\n- \r\n \r\n$ 63,709.26 $ \r\n \r\n- \r\n \r\n2020 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nB eg inning of Y ear Liability \r\n \r\nC laims and C hanges in E stimates \r\n \r\nC laims P aid \r\n \r\nE nd of Y ear Liability \r\n \r\n2019 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,679.50 \r\n \r\n$ \r\n \r\n3,679.50 \r\n \r\n$ \r\n \r\n- \r\n \r\n2020 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased 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\n100,000.00 \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned Local Capital Outlay Projects Self-Insurance School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n468,109.20 \r\n \r\n$ \r\n \r\n733,774.81 \r\n \r\n23,628,453.88 \r\n \r\n365,500.01 \r\n \r\n24,727,728.70 \r\n \r\n$ 3,443,191.87 381,271.77 \r\n1,533,830.62 \r\n \r\n5,358,294.26 31,938,297.32 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 62,492,429.48 \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, 2020, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2020 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nSanitary Sewer Improvements Project \r\n \r\n$ \r\n \r\nNorth Whitfield Middle Replacement Project \r\n \r\nValley Point Middle Replacement Project \r\n \r\nWestside Middle Gym Replacement Project \r\n \r\nNorthwest HVAC,Electrical and Roof Project \r\n \r\nWestside Elem HVAC,Electrical and Roof Project \r\n \r\n56,376.00 $ 12,467,084.58 \r\n1,494,651.31 2,996,145.90 \r\n808,761.95 1,073,897.00 \r\n \r\n431,048.60 $ 16,058,968.61 22,576,327.42 \r\n2,914,084.11 157,031.07 \r\n2,941,215.92 \r\n \r\n666,579.50 508,666.80 860,217.00 \r\n- \r\n \r\n$ \r\n \r\n18,896,916.74 $ \r\n \r\n45,078,675.73 $ \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\n2,035,463.30 \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases copiers and network security firewalls 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 $212,660.40 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2021 2022 \r\n \r\n$ 212,660.40 53,936.65 \r\n \r\nTotal \r\n \r\n$ 266,597.05 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits Provided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a pay-asyou-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $2,578,392.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\n \r\nAt June 30, 2020, the School District reported a liability of $94,030,038.00 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of June 30, 2019. The total OPEB liability used to calculate the net OPEB liability was based on an actuarial valuation as of June 30, 2018. An expected total OPEB liability as of June 30, 2019 was determined using standard roll-forward techniques. The School District's proportion of the net OPEB liability was actuarially determined based on employer contributions during the fiscal year ended June 30, 2019. At June 30, 2019, the School District's proportion was 0.766207%, which was a decrease of 0.009511% from its proportion measured as of June 30, 2018. \r\n \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of $1,131,680.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 10,229,490.00 \r\n \r\nChanges of assumptions \r\n \r\n3,265,479.00 \r\n \r\n13,255,266.00 \r\n \r\nNet difference between projected and actual earnings \r\n \r\non OPEB plan investments \r\n \r\n204,768.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of \r\n \r\n- \r\n \r\n4,567,264.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,578,392.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 6,048,639.00 $ 28,052,020.00 \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\nY ear E nded June 30: \r\n \r\nOPEB \r\n \r\n2021 2022 2023 2024 2025 2026 \r\n \r\n$ (5,596,642.00) $ (5,596,642.00) $ (5,604,514.00) $ (4,746,859.00) $ (2,479,421.00) $ (557,695.00) \r\n \r\n- 25 - \r\n \r\n WHITFIELD 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\nOPEB: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00% - 8.75%, including inflation \r\n \r\nLong-term expected rate of return \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nHealthcare cost trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n7.250% \r\n \r\nMedicare Eligible \r\n \r\n5.375% \r\n \r\nUltimate trend rate \r\n \r\nPre-Medicare Eligible Medicare Eligible \r\n \r\n4.75% 4.75% \r\n \r\nYear of Ultimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n2028 \r\n \r\nMedicare Eligible \r\n \r\n2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 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- 26 - \r\n \r\n WHITFIELD 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 \r\nnominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by \r\nweighting the expected future real rates of return by the target asset allocation percentage and by \r\nadding expected inflation. During fiscal year 2018, the School OPEB fund updated their investment \r\nstrategy to a more long-term approach. The target allocation and best estimates of arithmetic real \r\nrates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTarget allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n*Net of Inflation \r\n \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\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$ 109,293,940.00 $ \r\n \r\n94,030,038.00 $ 81,613,538.00 \r\n \r\n- 27 - \r\n \r\n WHITFIELD 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 \r\nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \r\nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \r\npercentage-point higher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nSchool District's proportionate share \r\n \r\nof the Net OPEB Liability \r\n \r\n$ 79,210,345.00 $ \r\n \r\n94,030,038.00 $ 112,852,173.00 \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\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 21.07% of payroll was required from the School District and 0.07% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $16,108,366.19 and $53,121.29 from the School District and the State, respectively. \r\n \r\n- 28 - \r\n \r\n WHITFIELD 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 (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/financials. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $15.25, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $186,457.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2020, the School District reported a liability of $127,073,885.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nS chool District's proportionate share of the net pension liability \r\n \r\n$ 127,073,885.00 \r\n \r\nS tate of G eorgia's proportionate share of the net pension liability associated with the S chool District \r\n \r\n440,375.00 \r\n \r\nTotal \r\n \r\n$ 127,514,260.00 \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\n \r\n- 29 - \r\n \r\n WHITFIELD 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, 2019, the School District's TRS proportion was 0.590967%, which was an increase of 0.002895% from its proportion measured as of June 30, 2018. \r\nAt June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $940,083.00. \r\nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \r\nFor the year ended June 30, 2020, the School District recognized pension expense of $20,207,183.00 for TRS and $289,910.00 for PSERS and revenue of $27,633.00 for TRS and $289,910.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nDifferences between expected and actual experience \r\nChanges of assumptions \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\n$ 7,162,532.00 $ \r\n \r\n37,674.00 \r\n \r\n12,194,397.00 \r\n \r\n- \r\n \r\n- \r\n \r\n3,026,017.00 \r\n \r\n407,593.00 \r\n \r\n1,503,302.00 \r\n \r\n16,108,366.19 \r\n \r\n- \r\n \r\n$ 35,872,888.19 $ 4,566,993.00 \r\n \r\n- 30 - \r\n \r\n WHITFIELD 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 contributions subsequent to the measurement date for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2021 2022 2023 2024 \r\n \r\n$ 6,212,414.00 $ 811,061.00 $ 3,913,507.00 $ 4,260,547.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2019 was determined by an actuarial valuation as of June 30, 2018, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.50% \r\n \r\nSalary increases \r\n \r\n3.00%  8.75%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.25%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement benefit increases 1.50% semi-annually \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number \r\n \r\n- 31 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nof deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014, with the exception of the assumed investment rate of return. \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return 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\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.25%) \r\n \r\nCurrent Discount Rate (7.25%) \r\n \r\n1% Increase (8.25%) \r\n \r\n$ 206,278,107.00 $ \r\n \r\n127,073,885.00 $ 61,939,872.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/financials. \r\n \r\n- 32 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2020, the School District made prior period adjustments due to the adoption of GASB Statement No, 84, as described in \"New Accounting Pronouncements,\" which requires the restatement of the June 30, 2019 net position in governmental activities and fund balance in the general fund and fiduciary funds. These changes are in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2019 as previously reported \r\n \r\n$ 75,256,513.62 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \r\n \r\n500,516.01 \r\n \r\nNet Position, July 1, 2019, as restated \r\n \r\n$ 75,757,029.63 \r\n \r\nFund Balance (General Fund), July 1, 2019, as previously reported $ 30,836,042.48 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification \r\n \r\n500,516.01 \r\n \r\nFund Balance (General Fund), July 1, 2019, as restated \r\n \r\n$ 31,336,558.49 \r\n \r\nNet Position (Fiduciary Funds), July 1, 2019 as previously reported $ \r\n \r\n516,405.90 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: Restatement for Custodial Funds Beginning Net Position \r\n \r\n(500,516.01) \r\n \r\nNet Position (Fiduciary Funds), July 1, 2019, as restated \r\n \r\n$ \r\n \r\n15,889.89 \r\n \r\nNOTE 15: TAX ABATEMENTS \r\nWhitfield County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Whitfield County. \r\nFor the fiscal year ended June 30, 2020, Whitfield County abated property taxes due to the School District that were levied on October 20, 2019 and due on December 20, 2019 totaling $3,536,511.00. Included in that amount abated, the following are individual tax abatement agreements that each exceeded 10 percent of the total amount abated: \r\n A 100% property tax abatement was granted to EF Floors \u0026 Pentz Street in the amount of $540,376.00. \r\n A 100% property tax abatement was granted to IVC Expansion #3 in the amount of $1,023,840.00. \r\n A 40% property tax abatement was granted to Engineered Floors in the amount of $711,989.00. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n2020 2019 2018 2017 2016 2015 \r\n \r\n0.590967% $ 127,073,885.00 $ 0.588072% $ 109,158,760.00 $ 0.593535% $ 110,310,308.00 $ 0.600994% $ 123,991,763.00 $ 0.601336% $ 91,547,435.00 $ 0.658147% $ 83,148,192.00 $ \r\n \r\n440,375.00 381,081.00 494,555.00 753,861.00 541,518.00 464,667.00 \r\n \r\n$ 127,514,260.00 $ 109,539,841.00 $ 110,804,863.00 $ 124,745,624.00 $ 92,088,953.00 $ 83,612,859.00 \r\n \r\n$ 72,372,096.38 $ 70,291,415.06 $ 68,459,692.13 $ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 \r\n \r\n175.58% 155.29% 161.13% 186.96% 143.38% 123.14% \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- 35 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of \r\nthe net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \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\n940,083.00 $ 963,001.00 $ 923,049.00 $ 1,286,842.00 $ 887,722.00 $ 790,767.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n940,083.00 $ 3,214,925.97 963,001.00 $ 3,158,938.25 923,049.00 $ 3,683,209.18 1,286,842.00 $ 3,174,143.11 887,722.00 $ 3,161,781.05 790,767.00 $ 3,367,655.44 \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- 36 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share of the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet OPEB liability associated with the \r\nSchool District \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the \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\n0.766207% $ \r\n \r\n94,030,038.00 $ \r\n \r\n0.775718% $ \r\n \r\n98,591,377.00 $ \r\n \r\n0.789457% $ 110,918,390.00 $ \r\n \r\n- \r\n \r\n$ 94,030,038.00 $ 60,045,707.01 \r\n \r\n- \r\n \r\n$ 98,591,377.00 $ 58,554,788.45 \r\n \r\n- \r\n \r\n$ 110,918,390.00 $ 61,109,385.25 \r\n \r\n156.60% 168.37% 181.51% \r\n \r\n4.63% 2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 37 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 2014 (1) 2013 (1) 2012 (1) 2011 (1) \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n16,108,366.19 $ \r\n \r\n16,108,366.19 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n15,073,526.97 $ \r\n \r\n15,073,526.97 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n11,774,882.40 $ \r\n \r\n11,774,882.40 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,725,596.64 $ \r\n \r\n9,725,596.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,407,282.28 $ \r\n \r\n9,407,282.28 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n8,347,590.62 $ \r\n \r\n8,347,590.62 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n8,291,570.35 $ \r\n \r\n8,291,570.35 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n7,107,315.20 $ \r\n \r\n7,107,315.20 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,258,930.16 $ \r\n \r\n6,258,930.16 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,351,201.00 $ \r\n \r\n6,351,201.00 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 76,455,559.21 $ 72,372,096.38 $ 70,291,415.06 $ 68,459,692.13 $ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 $ 62,290,229.66 $ 60,884,534.63 $ 61,782,110.89 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n21.07% 20.83% 16.75% 14.21% 14.18% 13.07% 12.28% 11.41% 10.28% 10.28% \r\n \r\n(1) For years ended 2014 and earlier, the reported contractually required contribution includes payments made on behalf of the School District by the Georgia Department of Education. \r\n \r\n- 38 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n2,578,392.00 $ \r\n \r\n2,578,392.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,126,558.00 $ \r\n \r\n4,126,558.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,020,471.00 $ \r\n \r\n4,020,471.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,116,290.00 $ \r\n \r\n4,116,290.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 68,894,514.54 $ 60,045,707.01 $ 58,554,788.45 $ 61,109,385.25 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n3.74% 6.87% 6.87% 6.74% \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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nOn May 15, 2019, the Board adopted recommended changes from the smoothed valuation interest rate methodology that has been in effect since June 30, 2009, to a constant interest rate method. In conjunction with the methodology, the long-term assumed rate of return in assets (discount rate) has been changed from 7.50% to 7.25%, and the assumed annual rate of inflation has been reduced from 2.75% to 2.50%. \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nOn March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: The June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to State OPEB fund based on their last employer payroll location; irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.07% as of June 30, 2016 to 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018, and back to 3.58% as of June 30, 2019. \r\n \r\n- 40 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES \r\nOther Sources \r\nNet Change in Fund Balances \r\nFund Balances - Beginning, Restated \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$ 32,861,048.45 $ 458,792.62 \r\n94,114,358.08 16,124,901.00 \r\n1,863,237.55 207,903.12 667,200.00 \r\n146,297,440.82 \r\n \r\n32,861,048.45 $ 458,792.62 \r\n94,165,340.08 16,971,425.00 \r\n1,863,237.55 207,903.12 667,200.00 \r\n147,194,946.82 \r\n \r\n33,265,219.87 $ 587,090.36 \r\n95,256,601.97 15,904,316.22 \r\n1,651,234.98 144,357.61 \r\n4,082,047.86 \r\n150,890,868.87 \r\n \r\n404,171.42 128,297.74 1,091,261.89 (1,067,108.78) (212,002.57) (63,545.51) 3,414,847.86 \r\n3,695,922.05 \r\n \r\n93,861,036.95 \r\n5,482,129.21 4,982,546.95 2,962,872.89 \r\n976,552.42 10,301,868.90 \r\n592,028.48 10,655,480.13 \r\n6,343,504.39 2,924,019.85 \r\n513,827.00 282,308.21 10,689,254.77 \r\n- \r\n150,567,430.15 \r\n(4,269,989.33) \r\n \r\n93,763,203.37 \r\n5,863,999.63 5,116,937.84 2,864,613.83 1,220,011.42 10,301,868.90 \r\n592,028.48 10,655,480.13 \r\n6,749,423.38 2,993,744.75 \r\n592,965.00 282,308.21 10,689,254.77 \r\n- \r\n151,685,839.71 \r\n(4,490,892.89) \r\n \r\n93,162,422.31 \r\n7,267,863.03 4,233,734.67 2,850,950.77 1,126,087.97 10,374,209.55 \r\n584,514.01 9,151,022.32 6,318,943.48 3,154,168.02 \r\n395,937.18 355,474.72 8,151,598.92 \r\n47,800.00 \r\n147,174,726.95 \r\n3,716,141.92 \r\n \r\n600,781.06 \r\n(1,403,863.40) 883,203.17 13,663.06 93,923.45 (72,340.65) 7,514.47 \r\n1,504,457.81 430,479.90 (160,423.27) 197,027.82 (73,166.51) \r\n2,537,655.85 (47,800.00) \r\n4,511,112.76 \r\n8,207,034.81 \r\n \r\n(4,269,989.33) 19,654,477.88 \r\n \r\n(4,490,892.89) 30,816,344.13 \r\n \r\n2,583.31 3,718,725.23 31,336,558.49 \r\n \r\n2,583.31 8,209,618.12 \r\n520,214.36 \r\n \r\n$ 15,384,488.55 $ \r\n \r\n26,325,451.24 $ \r\n \r\n35,055,283.72 $ \r\n \r\n8,729,832.48 \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 $2,374,261.45 and $1,663,847.26, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2020 \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 Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth Education for Homeless Children and Youth English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Striving Readers Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n10.553 10.555 \r\n10.665 \r\n10.579 10.582 \r\n84.027 84.027 84.173 84.173 \r\n84.048 84.048 84.196 84.196 84.365 84.365 84.011 84.011 84.371 84.424A 84.424A 84.367 84.367 84.010 84.010 \r\n \r\nSCHEDULE \"8\" \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n205GA324N1099 $ 205GA324N1099 \r\n \r\n2,026,837.16 5,962,067.44 \r\n7,988,904.60 \r\n \r\n486Forest \r\n \r\n6,701.12 \r\n \r\n205GA324N8503 205GA324L1603 \r\n \r\n15,815.42 68,063.62 \r\n8,079,484.76 \r\n \r\nH027A180073 H027A190073 H173A180081 H173A190081 \r\nV048A180010 V048A190010 S196A180011 S196A190011 S365A180010 S365A190010 S011A180011 S011A190011 S371C110049 S424A180011 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010 \r\n \r\n5,390.00 2,431,033.94 \r\n4,504.00 68,578.61 \r\n2,509,506.55 \r\n7,323.00 134,044.00 \r\n9,595.00 21,820.84 62,693.00 178,565.79 \r\n8,679.00 22,806.57 1,427,435.64 11,347.00 405,401.02 299,379.00 221,459.20 448,051.00 3,159,992.83 \r\n6,418,592.89 \r\n8,928,099.44 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n17,007,584.20 \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 Whitfield 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 Guildance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 42 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Hygiene Products in Georgia Schools Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Security Grant Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nGovernor's Office of Student Achievement GOSA Implementation Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n1,468,647.32 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,468,647.32 \r\n \r\n2,737,027.00 \r\n \r\n- \r\n \r\n2,984,207.00 \r\n \r\n- \r\n \r\n7,718,024.00 \r\n \r\n- \r\n \r\n4,912,649.00 \r\n \r\n- \r\n \r\n4,383,582.00 \r\n \r\n- \r\n \r\n2,049,699.00 \r\n \r\n- \r\n \r\n8,661,961.00 \r\n \r\n- \r\n \r\n8,022,718.00 \r\n \r\n- \r\n \r\n2,915,730.00 \r\n \r\n- \r\n \r\n12,721,001.00 \r\n \r\n- \r\n \r\n5,757,651.00 \r\n \r\n- \r\n \r\n452,432.00 \r\n \r\n- \r\n \r\n661,736.00 \r\n \r\n- \r\n \r\n4,878,918.00 \r\n \r\n- \r\n \r\n1,664,822.00 \r\n \r\n- \r\n \r\n477,873.00 \r\n \r\n- \r\n \r\n305,158.00 \r\n \r\n- \r\n \r\n6,449.00 \r\n \r\n- \r\n \r\n2,587,589.00 \r\n \r\n- \r\n \r\n3,685,741.00 \r\n \r\n- \r\n \r\n3,457,624.00 \r\n \r\n- \r\n \r\n(1,280,571.00) \r\n \r\n- \r\n \r\n1,280,444.00 \r\n \r\n- \r\n \r\n276,023.00 \r\n \r\n- \r\n \r\n10,360,413.00 \r\n \r\n- \r\n \r\n246,890.00 \r\n \r\n- \r\n \r\n663.00 \r\n \r\n- \r\n \r\n141,773.59 \r\n \r\n- \r\n \r\n260,982.39 \r\n \r\n- \r\n \r\n154,440.00 \r\n \r\n- \r\n \r\n642,839.51 \r\n \r\n- \r\n \r\n53,121.29 \r\n \r\n- \r\n \r\n188,487.68 \r\n \r\n- \r\n \r\n233,400.19 186,457.00 \r\n \r\n6,351,785.87 - \r\n \r\n2,737,027.00 2,984,207.00 7,718,024.00 4,912,649.00 4,383,582.00 2,049,699.00 8,661,961.00 8,022,718.00 2,915,730.00 12,721,001.00 5,757,651.00 \r\n452,432.00 661,736.00 4,878,918.00 1,664,822.00 477,873.00 305,158.00 \r\n6,449.00 \r\n2,587,589.00 3,685,741.00 3,457,624.00 (1,280,571.00) \r\n1,280,444.00 276,023.00 \r\n10,360,413.00 \r\n246,890.00 663.00 \r\n141,773.59 260,982.39 154,440.00 642,839.51 \r\n53,121.29 188,487.68 \r\n6,351,785.87 \r\n233,400.19 \r\n186,457.00 \r\n \r\n$ 95,256,601.97 $ 6,351,785.87 $ \r\n \r\n101,608,387.84 \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 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT \r\nYEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nSPLOST III \r\n \r\nAcquisition, construction, equipping, and furnishing \r\n \r\nof new school buildings and facilities, including but \r\n \r\nnot limited to, a new high school and a new \r\n \r\nelementary school; the addition, renovation, repair \r\n \r\nand improvement to existing school buildings and \r\n \r\nfacilities; the acquisition and purchase of \r\n \r\ntechnology and safety equipment, including but not \r\n \r\nlimited to, computer hardware and software and \r\n \r\nsecurity and safety equipment; the acquisition and \r\n \r\npurchase of school buses and other transportation \r\n \r\nor maintenance vehicles; the acquisition of land; \r\n \r\nacquisition and purchase of any property necessary \r\n \r\nand desirable therefore; both real and personal. \r\n \r\n$ 96,100,000.00 $ 94,354,542.47 $ \r\n \r\n285,877.10 $ 94,068,665.57 $ 94,354,542.47 $ \r\n \r\n- \r\n \r\nSPLOST IV \r\n \r\nPaying all or a portion of the debt service on \r\n \r\noutstanding Series 2006 and Series 2009 General \r\n \r\nObligation Bonds previously issued by the Whitfield \r\n \r\nCounty School District; acquiring new technology \r\n \r\nequipment, safety and security equipment and \r\n \r\nother school equipment; adding to, renovating, \r\n \r\nrepairing, improving, equipping and furnishing \r\n \r\nexisting school buildings or other buildings or \r\n \r\nfacilities useful or desirable in connection \r\n \r\ntherewith, including but not limited to HVAC, \r\n \r\nroofing, electrical, plumbing and paving; acquiring \r\n \r\nland; purchasing textbooks and band instruments; \r\n \r\npurchasing school buses and school vehicles; \r\n \r\nacquiring any property necessary or desirable \r\n \r\ntherefore, both real and personal. \r\n \r\n68,649,000.00 \r\n \r\n68,649,000.00 \r\n \r\n5,899,854.62 \r\n \r\n47,140,532.01 \r\n \r\n- \r\n \r\n- \r\n \r\nSPLOST V \r\n \r\n(i) acquiring new technology equipment, safety and \r\n \r\nsecurity equipment, and other equipment, and \r\n \r\nupgrading and modifying technology equipment, \r\n \r\nincluding software, hardware, network and \r\n \r\ninfrastructure; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(ii) adding to, renovating, repairing, improving, \r\n \r\nequipping and furnishing existing school buildings \r\n \r\nor other buildings or facilities useful or desirable in \r\n \r\nconnection therewith, including but not limited to \r\n \r\nHVAC, electrical, plumbing, paving, roof \r\n \r\nreplacements and repairs, restroom renovations, \r\n \r\npaint and flooring, energy efficient lighting retrofits, \r\n \r\nsewer system tie-ins, and constructing, renovating \r\n \r\nand modifying athletic facilities, and including but \r\n \r\nnot limited to demolishing and replacing Valley \r\n \r\nPoint Middle School and North Whitfield Middle \r\n \r\nSchool with new school facilities, demolishing and \r\n \r\nreplacing the gymnasium at Westside Middle \r\n \r\nSchool, and constructing a car rider loop at Tunnel \r\n \r\nHill Elementary School; \r\n \r\n61,083,000.00 \r\n \r\n43,921,208.00 \r\n \r\n25,341,069.19 \r\n \r\n5,408,747.10 \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) acquiring land; \r\n \r\n- \r\n \r\n25,025.00 \r\n \r\n23,025.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) purchasing textbooks and band instruments; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(v) purchasing school buses and service vehicles; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(vi) acquiring any property necessary or desirable \r\n \r\ntherefore, both real and personal (the \"Whitfield \r\n \r\nSchool Projects\"), the estimated cost of the \r\n \r\nWhitfield School Projects to be paid with sales tax \r\n \r\nproceeds being $61,083,000.00; and \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(vii) payment of any general obligation debt of the \r\n \r\nWhitfield County School District issued in \r\n \r\nconjunction with the imposition of the sales and use \r\n \r\ntax. \r\n \r\n- \r\n \r\n17,138,767.00 \r\n \r\n682,266.66 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nComplete \r\nJune 2021 \r\nDecember 2022 December 2022 \r\nApril 2023 \r\n \r\n$ 225,832,000.00 $ 224,088,542.47 $ 32,232,092.57 $ 146,617,944.68 $ 94,354,542.47 $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2)The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 45 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield County Board of Education (School District), as of and for the year ended June 30, 2020, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated March 26, 2021. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\n \r\n (This page left intentionally blank) \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 4-101 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Whitfield County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n (This page left intentionally blank) \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2020. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMarch 26, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 (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 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\nType of auditor's report issued: Governmental Activities; All Major Funds; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.027, 84.173 84.371 \r\n \r\nChild Nutrition Cluster Special Education Cluster Striving Readers \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \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-bw59-b2019-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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 Whitfield 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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD 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\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\ni \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\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\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\n38 \r\n \r\nSCHOOL OPEB FUND \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\n7 SCHEDULE OF CONTRIBUTIONS - SCHOOL OPEB FUND \r\n \r\n41 \r\n \r\n8 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n42 \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSCHEDULES \r\n \r\nSECTION I FINANCIAL \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n9 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN 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\n43 44 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\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 Whitfield 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 Whitfield County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\n \r\n (This page left intentionally blank) \r\n \r\n We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2019, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\n \r\n (This page left intentionally blank) \r\n \r\n Other Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated July 27, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nJuly 27, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2019 and June 30, 2018. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2019 and 2018 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $75.3 million and $54.5 million, respectively, for the fiscal years ended June 30, 2019 and 2018. \r\n The School District had $140.5 million and $139.8 million, respectively, in expenses for the fiscal years ended June 30, 2019 and June 30, 2018 relating to governmental activities. Only $103.0 million and $95.2 million of the above-mentioned expenses for 2019 and 2018 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $58.3 million and $56.2 million, respectively, for 2019 and 2018 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $58.3 million or 36.1% of all revenues totaling $161.3 million for fiscal year 2019 and $56.2 million or 37.1% of all revenues totaling $151.4 million for fiscal year 2018. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. 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 Whitfield County School District, the general fund and capital projects fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \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 might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all of the School District's assets, deferred outflows, liabilities and deferred inflows. They use the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net position and any changes in net position. The change in net position is important because it tells the reader that, for the School District as a whole, the financial position of the School District has improved or diminished. The causes of this change may be the results of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nThe Statement of Net Position and the Statement of Activities reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. 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 in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\nii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal year 2019 compared to fiscal year 2018. \r\n \r\nTable 1 Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 86,320,022 $ 62,932,522 \r\n \r\n227,173,876 \r\n \r\n217,664,629 \r\n \r\nTotal Assets \r\n \r\n313,493,898 \r\n \r\n280,597,151 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n24,489,356 4,259,952 \r\n \r\n20,216,999 4,052,913 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n28,749,308 \r\n \r\n24,269,912 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n12,659,488 16,380,914 109,158,760 98,591,377 \r\n \r\n11,076,514 227,175 \r\n110,310,308 110,918,390 \r\n \r\nTotal Liabilities \r\n \r\n236,790,539 \r\n \r\n232,532,387 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n7,047,448 23,148,706 \r\n \r\n6,396,134 11,428,032 \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n30,196,154 \r\n \r\n17,824,166 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n221,152,387 28,302,098 \r\n(174,197,972) \r\n \r\n216,036,195 19,865,948 \r\n(181,391,633) \r\n \r\nTotal Net Position \r\n \r\n$ 75,256,513 $ 54,510,510 \r\n \r\nTotal assets and deferred outflows of resources increased by $37.4 million, which was due to the increase in resources related to the defined benefit pension plan, the addition of capitalized assets, and the proceeds of the 2019 series general obligation bonds issued in April 2019. \r\n \r\nTotal liabilities and deferred inflows of resources increased by $16.6 million. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows of resources yielded an increase in net position of $20.8 million. \r\n \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2019 and June 30, 2018. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues \r\n \r\nProgram Revenues: \r\n \r\nCharges for Services and Sales \r\n \r\n$ \r\n \r\nOperating Grants and Contributions \r\n \r\nCapital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\n2,225,662 $ 95,918,867 \r\n4,866,477 \r\n \r\n2,178,878 92,164,810 \r\n816,218 \r\n \r\nTotal Program Revenues \r\n \r\n103,011,006 \r\n \r\n95,159,906 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Special Item - Sale of Land \r\n \r\n31,163,190 800,356 \r\n11,204,703 493,056 \r\n10,168,496 750,889 \r\n3,680,417 - \r\n \r\n30,479,032 691,134 \r\n10,470,818 438,479 \r\n9,486,863 269,490 \r\n3,983,331 400,562 \r\n \r\nTotal General Revenues and Special Item \r\n \r\n58,261,107 \r\n \r\n56,219,709 \r\n \r\nTotal Revenues \r\n \r\n161,272,113 \r\n \r\n151,379,615 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n86,468,262 \r\n8,387,715 4,216,588 2,786,846 1,163,750 9,777,627 \r\n841,983 6,748,933 5,808,969 2,693,420 \r\n335,589 \r\n436,911 10,701,134 \r\n158,383 \r\n \r\n85,354,337 \r\n7,174,499 3,726,929 2,768,665 1,122,854 10,222,506 \r\n624,735 8,563,217 5,949,282 3,077,946 \r\n500,864 \r\n390,009 10,286,663 \r\n- \r\n \r\nTotal Expenses \r\n \r\n140,526,110 \r\n \r\n139,762,506 \r\n \r\nIncrease in Net Position \r\n \r\n$ 20,746,003 $ 11,617,109 \r\n \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $7.9 million for governmental activities. This increase is due to the School District receiving additional state funding for certified personnel raises in fiscal year 2019; as well as, capital outlay reimbursements for on-going capital projects. \r\nGeneral revenues and special item increased by $2.0 million during fiscal year 2019. This is a result of the increase of revenue received from the one cent sales tax, an increase in investment earnings, and an increase in property tax revenue. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\n$ 86,468,262 $ 85,354,337 $ 13,319,791 $ 17,967,120 \r\n \r\n8,387,715 4,216,588 2,786,847 1,163,750 9,777,627 \r\n841,983 6,748,933 5,808,969 2,693,421 \r\n335,586 \r\n \r\n7,174,499 3,726,929 2,768,665 1,122,854 10,222,506 \r\n624,735 8,563,217 5,949,282 3,077,946 \r\n500,864 \r\n \r\n7,095,921 1,488,742 \r\n776,847 (1,240,070) 5,592,013 \r\n806,884 2,401,704 3,615,527 2,612,980 \r\n82,820 \r\n \r\n6,296,099 1,544,253 \r\n971,298 (1,267,425) 6,342,259 \r\n611,385 4,413,479 3,831,047 3,026,001 \r\n215,298 \r\n \r\n436,912 10,701,134 \r\n158,383 \r\n \r\n390,009 10,286,663 \r\n- \r\n \r\n436,815 366,747 158,383 \r\n \r\n389,911 261,875 \r\n- \r\n \r\n$ 140,526,110 $ 139,762,506 $ 37,515,104 $ 44,602,600 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2019, 26.7% of total expenses were supplemented by taxes and other general revenues compared to 31.9% in 2018. \r\nExpenses increased $764 thousand from the prior year; the net costs of providing services decreased $7.1 million. This situation occurred largely due to capital outlay reimbursements for on-going School District capital projects. \r\n \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $160.8 million and total expenditures of $155.7 million for fiscal year 2019 and total revenues of $151.2 million and total expenditures of $138.4 million for fiscal year 2018. General Fund Budgeting Highlights The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal years 2019 and 2018, the School District amended its general fund budget as needed. During fiscal year 2019, the general fund had final actual revenues totaling $144.4 million, which was more than the final budgeted amounts of $141.3 million by $3.1 million. This difference (final actual vs. final budget) was due to unbudgeted revenues from the local school activity accounts. Also, the School District received $555 thousand in private donations that were not budgeted. During fiscal year 2018, the general fund had final actual revenues totaling $139.6 million, which was more than the final budgeted amounts of $133.3 million by $6.3 million. This difference (final actual vs. final budget) was due to unbudgeted revenues from school activity accounts of $2.6 million and $1.6 in unanticipated property tax revenue. Also, the School District received $1.3 million in private donations that were not budgeted. During the fiscal year 2019, the general fund had final actual expenditures totaling $142.1 million, which was less than the final budgeted amount of $145.5 million by $3.4 million. The difference is primarily due to maintenance and operation line items coming in under budget (fuel, utility costs, etc). During the fiscal year 2018, the general fund had final actual expenditures totaling $135.1 million, which was more than the final budgeted amount of $131.9 million by $3.2 million. The difference is primarily due to unbudgeted expenditures in school activity accounts. General fund revenues exceeded expenditures and other financing uses by $2.2 million for the fiscal year 2019. General fund revenues exceeded expenditures and other financing uses by $1.1 million for the fiscal year 2018. \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2019 and June 30, 2018, the School District had $227.2 million and $217.7 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District funded several capital projects through the Education Special Purpose Local Option Sales Tax (ESPLOST). \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n6,833,691 $ \r\n \r\n8,993,228 \r\n \r\n13,944,100 \r\n \r\n9,793,292 \r\n \r\n189,843,039 \r\n \r\n185,820,384 \r\n \r\n6,515,394 \r\n \r\n6,572,647 \r\n \r\n10,037,652 \r\n \r\n6,485,078 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n227,173,876 $ 217,664,629 \r\n \r\nThe overall capital assets increased in the fiscal year 2019 by $9.5 million. \r\nLONG-TERM LIABILITIES \r\nAt the fiscal years ended June 30, 2019 and June 30, 2018, the School District had $16.4 million and $227.2 thousand, respectively, long-term liabilities. Table 5 summarizes the School District's longterm liabilities. \r\n \r\nTable 5 Long-Term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2019 \r\n \r\nYear 2018 \r\n \r\nCompensated Absences Bonds Payable Unamortized Bond Premium \r\n \r\n231,904 14,620,000 \r\n1,529,010 \r\n \r\n227,175 - \r\n \r\n$ 16,380,914 $ \r\n \r\n227,175 \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \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. \r\n The School District is financially stable. The School District's operating millage for fiscal year 2019 was 18.756, generating slightly under $1,662,000 per mill. 2019 is the eighth consecutive year with the same operating millage rate. The Whitfield County Board of Education continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our stakeholders. With use of local revenue, the School District continues to provide a quality education to our students. \r\n General fund revenues from the State of Georgia were restored over 3.4% from the prior year. The School District Strategic Plan guides budget and spending decisions made by the Board of Education. \r\n Capital Improvements - As a result of the recession, the Board also faces challenges from deferred facility needs. Along with addressing some of the School District's top priority needs using ESPLOST dollars, the general fund reserves were also tapped for capital project improvements. In March 2017, the Whitfield County voters approved ESPLOST V to begin collections January 1, 2018, and the issuance of General Obligation bonds to help fund the replacement of Valley Point Middle and North Whitfield Middle schools. The two new middle schools are slated to open school years 2020-2021 and 2021-2022 respectively. \r\n In December 2019, a strain of coronavirus (C0VID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of C0VID-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\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 demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \r\nASSETS \r\nCash and Cash Equivalents Investments 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 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 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\n67,796,050.47 \r\n \r\n2,573.99 \r\n \r\n3,313,513.78 13,397,590.03 \r\n1,585,426.77 39,374.49 \r\n185,492.67 20,777,791.13 206,396,085.27 \r\n \r\n313,493,898.60 \r\n \r\n24,489,355.97 4,259,952.00 \r\n28,749,307.97 \r\n \r\n1,040,180.22 8,693,325.88 \r\n158,383.34 1,593,009.45 1,158,589.06 \r\n16,000.00 109,158,760.00 \r\n98,591,377.00 \r\n407,736.13 15,973,177.87 \r\n236,790,538.95 \r\n \r\n7,047,448.00 23,148,706.00 \r\n30,196,154.00 \r\n \r\n221,152,386.84 \r\n565,425.70 158,383.33 27,578,289.86 (174,197,972.11) \r\n \r\n$ \r\n \r\n75,256,513.62 \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 WHITFIELD 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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 86,468,262.19 $ \r\n8,387,715.06 4,216,588.26 2,786,846.48 1,163,750.37 9,777,627.40 \r\n841,982.80 6,748,932.73 5,808,969.21 2,693,420.41 \r\n335,586.18 \r\n436,911.42 10,701,134.11 \r\n158,383.34 \r\n$ 140,526,109.96 $ \r\n \r\n535,563.39 \r\n136,906.45 - \r\n1,553,192.01 \r\n- \r\n2,225,661.85 \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\n69,471,864.56 $ \r\n \r\n902,183.90 2,720,449.92 1,854,640.50 2,319,164.35 3,984,716.86 \r\n5,206.07 4,035,572.01 1,961,782.19 \r\n28,465.84 252,766.95 \r\n \r\n96.41 8,381,957.44 \r\n- \r\n \r\n$ \r\n \r\n95,918,867.00 $ \r\n \r\n3,141,043.21 $ \r\n389,610.58 7,396.27 \r\n155,358.67 84,655.82 \r\n200,897.50 29,892.97 \r\n174,750.13 231,660.00 \r\n51,974.67 - \r\n399,237.51 \r\n- \r\n4,866,477.33 \r\n \r\n(13,319,791.03) \r\n(7,095,920.58) (1,488,742.07) \r\n(776,847.31) 1,240,069.80 (5,592,013.04) \r\n(806,883.76) (2,401,704.14) (3,615,527.02) (2,612,979.90) \r\n(82,819.23) \r\n(436,815.01) (366,747.15) (158,383.34) \r\n(37,515,103.78) \r\n \r\n31,163,189.93 800,356.15 \r\n \r\n11,204,703.07 493,055.93 \r\n10,168,496.00 750,889.37 \r\n3,680,416.60 \r\n58,261,107.05 \r\n20,746,003.27 \r\n54,510,510.35 \r\n \r\n$ \r\n \r\n75,256,513.62 \r\n \r\n- 3 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2019 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 26,033,253.07 $ 41,762,797.40 $ 67,796,050.47 \r\n \r\n2,573.99 \r\n \r\n- \r\n \r\n2,573.99 \r\n \r\n2,369,468.50 11,683,015.34 \r\n1,585,426.77 39,374.49 \r\n185,492.67 \r\n \r\n944,045.28 1,714,574.69 \r\n- \r\n \r\n3,313,513.78 13,397,590.03 \r\n1,585,426.77 39,374.49 \r\n185,492.67 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 41,898,604.83 $ 44,421,417.37 $ 86,320,022.20 \r\n \r\n$ 1,020,821.26 $ \r\n \r\n19,358.96 $ 1,040,180.22 \r\n \r\n8,693,325.88 \r\n \r\n- \r\n \r\n8,693,325.88 \r\n \r\n- \r\n \r\n1,593,009.45 \r\n \r\n1,593,009.45 \r\n \r\n- \r\n \r\n1,158,589.06 \r\n \r\n1,158,589.06 \r\n \r\n16,000.00 \r\n \r\n- \r\n \r\n16,000.00 \r\n \r\n9,730,147.14 \r\n \r\n2,770,957.47 \r\n \r\n12,501,104.61 \r\n \r\n1,332,415.21 \r\n \r\n- \r\n \r\n1,332,415.21 \r\n \r\n185,492.67 379,933.03 1,656,142.34 28,614,474.44 \r\n30,836,042.48 \r\n \r\n38,022,576.97 \r\n3,627,882.93 - \r\n41,650,459.90 \r\n \r\n185,492.67 38,402,510.00 \r\n5,284,025.27 28,614,474.44 \r\n72,486,502.38 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances $ 41,898,604.83 $ 44,421,417.37 $ 86,320,022.20 \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 WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2019 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions/OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Compensated absences payable Unamortized bond premiums \r\n \r\n$ \r\n \r\n72,486,502.38 \r\n \r\n$ \r\n \r\n6,833,691.36 \r\n \r\n13,944,099.77 \r\n \r\n234,233,619.90 \r\n \r\n24,010,756.72 \r\n \r\n19,726,137.39 \r\n \r\n(71,574,428.74) \r\n \r\n227,173,876.40 \r\n \r\n$ (109,158,760.00) (98,591,377.00) \r\n \r\n(207,750,137.00) \r\n \r\n$ \r\n \r\n17,441,907.97 \r\n \r\n(18,888,754.00) \r\n \r\n(1,446,846.03) 1,332,415.21 \r\n \r\n$ (14,620,000.00) (158,383.34) (231,903.53) \r\n(1,529,010.47) \r\n \r\n(16,539,297.34) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 75,256,513.62 \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 WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\nBALANCES GOVERNMENTAL 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 Community Services Food Services Operation \r\nCapital Outlay \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\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 31,413,108.60 $ \r\n \r\n- $ 31,413,108.60 \r\n \r\n493,055.93 \r\n \r\n11,204,703.07 \r\n \r\n11,697,759.00 \r\n \r\n90,163,404.37 \r\n \r\n4,634,817.33 \r\n \r\n94,798,221.70 \r\n \r\n16,241,030.49 \r\n \r\n- \r\n \r\n16,241,030.49 \r\n \r\n2,225,661.85 \r\n \r\n- \r\n \r\n2,225,661.85 \r\n \r\n217,674.05 \r\n \r\n533,215.32 \r\n \r\n750,889.37 \r\n \r\n3,638,674.92 \r\n \r\n41,741.68 \r\n \r\n3,680,416.60 \r\n \r\n144,392,610.21 \r\n \r\n16,414,477.40 \r\n \r\n160,807,087.61 \r\n \r\n86,953,815.04 \r\n7,205,015.54 4,357,829.32 2,761,371.16 1,115,179.87 10,090,725.54 \r\n594,820.54 8,931,563.96 5,967,029.13 2,828,319.45 \r\n338,281.00 436,911.42 10,521,147.90 \r\n3,845.85 \r\n142,105,855.72 \r\n2,286,754.49 \r\n \r\n- \r\n149,264.55 150,921.82 172,117.00 13,131,110.43 \r\n13,603,413.80 \r\n2,811,063.60 \r\n \r\n86,953,815.04 \r\n7,205,015.54 4,357,829.32 2,761,371.16 1,115,179.87 10,090,725.54 \r\n744,085.09 9,082,485.78 6,139,146.13 2,828,319.45 \r\n338,281.00 436,911.42 10,521,147.90 13,134,956.28 \r\n155,709,269.52 \r\n5,097,818.09 \r\n \r\n(76,474.97) \r\n(76,474.97) \r\n2,210,279.52 \r\n28,625,762.96 \r\n \r\n14,620,000.00 1,630,944.50 76,474.97 - \r\n16,327,419.47 \r\n19,138,483.07 \r\n22,511,976.83 \r\n \r\n14,620,000.00 1,630,944.50 76,474.97 (76,474.97) \r\n16,250,944.50 \r\n21,348,762.59 \r\n51,137,739.79 \r\n \r\nFund Balances - Ending \r\n \r\n$ 30,836,042.48 $ 41,650,459.90 $ 72,486,502.38 \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 WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2019 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\nGeneral obligation bonds issued, including a premium of $1,630,944.50 Amortization of bond premiums \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds Compensated absences Claims and judgments \r\n \r\n$ 21,348,762.59 \r\n \r\n$ 14,413,910.18 (4,904,662.85) \r\n \r\n9,509,247.33 550,437.48 \r\n \r\n$ (16,250,944.50) 101,934.03 \r\n \r\n(16,149,010.47) \r\n \r\n$ \r\n \r\n4,772,590.57 \r\n \r\n813,378.00 \r\n \r\n5,585,968.57 \r\n \r\n$ \r\n \r\n(158,383.34) \r\n \r\n(4,728.15) \r\n \r\n63,709.26 \r\n \r\n(99,402.23) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 20,746,003.27 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 7 - \r\n \r\n ASSETS Cash and Cash Equivalents Receivables, Net \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2019 \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 515,613.54 \r\n792.36 \r\n$ 516,405.90 $ 516,405.90 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit \r\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's general fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\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\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, 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\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \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 resources available to finance the program. It is the School Districts policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 83, Certain Asset Retirement Obligations. This statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this statement. The adoption of this statement did not have an impact on the School District's financial statement. \r\nIn fiscal year 2019, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of this statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. The School District included additional information in the long-term liabilities note disclosure. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\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- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nINVENTORIES \r\n \r\nFood Inventories \r\n \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\nCAPITAL ASSETS \r\n \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities' column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 $ 50,000.00 \r\n \r\nN/A 15 Years 70 Years 10 to 12 Years 15 Years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCOMPENSATED ABSENCES \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full-time personnel employed on a twelve-month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual School Districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\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\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \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\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 Whitfield County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on October 20, 2018 (levy date) based on property values as of January 1, 2018. Taxes were due on December 20, 2018 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2018 tax digest are reported as revenue in the governmental funds for fiscal year 2019. The Whitfield 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 $27,987,701.05. \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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,625,051.40 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 $11,204,703.07 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 and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nschool activity (principal) accounts, is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\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 \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nlevels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2019, the School District had deposits with a carrying amount of $19,682,603.86, and a bank balance of $23,627,866.94. The bank balances insured by Federal depository insurance were $1,088,577.62. The bank balances collateralized with securities held by the pledging financial institution in the School District's name were $532,056.93. The bank balances included in the State's Secure Deposit Program (SDP) were $22,007,232.39. \r\nReconciliation of cash and cash equivalents balances to carry value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 67,796,050.47 515,613.54 \r\n \r\nTotal cash and cash equivalents \r\n \r\n68,311,664.01 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n2,573.99 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n48,631,634.14 \r\n \r\nTotal carrying value of deposits - June 30, 2019 \r\n \r\n$ 19,682,603.86 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $48,631,634.14 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2019, was 39 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the \r\n \r\nfiscal year: \r\n \r\nBalances \r\n \r\nBalances \r\n \r\nJuly 1, 2018 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nTransfers \r\n \r\nJune 30, 2019 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 8,993,227.83 $ 464,277.37 $ \r\n \r\n- $ (2,623,813.84) $ 12,081,319.04 \r\n \r\n9,793,291.89 13,092,313.81 \r\n \r\n8,941,505.93 \r\n \r\n- \r\n \r\n13,944,099.77 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n18,786,519.72 13,556,591.18 \r\n \r\n8,941,505.93 (2,623,813.84) 26,025,418.81 \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\n226,899,481.52 23,168,909.72 15,494,956.00 \r\n \r\n8,276,633.94 857,319.00 664,871.99 \r\n \r\n41,079,097.19 16,596,262.74 \r\n9,009,877.96 \r\n \r\n3,311,484.08 914,571.53 678,607.24 \r\n \r\n15,472.00 - \r\n \r\n(942,495.56) - \r\n3,566,309.40 \r\n \r\n236,118,611.02 24,010,756.72 12,593,518.59 \r\n \r\n15,472.00 \r\n- \r\n \r\n- \r\n \r\n44,390,581.27 \r\n \r\n- \r\n \r\n17,495,362.27 \r\n \r\n- \r\n \r\n9,688,485.20 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n198,878,109.35 \r\n \r\n4,894,162.08 \r\n \r\n- \r\n \r\n2,623,813.84 201,148,457.59 \r\n \r\nGovernmental Activities Capital Assets - Net $ 217,664,629.07 $ 18,450,753.26 $ 8,941,505.93 $ \r\n \r\n- $ 227,173,876.40 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nImprovements of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nFood Services \r\n \r\n426,755.08 8,101.41 \r\n170,170.18 92,726.70 \r\n220,050.57 32,742.89 \r\n191,410.37 441,663.03 \r\n56,929.80 \r\n \r\n$ 2,826,813.00 \r\n1,640,550.03 437,299.82 \r\n \r\n$ 4,904,662.85 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2019, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From General Fund \r\n \r\nCapital Projects Fund $ \r\n \r\n76,474.97 \r\n \r\nTransfers are used to move local funds from the general fund to capital projects fund. \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nBalance July 1, 2018 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2019 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation (G.O.) Bonds $ Unamortized Bond Premiums Compensated Absences (1) \r\n \r\n- $ 227,175.38 \r\n \r\n14,620,000.00 $ 1,630,944.50 245,652.82 \r\n \r\n- $ 101,934.03 240,924.67 \r\n \r\n14,620,000.00 $ 1,529,010.47 231,903.53 \r\n \r\n407,736.13 - \r\n \r\n$ 227,175.38 $ 16,496,597.32 $ 342,858.70 $ 16,380,914.00 $ \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\n407,736.13 \r\n \r\nThe School District had no unused line of credit or outstanding notes from direct borrowings and direct placements related to governmental activities as of June 30, 2019. In the event the School District is unable to make the principal and interest payments using proceeds of the Education Special Purpose Local Option Sales Tax (ESPLOST), the debt will be satisfied from the general fund or from a direct annual ad valorem tax levied upon all taxable property within the School District. Additional security is provided by the State of Georgia Intercept Program which allows for state appropriations entitled to the School District to be transferred to the Debt Service Account Custodian for the payment of debt. \r\n \r\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 and 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, $26,380,000.00 remains unissued. General obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rate \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2019 5.00% 4/25/2019 4/1/2023 $ 14,620,000.00 $ 14,620,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2020 2021 2022 2023 \r\n \r\n$ \r\n \r\n- $ 682,266.67 $ 407,736.13 \r\n \r\n- \r\n \r\n731,000.00 \r\n \r\n407,736.13 \r\n \r\n7,130,000.00 \r\n \r\n731,000.00 \r\n \r\n407,736.13 \r\n \r\n7,490,000.00 \r\n \r\n374,500.00 \r\n \r\n305,802.08 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 14,620,000.00 $ 2,518,766.67 $ 1,529,010.47 \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \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 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 thousand per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2018 $ 66,434.51 \r\n \r\n$ \r\n \r\n2019 $ 63,709.26 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,725.25 $ 63,709.26 \r\n \r\n- \r\n \r\n$ 63,709.26 $ \r\n \r\n- \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nB eg inning of Y ear Liability \r\n \r\nC laims and C hanges in E stimates \r\n \r\nC laims P aid \r\n \r\nE nd of Y ear Liability \r\n \r\n2018 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n428.00 \r\n \r\n$ \r\n \r\n428.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2019 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,679.50 \r\n \r\n$ \r\n \r\n3,679.50 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n100,000.00 \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\nInventories Restricted \r\nContinuation of Federal Programs Capital Projects Debt Service Assigned Local Capital Outlay Projects Self-Insurance School Activity Accounts Unassigned \r\n \r\n$ 185,492.67 \r\n \r\n$ 379,933.03 37,705,810.30 316,766.67 \r\n \r\n38,402,510.00 \r\n \r\n$ 3,627,882.93 381,271.77 \r\n1,274,870.57 \r\n \r\n5,284,025.27 28,614,474.44 \r\n \r\nFund Balance, June 30, 2019 \r\n \r\n$ 72,486,502.38 \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- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \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 together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2019 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nSanitary Sewer Improvements Project North Whitfield Middle Replacement Project Valley Point Middle Replacement Project Pleasant Grove Roof Replacement Project New Hope Elementary/Southeast High School Road and Storm Sewer Repair Westside Middle Gym Replacement: Phase 1 \r\n \r\n$ \r\n \r\n56,376.00 $ \r\n \r\n26,481,962.00 \r\n \r\n11,942,508.26 \r\n \r\n292,633.00 \r\n \r\n105,629.00 \r\n \r\n351,263.00 \r\n \r\n431,048.60 $ \r\n \r\n- \r\n \r\n1,233,609.80 \r\n \r\n6,665,795.00 \r\n \r\n11,587,169.29 \r\n \r\n861,237.17 \r\n \r\n460,000.00 \r\n \r\n96,062.50 \r\n \r\n- \r\n \r\n187,418.31 \r\n \r\n- \r\n \r\n$ 39,230,371.26 $ 13,995,308.50 $ 7,527,032.17 \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year end. \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases copiers and network security firewalls 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 $212,659.08 for governmental activities for the year ended June 30, 2019. The following future minimum lease payments were required under operating leases at June 30, 2019: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2020 2021 2022 \r\n \r\n$ 212,659.08 212,659.08 53,936.65 \r\n \r\nTotal \r\n \r\n$ 479,254.81 \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\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 12: OTHER POST-EMPLOYMENT BENEFITS (OPEB) \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nP lan Description: Certified teachers and non-certified public school employees of the School District as defined in 20-2-875 of the Official Code of Georgia Annotated (O.C.G.A.) are provided OPEB through the School OPEB Fund - a cost-sharing multiple-employer defined benefit postemployment healthcare plan, reported as an employee trust fund and administered by a Board of Community Health (Board). Title 20 of the O.C.G.A. assigns the authority to establish and amend the benefit terms of the group health plan to the Board. \r\nBenefits P rovided: The School OPEB Fund provides healthcare benefits for retirees and their dependents due under the group health plan for public school teachers, including librarians, other certified employees of public schools, regional educational service agencies and non-certified public school employees. Retiree medical eligibility is attained when an employee retires and is immediately eligible to draw a retirement annuity from Employees' Retirement System (ERS), Georgia Judicial Retirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $4,126,558.00 for the year ended June 30, 2019. 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, 2019, the School District reported a liability of $98,591,377.00 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 0.775718%, which was a decrease of 0.013739% from its proportion measured as of June 30, 2017. \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFor the year ended June 30, 2019, the School District recognized OPEB expense of $3,313,180.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 2,242,565.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n16,701,854.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n133,394.00 \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\n4,204,287.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n4,126,558.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 4,259,952.00 $ 23,148,706.00 \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, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2020 2021 2022 2023 2024 2025 \r\n \r\n$ (4,506,576.00) $ (4,506,576.00) $ (4,506,576.00) $ (4,514,546.00) $ (3,649,173.00) $ (1,331,865.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2018: \r\n \r\nOPEB: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 9.00%, including inflation \r\n \r\nLong-term expected rate of return \r\nHealthcare cost trend rate \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n \r\nPre-Medicare Eligible \r\n \r\n7.50% \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nMedicare Eligible \r\n \r\n5.50% \r\n \r\nUltimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n4.75% \r\n \r\nMedicare Eligible \r\n \r\n4.75% \r\n \r\nYear of Ultimate trend rate \r\n \r\nPre-Medicare Eligible \r\n \r\n2028 \r\n \r\nMedicare Eligible \r\n \r\n2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection scale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\nThe remaining actuarial assumptions (e.g., initial per capita costs, health care cost trends, rate of plan participation, rates of plan election, etc.) used in the June 30, 2017 valuation were based on a review of recent plan experience done concurrently with the June 30, 2017 valuation. \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by \r\n \r\n- 25 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nadding 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\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.87%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \r\n \r\n1% Decrease (2.87%) \r\n \r\nCurrent Discount Rate (3.87%) \r\n \r\n1% Increase (4.87%) \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 115,123,816.00 $ \r\n \r\n98,591,377.00 $ 85,259,696.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\n$ 82,886,564.00 $ \r\n \r\n98,591,377.00 $ 118,661,549.00 \r\n \r\nOPEB plan fiduciary net position: Detailed information about the OPEB plan's fiduciary net position is available in the Comprehensive Annual Financial Report (CAFR) which is publicly available at https://sao.georgia.gov/comprehensive-annual-financial-reports. \r\n \r\n- 26 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% 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 20.83% of payroll was required from the School District and 0.07% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $15,073,526.97 and $50,382.87 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 P rovided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nUnder the old plan, the new plan, and GSEPS, a member may retire and receive normal retirement benefits after completion of 10 years of creditable service and attainment of age 60 or 30 years of creditable service regardless of age. Additionally, there are some provisions allowing for early retirement after 25 years of creditable service for members under age 60. \r\nRetirement benefits paid to members are based upon the monthly average of the member's highest 24 consecutive calendar months, multiplied by the number of years of creditable service, multiplied by the applicable benefit factor. Annually, postretirement cost-of-living adjustments may also be made to members' benefits, provided the members were hired prior to July 1, 2009. The normal retirement pension is payable monthly for life; however, options are available for distribution of the member's monthly pension, at reduced rates, to a designated beneficiary upon the member's death. Death and disability benefits are also available through ERS. \r\nContributions: Member contributions under the old plan are 4% of annual compensation, up to $4,200.00, plus 6% of annual compensation in excess of $4,200.00. Under the old plan, the state pays member contributions in excess of 1.25% of annual compensation. Under the old plan, these state contributions are included in the members' accounts for refund purposes and are used in the computation of the members' earnable compensation for the purpose of computing retirement benefits. Member contributions under the new plan and GSEPS are 1.25% of annual compensation. The School District's required contribution rate for the year ended June 30, 2019 was 24.78% of annual covered payroll for old and new plan members and 21.78% for GSEPS members. The rates include the annual actuarially determined employer contributions rate of 24.66% of annual covered payroll of new and old plan members and 21.66% of GSEPS members, plus a 0.12% adjustment for the HB 751 one-time benefit adjustment of 3% to retired state employees. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $0.00 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits P rovided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $184,934.00. \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 $109,158,760.00 for its proportionate share of the net pension liability for TRS ($109,158,760.00) and ERS ($0.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 109,158,760.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n381,081.00 \r\n \r\nTotal \r\n \r\n$ 109,539,841.00 \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\nAt June 30, 2018, the School District's TRS proportion was 0.588072%, which was a decrease of 0.005463% from its proportion measured as of June 30, 2017. \r\nAt June 30, 2019, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $963,001.00. \r\nThe PSERS net pension liability was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2018. \r\nFor the year ended June 30, 2019, the School District recognized pension expense of $10,337,575.00 for TRS, $(34,235.00) for ERS and $222,970.00 for PSERS and revenue of $3,007.00 for TRS and $222,970.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 29 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 7,226,464.00 $ 224,979.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n1,647,166.00 \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\n2,984,612.00 \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\n542,199.00 \r\n \r\n3,817,824.00 \r\n \r\n- \r\n \r\n20,033.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n15,073,526.97 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 24,489,355.97 $ 7,027,415.00 $ \r\n \r\n- $ 20,033.00 \r\n \r\nThe School District contributions subsequent to the measurement date for TRS and for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 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$ 3,894,098.00 $ (20,033.00) \r\n \r\n$ 2,022,594.00 $ \r\n \r\n- \r\n \r\n$ (3,350,433.00) $ \r\n \r\n- \r\n \r\n$ (262,060.00) $ \r\n \r\n- \r\n \r\n$ \r\n \r\n84,215.00 $ \r\n \r\n- \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\n- 30 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the 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 to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2017 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected \r\n \r\n- 31 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nrate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \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\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\nTotal * Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\n100.00% \r\n \r\n100.00% \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\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50% and 7.30%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50% and 6.30%) or 1-percentage-point higher (8.50% and 8.30%) than the current rate: \r\n \r\nTeachers Retirement System: \r\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$ 182,217,226.00 $ \r\n \r\n109,158,760.00 $ 48,954,865.00 \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\n- $ \r\n \r\n- $ \r\n \r\n- \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\n- 32 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 14: TAX ABATEMENTS \r\nWhitfield County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Whitfield County. \r\nFor the fiscal year ended June 30, 2019, Whitfield County abated property taxes due to the School District that were levied on October 20, 2018 and due on December 20, 2018 totaling $2,128,617.00. \r\nIncluded in that amount abated, the following are individual tax abatement agreements that each exceeded 10.00 percent of the total amount abated: \r\n A 100% property tax abatement was granted to EF Floors \u0026 Pentz Street in the amount of $470,200.00. \r\n A 70% property tax abatement was granted to Mohawk Industries INC for IVC facility construction in the amount of $229,774.00. \r\n A 90% property tax abatement was granted to Mohawk Industries INC for IVC facilities expansion in the amount of $564,484.00. \r\n A 40% property tax abatement was granted to EF Floors in the amount of $552,770.00. \r\nNOTE 15: 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 WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENTION 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 \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n0.588072% $ 109,158,760.00 $ 0.593535% $ 110,310,308.00 $ 0.600994% $ 123,991,763.00 $ 0.601336% $ 91,547,435.00 $ 0.658147% $ 83,148,192.00 $ \r\n \r\n381,081.00 494,555.00 753,861.00 541,518.00 464,667.00 \r\n \r\nTotal \r\n$ 109,539,841.00 $ 110,804,863.00 $ 124,745,624.00 $ 92,088,953.00 $ 83,612,859.00 \r\n \r\nSchool District's covered payroll \r\n$ 70,291,415.06 $ 68,459,692.13 $ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 \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\n155.29% 161.13% 186.96% 143.38% 123.14% \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 WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENTION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability \r\nas a percentage of covered payroll \r\n \r\n0.00% $ 0.00% $ 0.002057% $ 0.002205% $ 0.002468% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n97,305.00 $ \r\n \r\n89,333.00 $ \r\n \r\n92,565.00 $ \r\n \r\n47,833.20 50,407.69 52,608.83 \r\n \r\n0.00% 0.00% 203.43% 177.22% 175.95% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total pension liability \r\n76.68% 76.33% 72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 36 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENTION LIABILITY PUBLIC SCHOOLS EDMPLOYEES 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 \r\nSchool District \r\n \r\n2019 2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n963,001.00 $ 923,049.00 $ 1,286,842.00 $ 887,722.00 $ 790,767.00 $ \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\n963,001.00 923,049.00 1,286,842.00 887,722.00 790,767.00 \r\n \r\n$ 3,158,938.25 $ 3,683,209.18 $ 3,174,143.11 $ 3,161,781.05 $ 3,367,655.44 \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 WHITFIELD 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\n0.775718% $ 98,591,377.00 $ \r\n \r\n- \r\n \r\n0.789457% $ 110,918,390.00 $ \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 net 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$ 98,591,377.00 $ 58,554,788.45 $ 110,918,390.00 $ 61,109,385.25 \r\n \r\n164.19% 189.43% \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 WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 2014 (1) 2013 (1) 2012 (1) 2011 (1) 2010 (1) 2009 (1) \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\n15,073,526.97 $ \r\n \r\n15,073,526.97 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n11,774,882.40 $ \r\n \r\n11,774,882.40 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,725,596.64 $ \r\n \r\n9,725,596.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,407,282.28 $ \r\n \r\n9,407,282.28 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n8,347,590.62 $ \r\n \r\n8,347,590.62 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n8,291,570.35 $ \r\n \r\n8,291,570.35 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n7,107,315.20 $ \r\n \r\n7,107,315.20 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,258,930.16 $ \r\n \r\n6,258,930.16 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,351,201.00 $ \r\n \r\n6,351,201.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,649,887.95 $ \r\n \r\n6,649,887.95 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,346,067.91 $ \r\n \r\n6,346,067.91 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of covered payroll \r\n \r\n$ \r\n \r\n72,372,096.38 \r\n \r\n$ \r\n \r\n70,291,415.06 \r\n \r\n$ \r\n \r\n68,459,692.13 \r\n \r\n$ \r\n \r\n66,318,866.74 \r\n \r\n$ \r\n \r\n63,850,718.44 \r\n \r\n$ \r\n \r\n67,520,931.18 \r\n \r\n$ \r\n \r\n62,290,229.66 \r\n \r\n$ \r\n \r\n60,884,534.63 \r\n \r\n$ \r\n \r\n61,782,110.89 \r\n \r\n$ \r\n \r\n68,274,003.62 \r\n \r\n$ \r\n \r\n68,384,352.51 \r\n \r\n20.83% 16.75% 14.21% 14.18% 13.07% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% \r\n \r\n(1) For years ended 2014 and earlier, the reported contractually required contribution includes payments made on behalf of the School District by the Georgia Department of Education. \r\n \r\n- 39 - \r\n \r\n WHITFIELD 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 2011 2010 2009 \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\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n11,825.00 $ \r\n \r\n11,825.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n11,069.52 $ \r\n \r\n11,069.52 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,711.53 $ \r\n \r\n9,711.53 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n7,202.64 $ \r\n \r\n7,202.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,455.30 $ \r\n \r\n5,455.30 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,757.18 $ \r\n \r\n4,757.18 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,067.26 $ \r\n \r\n5,067.26 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,891.76 $ \r\n \r\n4,891.76 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n \r\nContribution as a percentage of 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\n47,833.20 \r\n \r\n$ \r\n \r\n50,407.69 \r\n \r\n$ \r\n \r\n52,608.83 \r\n \r\n$ \r\n \r\n48,339.82 \r\n \r\n$ \r\n \r\n46,907.14 \r\n \r\n$ \r\n \r\n45,698.18 \r\n \r\n$ \r\n \r\n48,676.85 \r\n \r\n$ \r\n \r\n46,990.70 \r\n \r\nN/A N/A N/A 24.72% 21.96% 18.46% 14.90% 11.63% 10.41% 10.41% 10.41% \r\n \r\n- 40 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"7\" \r\n \r\nYear Ended \r\n2019 2018 2017 \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required contribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's coveredemployee payroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n$ \r\n \r\n4,126,558.00 $ \r\n \r\n$ \r\n \r\n4,020,471.00 $ \r\n \r\n$ \r\n \r\n4,116,290.00 $ \r\n \r\n4,126,558.00 $ 4,020,471.00 $ 4,116,290.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n60,045,707.01 \r\n \r\n- \r\n \r\n$ \r\n \r\n58,554,788.45 \r\n \r\n- \r\n \r\n$ \r\n \r\n61,109,385.25 \r\n \r\n6.87% 6.87% 6.74% \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 WHITFIELD 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. $RQHWLPHSD\\PHQWZDVJUDQWHGWRFHUWDLQUHWLUHHVDQGEHQHILFLDULHVHIIHFWLYH-XO\\ \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 H[SHULHQFH \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 WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\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\n31,840,758.10 $ \r\n \r\n31,840,758.10 $ \r\n \r\n31,413,108.60 $ \r\n \r\n439,858.89 \r\n \r\n439,858.89 \r\n \r\n493,055.93 \r\n \r\n90,542,279.16 \r\n \r\n91,369,073.00 \r\n \r\n90,163,404.37 \r\n \r\n15,142,740.98 \r\n \r\n15,477,838.98 \r\n \r\n16,241,030.49 \r\n \r\n1,699,729.16 \r\n \r\n1,699,729.16 \r\n \r\n2,225,661.85 \r\n \r\n- \r\n \r\n- \r\n \r\n217,674.05 \r\n \r\n522,311.98 \r\n \r\n522,311.98 \r\n \r\n3,638,674.92 \r\n \r\n140,187,678.27 \r\n \r\n141,349,570.11 \r\n \r\n144,392,610.21 \r\n \r\n(427,649.50) 53,197.04 \r\n(1,205,668.63) 763,191.51 525,932.69 217,674.05 \r\n3,116,362.94 \r\n3,043,040.10 \r\n \r\n89,578,805.69 \r\n5,658,969.18 5,310,879.36 2,800,833.28 1,131,218.16 9,889,540.00 \r\n610,264.98 9,827,362.37 6,365,586.52 3,121,543.52 \r\n249,629.00 277,500.35 9,705,168.99 \r\n- \r\n144,527,301.40 \r\n(4,339,623.13) \r\n \r\n89,011,875.27 \r\n5,815,298.18 5,692,695.44 2,806,833.28 1,169,726.16 9,889,540.00 \r\n610,264.98 10,013,930.17 \r\n6,543,968.67 3,222,331.52 \r\n770,268.00 277,500.35 9,705,168.99 \r\n- \r\n145,529,401.01 \r\n(4,179,830.90) \r\n \r\n86,953,815.04 \r\n7,205,015.54 4,357,829.32 2,761,371.16 1,115,179.87 10,090,725.54 \r\n594,820.54 8,931,563.96 5,967,029.13 2,828,319.45 \r\n338,281.00 436,911.42 10,521,147.90 \r\n3,845.85 \r\n142,105,855.72 \r\n2,286,754.49 \r\n \r\n2,058,060.23 \r\n(1,389,717.36) 1,334,866.12 \r\n45,462.12 54,546.29 (201,185.54) 15,444.44 1,082,366.21 576,939.54 394,012.07 431,987.00 (159,411.07) (815,978.91) (3,845.85) \r\n3,423,545.29 \r\n6,466,585.39 \r\n \r\n(4,339,623.13) 25,294,092.43 \r\n \r\n(4,179,830.90) 28,516,994.02 \r\n \r\n(76,474.97) 2,210,279.52 28,625,762.96 \r\n \r\n(76,474.97) 6,390,110.42 \r\n108,768.94 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n20,954,469.30 $ \r\n \r\n24,337,163.12 $ \r\n \r\n30,836,042.48 $ \r\n \r\n6,498,879.36 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts and after school program. The actual revenues and expenditures of the various principal accounts and after school program as follows: \r\n \r\nREVENUES \r\n \r\nEXPENDITURES \r\n \r\nSchool Activity Accounts After School Program \r\n \r\n$ \r\n \r\n2,626,691.90 \r\n \r\n446,896.75 \r\n \r\n2,600,922.93 430,393.69 \r\n \r\n$ \r\n \r\n3,073,588.65 \r\n \r\n3,031,316.62 \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- 43 - \r\n \r\n WHITFIELD 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 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 Education for Homeless Children and Youth English Language Acquisition State Grants English Language Acquisition State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Striving Readers Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child Care and Development Block Grant \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 10.579 \r\n \r\n195GA324N1099 $ 195GA324N1100 \r\n \r\n2,010,362.00 8,078,095.00 \r\n10,088,457.00 \r\n \r\n486Forest \r\n \r\n6,953.96 \r\n \r\n195GA350N8103 \r\n \r\n17,088.00 10,112,498.96 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A170073 H027A180073 H173A170081 H173A180081 \r\n \r\n84.048 84.196 84.365 84.365 84.011 84.011 84.371 84.424A 84.424A 84.367 84.367 84.010 84.010 \r\n \r\nV048A180010 S196A180011 S365A170010 S365A180010 S011A170011 S011A180011 S371C180049 S424A170011 S424A180011 S367A170001 S367A180001 S010A170010 S010A180010 \r\n \r\n93.575 \r\n \r\n18185GA368N1099 \r\n \r\n59,520.00 2,467,105.70 \r\n15,249.00 65,234.51 \r\n2,607,109.21 \r\n121,236.16 28,571.58 32,350.00 \r\n168,145.44 336.00 \r\n66,558.46 1,394,154.57 \r\n1,242.00 205,339.41 224,890.00 \r\n81,037.75 377,694.00 2,770,364.42 \r\n5,471,919.79 \r\n8,079,029.00 \r\n24,568.06 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n18,216,096.02 \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 Whitfield County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2019. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3: Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 44 - \r\n \r\n WHITFIELD 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 Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless State Health Benefit Plan Employer Holiday Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Bus Purchase - State Allotment Food Services Math and Science Supplements Preschool Disability Services School Safety Grant Teachers Retirement 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\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\n1,193,846.84 $ \r\n \r\n- $ \r\n \r\n1,193,846.84 \r\n \r\n2,814,488.00 2,674,120.00 7,863,736.00 4,119,611.00 4,369,729.00 2,322,860.00 8,207,519.00 7,836,059.00 2,662,596.00 11,285,822.00 5,485,535.00 \r\n434,261.00 625,122.00 4,254,088.00 1,606,651.00 462,941.00 281,965.00 \r\n6,013.00 \r\n1,878,900.00 3,540,315.00 3,474,528.00 \r\n418,775.00 (844,830.00) \r\n1,243,560.00 274,226.00 \r\n10,168,496.00 \r\n231,660.00 241,856.00 148,465.94 218,696.00 113,489.76 \r\n50,382.87 175,081.26 \r\n \r\n- \r\n \r\n2,814,488.00 \r\n \r\n- \r\n \r\n2,674,120.00 \r\n \r\n- \r\n \r\n7,863,736.00 \r\n \r\n- \r\n \r\n4,119,611.00 \r\n \r\n- \r\n \r\n4,369,729.00 \r\n \r\n- \r\n \r\n2,322,860.00 \r\n \r\n- \r\n \r\n8,207,519.00 \r\n \r\n- \r\n \r\n7,836,059.00 \r\n \r\n- \r\n \r\n2,662,596.00 \r\n \r\n- \r\n \r\n11,285,822.00 \r\n \r\n- \r\n \r\n5,485,535.00 \r\n \r\n- \r\n \r\n434,261.00 \r\n \r\n- \r\n \r\n625,122.00 \r\n \r\n- \r\n \r\n4,254,088.00 \r\n \r\n- \r\n \r\n1,606,651.00 \r\n \r\n- \r\n \r\n462,941.00 \r\n \r\n- \r\n \r\n281,965.00 \r\n \r\n- \r\n \r\n6,013.00 \r\n \r\n- \r\n \r\n1,878,900.00 \r\n \r\n- \r\n \r\n3,540,315.00 \r\n \r\n- \r\n \r\n3,474,528.00 \r\n \r\n- \r\n \r\n418,775.00 \r\n \r\n- \r\n \r\n(844,830.00) \r\n \r\n- \r\n \r\n1,243,560.00 \r\n \r\n- \r\n \r\n274,226.00 \r\n \r\n- \r\n \r\n10,168,496.00 \r\n \r\n- \r\n \r\n231,660.00 \r\n \r\n- \r\n \r\n241,856.00 \r\n \r\n- \r\n \r\n148,465.94 \r\n \r\n- \r\n \r\n218,696.00 \r\n \r\n- \r\n \r\n113,489.76 \r\n \r\n- \r\n \r\n50,382.87 \r\n \r\n- \r\n \r\n175,081.26 \r\n \r\n137,905.70 184,934.00 \r\n \r\n4,634,817.33 - \r\n \r\n4,634,817.33 137,905.70 184,934.00 \r\n \r\n$ 90,163,404.37 $ \r\n \r\n4,634,817.33 $ \r\n \r\n94,798,221.70 \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 WHITFIELD 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 IV \r\nPaying all or a portion of the debt service on outstanding Series 2006 and Series 2009 General Obligation Bonds previously issued by the Whitfield County School District; acquiring new technology equipment, safety and security equipment and other school equipment; adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desirable in connection therewith, including but not limited to HVAC, roofing, electrical, plumbing and paving; acquiring land; purchasing textbooks and band instruments; purchasing school buses and school vehicles; acquiring any property necessary or desirable therefore, both real and personal. \r\nSPLOST V \r\n(i) acquiring new technology equipment, safety and security equipment, and other equipment, and upgrading and modifying technology equipment, including software, hardware, network and infrastructure; \r\n(ii) adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desireable in connection therewith, including but not limited to HVAC, electrical, plumbing, paving, roof replacements and repairs, restroom renovations, paint and flooring, energy efficient lighting retrofits, sewer system tie-ins, and constructing, renovating and modifying athletic facilities, and including but not limited to demolishing and replacing Valley Point Middle School and North Whitfield Middle School with new school facilities, demolishing and replacing the gymnasium at Westside Middle School, and constructing a car rider loop at Tunnel Hill Elementary School; \r\n(iii) acquiring land; \r\n(iv) purchasing textbooks and band instruments; \r\n(v) purchasing school buses and service vehicles; \r\n(vi) acquiring any property necessary or desirable therefore, both real and personal (the \"Whitfield School Projects\"), the estimated cost of the Whitfield School Projects to be paid with sales tax proceeds being $61,083,000.00. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 68,649,000.00 $ 68,649,000.00 $ \r\n \r\n1,937,553.22 $ 45,202,978.79 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nJune 2021 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n61,083,000.00 \r\n \r\n61,083,000.00 \r\n \r\n5,408,747.10 \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\n- \r\n \r\n- \r\n \r\n- \r\n \r\nDecember 2022 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n$ 129,732,000.00 $ 129,732,000.00 $ \r\n \r\n7,346,300.32 $ 45,202,978.79 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n(2) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital outlay grants, investment earnings and current estimated costs. \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. Total amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \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 Whitfield 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 Whitfield County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated July 27, 2020. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\n \r\n (This page left intentionally blank) \r\n \r\n Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nJuly 27, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND 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 Whitfield County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Whitfield County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n (This page left intentionally blank) \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nJuly 27, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 WHITFIELD 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; 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 84.010 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Education Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\n$750,000.00 No \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2018-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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 Whitfield 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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD 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\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n5 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\nPage \r\ni \r\n1 2 \r\n4 5 6 7 8 9 \r\n33 34 35 36 37 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n6 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\n38 39 40 41 \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 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 2, 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 Whitfield 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 Whitfield 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 Notes 2 and 14 to the financial statements, in 2018, the 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\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis and required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\n \r\n The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the accompanying supplementary information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated December 2, 2019 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2018 and June 30, 2017. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2017 and 2018 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $159.3 million and $54.5 million, respectively, for the fiscal years ended June 30, 2017 and 2018. \r\n The School District had $141.9 million and $139.8 million, respectively, in expenses for the fiscal years ended June 30, 2017 and June 30, 2018 relating to governmental activities. Only $92.7 million and $95.2 million of the above-mentioned expenses for 2017 and 2018 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $52.3 million and $56.2 million, respectively, for 2017 and 2018 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $52.3 million or 36.1% of all revenues totaling $145.0 million for fiscal year 2017 and $56.2 million or 37.1% of all revenues totaling $151.4 million for fiscal year 2018. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. 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 Whitfield County School District, the general fund and capital projects fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \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 might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all 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 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 reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. 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 in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\nii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's Net Position for fiscal year 2018 compared to fiscal year 2017. \r\n \r\nTable 1 Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 (1) \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 62,932,522 $ 48,383,818 \r\n \r\n217,664,629 \r\n \r\n217,581,399 \r\n \r\nTotal Assets \r\n \r\n280,597,151 \r\n \r\n265,965,217 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n20,216,999 4,052,913 \r\n \r\n33,735,808 - \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n24,269,912 \r\n \r\n33,735,808 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability Net OPEB Liability \r\n \r\n11,076,514 227,175 \r\n110,310,308 110,918,390 \r\n \r\n9,491,567 203,251 \r\n124,089,068 - \r\n \r\nTotal Liabilities \r\n \r\n232,532,387 \r\n \r\n133,783,886 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plan \r\n \r\n6,396,134 11,428,032 \r\n \r\n6,622,057 - \r\n \r\nTotal Deferred Inflows of Resources \r\n \r\n17,824,166 \r\n \r\n6,622,057 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n216,036,195 19,865,948 \r\n(181,391,633) \r\n \r\n217,295,531 8,528,979 \r\n(66,529,428) \r\n \r\nTotal Net Position \r\n \r\n$ 54,510,510 $ 159,295,082 \r\n \r\n(1) For fiscal year 2017 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \r\n \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Total assets and deferred outflows of resources increased by $5.2 million which was primarily due to the inclusion of resources related to the defined OPEB plan. Total liabilities and deferred inflows of resources increased by $110.0 million. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows of resources yielded a decrease in new position of $104.8 million. \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nTable 2 shows the Changes in Net Position for fiscal years ending June 30, 2018 and June 30, 2017. \r\n \r\nTable 2 Change in Net Position \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2018 \r\n \r\n2017 (1) \r\n \r\n$ 2,178,878 $ 2,075,494 \r\n \r\n92,164,810 \r\n \r\n89,465,424 \r\n \r\n816,218 \r\n \r\n1,189,761 \r\n \r\nTotal Program Revenues \r\n \r\n95,159,906 \r\n \r\n92,730,679 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Sales Taxes Special Purpose Local Option Sales tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous Special Item - Sale of Land \r\n \r\n30,479,032 691,134 \r\n \r\n29,012,675 713,510 \r\n \r\n10,470,818 438,479 \r\n9,486,863 269,490 \r\n3,983,331 400,562 \r\n \r\n10,236,786 527,246 \r\n6,995,223 98,320 \r\n4,730,802 - \r\n \r\nTotal General Revenues and Special Item \r\n \r\n56,219,709 \r\n \r\n52,314,562 \r\n \r\nTotal Revenues \r\n \r\n151,379,615 \r\n \r\n145,045,241 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n85,354,337 \r\n7,174,499 3,726,929 2,768,665 1,122,854 10,222,506 \r\n624,735 8,563,217 5,949,282 3,077,946 \r\n500,864 \r\n390,009 10,286,663 \r\n- \r\n \r\n88,940,739 \r\n6,434,532 4,086,370 2,602,230 \r\n898,386 9,532,350 \r\n587,759 8,972,633 5,106,159 3,622,274 \r\n409,524 \r\n384,861 9,990,172 \r\n285,001 \r\n \r\nTotal Expenses \r\n \r\n139,762,506 \r\n \r\n141,852,990 \r\n \r\nIncrease in Net Position \r\n \r\n$ 11,617,109 $ 3,192,251 \r\n \r\n(1) Fiscal Year 2017 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic financial Statements for additional information. \r\n \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $2.4 million for government activities. This increase is due to the School District receiving additional state and federal grants in fiscal year 2018. \r\nGeneral revenues and special item increased by $3.9 million during fiscal year 2018. This increase is largely due to an increase in the amount of the state Equalization Funding Grant and the sale of land. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 (1) \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services: \r\n \r\nCommunity Services \r\n \r\nFood Services \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n85,354,337 $ \r\n7,174,499 3,726,929 2,768,665 1,122,854 10,222,506 \r\n624,735 8,563,217 5,949,282 3,077,946 \r\n500,864 \r\n390,009 10,286,663 \r\n- \r\n \r\n88,940,739 $ 17,967,120 $ 23,601,243 \r\n \r\n6,434,532 4,086,370 2,602,230 \r\n898,386 9,532,350 \r\n587,759 8,972,633 5,106,159 3,622,274 \r\n409,524 \r\n \r\n6,296,099 1,544,253 \r\n971,298 (1,267,425) 6,342,259 \r\n611,385 4,413,479 3,831,047 3,026,001 \r\n215,298 \r\n \r\n5,610,095 1,683,633 \r\n827,081 (1,159,257) 5,750,900 \r\n568,083 4,797,899 3,046,271 3,570,865 \r\n200,205 \r\n \r\n384,861 9,990,172 \r\n285,001 \r\n \r\n389,911 261,875 \r\n- \r\n \r\n384,845 (44,553) 285,001 \r\n \r\nTotal Expenses \r\n \r\n$ 139,762,506 $ 141,852,990 $ 44,602,600 $ 49,122,311 \r\n \r\n(1) Fiscal Year 2017 balances do not reflect the effects of the Restatement of Net Position. See Note 14 in the Notes to the Basic Financial Statements for additional information. \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2018, 31.9% of total expense were supplemented by taxes and other general revenues compared to 34.6% in 2017. \r\n \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Expenses decreased $2.1 million from the prior year, the net costs of providing services decreased $4.5 million. This situation occurred largely due to higher paid staff retiring and being replaced with less experienced and lower paid staff. FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $151.2 million and total expenditures of $138.4 million for fiscal year 2018 and total revenues of $145.0 million and total expenditures of $151.1 million for fiscal year 2017. General Fund Budgeting Highlights The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal years 2018 and 2017, the School District amended its general fund budget as needed. During fiscal year 2018 the general fund had final actual revenues totaling $139.6 million, which was more than the final budgeted amounts of $133.3 million by $6.3 million. This difference (final actual vs. final budget) was primarily due to unbudgeted revenues from school activity accounts of $2.6 million and $1.6 million in unanticipated property tax revenue. Also, the School District received $1.3 in private donations that were not budgeted. During fiscal year 2017 the general fund had final actual revenues totaling $133.3 million, which was more than the final budgeted amounts of $128.7 million by $4.6 million. This difference (final actual vs. final budget) was primarily due to unbudgeted revenues from school activity accounts of $2.5 million. Also, the School District received $1.8 million in private donations that were not budgeted. During the fiscal year 2018, the general fund had final actual expenditures totaling $135.1 million, which was more than the final budgeted amount of $131.9 million by $3.2 million. During the fiscal year 2017, the general fund had final actual expenditures totaling $133.4 million, which was more than the final budgeted amount of $132.6 million by $0.8 million. General fund expenditures and other financing uses exceeded revenues by $3.4 million for the fiscal year 2018. General fund expenditures and other financing uses exceeded revenues by $3.7 million for the fiscal year 2017. \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2018 and June 30, 2017, the School District had $217.7 million and $217.6 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District funded several technology projects and paid debt service through Education Special Purpose Local Option Sales Tax (ESPLOST). \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 \r\n \r\nYear 2017 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ 8,993,228 $ 8,390,029 \r\n \r\n9,793,292 \r\n \r\n17,748,943 \r\n \r\n185,820,384 177,832,184 \r\n \r\n6,572,647 \r\n \r\n6,539,667 \r\n \r\n6,485,078 \r\n \r\n7,070,576 \r\n \r\nTotal \r\n \r\n$ 217,664,629 $ 217,581,399 \r\n \r\nThe overall capital assets increased in the fiscal year 2018 by $83.2 thousand. \r\nLONG-TERM LIABILITIES \r\nAt the fiscal years ending June 30, 2018 and June 30, 2017, the School District had $227.2 and $203.2 thousand, respectively, in compensated absences. Table 5 summarizes the School District's long-term liabilities for compensated absences. \r\n \r\nTable 5 Long-Term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2018 Year 2017 \r\n \r\nCompensated Absences \r\n \r\n$ 227,175 $ 203,251 \r\n \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2018 Current Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations.  The School District is financially stable. The School District's operating millage for fiscal year 2018 was 18.756, generating slightly over $1,500,000 per mill. Whitfield County Board of Education continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our stakeholders. The School District continues to provide an increasing amount of local monies to provide a quality education to our students.  The economy continues to improve. General fund revenues from the State of Georgia were restored over 8% from the prior year. Moving forward, the School District's Strategic Plan will guide the budget decisions made by the Board of Education.  Capital Improvements - As a result of the recession, the Board also faces challenges addressing deferred facility needs. Along with addressing some of the School District's top priority needs using ESPLOST dollars, the general fund reserves were also tapped for capital project improvements. In March 2017, the Whitfield County voters approved ESPLOST V to begin collections January 1, 2018. The School District plans to rebuild two of our existing middle schools in accordance with the referendum. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, \r\nDalton, Georgia 30720. \r\nix \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government 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 Claims Incurred but not Reported (IBNR) Contracts Payable Retainages Payable Net Pension Liability Net OPEB Liability Long-Term Liabilities \r\nDue in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plans Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n46,779,534.34 \r\n \r\n2,559.23 \r\n \r\n2,739,948.41 11,644,887.25 \r\n1,406,185.48 81,426.54 \r\n277,980.79 18,786,519.72 198,878,109.35 \r\n \r\n280,597,151.11 \r\n \r\n20,216,999.40 4,052,913.00 \r\n24,269,912.40 \r\n \r\n942,410.17 8,441,960.67 \r\n63,709.26 1,541,544.93 \r\n86,888.75 110,310,308.00 110,918,390.00 \r\n227,175.38 \r\n232,532,387.16 \r\n \r\n6,396,134.00 11,428,032.00 \r\n17,824,166.00 \r\n \r\n216,036,195.39 \r\n1,037,681.64 18,744,098.74 (181,307,465.42) \r\n \r\n$ \r\n \r\n54,510,510.35 \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 WHITFIELD 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 Community Services Food Services \r\nTotal Governmental Activities \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Item Sale of Land \r\nTotal General Revenues and Special Item \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 REVENUES \r\n \r\n$ 85,354,336.74 $ \r\n7,174,499.27 3,726,929.29 2,768,665.15 1,122,854.28 10,222,506.20 \r\n624,735.35 8,563,217.48 5,949,281.62 3,077,945.80 \r\n500,863.60 \r\n390,008.51 10,286,663.27 \r\n$ 139,762,506.56 $ \r\n \r\n507,895.79 \r\n158,504.96 - \r\n1,512,477.26 \r\n2,178,878.01 \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$ 66,423,266.68 $ \r\n833,759.74 2,181,605.30 1,773,434.33 2,377,072.52 3,849,719.01 \r\n9,003.03 3,974,123.40 1,963,595.39 \r\n44,319.44 285,565.55 \r\n97.44 8,449,248.42 \r\n$ 92,164,810.25 $ \r\n \r\n456,054.65 $ \r\n44,640.73 1,071.07 \r\n23,932.44 13,207.11 30,528.22 \r\n4,346.76 17,110.45 154,639.16 \r\n7,625.72 - \r\n63,062.05 \r\n816,218.36 \r\n \r\n(17,967,119.62) \r\n(6,296,098.80) (1,544,252.92) \r\n(971,298.38) 1,267,425.35 (6,342,258.97) \r\n(611,385.56) (4,413,478.67) (3,831,047.07) (3,026,000.64) \r\n(215,298.05) \r\n(389,911.07) (261,875.54) \r\n(44,602,599.94) \r\n \r\n30,479,031.97 691,134.38 \r\n10,470,817.69 438,479.03 \r\n9,486,863.00 269,489.95 \r\n3,983,331.13 \r\n400,562.16 \r\n56,219,709.31 \r\n11,617,109.37 \r\n42,893,400.98 \r\n \r\n$ \r\n \r\n54,510,510.35 \r\n \r\n- 3 - \r\n \r\n WHITFIELD 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 Investments Receivables, Net \r\nTaxes State Government Federal Government Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 23,405,803.41 $ 23,373,730.93 $ 46,779,534.34 \r\n \r\n2,559.23 \r\n \r\n- \r\n \r\n2,559.23 \r\n \r\n1,819,830.73 11,644,887.25 \r\n1,406,185.48 81,426.54 \r\n277,980.79 \r\n \r\n920,117.68 - \r\n \r\n2,739,948.41 11,644,887.25 \r\n1,406,185.48 81,426.54 \r\n277,980.79 \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$ 38,638,673.43 $ 24,293,848.61 $ 62,932,522.04 \r\n \r\n$ \r\n \r\n788,972.07 $ \r\n \r\n153,438.10 $ \r\n \r\n942,410.17 \r\n \r\n8,441,960.67 \r\n \r\n- \r\n \r\n8,441,960.67 \r\n \r\n- \r\n \r\n1,541,544.93 \r\n \r\n1,541,544.93 \r\n \r\n- \r\n \r\n86,888.75 \r\n \r\n86,888.75 \r\n \r\n9,230,932.74 \r\n \r\n1,781,871.78 \r\n \r\n11,012,804.52 \r\n \r\n781,977.73 \r\n \r\n- \r\n \r\n781,977.73 \r\n \r\n277,980.79 759,700.85 1,630,769.90 25,957,311.42 \r\n28,625,762.96 \r\n \r\n17,115,665.06 \r\n5,396,311.77 - \r\n22,511,976.83 \r\n \r\n277,980.79 17,875,365.91 \r\n7,027,081.67 25,957,311.42 \r\n51,137,739.79 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 38,638,673.43 $ 24,293,848.61 $ 62,932,522.04 \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 WHITFIELD 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/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\nCompensated absences payable Claims and judgments payable \r\n \r\n$ 51,137,739.79 \r\n \r\n$ \r\n \r\n8,993,227.83 \r\n \r\n9,793,291.89 \r\n \r\n226,899,481.52 \r\n \r\n23,168,909.72 \r\n \r\n15,494,956.00 \r\n \r\n(66,685,237.89) \r\n \r\n217,664,629.07 \r\n \r\n$ (110,310,308.00) (110,918,390.00) \r\n \r\n(221,228,698.00) \r\n \r\n$ 13,820,865.40 (7,375,119.00) \r\n \r\n6,445,746.40 781,977.73 \r\n \r\n$ \r\n \r\n(227,175.38) \r\n \r\n(63,709.26) \r\n \r\n(290,884.64) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 54,510,510.35 \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 WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay \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\nSPECIAL ITEM \r\nProceeds from Sale of Land \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n31,400,363.77 $ \r\n \r\n438,479.03 \r\n \r\n87,227,503.77 \r\n \r\n14,565,816.44 \r\n \r\n2,178,878.01 \r\n \r\n125,668.35 \r\n \r\n3,686,808.67 \r\n \r\n139,623,518.04 \r\n \r\n- $ 10,470,817.69 \r\n661,579.20 - \r\n143,821.60 296,522.46 \r\n \r\n31,400,363.77 10,909,296.72 87,889,082.97 14,565,816.44 \r\n2,178,878.01 269,489.95 \r\n3,983,331.13 \r\n \r\n11,572,740.95 \r\n \r\n151,196,258.99 \r\n \r\n82,440,536.49 \r\n6,809,422.85 3,697,477.90 2,563,255.02 1,022,844.01 9,896,835.17 \r\n580,071.71 8,496,666.09 6,009,312.41 3,002,447.44 \r\n499,744.48 390,008.24 9,673,482.26 \r\n1,000.00 \r\n135,083,104.07 \r\n4,540,413.97 \r\n \r\n- \r\n340.00 7,598.00 113,508.80 124,575.00 1,392.70 3,077,710.95 \r\n3,325,125.45 \r\n8,247,615.50 \r\n \r\n82,440,536.49 \r\n6,809,422.85 3,697,477.90 2,563,255.02 1,023,184.01 9,896,835.17 \r\n587,669.71 8,610,174.89 6,133,887.41 3,003,840.14 \r\n499,744.48 390,008.24 9,673,482.26 3,078,710.95 \r\n138,408,229.52 \r\n12,788,029.47 \r\n \r\n(3,444,623.41) \r\n(3,444,623.41) \r\n \r\n3,444,623.41 - \r\n3,444,623.41 \r\n \r\n3,444,623.41 (3,444,623.41) \r\n- \r\n \r\n403,200.00 1,498,990.56 27,126,772.40 \r\n \r\n1,692,238.91 10,819,737.92 \r\n \r\n403,200.00 13,191,229.47 37,946,510.32 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n28,625,762.96 $ 12,511,976.83 $ 51,137,739.79 \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 WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2018 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \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 Claims and judgments \r\n \r\n$ 13,191,229.47 \r\n \r\n$ 5,143,950.77 (5,004,107.28) \r\n \r\n139,843.49 (56,613.83) (230,197.42) \r\n \r\n$ \r\n \r\n485,874.76 \r\n \r\n(1,891,828.00) \r\n \r\n(1,405,953.24) \r\n \r\n$ \r\n \r\n(23,924.35) \r\n \r\n2,725.25 \r\n \r\n(21,199.10) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ 11,617,109.37 \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 Receivables, Net \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2018 \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 460,010.24 46,554.04 $ 506,564.28 $ 506,564.28 \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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit \r\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's general fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component units, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by retainages and contracts payable related to those capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or \r\ncontractually 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- 9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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\nThe School District reports the following fiduciary fund type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. \r\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \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 claims and judgements and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. The adoption of this statement has a significant impact on the School District's financial statements. As noted in the Restatement of the Net Position not disclosure, the School District restated beginning net position for the cumulative effect of this accounting change. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 81, Irrevocable Split-Interest Agreements. This statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This statement requires that a government recognize revenue when the resources become applicable to the reporting period. The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 85, Omnibus 2017. The objective of this statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). The adoption of this statement does not have a significant impact on the School District's financial statement. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 86, Certain Debt Extinguishment Issues. The primary objective of this statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources--resources other than the proceeds of refunding debt--are placed in an irrevocable trust for the sole purpose of extinguishing debt. This statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The adoption of this statement does not have a significant impact on the School District's financial statement. \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 20,000.00 100,000.00 10,000.00 50,000.00 \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nN/A 15 years 70 years 10 to 12 years 15 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\nCOMPENSATED ABSENCES \r\n \r\nCompensated absences payable consists of vacation leave employees earned based on services already rendered. \r\n \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \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\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- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Whitfield County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on October 20, 2017 (levy date) based on property values as of January 1, 2017. Taxes were due on December 20, 2017 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2017 tax digest are reported as revenue in the governmental funds for fiscal year 2018. The Whitfield 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 $28,255,392.54. \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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,453,836.85 during fiscal year ended June 30, 2018. \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $10,470,817.69 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 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, except the various school activity (principal) accounts, is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nThe School District participates in the State's Secure Deposit Program (SDP), a multi-bank pledging pool. The SDP requires participating banks that accept public deposits in Georgia to operate under the policy and procedures of the program. The Georgia Office of State Treasurer (OST) sets the collateral requirements and pledging level for each covered depository. There are four tiers of collateralization levels specifying percentages of eligible securities to secure covered deposits: 25%, 50%, 75%, and 110%. The SDP also provides for collateral levels to be increased in amount of up to 125% if economic or financial conditions warrants. The program lists the types of eligible collateral. The OST approves authorized custodians. \r\nIn accordance with the SDP, if a covered depository defaults, losses to public depositors are first satisfied with any applicable insurance, followed by demands of payment under any letters of credit or sale of the covered depository's collateral. If necessary, any remaining losses are to be satisfied by assessments made against the other participating covered depositories. Therefore, for disclosure purposes, all deposits of the SDP are considered to be fully collateralized. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2018, the School District had deposits with a carrying amount of $22,200,314.03, and a bank balance of $27,455,736.45. The bank balances insured by Federal depository insurance were $1,073,842.34. The bank balances included in the State's Secure Deposit Program (SDP) were $25,881,735.83 and the balances collateralized with securities held by the pledging financial institution in the School District's name were $500,158.28. \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ \r\n \r\n46,779,534.34 \r\n \r\n460,010.24 \r\n \r\nTotal cash and cash equivalents \r\n \r\n47,239,544.58 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n2,559.23 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n25,041,789.78 \r\n \r\nTotal carrying value of deposits - June 30, 2018 \r\n \r\n$ \r\n \r\n22,200,314.03 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $25,041,789.78 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 \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nshare price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2018, was 10 days. \r\n \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2017 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2018 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 8,390,028.58 $ 622,265.07 $ \r\n \r\n19,065.82 $ \r\n \r\n17,748,943.48 \r\n \r\n3,105,570.28 \r\n \r\n11,061,221.87 \r\n \r\n8,993,227.83 9,793,291.89 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n26,138,972.06 \r\n \r\n3,727,835.35 \r\n \r\n11,080,287.69 \r\n \r\n18,786,519.72 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n215,729,385.55 22,988,646.44 15,438,282.88 \r\n \r\n11,170,095.97 1,250,568.20 56,673.12 \r\n \r\n1,070,304.92 \r\n- \r\n \r\n226,899,481.52 23,168,909.72 15,494,956.00 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n37,897,201.50 16,448,979.57 \r\n8,367,706.45 \r\n \r\n3,181,895.69 1,180,040.08 \r\n642,171.51 \r\n \r\n1,032,756.91 \r\n- \r\n \r\n41,079,097.19 16,596,262.74 \r\n9,009,877.96 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n191,442,427.35 \r\n \r\n7,473,230.01 \r\n \r\n37,548.01 \r\n \r\n198,878,109.35 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 217,581,399.41 $ 11,201,065.36 $ 11,117,835.70 $ 217,664,629.07 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n$ \r\n \r\nImprovements of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nFood Services \r\n \r\n337,657.24 8,101.41 \r\n181,022.15 99,897.02 \r\n230,911.87 32,878.35 \r\n129,421.46 404,035.11 \r\n57,680.05 \r\n \r\n$ 3,045,508.62 \r\n1,481,604.66 476,994.00 \r\n \r\n$ 5,004,107.28 \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: TRANSFERS 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\nTransfers From General Fund \r\n \r\nCapital Projects Fund $ 3,444,623.41 Transfers are used to move local funds from the general fund to the capital projects fund. NOTE 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\nGovernmental Activities \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2018 \r\n \r\nCompensated Absences (1) $ 203,251.03 $ 233,924.19 $ 209,999.84 $ \r\n \r\n227,175.38 \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\nGENERAL OBLIGATIONS DEBT \r\nOn March 21, 2017, the voters of Whitfield County authorized the sale of general obligation bonds in the amount of $41,000,000.00 to provide the necessary funds for the acquisition, construction and equipping of capital facilities. No bonds have been issued as of June 30, 2018. \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 exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nfor its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia School Boards Association Workers' Compensation Fund \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550 thousand per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\n \r\nThe School District has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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 workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nB eg inning of Y ear Liability \r\n \r\nC laims and C hanges in E stimates \r\n \r\nC laims P aid \r\n \r\nE nd of Y ear Liability \r\n \r\n2017 $ 82,617.53 \r\n \r\n$ \r\n \r\n2018 $ 66,434.51 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 16,183.02 \r\n \r\n$ 66,434.51 \r\n \r\n- \r\n \r\n$ \r\n \r\n2,725.25 \r\n \r\n$ 63,709.26 \r\n \r\nUNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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\nB eginning of Y ear Liability \r\n \r\nC laims and C hanges in E stimates \r\n \r\nC laims P aid \r\n \r\nE nd of Y ear Liability \r\n \r\n2017 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,070.00 \r\n \r\n$ \r\n \r\n1,070.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n2018 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n428.00 \r\n \r\n$ \r\n \r\n428.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 100,000.00 \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 Capital Projects \r\nAssigned Local Capital Outlay Projects Self-Insurance School Activity Accounts \r\nUnassigned \r\n \r\n$ 277,980.79 \r\n \r\n$ 759,700.85 17,115,665.06 \r\n \r\n17,875,365.91 \r\n \r\n$ 5,396,311.77 384,951.27 \r\n1,245,818.63 \r\n \r\n7,027,081.67 25,957,311.42 \r\n \r\nFund Balance, June 30, 2018 \r\n \r\n$ 51,137,739.79 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: SIGNIFICANT COMMITMENTS \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2018, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2018 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nValley Point Middle School Replacement Tunnel Hill Car Loop Project New Hope Elementary Roofing Project Eastside Elementary School Modification Clear Creek High School Concrete Work \r\n \r\n$ 21,903,982.42 430,877.76 15,000.00 54,175.40 22,644.00 \r\n \r\n$ 1,361,821.08 $ 5,086,668.00 \r\n \r\n182,473.53 \r\n \r\n- \r\n \r\n258,216.00 \r\n \r\n- \r\n \r\n7,886,312.01 \r\n \r\n243,794.40 \r\n \r\n63,585.70 \r\n \r\n- \r\n \r\n$ 22,426,679.58 $ 9,752,408.32 $ 5,330,462.40 \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\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases copiers and network security firewalls 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 $212,659.08 for governmental activities for the year ended June 30, 2018. The following future minimum lease payments were required under operating leases at June 30, 2018: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2019 2020 2021 2022 \r\n \r\n$ 212,659.08 212,659.08 212,659.08 53,936.65 \r\n \r\nTotal \r\n \r\n$ 691,913.89 \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\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 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\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nContributions: As established by the Board, the School OPEB Fund is substantially funded on a payas-you-go basis; that is, annual cost of providing benefits will be financed in the same year as claims occur. Contributions to the School OPEB Fund from the School District were $4,020,471.00 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 $110,918,390.00 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 0.789457%, which was a decrease of 0.023739% 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 $5,912,299.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nChanges of assumptions \r\n \r\n$ \r\n \r\n- $ 8,446,153.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n32,442.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n2,981,879.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n4,020,471.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 4,052,913.00 $ 11,428,032.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $4,020,471.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2019 2020 2021 2022 2023 2024 \r\n \r\n$ (2,047,291.00) $ (2,047,291.00) $ (2,047,291.00) $ (2,047,291.00) $ (2,055,401.00) $ (1,151,025.00) \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017: \r\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\n \r\n3.88%, compounded annually, net of investment expense, and including inflation \r\n \r\nPre-Medicare Eligible Medicare Eligible \r\n \r\n7.75% 5.75% \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 For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 \r\nwith projection scale BB and set forward 2 years or both males and females is used for the period after service retirement and for dependent beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB and set back 7 years for males and set forward 3 years for females is used for the period after disability retirement. \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\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\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\nAdditionally, there was a change that affected measurement of the total OPEB liability since the prior measurement date. The methodology used to determine employee and retiree participation in the School OPEB Fund is based on their current or last employer payroll location. Current and former employees of public school districts, libraries, regional educational service agencies and community colleges are allocated to the School OPEB Fund irrespective of retirement system affiliation. In addition, the discount rate increased from 3.07% to 3.58% \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset Class \r\n \r\nTarget Allocation \r\n \r\nLong-Term Expected Real Rate of Return* \r\n \r\nLocal Government Investment Pool \r\n \r\n100.00% \r\n \r\n1.13% \r\n \r\n*Rate shown is net of the 2.75% assumed rate of inflation. \r\n \r\nDiscount rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\nNet 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$ 131,695,721.00 $ \r\n \r\n110,918,390.00 $ 94,520,869.00 \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB \r\nliability, as well as what the District's proportionate share of the net OPEB liability would be if it were \r\ncalculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point \r\nhigher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nNet OPEB Liability \r\n \r\n$ 91,938,709.00 $ \r\n \r\n110,918,390.00 $ 135,629,907.00 \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\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 the year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.75% of payroll was required from the School District and 0.06% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $11,774,882.40 and $39,789.80 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 \r\n- 25 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nthe 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, 2018 was 24.69% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $0.00. for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n- 26 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $199,918.00. \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 $110,310,308.00 for its proportionate share of the net pension liability for TRS (110,310,308.00) and ERS ($0.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nS chool District's proportionate share of the net pension liability \r\n \r\n$ 110,310,308.00 \r\n \r\nS tate of G eorgia's proportionate share of the net pension liability associated with the S chool District \r\n \r\n494,555.00 \r\n \r\nTotal \r\n \r\n$ 110,804,863.00 \r\n \r\nThe net pension liability for TRS and ERS was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2017. \r\nAt June 30, 2017, the School District's TRS proportion was 0.593535%, which was a decrease of 0.007459% from its proportion measured as of June 30, 2016. \r\nAt June 30, 2018, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $923,049.00. \r\nThe PSERS net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017. \r\nFor the year ended June 30, 2018, the School District recognized pension expense of $11,366,198.00 for TRS, $38,660.00 for ERS and $186,030.00 for PSERS and revenue of $38,894.00 for TRS and $186,030.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\nDeferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 4,126,285.00 $ 416,300.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nChanges of assumptions \r\n \r\n2,418,139.00 \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\n759,119.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n1,897,693.00 \r\n \r\n5,166,447.00 \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n11,774,882.40 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 20,216,999.40 $ 6,341,866.00 $ \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\n54,268.00 \r\n54,268.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $11,774,882.40 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ (1,471,396.00) $ (34,235.00) \r\n \r\n$ 4,250,681.00 $ (20,033.00) \r\n \r\n$ 2,352,995.00 $ \r\n \r\n- \r\n \r\n$ (3,073,485.00) $ \r\n \r\n- \r\n \r\n$ \r\n \r\n41,456.00 $ \r\n \r\n- \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25%  9.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP- 2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009 - June 30, 2014. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected \r\n \r\n- 29 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nrate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\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\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, 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 net pension liability \r\n \r\n$ 181,032,158.00 $ \r\n \r\n110,310,308.00 $ 52,051,399.00 \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\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\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publicly available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 30 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 14: RESTATEMENT OF PRIOR YEAR NET POSITION \r\n \r\nFor fiscal year 2018, the School District made prior period adjustments due to the adoption of GASB Statement No. 75, as described in \"New Accounting Pronouncements\", which require the restatement of the June 30, 2017, net position in Governmental Activities. The result is a decrease in net position at July 1, 2017 of $116,401,681.00 This change is in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2017 as previously reported \r\n \r\n$ 159,295,081.98 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \r\n \r\n(120,517,971.00) \r\n \r\nDeferred Outflows - School District's Contributions made during fiscal year 2017 \r\n \r\n4,116,290.00 \r\n \r\nNet Position, July 1, 2017, as restated \r\n \r\n$ 42,893,400.98 \r\n \r\nNOTE 15: TAX ABATEMENTS \r\nWhitfield County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Whitfield County. \r\nFor the fiscal year ended June 30, 2018, Whitfield County abated property taxes due to the School District that were levied on October 20, 2017 and due on December 20, 2017 totaling $1,772,627.00. NOTE 16: SPECIAL ITEM \r\nIn November 2017, the Whitfield County Board of Education sold two acres of land in Varnell for $403,200.00. This sale resulted in a gain of $400,562.16 to the School District. NOTE 17: SUBSEQUENT EVENT \r\nOn April 25, 2020, the School District issued $14,620,000.00 in general obligation bonds that were authorized in a prior year. The proceeds of these bonds will be used for Special Purpose Local Option Sales Tax (SPLOST) capital improvement projects. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENTION 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 the net pension liability \r\n \r\n0.593535% $ 0.600994% $ 0.601336% $ 0.658147% $ \r\n \r\n110,310,308.00 123,991,763.00 \r\n91,547,435.00 83,148,192.00 \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\n494,555.00 \r\n \r\n$ \r\n \r\n753,861.00 \r\n \r\n$ \r\n \r\n541,518.00 \r\n \r\n$ \r\n \r\n464,667.00 \r\n \r\nTotal \r\n$ 110,804,863.00 $ 124,745,624.00 $ 92,088,953.00 $ 83,612,859.00 \r\n \r\nSchool District's covered payroll \r\n$ 68,459,692.13 $ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 \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\n161.13% 186.96% 143.38% 123.14% \r\n \r\n79.33% 76.06% 81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENTION 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 \r\npension liability \r\n \r\nSchool District's proportionate share of \r\nthe net pension liability \r\n \r\nSchool District's covered payroll \r\n \r\n2018 2017 2016 2015 \r\n \r\n0.00% $ 0.002057% $ 0.002205% $ 0.002468% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n97,305.00 $ \r\n \r\n89,333.00 $ \r\n \r\n92,565.00 $ \r\n \r\n47,833.20 50,407.69 52,608.83 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n0.00% 203.43% 177.22% 175.95% \r\n \r\n76.33% 72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENTION LIABILITY PUBLIC SCHOOLS EDMPLOYEES 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 \r\nnet pension liability \r\n \r\nState of Georgia's proprotionate share of the net pension liaibility \r\nassociated with the School District \r\n \r\n2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n923,049.00 $ 1,286,842.00 $ \r\n887,722.00 $ 790,767.00 $ \r\n \r\nTotal \r\n923,049.00 1,286,842.00 \r\n887,722.00 790,767.00 \r\n \r\nSchool District's covered payroll \r\n$ 3,683,209.18 $ 3,174,143.11 $ 3,161,781.05 $ 3,367,655.44 \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\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 WHITFIELD 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 OPEB liability \r\n \r\nSchool District's proportionate share of the \r\nnet OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability associated with \r\nthe 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 OPEB liability as a percentage of its \r\ncovered-employee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n2018 \r\n \r\n0.789457% $ \r\n \r\n110,918,390.00 $ \r\n \r\n- \r\n \r\n$ 110,918,390.00 $ 58,554,788.45 \r\n \r\n189.43% \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- 36 - \r\n \r\n WHITFIELD 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 \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\n11,774,882.40 $ \r\n \r\n11,774,882.40 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n9,725,596.64 $ \r\n \r\n9,725,596.64 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n9,407,282.28 $ \r\n \r\n9,407,282.28 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n8,347,590.62 $ \r\n \r\n8,347,590.62 $ \r\n \r\n- \r\n \r\n2014 (1) $ \r\n \r\n8,291,570.35 $ \r\n \r\n8,291,570.35 $ \r\n \r\n- \r\n \r\n2013 (1) $ \r\n \r\n7,107,315.20 $ \r\n \r\n7,107,315.20 $ \r\n \r\n- \r\n \r\n2012 (1) $ \r\n \r\n6,258,930.16 $ \r\n \r\n6,258,930.16 $ \r\n \r\n- \r\n \r\n2011 (1) $ \r\n \r\n6,351,201.00 $ \r\n \r\n6,351,201.00 $ \r\n \r\n- \r\n \r\n2010 (1) $ \r\n \r\n6,649,887.95 $ \r\n \r\n6,649,887.95 $ \r\n \r\n- \r\n \r\n2009 (1) $ \r\n \r\n6,346,067.91 $ \r\n \r\n6,346,067.91 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 70,291,415.06 $ 68,459,692.13 $ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 $ 62,290,229.66 $ 60,884,534.63 $ 61,782,110.89 $ 68,274,003.62 $ 68,384,352.51 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n16.75% 14.21% 14.18% 13.07% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% \r\n \r\n(1) For years ended 2014 and earlier, the reported contractually required contribution includes payments made on behalf of the School District by the Geoirgia Department of Education. \r\n \r\n- 37 - \r\n \r\n WHITFIELD 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\n11,825.00 $ \r\n \r\n11,825.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n11,069.52 $ \r\n \r\n11,069.52 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n9,711.53 $ \r\n \r\n9,711.53 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n7,202.64 $ \r\n \r\n7,202.64 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n5,455.30 $ \r\n \r\n5,455.30 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n4,757.18 $ \r\n \r\n4,757.18 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n5,067.26 $ \r\n \r\n5,067.26 $ \r\n \r\n- \r\n \r\n2009 \r\n \r\n$ \r\n \r\n4,891.76 $ \r\n \r\n4,891.76 $ \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\n47,833.20 \r\n \r\n$ \r\n \r\n50,407.69 \r\n \r\n$ \r\n \r\n52,608.83 \r\n \r\n$ \r\n \r\n48,339.82 \r\n \r\n$ \r\n \r\n46,907.14 \r\n \r\n$ \r\n \r\n45,698.18 \r\n \r\n$ \r\n \r\n48,676.85 \r\n \r\n$ \r\n \r\n46,990.70 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\nN/A N/A 24.72% 21.96% 18.46% 14.90% 11.63% 10.41% 10.41% 10.41% \r\n \r\n- 38 - \r\n \r\n WHITFIELD 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\n4,020,471.00 $ \r\n \r\n4,020,471.00 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n4,116,290.00 $ \r\n \r\n4,116,290.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 58,554,788.45 $ 61,109,385.25 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n6.87% 6.74% \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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30 \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. \r\nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \r\nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \r\n \r\n- 40 - \r\n \r\n WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses SPECIAL ITEM \r\nProceeds from Sale of Land \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n29,803,038.00 $ \r\n \r\n29,803,038.00 $ 31,400,363.77 $ \r\n \r\n556,281.00 \r\n \r\n556,281.00 \r\n \r\n438,479.03 \r\n \r\n85,442,011.76 \r\n \r\n85,647,068.76 \r\n \r\n87,227,503.77 \r\n \r\n15,371,510.00 \r\n \r\n15,312,045.00 \r\n \r\n14,565,816.44 \r\n \r\n1,806,525.00 \r\n \r\n1,806,525.00 \r\n \r\n2,178,878.01 \r\n \r\n- \r\n \r\n- \r\n \r\n125,668.35 \r\n \r\n148,600.00 \r\n \r\n148,600.00 \r\n \r\n3,686,808.67 \r\n \r\n133,127,965.76 \r\n \r\n133,273,557.76 \r\n \r\n139,623,518.04 \r\n \r\n1,597,325.77 (117,801.97) \r\n1,580,435.01 (746,228.56) 372,353.01 125,668.35 \r\n3,538,208.67 \r\n6,349,960.28 \r\n \r\n80,708,116.00 \r\n4,938,363.84 4,454,340.00 2,585,219.73 \r\n776,279.36 9,346,865.39 \r\n642,266.62 9,396,962.13 5,616,439.29 2,788,779.47 \r\n417,927.45 - \r\n9,972,442.42 - \r\n131,644,001.70 \r\n1,483,964.06 \r\n \r\n81,258,135.00 \r\n5,392,714.64 2,750,626.50 2,592,919.73 \r\n818,188.36 9,435,711.64 \r\n646,466.62 9,458,448.13 6,262,912.29 2,825,101.47 \r\n466,342.09 - \r\n9,972,442.42 - \r\n131,880,008.89 \r\n1,393,548.87 \r\n \r\n82,440,536.49 \r\n6,809,422.85 3,697,477.90 2,563,255.02 1,022,844.01 9,896,835.17 \r\n580,071.71 8,496,666.09 6,009,312.41 3,002,447.44 \r\n499,744.48 390,008.24 9,673,482.26 \r\n1,000.00 \r\n135,083,104.07 \r\n4,540,413.97 \r\n \r\n(1,182,401.49) \r\n(1,416,708.21) (946,851.40) 29,664.71 (204,655.65) (461,123.53) 66,394.91 961,782.04 253,599.88 (177,345.97) (33,402.39) (390,008.24) 298,960.16 (1,000.00) \r\n(3,203,095.18) \r\n3,146,865.10 \r\n \r\n1,483,964.06 23,219,033.00 \r\n \r\n1,393,548.87 27,294,970.39 \r\n \r\n(3,444,623.41) 403,200.00 \r\n1,095,790.56 27,126,772.40 \r\n \r\n(3,444,623.41) 403,200.00 (297,758.31) (168,197.99) \r\n \r\n$ \r\n \r\n24,702,997.06 $ \r\n \r\n28,688,519.26 $ 28,222,562.96 $ \r\n \r\n(465,956.30) \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts and after school program. The actual revenues and expenditures of the various principal accounts and after school program as follows: \r\n \r\nSchool Activity Accounts After School Program \r\n \r\nREVENUES \r\n \r\nEXPENDITURES \r\n \r\n$ \r\n \r\n2,558,458.40 $ \r\n \r\n2,560,500.40 \r\n \r\n394,156.65 \r\n \r\n383,396.62 \r\n \r\n$ \r\n \r\n2,952,615.05 $ \r\n \r\n2,943,897.02 \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- 41 - \r\n \r\n WHITFIELD 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 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 Education for Homeless Children and Youth Education for Homeless Children and Youth English Language Acquisition State Grants English Language Acquisition State Grants Supporting Effective Instruction State Grant Supporting Effective Instruction State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Striving Readers Student Support and Academic Enrichment Program Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child Care and Development Block Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n18185GA324N1099 $ 18185GA324N1100 \r\n \r\n2,024,738.66 7,260,423.10 \r\n9,285,161.76 \r\n \r\n10.665 \r\n \r\n486Forest \r\n \r\n7,232.26 \r\n \r\n10.579 \r\n \r\n185GA350N8103 \r\n \r\n17,088.00 9,309,482.02 \r\n \r\n84.027 84.027 84.173 84.173 \r\n \r\nH027A160073 H027A170073 H173A160081 H173A170081 \r\n \r\n84.048 84.196 84.196 84.365 84.365 84.367 84.367 84.011 84.011 84.371 84.424A 84.010 84.010 \r\n \r\nV048A170010 S196A160011 S196A170011 S365A160010 S365A170010 S367A160001 S367A170001 S011A160011 S011A170011 S371C170049 S424A170011 S010A160010 S010A170010 \r\n \r\n400,044.01 2,004,823.63 \r\n24,472.12 42,856.24 \r\n2,472,196.00 \r\n94,557.68 4,190.52 \r\n24,613.20 82,812.64 162,056.70 182,286.94 97,184.20 19,915.37 59,688.18 18,758.55 83,221.92 862,732.36 2,236,979.03 \r\n3,928,997.29 \r\n6,401,193.29 \r\n \r\n93.575 \r\n \r\n17175GA368N1099 \r\n \r\n22,081.94 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n15,732,757.25 \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 Whitfield 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- 42 - \r\n \r\n WHITFIELD 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 Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs CTAE Middle School Computer Programming Grant Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teacher of the Year Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nGovernor's Office of Student Achievement Connections for Classrooms Grant Innovation in K-8 Computer Science/Coding Professional Learning Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,194,918.97 $ \r\n \r\n- $ 1,194,918.97 \r\n \r\n2,742,553.00 2,584,108.00 7,956,553.00 4,217,650.00 4,247,767.00 2,320,918.00 8,274,633.00 7,619,620.00 2,593,755.00 11,009,605.00 5,068,520.00 \r\n429,126.00 611,888.00 3,903,957.00 1,576,005.00 458,149.00 282,986.00 \r\n5,978.00 \r\n1,971,382.00 3,414,377.00 3,499,042.00 (1,218,732.00) \r\n1,226,645.00 268,434.00 \r\n9,486,863.00 \r\n50,000.00 242,778.00 128,194.60 172,051.00 154,639.16 \r\n507.25 39,789.80 179,243.72 \r\n \r\n- \r\n \r\n2,742,553.00 \r\n \r\n- \r\n \r\n2,584,108.00 \r\n \r\n- \r\n \r\n7,956,553.00 \r\n \r\n- \r\n \r\n4,217,650.00 \r\n \r\n- \r\n \r\n4,247,767.00 \r\n \r\n- \r\n \r\n2,320,918.00 \r\n \r\n- \r\n \r\n8,274,633.00 \r\n \r\n- \r\n \r\n7,619,620.00 \r\n \r\n- \r\n \r\n2,593,755.00 \r\n \r\n- \r\n \r\n11,009,605.00 \r\n \r\n- \r\n \r\n5,068,520.00 \r\n \r\n- \r\n \r\n429,126.00 \r\n \r\n- \r\n \r\n611,888.00 \r\n \r\n- \r\n \r\n3,903,957.00 \r\n \r\n- \r\n \r\n1,576,005.00 \r\n \r\n- \r\n \r\n458,149.00 \r\n \r\n- \r\n \r\n282,986.00 \r\n \r\n- \r\n \r\n5,978.00 \r\n \r\n- \r\n \r\n1,971,382.00 \r\n \r\n- \r\n \r\n3,414,377.00 \r\n \r\n- \r\n \r\n3,499,042.00 \r\n \r\n- \r\n \r\n(1,218,732.00) \r\n \r\n- \r\n \r\n1,226,645.00 \r\n \r\n- \r\n \r\n268,434.00 \r\n \r\n- \r\n \r\n9,486,863.00 \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n- \r\n \r\n242,778.00 \r\n \r\n- \r\n \r\n128,194.60 \r\n \r\n- \r\n \r\n172,051.00 \r\n \r\n- \r\n \r\n154,639.16 \r\n \r\n- \r\n \r\n507.25 \r\n \r\n- \r\n \r\n39,789.80 \r\n \r\n- \r\n \r\n179,243.72 \r\n \r\n- \r\n \r\n650,527.20 \r\n \r\n68,968.74 244,712.53 \r\n \r\n11,052.00 - \r\n \r\n199,918.00 \r\n \r\n- \r\n \r\n650,527.20 \r\n80,020.74 244,712.53 \r\n199,918.00 \r\n \r\n$ 87,227,503.77 $ 661,579.20 $ 87,889,082.97 \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 WHITFIELD 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\nSPLOST III \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore; both real an personal. \r\nSPLOST IV \r\nPaying all or a portion of the debt service on outstanding Series 2006 and Series 2009 General Obligation Bonds previously issued by the Whitfield County School District; acquiring new technology equipment, safety and security equipment and other school equipment; adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desirable in connection therewith, including but not limited to HVAC, roofing, electrical, plumbing and paving; acquiring land; purchasing textbooks and band instruments; purchasing school buses and school vehicles; acquiring any property necessary or desirable therefore, both real and personal. \r\nSPLOST V \r\n(i) acquiring new technology equipment, safety and security equipment, and other equipment, and upgrading and modifying technology equipment, including software, hardware, network and infrastructure; \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ 96,100,000.00 $ 94,068,665.57 $ \r\n \r\n4,459.41 $ 94,064,206.16 $ 94,068,665.57 $ \r\n \r\n- \r\n \r\n68,649,000.00 \r\n \r\n68,649,000.00 \r\n \r\n1,296,275.00 \r\n \r\n43,906,703.79 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(ii) adding to, renovating, repairing, improving, equipping and furnishing \r\n \r\nexisting school buildings or other buildings or facilities useful or desirable in \r\n \r\nconnection therewith, including but not limited to HVAC, electrical, plumbing, \r\n \r\npaving, roof replacements and repairs, restroom renovations, paint and \r\n \r\nflooring, energy efficient lighting retrofits, sewer system tie-ins, and \r\n \r\nconstructing, renovating and modifying athletics facilities, and including but \r\n \r\nnot limited to demolishing and replacing Valley Point Middle School and North \r\n \r\nWhitfield Middle School with new school facilities, demolishing and replacing \r\n \r\nthe gymnasium at Westside Middle School, and constructing a car rider loop \r\n \r\nat Tunnel Hill Elementary School; \r\n \r\n61,083,000.00 \r\n \r\n50,134,662.07 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iii) acquiring land; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(iv) purchasing textbooks and band instruments; \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(v) purchasing school buses and service vehicles; and \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(vi) acquiring any property necessary or desirable therefore, both real and personal. \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nCompleted \r\nJune 2021 \r\nDecember 2022 \r\n \r\n$ 225,832,000.00 $ 212,852,327.64 $ 1,300,734.41 $ 137,970,909.95 $ 94,068,665.57 $ \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) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. \r\n \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) Included in 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$ 14,881,246.64 \r\n \r\nCurrent Year \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 14,881,246.64 \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 1-156 Atlanta, Georgia 30334-8400 \r\nDecember 2, 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 Whitfield 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 Whitfield County Board of Education (School District), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated December 2, 2019. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered the School District's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the School District's internal control. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control. \r\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\nDecember 2, 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 Whitfield 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 Whitfield 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, 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 its major federal program 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 WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \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 WHITFIELD 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\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 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-bw59-b2017-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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 Whitfield 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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD 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\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\ni \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\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 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\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\nSUPPLEMENTARY INFORMATION \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n39 40 41 43 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY 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\nNovember 2, 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 Whitfield 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 Whitfield County Board of Education (School District), as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2017, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures, GASB Statement No. 80, Blending Requirements for Certain Component Units, and GASB Statement No. 82, Pension Issues. Our opinions are not modified with respect to these matters. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, 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 33 through 39 respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\n \r\n The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated November 2, 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 WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2017 and 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 notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2017 and 2016 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $159.3 million and $156.1 million, respectively, for the fiscal years ended June 30, 2017 and 2016. Of these amounts $30.4 and $30.8 million, respectively, for fiscal years 2017 and 2016 are available for spending at the School District's discretion. \r\n The School District had $141.9 million and $129.8 million, respectively, in expenses for the fiscal years ended June 30, 2017 and June 30, 2016 relating to governmental activities. Only $92.7 million and $88.9 million of the above mentioned expenses for 2017 and 2016 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $52.3 million and $54.5 million, respectively, for 2017 and 2016 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $52.3 million or 36.1% of all revenues totaling $145.0 million for fiscal year 2017 and $54.5 million or 38.0% of all revenues totaling $143.3 million for fiscal year 2016. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. 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 Whitfield County School District, the general fund, capital projects fund, and debt service fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \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 might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all 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 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 reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. The fund financial statements presented in this report provide detail information about 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 in the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\nii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal year 2017 compared to fiscal year 2016. \r\nTable 1 \r\nNet Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 48,383,818 $ 56,904,213 \r\n \r\n217,581,399 \r\n \r\n216,145,569 \r\n \r\nTotal Assets \r\n \r\n265,965,217 \r\n \r\n273,049,782 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plans \r\n \r\n33,735,808 \r\n \r\n14,034,059 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability \r\n \r\n9,491,567 203,251 \r\n124,089,068 \r\n \r\n12,015,549 10,968,795 91,636,768 \r\n \r\nTotal Liabilities \r\n \r\n133,783,886 \r\n \r\n114,621,112 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plans \r\n \r\n6,622,057 \r\n \r\n16,359,898 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n217,295,531 8,528,979 \r\n(66,529,428) \r\n \r\n205,502,770 13,788,081 (63,188,020) \r\n \r\nTotal Net Position \r\n \r\n$ 159,295,082 $ 156,102,831 \r\n \r\nTotal assets and deferred outflows of resources increased by $12.6 million which was primarily due to the increase in deferred outflows of resources related to the defined benefit pension plan. \r\nTotal liabilities and deferred inflows of resources increased by $9.4 million. The combination of the increase in total assets and deferred outflows of resources and the increase in total liabilities and deferred inflows of resources yielded a decrease in new position of $3.2 million. \r\n \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2017 and June 30, 2016. \r\n \r\nTable 2 Change in Net Position \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2017 \r\n \r\n2016 \r\n \r\n$ \r\n \r\n2,075,494 $ \r\n \r\n2,072,783 \r\n \r\n89,465,424 \r\n \r\n83,917,924 \r\n \r\n1,189,761 \r\n \r\n2,872,595 \r\n \r\nTotal Program Revenues \r\n \r\n92,730,679 \r\n \r\n88,863,302 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Other Sales Taxes Special Purpose Local Option Sales tax For Capital Projects Other Sales Tax Grants aNon-Program Specific General Not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n29,012,675 713,510 \r\n10,236,786 527,246 \r\n6,995,223 98,320 \r\n4,730,802 \r\n \r\n28,723,506 798,730 \r\n9,685,969 396,506 \r\n7,287,816 59,493 \r\n7,510,436 \r\n \r\nTotal General Revenues \r\n \r\n52,314,562 \r\n \r\n54,462,456 \r\n \r\nTotal Revenues \r\n \r\n145,045,241 \r\n \r\n143,325,758 \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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\n \r\n88,940,739 \r\n6,434,532 4,086,370 2,602,230 \r\n898,386 9,532,350 \r\n587,759 8,972,633 5,106,159 3,622,274 \r\n409,524 \r\n384,861 9,990,172 \r\n285,001 \r\n141,852,990 \r\n \r\n75,599,170 \r\n6,316,309 3,539,644 2,883,206 \r\n605,326 9,729,036 \r\n546,158 11,725,743 \r\n5,650,682 2,370,123 \r\n273,020 \r\n373,815 9,895,178 \r\n287,757 \r\n129,795,167 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n3,192,251 $ 13,530,591 \r\n \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nProgram revenues, in the form of charges for services, operating grants and contributions and capital grants and contributions increased $3.9 million for government activities. This increase is due to the School District receiving additional state and federal operating grants in fiscal year 2017. \r\nGeneral revenues decreased by $2.1 million during fiscal year 2017. This decrease is largely due to the amount of donations received for capital outlay projects decreasing. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nInstruction \r\n \r\n$ 88,940,739 $ 75,599,170 $ 23,601,243 $ 13,433,027 \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\n6,434,532 \r\n \r\n6,316,309 \r\n \r\n5,610,095 \r\n \r\n5,681,703 \r\n \r\nImprovement of Instructional Services \r\n \r\n4,086,370 \r\n \r\n3,539,644 \r\n \r\n1,683,633 \r\n \r\n1,288,354 \r\n \r\nEducational Media Services \r\n \r\n2,602,230 \r\n \r\n2,883,206 \r\n \r\n827,081 \r\n \r\n1,009,560 \r\n \r\nGeneral Administration \r\n \r\n898,386 \r\n \r\n605,326 \r\n \r\n(1,159,257) \r\n \r\n(1,406,493) \r\n \r\nSchool Administration \r\n \r\n9,532,350 \r\n \r\n9,729,036 \r\n \r\n5,750,900 \r\n \r\n5,667,941 \r\n \r\nBusiness Administration \r\n \r\n587,759 \r\n \r\n546,158 \r\n \r\n568,083 \r\n \r\n525,526 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n8,972,633 \r\n \r\n11,725,743 \r\n \r\n4,797,899 \r\n \r\n7,409,191 \r\n \r\nStudent Transportation Services \r\n \r\n5,106,159 \r\n \r\n5,650,682 \r\n \r\n3,046,271 \r\n \r\n3,480,736 \r\n \r\nCentral Support Services \r\n \r\n3,622,274 \r\n \r\n2,370,123 \r\n \r\n3,570,865 \r\n \r\n2,343,155 \r\n \r\nOther Support Services \r\n \r\n409,524 \r\n \r\n273,020 \r\n \r\n200,205 \r\n \r\n87,413 \r\n \r\nOperations of Non-Instructional Services: \r\n \r\nCommunity Services \r\n \r\n384,861 \r\n \r\n373,815 \r\n \r\n384,845 \r\n \r\n373,713 \r\n \r\nFood Services \r\n \r\n9,990,172 \r\n \r\n9,895,178 \r\n \r\n(44,553) \r\n \r\n750,282 \r\n \r\nInterest on Short-Term and Long-Term Debt \r\n \r\n285,001 \r\n \r\n287,757 \r\n \r\n285,001 \r\n \r\n287,757 \r\n \r\nTotal Expenses \r\n \r\n$ 141,852,990 $ 129,795,167 $ 49,122,311 $ 40,931,865 \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2017, 34.6% of total expense were supplemented by taxes and other general revenues compared to 31.5% in 2016. \r\n \r\nExpenses increased $12.0 million from the prior year, the net costs of providing services increased $8.2 million. This situation occurred largely because of the increased cost of State mandated employer portions of employee benefits. \r\n \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS The School District's governmental funds are accounted for using the modified accrual basis of accounting. The governmental funds had total revenues of $145.0 million and total expenditures of $151.1 million for fiscal year 2017 and total revenues of $143.5 million and total expenditures of $155.3 million for fiscal year 2016. General Fund Budgeting Highlights The School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund. During the course of fiscal years 2017 and 2016, the School District amended its general fund budget as needed. During fiscal year 2017 the general fund had final actual revenues totaling $133.3 million, which was more than the final budgeted amounts of $128.7 million by $4.6 million. This difference (final actual vs. final budget) was primarily due to unbudgeted revenues from school activity accounts of $2.9 million. Also, the School District received $1.8 million in private donations that were not budgeted. During fiscal year 2016 the general fund had final actual revenues totaling $128.5 million, which was more than the final budgeted amounts of $124.4 million by $4.1 million. This difference (final actual vs. final budget) was primarily due to unbudgeted revenues from school activity accounts of $2.8 million. Also, the School District received $1.4 million in private donations that were not budgeted. During the fiscal year 2017, the general fund had final actual expenditures totaling $133.4 million, which was more than the final budgeted amount of $132.6 million by $0.8 million. During the fiscal year 2016, the general fund had final actual expenditures totaling $127.5 million, which was less than the final budgeted amount of $128.9 million by $1.4 million. This was primarily due to lower than expected expenditures for support services. General fund expenditures and other financing uses exceeded revenues by $3.7 million for the fiscal year 2017. General fund expenditures and other financing uses exceeded revenues by $2.1 million for the fiscal year 2016. \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2017 and June 30, 2016, the School District had $217.6 million and $216.1 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District funded several technology projects and paid debt service through Education Special Purpose Local Option Sales Tax (ESPLOST). \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ 8,390,029 $ 8,624,659 \r\n \r\n17,748,943 \r\n \r\n15,761,559 \r\n \r\n177,832,184 \r\n \r\n180,034,219 \r\n \r\n6,539,667 \r\n \r\n7,127,454 \r\n \r\n7,070,576 \r\n \r\n4,597,678 \r\n \r\nTotal \r\n \r\n$ 217,581,399 $ 216,145,569 \r\n \r\nThe overall capital assets increased in the fiscal year 2017 by $1.4 million due to the completion of Dug Gap Elementary School Renovations and Playground Equipment and Northwest High Athletic Facility Renovation. \r\n \r\nLONG-TERM LIABILITES \r\n \r\nAt the fiscal years ending June 30, 2017 and June 30, 2016, the School District had $0.0 and $10.4 million, respectively, in bonds outstanding. Table 5 summarizes the School District's long-term liabilities for general obligation bonds, compensated absences and unamortized bond premium. \r\n \r\nTable 5 Long-Term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nCompensated Absences Bonds Payable Bond Premium Unamortized \r\nTotal \r\n \r\n$ 203,251 $ 237,003 \r\n \r\n- 10,355,000 \r\n \r\n- \r\n \r\n376,792 \r\n \r\n$ 203,251 $ 10,968,795 \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nAt June 30, 2017 and June 30, 2016, the School District's assigned bond rating was \"Aa1\" as determined by Moody's Investors Services, Inc. Current Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n The School District is financially stable. The School District's operating millage for fiscal year 2017 was 18.756, generating slightly over $1,500,000 per mill. Whitfield County Board of Education continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our stakeholders. The School District continues to provide an increasing amount of local monies to provide a quality education to our students. \r\n The economy continues to improve. General fund revenues from the State of Georgia were restored over 4.8% from the prior year. The Board anticipates significant financial challenges going forward due to expected higher health insurance and benefit costs for employees. \r\n Capital Improvements - As a result of the recession, the Board also faces challenges addressing deferred facility needs. Along with addressing some of the School District's top priority needs using ESPLOST dollars, the general fund reserves were also tapped for capital project improvements. The School District will continue to meet its obligation to the citizens of Whitfield County in accordance with the 2012 ESPLOST referendum. This referendum includes renovations, classroom technology, equipment, and other capital needs that may arise. In March 2017, the Whitfield County voters approved ESPLOST V to begin collections January 1, 2018. Looking ahead, the School District plans to rebuild two of our existing middle schools in accordance with the referendum. \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 demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, \r\nDalton, Georgia 30720. \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government 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 Claims Incurred but not Reported (IBNR) Retainages Payable Net Pension Liability Long-Term Liabilities \r\nDue 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 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\n33,057,728.10 \r\n \r\n2,556.08 \r\n \r\n2,989,448.39 10,491,848.57 \r\n1,501,100.27 54,947.89 \r\n286,188.97 26,138,972.06 191,442,427.35 \r\n \r\n265,965,217.68 \r\n \r\n33,735,807.64 \r\n \r\n1,124,407.29 8,013,957.21 \r\n66,434.51 286,768.30 124,089,068.00 \r\n203,251.03 \r\n133,783,886.34 \r\n \r\n6,622,057.00 \r\n \r\n217,295,530.84 \r\n800,899.20 7,728,080.18 (66,529,428.24) \r\n \r\n$ 159,295,081.98 \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 WHITFIELD 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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\nPROGRAM REVENUES \r\n \r\n$ 88,940,738.78 $ \r\n6,434,532.47 4,086,369.78 2,602,229.83 \r\n898,386.17 9,532,349.66 \r\n587,759.23 8,972,633.52 5,106,158.63 3,622,274.44 \r\n409,523.89 \r\n384,861.08 9,990,171.63 \r\n285,000.75 \r\n$ 141,852,989.86 $ \r\n \r\n525,396.03 \r\n140,723.46 - \r\n1,409,374.08 \r\n- \r\n2,075,493.57 \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$ 64,093,377.69 $ \r\n772,294.63 2,400,962.50 1,736,890.45 2,036,614.15 3,732,572.96 \r\n12,755.36 4,007,911.02 1,905,454.78 \r\n40,281.60 209,318.44 \r\n15.86 8,516,974.99 \r\n- \r\n$ 89,465,424.43 $ \r\n \r\n720,722.55 $ \r\n52,142.49 1,774.46 \r\n38,258.45 21,028.72 48,876.96 \r\n6,921.03 26,099.80 154,432.50 11,128.05 \r\n- \r\n108,375.97 \r\n- \r\n1,189,760.98 \r\n \r\n(23,601,242.51) \r\n(5,610,095.35) (1,683,632.82) \r\n(827,080.93) 1,159,256.70 (5,750,899.74) \r\n(568,082.84) (4,797,899.24) (3,046,271.35) (3,570,864.79) \r\n(200,205.45) \r\n(384,845.22) 44,553.41 \r\n(285,000.75) \r\n(49,122,310.88) \r\n \r\n29,012,675.36 713,509.77 \r\n10,236,785.91 527,245.85 \r\n6,995,223.00 98,319.59 \r\n4,730,801.89 \r\n52,314,561.37 \r\n3,192,250.49 \r\n156,102,831.49 \r\n \r\n$ \r\n \r\n159,295,081.98 \r\n \r\n- 3 - \r\n \r\n WHITFIELD 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 Investments 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$ 22,810,997.51 $ 10,246,730.59 $ \r\n \r\n2,556.08 \r\n \r\n- \r\n \r\n2,057,060.86 10,491,848.57 \r\n1,501,100.27 54,947.89 \r\n286,188.97 \r\n \r\n932,387.53 - \r\n \r\n- $ 33,057,728.10 \r\n \r\n- \r\n \r\n2,556.08 \r\n \r\n- \r\n \r\n2,989,448.39 \r\n \r\n- \r\n \r\n10,491,848.57 \r\n \r\n- \r\n \r\n1,501,100.27 \r\n \r\n- \r\n \r\n54,947.89 \r\n \r\n- \r\n \r\n286,188.97 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits 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$ 37,204,700.15 $ 11,179,118.12 $ \r\n \r\n$ 1,051,795.39 $ 8,013,957.21 - \r\n9,065,752.60 \r\n \r\n72,611.90 $ - \r\n286,768.30 \r\n359,380.20 \r\n \r\n1,012,175.15 \r\n \r\n- \r\n \r\n286,188.97 514,710.23 1,633,103.80 24,692,769.40 \r\n27,126,772.40 \r\n \r\n7,728,080.18 3,091,657.74 \r\n- \r\n10,819,737.92 \r\n \r\n- $ 48,383,818.27 \r\n \r\n- $ 1,124,407.29 \r\n \r\n- \r\n \r\n8,013,957.21 \r\n \r\n- \r\n \r\n286,768.30 \r\n \r\n- \r\n \r\n9,425,132.80 \r\n \r\n- \r\n \r\n1,012,175.15 \r\n \r\n- \r\n \r\n286,188.97 \r\n \r\n- \r\n \r\n8,242,790.41 \r\n \r\n- \r\n \r\n4,724,761.54 \r\n \r\n- \r\n \r\n24,692,769.40 \r\n \r\n- \r\n \r\n37,946,510.32 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 37,204,700.15 $ 11,179,118.12 $ \r\n \r\n- $ 48,383,818.27 \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 WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2017 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Construction in progress Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability \r\nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds. \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities are not due and payable in the current period and therefore are not reported in the funds. \r\nCompensated absences payable Claims and judgments payable \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 37,946,510.32 \r\n \r\n$ \r\n \r\n8,390,028.58 \r\n \r\n17,748,943.48 \r\n \r\n215,729,385.55 \r\n \r\n22,988,646.44 \r\n \r\n15,438,282.88 \r\n \r\n(62,713,887.52) \r\n \r\n217,581,399.41 \r\n \r\n(124,089,068.00) 27,113,750.64 1,012,175.15 \r\n \r\n$ \r\n \r\n(203,251.03) \r\n \r\n(66,434.51) \r\n \r\n(269,685.54) \r\n \r\n$ 159,295,081.98 \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 WHITFIELD 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 Community Services 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\n29,751,378.34 $ \r\n \r\n527,245.85 \r\n \r\n80,034,300.79 \r\n \r\n16,547,261.71 \r\n \r\n2,075,493.57 \r\n \r\n53,672.91 \r\n \r\n4,261,881.05 \r\n \r\n133,251,234.22 \r\n \r\n- $ 10,236,785.91 \r\n1,035,328.48 - \r\n44,370.52 468,920.84 \r\n11,785,405.75 \r\n \r\n- $ 276.16 - \r\n \r\n29,751,378.34 10,764,031.76 81,069,629.27 16,547,261.71 \r\n2,075,493.57 98,319.59 \r\n4,730,801.89 \r\n \r\n276.16 \r\n \r\n145,036,916.13 \r\n \r\n81,322,001.85 \r\n6,273,755.38 3,996,941.76 2,518,680.30 \r\n876,077.77 9,243,447.35 \r\n556,235.29 8,590,081.39 5,861,129.38 3,374,839.02 \r\n405,316.23 384,855.17 10,009,723.04 \r\n- \r\n- \r\n133,413,083.93 \r\n(161,849.71) \r\n \r\n- \r\n15,260.78 629,371.70 395,706.74 5,930,894.58 \r\n- \r\n6,971,233.80 \r\n4,814,171.95 \r\n \r\n- \r\n- \r\n10,355,000.00 380,001.00 \r\n10,735,001.00 \r\n(10,734,724.84) \r\n \r\n81,322,001.85 \r\n6,273,755.38 3,996,941.76 2,518,680.30 \r\n876,077.77 9,243,447.35 \r\n571,496.07 9,219,453.09 5,861,129.38 3,770,545.76 \r\n405,316.23 384,855.17 10,009,723.04 5,930,894.58 \r\n10,355,000.00 380,001.00 \r\n151,119,318.73 \r\n(6,082,402.60) \r\n \r\n(3,585,219.51) (3,585,219.51) \r\n(3,747,069.22) 30,873,841.62 \r\n \r\n3,585,219.51 (10,734,700.78) \r\n(7,149,481.27) \r\n(2,335,309.32) 13,155,047.24 \r\n \r\n10,734,700.78 - \r\n10,734,700.78 \r\n(24.06) 24.06 \r\n \r\n14,319,920.29 (14,319,920.29) \r\n- \r\n(6,082,402.60) 44,028,912.92 \r\n \r\n$ \r\n \r\n27,126,772.40 $ 10,819,737.92 $ \r\n \r\n- $ 37,946,510.32 \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 WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2017 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\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\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 Claims and judgments \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ (6,082,402.60) \r\n \r\n$ 6,816,224.79 (4,918,330.39) \r\n \r\n1,897,894.40 \r\n \r\n(462,064.59) \r\n \r\n(25,193.21) \r\n \r\n$ 10,355,000.00 376,791.70 \r\n \r\n10,731,791.70 \r\n \r\n(3,012,710.64) \r\n \r\n$ \r\n \r\n95,000.25 \r\n \r\n33,752.16 \r\n \r\n16,183.02 \r\n \r\n144,935.43 \r\n \r\n$ 3,192,250.49 \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 Receivables, Net \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2017 \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 416,627.95 45,371.35 $ 461,999.30 $ 461,999.30 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 8 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County School District (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit \r\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's general fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\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 retainage payable related to those capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n3. Unrestricted net position consists of resources not meeting the definition of the two preceding categories. Unrestricted net 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\n- 10 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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 type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all \r\n- 11 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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. See note 14 for further disclosure of tax abatements in accordance with this standard. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and No. 68. Specifically, this statement addresses issues regarding (1) the presentation of payrollrelated measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\n- 12 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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 the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 $ 50,000.00 \r\n \r\nN/A 15 years 70 years 10 to 12 years 15 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 vacation leave employees earned based on services already rendered. \r\n \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \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\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 WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \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\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 Whitfield County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on October 20, 2016 (levy date) based on property values as of January 1, 2016. Taxes were due on December 20, 2016 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2016 tax digest are reported as revenue in the governmental funds for fiscal year 2017. The Whitfield 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 $26,860,345.18. \r\n \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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $2,177,523.39 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 $10,236,785.91 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\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, 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, except the various school activity (principal) accounts, is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. At June 30, 2017, $179,971.45 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \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- 16 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2017, School District had deposits with a carrying amount of $19,191,734.11, and a bank balance of $24,287,579.45. The bank balances insured by Federal depository insurance were $1,068,210.11 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $468,022.28. \r\nAt June 30, 2017, $22,751,347.06 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ 179,971.45 - \r\n22,571,375.61 \r\n \r\nTotal \r\n \r\n$ 22,751,347.06 \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$ 33,057,728.10 416,627.95 \r\n \r\nTotal cash and cash equivalents \r\n \r\n33,474,356.05 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n2,556.08 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n14,285,178.02 \r\n \r\nTotal carrying value of deposits - June 30, 2017 \r\n \r\n$ 19,191,734.11 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $14,285,178.02 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 \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nshare price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2017, was 56 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2016 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2017 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n8,624,659.08 $ \r\n \r\n- $ \r\n \r\n234,630.50 $ \r\n \r\n8,390,028.58 \r\n \r\n15,761,559.24 \r\n \r\n5,988,806.83 \r\n \r\n4,001,422.59 \r\n \r\n17,748,943.48 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n24,386,218.32 \r\n \r\n5,988,806.83 \r\n \r\n4,236,053.09 \r\n \r\n26,138,972.06 \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\n214,846,497.02 23,683,085.27 12,334,718.86 \r\n34,812,278.04 16,555,630.75 \r\n7,737,041.08 \r\n \r\n882,888.53 842,388.00 3,103,564.02 \r\n3,084,923.46 1,202,741.56 \r\n630,665.37 \r\n \r\n1,536,826.83 \r\n- \r\n \r\n215,729,385.55 22,988,646.44 15,438,282.88 \r\n \r\n1,309,392.74 \r\n- \r\n \r\n37,897,201.50 16,448,979.57 \r\n8,367,706.45 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n191,759,351.28 \r\n \r\n(89,489.84) \r\n \r\n227,434.09 \r\n \r\n191,442,427.35 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 216,145,569.60 $ 5,899,316.99 $ 4,463,487.18 $ 217,581,399.41 \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services Improvements of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \r\n \r\n$ 247,703.02 8,429.60 \r\n181,746.87 99,897.02 \r\n232,190.12 32,878.35 \r\n123,987.19 370,593.34 \r\n52,863.82 \r\n \r\n$ 3,053,200.76 \r\n1,350,289.33 514,840.30 \r\n \r\n$ 4,918,330.39 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2017, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nCapital Projects Debt Service Fund \r\n \r\n$ 3,585,219.51 - \r\n \r\n$ \r\n \r\n- \r\n \r\n10,734,700.78 \r\n \r\nTotal \r\n \r\n$ 3,585,219.51 $ 10,734,700.78 \r\n \r\nTransfers are used to move sales tax revenues collected by the capital projects fund to the debt service fund for bond payments and to move local funds from the general fund to the 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\nBalance July 1, 2016 \r\n \r\nGovernmental Activities \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2017 \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums Compensated Absences(1) \r\n \r\n$ 10,355,000.00 $ 376,791.70 237,003.19 \r\n \r\n- $ 238,726.60 \r\n \r\n10,355,000.00 $ 376,791.70 272,478.76 \r\n \r\n203,251.03 \r\n \r\n$ 10,968,794.89 $ 238,726.60 $ 11,004,270.46 $ 203,251.03 \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\n- 19 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nOn March 21, 2017 the voters of Whitfield County authorized the sale of general obligation bonds in the amount of $41,000,000.00 to provide the necessary funds for the acquisition, construction, and equipping of capital facilities. No bonds have been issued as of June 30, 2017. \r\nCompensated absences represent obligations of the School District relating to the employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the general fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\nNOTE 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\n \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\n \r\nWORKERS' COMPENSATION \r\nThe School District has established a limited risk management program for workers' compensation claims prior to July 1, 2012. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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 workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2016 2017 \r\n \r\n$ 80,402.50 \r\n \r\n$ \r\n \r\n$ 82,617.53 \r\n \r\n$ \r\n \r\n2,215.03 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ 82,617.53 \r\n \r\n- \r\n \r\n$ \r\n \r\n16,183.02 \r\n \r\n$ \r\n \r\n66,434.51 \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGeorgia School Boards Association Workers' Compensation Fund \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund (the Fund), a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2.0 million. In addition to the $550,000.00 per occurrence retention, the Fund also retains an additional $200,000.00 per year corridor retention. \r\n \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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\n2016 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n3,836.53 \r\n \r\n$ \r\n \r\n3,836.53 \r\n \r\n$ \r\n \r\n- \r\n \r\n2017 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,070.00 \r\n \r\n$ \r\n \r\n1,070.00 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 100,000.00 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2017: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects \r\nAssigned Local Capital Outlay Projects School Activity Accounts Self-Insurance \r\nUnassigned \r\n \r\n$ \r\n \r\n286,188.97 \r\n \r\n$ 514,710.23 7,728,080.18 \r\n \r\n8,242,790.41 \r\n \r\n$ 3,091,657.74 1,247,724.53 385,379.27 \r\n \r\n4,724,761.54 24,692,769.40 \r\n \r\nFund Balance, June 30, 2017 \r\n \r\n$ 37,946,510.32 \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\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, 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\nDawnville Elementary School HVAC Modification \r\n \r\n$ \r\n \r\nEastside Elementary School Modification \r\n \r\nPleasant Grove Elementary School HVAC Modification \r\n \r\n289,295.39 $ 72,007.83 \r\n326,695.08 \r\n \r\n626,544.61 $ 7,445,850.64 \r\n786,889.86 \r\n \r\n222,076.00 243,794.40 500,732.00 \r\n \r\n$ \r\n \r\n687,998.30 $ \r\n \r\n8,859,285.11 $ \r\n \r\n966,602.40 \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\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOPERATING LEASES \r\nThe School District leases copiers and network security firewalls 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 $175,720.58 for governmental activities for the year ended June 30, 2017. The following future minimum lease payments were required under operating leases at June 30, 2017: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2018 2019 2020 2021 2022 \r\n \r\n$ 212,659.08 212,659.08 212,659.08 212,659.08 53,936.65 \r\n \r\nTotal \r\n \r\n$ 904,572.97 \r\n \r\nNOTE 11: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nLITIGATION \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to have a material adverse effect on the financial condition of the School District. \r\nNOTE 12: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nP lan 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 P olicy. 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 \r\n- 23 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nof 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\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\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2016  June 30, 2017 For non-certificated school personnel: \r\nJuly 1, 2016  December 31, 2016 \r\n \r\n$945.00 per member per month $746.20 per member per month \r\n \r\nJanuary 1, 2017  June 30, 2017 $846.20 per member per month \r\nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2017 2016 2015 \r\n \r\n100% 100% 100% \r\n \r\n$ 14,591,824.00 $ 13,936,159.11 $ 13,462,212.72 \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 \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nadministered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\nBenefits P rovided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2017. The School District's contractually required contribution rate for the year ended June 30, 2017 was 14.27% of annual School District payroll, of which 14.21% of payroll was required from the School District and 0.06% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $9,725,596.64 and $48,009.57 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 \r\n \r\n- 25 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nnormal 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\nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\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 $193,641.00. \r\n \r\n- 26 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2017, the School District reported a liability of $124,089,068.00 for its proportionate share of the net pension liability for TRS ($123,991,763.00) and ERS ($97,305.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 123,991,763.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n753,861.00 \r\n \r\nTotal \r\n \r\n$ 124,745,624.00 \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 0.600994%, which was a decrease of 0.000342% from its proportion measured as of June 30, 2015. At June 30, 2016, the School District's ERS proportion was 0.002057%, which was a decrease of 0.000148% from its proportion measured as of June 30, 2015. \r\nAt June 30, 2017, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $1,286,842.00. \r\nThe PSERS net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2016. \r\nFor the year ended June 30, 2017, the School District recognized pension expense of $12,829,918.00 for TRS, $7,167.00 for ERS and $210,962.00 for PSERS and revenue of $98,848.00 for TRS and $210,962.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2017, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 1,847,143.00 $ 613,140.00 \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n225.00 \r\n \r\nChanges of assumptions \r\n \r\n3,213,695.00 \r\n \r\n- \r\n \r\n824.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings \r\n \r\non pension plan investments \r\n \r\n15,685,469.00 \r\n \r\n- \r\n \r\n9,893.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n3,253,187.00 \r\n \r\n6,002,577.00 \r\n \r\n- \r\n \r\n6,115.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n9,725,596.64 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 33,725,090.64 $ 6,615,717.00 \r\n \r\n$ 10,717.00 $ \r\n \r\n6,340.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $9,725,596.64 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2018 2019 2020 2021 2022 \r\n \r\n$ 1,867,505.00 $ $ 1,867,499.00 $ $ 7,671,706.00 $ $ 5,738,272.00 $ $ 238,795.00 $ \r\n \r\n(4,234.00) (29.00) \r\n5,334.00 3,306.00 \r\n- \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2016 was determined by an actuarial valuation as of June 30, 2015, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases \r\n \r\n2.75% 3.25%  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' \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nprojection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nEmployees' Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25% - 7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Combined Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB and set forward 2 years for both males and females for service retirements and dependent beneficiaries. The RP- 2000 Disabled Mortality Table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB and set back 7 years for males and set forward 3 years for females was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-12% less than the actual number of deaths that occurred during the study period for service retirements and beneficiaries and for disability retirements. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected to 2025 with projection scale BB (set forward 5 years for both males and females) was used for death after disability retirement. There is a margin for future mortality improvement in the tables used by the System. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected under the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS, ERS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected \r\n \r\n- 29 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nrate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nERS/PSERS Target \r\nallocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\nDiscount rate: The discount rate used to measure the total TRS, ERS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS, ERS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\nSchool District's proportionate share of the net pension liability \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\n$ 192,994,709.00 $ \r\n \r\n123,991,763.00 $ 67,179,211.00 \r\n \r\nEmployees' Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net \r\n \r\npension liability \r\n \r\n$ \r\n \r\n131,866.00 $ \r\n \r\n97,305.00 $ \r\n \r\n67,852.00 \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 publically \r\navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\n- 30 - \r\n \r\n WHITFIELD COUNTY SCHOOL DISTRICT NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 14: TAX ABATEMENTS \r\nWhitfield County enters into property tax abatement agreements with local businesses for the purpose of attracting or retaining businesses within their jurisdictions. The abatements may be granted to any business located within or promising to relocate to Whitfield County. \r\nFor the fiscal year ended June 30, 2017, Whitfield County abated property taxes due to the School District that were levied on October 20, 2016 and due on Dec 20, 2016 totaling $1,563,326.00. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 \r\nthe net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with \r\nthe School District \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability 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\n0.600994% $ 123,991,763.00 $ 753,861.00 $ 124,745,624.00 $ 66,318,866.74 0.601336% $ 91,547,435.00 $ 541,518.00 $ 92,088,953.00 $ 63,850,718.44 0.658147% $ 83,148,192.00 $ 464,667.00 $ 83,612,859.00 $ 67,520,931.18 \r\n \r\n186.96% 143.38% 123.14% \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 WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n2017 2016 2015 \r\n \r\nSchool District's proportion of the \r\nnet 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 as a \r\npercentage of covered payroll \r\n \r\n0.002057% $ 0.002205% $ 0.002468% $ \r\n \r\n97,305.00 $ 89,333.00 $ 92,565.00 $ \r\n \r\n47,833.20 50,407.69 52,608.83 \r\n \r\n203.43% 177.22% 175.95% \r\n \r\nPlan fiduciary net position as a \r\npercentage of total net pension liability \r\n72.34% 76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n WHITFIELD 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\n2017 2016 2015 \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension \r\nliability \r\n \r\nState of Georgia's proprotionate share of \r\nthe net pension liaibility associated with the School District \r\n \r\n0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ 1,286,842.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n887,722.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n790,767.00 $ \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\n1,286,842.00 $ 3,174,143.11 887,722.00 $ 3,161,781.05 790,767.00 $ 3,367,655.44 \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 WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2017 \r\n \r\n$ \r\n \r\n9,725,596.64 $ \r\n \r\n9,725,596.64 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n9,407,282.28 $ \r\n \r\n9,407,282.28 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n8,347,590.62 $ \r\n \r\n8,347,590.62 $ \r\n \r\n- \r\n \r\n2014 (1) $ \r\n \r\n8,291,570.35 $ \r\n \r\n8,291,570.35 $ \r\n \r\n- \r\n \r\n2013 (1) $ \r\n \r\n7,107,315.20 $ \r\n \r\n7,107,315.20 $ \r\n \r\n- \r\n \r\n2012 (1) $ \r\n \r\n6,258,930.16 $ \r\n \r\n6,258,930.16 $ \r\n \r\n- \r\n \r\n2011 (1) $ \r\n \r\n6,351,201.00 $ \r\n \r\n6,351,201.00 $ \r\n \r\n- \r\n \r\n2010 (1) $ \r\n \r\n6,649,887.95 $ \r\n \r\n6,649,887.95 $ \r\n \r\n- \r\n \r\n2009 (1) $ \r\n \r\n6,346,067.91 $ \r\n \r\n6,346,067.91 $ \r\n \r\n- \r\n \r\n2008 (1) $ \r\n \r\n6,155,188.88 $ \r\n \r\n6,155,188.88 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 68,459,692.13 $ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 $ 62,290,229.66 $ 60,884,534.63 $ 61,782,110.89 $ 68,274,003.62 $ 68,384,352.51 $ 66,327,466.35 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n14.21% 14.18% 13.07% 12.28% 11.41% 10.28% 10.28% \r\n9.74% 9.28% 9.28% \r\n \r\n(1) For year ended 2014 and earlier, the reported contractually required contribution includes payments made on behalf of the School District by the Georgia Department of Education. \r\n \r\n- 36 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2017 \r\n \r\n$ \r\n \r\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\n11,825.00 $ \r\n \r\n11,825.00 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n11,069.52 $ \r\n \r\n11,069.52 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n9,711.53 $ \r\n \r\n9,711.53 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n7,202.64 $ \r\n \r\n7,202.64 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n5,455.30 $ \r\n \r\n5,455.30 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n4,757.18 $ \r\n \r\n4,757.18 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n5,067.26 $ \r\n \r\n5,067.26 $ \r\n \r\n- \r\n \r\n2009 \r\n \r\n$ \r\n \r\n4,891.76 $ \r\n \r\n4,891.76 $ \r\n \r\n- \r\n \r\n2008 \r\n \r\n$ \r\n \r\n4,659.94 $ \r\n \r\n4,659.94 $ \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\n47,833.20 \r\n \r\n$ \r\n \r\n50,407.69 \r\n \r\n$ \r\n \r\n52,608.83 \r\n \r\n$ \r\n \r\n48,339.82 \r\n \r\n$ \r\n \r\n46,907.14 \r\n \r\n$ \r\n \r\n45,698.18 \r\n \r\n$ \r\n \r\n48,676.85 \r\n \r\n$ \r\n \r\n46,990.70 \r\n \r\n$ \r\n \r\n44,763.34 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\nN/A 24.72% 21.96% 18.46% 14.90% 11.63% 10.41% 10.41% 10.41% 10.41% \r\n \r\n- 37 - \r\n \r\n WHITFIELD 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 WHITFIELD 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 Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\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\n29,855,000.00 $ 29,855,000.00 $ 29,751,378.34 $ \r\n \r\n(103,621.66) \r\n \r\n355,000.00 \r\n \r\n355,000.00 \r\n \r\n527,245.85 \r\n \r\n172,245.85 \r\n \r\n77,808,089.00 \r\n \r\n79,513,968.20 \r\n \r\n80,034,300.79 \r\n \r\n520,332.59 \r\n \r\n16,868,174.47 \r\n \r\n17,164,659.47 \r\n \r\n16,547,261.71 \r\n \r\n(617,397.76) \r\n \r\n1,692,560.33 \r\n \r\n1,692,560.33 \r\n \r\n2,075,493.57 \r\n \r\n382,933.24 \r\n \r\n- \r\n \r\n- \r\n \r\n53,672.91 \r\n \r\n53,672.91 \r\n \r\n152,200.00 \r\n \r\n152,200.00 \r\n \r\n4,261,881.05 \r\n \r\n4,109,681.05 \r\n \r\n126,731,023.80 \r\n \r\n128,733,388.00 \r\n \r\n133,251,234.22 \r\n \r\n4,517,846.22 \r\n \r\n82,154,156.06 \r\n5,231,793.55 5,458,479.40 2,462,803.53 \r\n704,527.15 8,868,605.52 3,512,999.68 9,851,905.00 6,186,283.51 2,614,026.60 \r\n207,647.64 - \r\n12,696,437.75 \r\n139,949,665.39 \r\n(13,218,641.59) \r\n \r\n79,374,661.05 \r\n5,227,637.72 4,378,133.87 2,467,803.53 \r\n657,328.15 8,868,605.52 2,366,171.18 9,888,092.65 5,857,018.35 3,258,466.38 \r\n594,560.00 - \r\n9,614,872.61 \r\n132,553,351.01 \r\n(3,819,963.01) \r\n \r\n81,322,001.85 \r\n6,273,755.38 3,996,941.76 2,518,680.30 \r\n876,077.77 9,243,447.35 \r\n556,235.29 8,590,081.39 5,861,129.38 3,374,839.02 \r\n405,316.23 384,855.17 10,009,723.04 \r\n133,413,083.93 \r\n(161,849.71) \r\n \r\n(1,947,340.80) \r\n(1,046,117.66) 381,192.11 (50,876.77) (218,749.62) (374,841.83) \r\n1,809,935.89 1,298,011.26 \r\n(4,111.03) (116,372.64) 189,243.77 (384,855.17) (394,850.43) \r\n(859,732.92) \r\n3,658,113.30 \r\n \r\n(13,218,641.59) 33,117,186.99 \r\n \r\n(3,819,963.01) 30,957,872.41 \r\n \r\n(3,585,219.51) (374,769.22) \r\n30,873,841.62 \r\n \r\n(3,585,219.51) 72,893.79 (84,030.79) \r\n \r\n$ \r\n \r\n19,898,545.40 $ 27,137,909.40 $ 30,499,072.40 $ \r\n \r\n(11,137.00) \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts and after school program. The actual revenues and expenditures of the various principal accounts and after school program as follows: \r\n \r\nREVENUES \r\n \r\nEXPENDITURES \r\n \r\nSchool Activity Accounts After School Program \r\n \r\n$ \r\n \r\n2,531,910.86 $ \r\n \r\n2,513,261.66 \r\n \r\n389,585.29 \r\n \r\n378,022.27 \r\n \r\n$ \r\n \r\n2,921,496.15 $ \r\n \r\n2,891,283.93 \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n WHITFIELD 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 Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants English Language Acquisition Grants Improving Teacher Quality State Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Migrant Education - State Grant Program Striving Readers Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child Care and Development Block Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n17175GA324N1099 $ 17175GA324N1100 \r\n \r\n2,039,021.80 7,684,147.15 \r\n9,723,168.95 \r\n \r\n10.665 \r\n \r\n486Forest \r\n \r\n742.38 \r\n \r\n10.579 \r\n \r\n16165GA350N8103 \r\n \r\n11,927.13 9,735,838.46 \r\n \r\n84.027 84.173 84.173 \r\n \r\nH027A160073 H173A150081 H173A160081 \r\n \r\n2,303,273.77 8,906.00 \r\n40,370.74 \r\n2,352,550.51 \r\n \r\n84.048 84.196 84.365 84.365 84.367 84.367 84.011 84.011 84.371 84.010 84.010 \r\n \r\nV048A160010 S196A160011 S365A150010 S365A160010 S367A150001 S367A160001 S011A150011 S011A160011 S371C110049 S010A150010 S010A160010 \r\n \r\n101,429.61 27,370.59 62,422.00 \r\n176,444.60 167,499.00 141,881.07 \r\n4,316.00 62,364.59 1,897,314.77 462,237.00 2,873,291.62 \r\n5,976,570.85 \r\n8,329,121.36 \r\n \r\n93.575 \r\n \r\n16165GA368N1099 \r\n \r\n25,201.49 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n18,090,161.31 \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 Whitfield County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2017. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\n \r\nNote 2. Summary of Significant Accounting Policies \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 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds Teacher of the Year Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nGovernor's Office of Student Achievement Connections for Classrooms Grant Innovation Fund \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 1,127,129.88 $ \r\n \r\n- $ 1,127,129.88 \r\n \r\n2,731,725.00 2,020,109.00 7,824,116.00 4,291,023.00 4,189,287.00 2,158,648.00 7,988,472.00 7,512,640.00 2,421,061.00 9,791,271.00 4,557,837.00 \r\n230,847.00 594,749.00 3,246,767.00 1,512,034.00 442,689.00 272,757.00 \r\n5,816.00 \r\n1,672,146.00 3,279,189.00 3,485,679.00 (1,056,857.00) \r\n1,217,532.00 261,021.00 \r\n6,995,223.00 \r\n238,150.00 99,581.74 \r\n142,227.83 154,432.50 \r\n507.25 48,009.57 216,422.00 \r\n \r\n- \r\n \r\n2,731,725.00 \r\n \r\n- \r\n \r\n2,020,109.00 \r\n \r\n- \r\n \r\n7,824,116.00 \r\n \r\n- \r\n \r\n4,291,023.00 \r\n \r\n- \r\n \r\n4,189,287.00 \r\n \r\n- \r\n \r\n2,158,648.00 \r\n \r\n- \r\n \r\n7,988,472.00 \r\n \r\n- \r\n \r\n7,512,640.00 \r\n \r\n- \r\n \r\n2,421,061.00 \r\n \r\n- \r\n \r\n9,791,271.00 \r\n \r\n- \r\n \r\n4,557,837.00 \r\n \r\n- \r\n \r\n230,847.00 \r\n \r\n- \r\n \r\n594,749.00 \r\n \r\n- \r\n \r\n3,246,767.00 \r\n \r\n- \r\n \r\n1,512,034.00 \r\n \r\n- \r\n \r\n442,689.00 \r\n \r\n- \r\n \r\n272,757.00 \r\n \r\n- \r\n \r\n5,816.00 \r\n \r\n- \r\n \r\n1,672,146.00 \r\n \r\n- \r\n \r\n3,279,189.00 \r\n \r\n- \r\n \r\n3,485,679.00 \r\n \r\n- \r\n \r\n(1,056,857.00) \r\n \r\n- \r\n \r\n1,217,532.00 \r\n \r\n- \r\n \r\n261,021.00 \r\n \r\n- \r\n \r\n6,995,223.00 \r\n \r\n- \r\n \r\n238,150.00 \r\n \r\n- \r\n \r\n99,581.74 \r\n \r\n- \r\n \r\n142,227.83 \r\n \r\n- \r\n \r\n154,432.50 \r\n \r\n- \r\n \r\n507.25 \r\n \r\n- \r\n \r\n48,009.57 \r\n \r\n- \r\n \r\n216,422.00 \r\n \r\n- \r\n168,418.02 \r\n193,641.00 \r\n \r\n779,116.80 \r\n256,211.68 - \r\n- \r\n \r\n779,116.80 \r\n256,211.68 168,418.02 \r\n193,641.00 \r\n \r\n$ 80,034,300.79 $ 1,035,328.48 $ 81,069,629.27 \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 WHITFIELD 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\nPROJECTS \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEAR (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore; both real an personal. \r\n$ \r\n \r\n96,100,000.00 $ 108,658,852.54 $ \r\n \r\n1,752,847.67 $ \r\n \r\n92,311,358.49 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nJune 2018 \r\n \r\nSPLOST IV \r\n \r\nPaying all or a portion of the debt service on outstanding Series 2006 and Series 2009 General Obligation Bonds previously issued by the Whitfield County School District; acquiring new technology equipment, safety and security equipment and other school equipment; adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desirable in connection therewith, including but not limited to HVAC, roofing, electrical, plumbing and paving; acquiring land; purchasing textbooks and band instruments; purchasing school buses and school vehicles; acquiring any property necessary or desirable therefore, both real and personal. \r\n \r\n68,649,000.00 \r\n \r\n68,649,000.00 \r\n \r\n12,938,155.36 \r\n \r\n30,968,548.43 \r\n \r\n- \r\n \r\n- \r\n \r\nJune 2020 \r\n \r\n$ 164,749,000.00 $ 177,307,852.54 $ 14,691,003.03 $ 123,279,906.92 $ \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) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. \r\n \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above project(s) as follows: \r\n \r\nPrior Years \r\n \r\n$ 14,021,370.64 \r\n \r\nCurrent Year \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 14,021,370.64 \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\nNovember 2, 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 Whitfield 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 Whitfield 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 November 2, 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. 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\nNovember 2, 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 Whitfield 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 Whitfield County Board of Education's (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. \r\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 WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2017 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-2016-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None FS 2015-001, FS 2014-001, FS-7551-13-01, FS-7551-12-02 \r\n \r\nFinding Status: \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD 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\nNo 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 200.156(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.371 \r\n \r\nChild Nutrition Cluster Striving Readers \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$750,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \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-bw59-b2016-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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 Whitfield 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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD 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\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\ni \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\n1 \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\n2 \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n4 \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\n5 \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\n6 \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\n7 \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\n8 \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\n9 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n31 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nEMPLOYEES' RETIREMENT SYSTEM OF GEORGIA \r\n \r\n32 \r\n \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n33 \r\n \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n34 \r\n \r\n5 SCHEDULE OF CONTRIBUTIONS  EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA 35 \r\n \r\n6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n36 \r\n \r\n7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n37 \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n38 39 41 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 26, 2018 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield 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, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2016, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Our opinions are not modified with respect to this matter. \r\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\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, consisting of Schedules 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 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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 January 26, 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 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 WHITFIELD 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 Whitfield County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2016 and June 30, 2015. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2016 and 2015 are as follows: \r\n On the government-wide financial statements, the assets and deferred outflows of resources of the School District exceeded liabilities and deferred inflows of resources by $156.1 million and $142.6 million, respectively, for the fiscal years ended June 30, 2016 and 2015. Of these amounts $31.0 and $32.1 million, respectively, for fiscal years 2016 and 2015 are available for spending at the School District's discretion. \r\n The School District had $129.8 million and $127.7 million, respectively, in expenses for the fiscal years ended June 30, 2016 and June 30, 2015 relating to governmental activities. Only $88.9 million and $82.6 million of the above mentioned expenses for 2016 and 2015 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $54.5 million and $59.3 million, respectively, for 2016 and 2015 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $54.5 million or 38.0% of all revenues totaling $143.3 million for fiscal year 2016 and $59.3 million or 41.82% of all revenues totaling $141.9 million for fiscal year 2015. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the School District's overall financial status. \r\nThe fund financial statements focus on individual parts of the School District, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the short-term as well as what remains for future spending. 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 Whitfield County School District, the general fund, capital projects fund, and debt service fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \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 might ask the question, are we in a better financial position than last year? The Statement of Net Position and the Statement of Activities provides the basis for answering this question. These financial statements include all 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 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 reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. \r\nFiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\nii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\n \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's Net Position for fiscal year 2016 compared to fiscal year 2015. \r\n \r\nTable 1 Net Position \r\n \r\nAssets Current and Other Assets Capital Assets \r\nTotal Assets \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$ 56,904,213 $ 65,669,684 \r\n \r\n216,145,570 \r\n \r\n205,298,682 \r\n \r\n273,049,783 \r\n \r\n270,968,366 \r\n \r\nDeferred Outflows of Resources \r\n \r\n14,034,059 \r\n \r\n14,339,558 \r\n \r\nTotal Assets and Deferred Outflows of Resources \r\n \r\n287,083,842 \r\n \r\n285,307,924 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities Net Pension Liability \r\nTotal Liabilities \r\n \r\n12,015,549 10,968,795 91,636,768 \r\n114,621,112 \r\n \r\n9,117,411 21,367,702 83,240,757 \r\n113,725,870 \r\n \r\nDeferred Inflows of Resources \r\n \r\n16,359,898 \r\n \r\n29,009,814 \r\n \r\nTotal Liabilities and Deferred Inflows of Resources \r\n \r\n130,981,010 \r\n \r\n142,735,684 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\n205,502,770 13,551,078 (62,951,017) \r\n \r\n188,715,258 19,657,548 (65,800,566) \r\n \r\n$ 156,102,831 $ 142,572,240 \r\n \r\nDuring fiscal year 2015, the School District adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date. Together, these two statements drastically changed the presentation of the government-wide balance sheet by requiring the reporting of the School District's net pension liability and the deferred inflows and outflows associated with pension payments for all State pension programs in which the School District participates. The total liability effect of these pensions was $93,962,607 and $97,911,013, respectively, for the years ended June 30, 2016 and 2015. These liabilities exceeded the School District's unrestricted net position of $31,011,590 and $32,110,447, respectively. Although this causes a large deficit balance in unrestricted net position, it should not be considered a financial weakness as these costs are spread out over multiple years well into the future. \r\n \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nTable 2 shows the Changes in Net Position for fiscal years ending June 30, 2016 and June 30, 2015. \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\nTotal Program Revenues \r\nGeneral Revenues: Taxes \r\nProperty Taxes For Maintenance and Operations Other \r\nSales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax \r\nGrants and Contributions not restricted to Specific Programs \r\nInvestment Earnings Miscellaneous \r\nTransfers \r\nTotal General Revenues \r\nTotal Revenues \r\nProgram Expenses Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administrative School Administrative Business Administrative Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest in Short-Tern and Long-Term Debt \r\nTotal Expenses \r\nIncrease in Net Position \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2016 \r\n \r\n2015 \r\n \r\n$ \r\n \r\n2,072,783 $ \r\n \r\n1,977,262 \r\n \r\n83,917,924 \r\n \r\n80,135,429 \r\n \r\n2,872,595 \r\n \r\n460,464 \r\n \r\n88,863,302 \r\n \r\n82,573,155 \r\n \r\n28,723,506 798,730 \r\n \r\n28,931,578 824,162 \r\n \r\n9,685,969 396,506 \r\n7,287,816 59,493 \r\n7,510,436 54,462,456 143,325,758 \r\n \r\n11,885,358 432,125 \r\n8,198,042 40,018 \r\n9,031,365 59,342,648 141,915,803 \r\n \r\n75,599,170 \r\n \r\n77,430,381 \r\n \r\n6,316,309 3,539,644 2,883,206 \r\n605,326 9,729,036 \r\n546,158 11,725,743 \r\n5,650,682 2,370,123 \r\n273,020 \r\n \r\n6,592,761 3,553,258 2,299,577 \r\n661,236 8,059,710 \r\n563,007 8,930,038 5,003,512 2,988,759 \r\n291,169 \r\n \r\n373,815 9,895,178 \r\n287,757 \r\n129,795,167 \r\n \r\n376,762 10,202,679 \r\n741,786 \r\n127,694,635 \r\n \r\n$ \r\n \r\n13,530,591 $ \r\n \r\n14,221,168 \r\n \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting these services. Table 3 shows, for governmental activities, the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\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 \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nPupil Services \r\n \r\nImprovement of Instructional Services \r\n \r\nEducational Media Services \r\n \r\nGeneral Administrative \r\n \r\nSchool Administrative \r\n \r\nBusiness Administrative \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nOther Support Services \r\n \r\nOperations of Non-Instructional Services \r\n \r\nCommunity Services \r\n \r\nFood Services \r\n \r\nInterest in Short-Term and Long-Term Debt \r\n \r\n75,599,170 $ \r\n6,316,309 3,539,644 2,883,206 \r\n605,326 9,729,036 \r\n546,158 11,725,743 \r\n5,650,682 2,370,123 \r\n273,020 \r\n373,815 9,895,178 \r\n287,757 \r\n \r\n77,430,381 $ \r\n6,592,761 3,553,258 2,299,577 \r\n661,236 8,059,710 \r\n563,007 8,930,038 5,003,512 2,988,759 \r\n291,169 \r\n376,762 10,202,679 \r\n741,786 \r\n \r\n13,433,027 $ \r\n5,681,703 1,288,354 1,009,560 (1,406,493) 5,667,941 \r\n525,526 7,409,191 3,480,736 2,343,155 \r\n87,413 \r\n373,713 750,282 287,757 \r\n \r\n20,445,176 \r\n5,801,688 1,193,251 \r\n515,200 (1,321,365) 4,308,429 \r\n552,473 4,706,941 3,574,182 2,950,054 \r\n98,255 \r\n376,638 1,178,772 \r\n741,786 \r\n \r\nTotal Expenses \r\n \r\n$ 129,795,167 $ 127,694,635 $ 40,931,865 $ 45,121,480 \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 of $143.5 million and total expenditures of $155.3 million for fiscal year 2016 and total revenues of $142.3 million and total expenditures of $137.3 million for fiscal year 2015. \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 years 2016 and 2015, the School District amended its general fund budget as needed. \r\n \r\nDuring fiscal year 2016 the general fund had final actual revenues totaling $128.5 million, which was more than the final budgeted amounts of $124.4 million by $4.1 million. This difference (final actual vs. final budget) was primarily due to unbudgeted revenues from school activity accounts of $2.4 million. Also, the School District received $1.4 million in private donations that were not budgeted. \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nDuring fiscal year 2015, the general fund had final actual revenues totaling $125.7 million, which was more than the final budgeted amounts of $120.8 million by $4.9 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting and increased revenues with the Title Ad Valorem Tax. State revenues exceeded budgeted revenues by $166 thousand due to midyear adjustments. Federal revenue collections were less than budgeted revenues by $850 thousand due to reduced federal funding. Miscellaneous revenues exceeded budgeted revenues by $3.5 million due to unbudgeted revenues from school activity accounts of $2.5 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (Georgia Fund 1). The rate of return continues to decrease as a result of declining interest rates. \r\n \r\nDuring the fiscal year 2016, the general fund had final actual expenditures totaling $127.5 million, which was less than the final budgeted amount of $128.9 million by $1.4 million. This was primarily due to lower than expected expenditures for support services. \r\nDuring the fiscal year 2015, the general fund had final actual expenditures totaling $122.8 million, which was more than the final budgeted amount of $119.8 million by $3.0 million. The total expenditures include unbudgeted expenditures from school activity accounts of $2.4 million \r\nGeneral fund expenditures and other financing uses exceeded revenues by $2.1 million for the fiscal year 2016. General fund revenues exceeded expenditures and other financing uses by $3.1 million for the fiscal year 2015. \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt the fiscal years ended June 30, 2016 and June 30, 2015, the School District had $216.1 million and $205.3 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The School District funded several technology projects and paid debt service through Education Special Purpose Local Option Sales Tax (ESPLOST). \r\nTable 4 Capital Assets (Net Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2016 \r\n \r\n2015 \r\n \r\nLand Construction in Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n8,624,659 $ \r\n \r\n8,624,659 \r\n \r\n15,761,559 \r\n \r\n1,128,579 \r\n \r\n180,034,219 \r\n \r\n183,174,899 \r\n \r\n7,127,454 \r\n \r\n7,239,144 \r\n \r\n4,597,678 \r\n \r\n5,131,401 \r\n \r\nTotal \r\n \r\n$ 216,145,569 $ 205,298,682 \r\n \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n \r\nLong-term Liabilities \r\nAt the fiscal years ending June 30, 2016 and June 30, 2015, the School District had $10.4 million and $20.3 million, respectively, in bonds outstanding. Table 5 summarizes the School District's longterm liabilities for general obligation bonds, compensated absences and unamortized bond premium. \r\n \r\nTable 5 Long-term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2016 \r\n \r\n2015 \r\n \r\nCompensated Absences \r\n \r\n$ \r\n \r\n237,003 $ \r\n \r\nBonds Payable \r\n \r\n10,355,000 \r\n \r\nBond Premium Unamortized \r\n \r\n376,792 \r\n \r\n248,760 20,290,000 \r\n828,942 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n10,968,795 $ \r\n \r\n21,367,702 \r\n \r\nAt June 30, 2016 and June 30, 2015, the School District's assigned bond rating was \"Aa1\" as determined by Moody's Investors Services, Inc. \r\n \r\nCurrent Issues \r\n \r\nCurrently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n \r\n The School District is financially stable. The School District's operating millage for fiscal year 2016 was 18.756, which produced over $1,500,000 per mill. Whitfield County Board of Education continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our stakeholders. The School District continues to provide an increasing amount of local monies to provide a quality education to our students. \r\n \r\n The economy continues to improve. General fund revenues from the State of Georgia were restored over 3.2% from the prior year. As of fiscal year 2016, through conservative budgeting, the Board fully restored staff salary schedules and work calendars from fiscal year 2011 cuts. The Board anticipates significant financial challenges going forward due to expected higher health insurance and benefit costs for employees. \r\n \r\n Capital Improvements - As a result of the recession, the Board also faces challenges addressing deferred facility needs. Along with addressing some of the School Districts top priority needs using ESPLOST dollars, the general fund reserves were also tapped for capital project improvements. The School District will continue to meet its obligation to the citizens of Whitfield County in accordance with the 2012 ESPLOST referendum. This referendum includes paying debt service on the 2006 and 2009 general obligation bonds, renovations, classroom technology, equipment, and other capital needs that may arise. \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2016 CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2016 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Claims Incurred but not Reported (IBNR) 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 Plan \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\n40,382,506.00 \r\n \r\n2,573.07 \r\n \r\n2,864,864.47 11,980,164.37 \r\n1,234,772.56 206,985.28 22,844.13 209,503.08 \r\n24,386,218.32 191,759,351.28 \r\n \r\n273,049,782.56 \r\n \r\n14,034,059.28 \r\n \r\n1,673,305.25 7,667,163.77 \r\n95,000.25 82,617.53 1,490,973.34 1,006,489.32 91,636,768.00 \r\n10,731,791.70 237,003.19 \r\n114,621,112.35 \r\n \r\n16,359,898.00 \r\n \r\n205,502,770.18 \r\n817,002.24 95,000.25 \r\n12,876,078.52 (63,188,019.70) \r\n \r\n$ 156,102,831.49 \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 WHITFIELD 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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 75,599,170.15 $ \r\n6,316,308.79 3,539,644.46 2,883,206.48 \r\n605,325.53 9,729,036.09 \r\n546,157.51 11,725,743.23 \r\n5,650,681.85 2,370,122.72 \r\n273,019.56 \r\n373,815.15 9,895,178.15 \r\n287,757.45 \r\n$ 129,795,167.12 $ \r\n \r\n490,792.11 \r\n136,595.95 - \r\n1,445,395.46 \r\n- \r\n2,072,783.52 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 2 - \r\n \r\n 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$ 60,089,227.01 $ \r\n634,606.00 2,247,361.77 1,731,982.71 1,994,391.68 3,750,942.97 \r\n4,665.60 4,012,356.91 1,552,185.76 \r\n14,992.77 185,606.93 \r\n102.53 7,699,501.16 \r\n- \r\n$ 83,917,923.80 $ \r\n \r\n1,586,123.53 $ \r\n3,929.09 141,663.65 17,426.90 310,151.53 15,965.50 167,598.87 617,760.00 11,975.43 \r\n- \r\n2,872,594.50 \r\n \r\n(13,433,027.50) \r\n(5,681,702.79) (1,288,353.60) (1,009,560.12) 1,406,493.05 (5,667,941.59) \r\n(525,526.41) (7,409,191.50) (3,480,736.09) (2,343,154.52) \r\n(87,412.63) \r\n(373,712.62) (750,281.53) (287,757.45) \r\n(40,931,865.30) \r\n \r\n28,723,505.92 798,729.63 \r\n9,685,969.02 396,506.08 \r\n7,287,816.00 59,493.23 \r\n7,510,436.18 \r\n54,462,456.06 \r\n13,530,590.76 \r\n142,572,240.73 \r\n \r\n$ \r\n \r\n156,102,831.49 \r\n \r\n- 3 - \r\n \r\n WHITFIELD 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 Investments Receivables, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 26,390,164.67 $ 13,992,341.33 $ \r\n \r\n2,549.01 \r\n \r\n- \r\n \r\n1,941,791.49 9,725,329.87 1,234,772.56 \r\n206,985.28 22,844.13 \r\n209,503.08 \r\n \r\n923,072.98 2,254,834.50 \r\n- \r\n \r\n- $ 40,382,506.00 \r\n \r\n24.06 \r\n \r\n2,573.07 \r\n \r\n- \r\n \r\n2,864,864.47 \r\n \r\n- \r\n \r\n11,980,164.37 \r\n \r\n- \r\n \r\n1,234,772.56 \r\n \r\n- \r\n \r\n206,985.28 \r\n \r\n- \r\n \r\n22,844.13 \r\n \r\n- \r\n \r\n209,503.08 \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$ 39,733,940.09 $ 17,170,248.81 $ \r\n \r\n24.06 $ 56,904,212.96 \r\n \r\n$ \r\n \r\n155,566.34 $ 1,517,738.91 $ \r\n \r\n7,667,163.77 \r\n \r\n- \r\n \r\n- \r\n \r\n1,490,973.34 \r\n \r\n- \r\n \r\n1,006,489.32 \r\n \r\n7,822,730.11 \r\n \r\n4,015,201.57 \r\n \r\n- $ 1,673,305.25 \r\n \r\n- \r\n \r\n7,667,163.77 \r\n \r\n- \r\n \r\n1,490,973.34 \r\n \r\n- \r\n \r\n1,006,489.32 \r\n \r\n- \r\n \r\n11,837,931.68 \r\n \r\n1,037,368.36 \r\n \r\n- \r\n \r\n- \r\n \r\n1,037,368.36 \r\n \r\n209,503.08 607,499.16 1,615,524.60 28,441,314.78 \r\n30,873,841.62 \r\n \r\n13,155,047.24 \r\n- \r\n13,155,047.24 \r\n \r\n24.06 \r\n- \r\n24.06 \r\n \r\n209,503.08 13,762,570.46 \r\n1,615,524.60 28,441,314.78 \r\n44,028,912.92 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources and Fund Balances \r\n \r\n$ 39,733,940.09 $ 17,170,248.81 $ \r\n \r\n24.06 $ 56,904,212.96 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n WHITFIELD 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 Compensated absences payable Unamortized bond premiums Claims and judgments payable \r\n \r\n$ 44,028,912.92 \r\n \r\n$ 8,624,659.08 15,761,559.24 \r\n214,846,497.02 23,683,085.25 12,334,718.86 (59,104,949.85) \r\n \r\n216,145,569.60 \r\n \r\n(91,636,768.00) (2,325,838.72) 1,037,368.36 \r\n \r\n$ (10,355,000.00) (95,000.25) \r\n(237,003.19) (376,791.70) \r\n(82,617.53) \r\n \r\n(11,146,412.67) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 156,102,831.49 \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 WHITFIELD 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\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \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$ \r\n \r\n29,593,087.30 $ \r\n \r\n396,506.08 \r\n \r\n77,442,415.05 \r\n \r\n14,527,596.38 \r\n \r\n2,072,783.52 \r\n \r\n26,212.27 \r\n \r\n4,397,168.96 \r\n \r\n- $ 9,685,969.02 2,254,834.50 \r\n33,255.75 3,113,267.22 \r\n \r\n- $ 25.21 - \r\n \r\n29,593,087.30 10,082,475.10 79,697,249.55 14,527,596.38 \r\n2,072,783.52 59,493.23 \r\n7,510,436.18 \r\n \r\nTotal Revenues \r\n \r\n128,455,769.56 \r\n \r\n15,087,326.49 \r\n \r\n25.21 \r\n \r\n143,543,121.26 \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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest \r\n \r\n77,568,882.73 \r\n6,505,820.11 3,641,495.33 2,424,316.32 \r\n560,159.15 8,861,004.76 \r\n500,301.35 8,166,719.99 5,851,125.12 2,317,313.63 \r\n288,437.23 373,815.15 10,426,461.14 \r\n- \r\n- \r\n \r\n- \r\n9,041.78 848,104.10 243,308.48 15,872,450.73 \r\n- \r\n \r\n- \r\n- \r\n9,935,000.00 859,876.00 \r\n \r\n77,568,882.73 \r\n6,505,820.11 3,641,495.33 2,424,316.32 \r\n560,159.15 8,861,004.76 \r\n509,343.13 9,014,824.09 5,851,125.12 2,560,622.11 \r\n288,437.23 373,815.15 10,426,461.14 15,872,450.73 \r\n9,935,000.00 859,876.00 \r\n \r\nTotal Expenditures \r\n \r\n127,485,852.01 \r\n \r\n16,972,905.09 \r\n \r\n10,794,876.00 \r\n \r\n155,253,633.10 \r\n \r\nRevenues over (under) Expenditures \r\n \r\n969,917.55 \r\n \r\n(1,885,578.60) \r\n \r\n(10,794,850.79) \r\n \r\n(11,710,511.84) \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nTransfers In Transfers Out \r\n \r\n(3,057,875.92) \r\n \r\n3,057,875.92 (10,794,840.80) \r\n \r\n10,794,840.80 - \r\n \r\n13,852,716.72 (13,852,716.72) \r\n \r\nTotal Other Financing Sources (Uses) \r\n \r\n(3,057,875.92) \r\n \r\n(7,736,964.88) \r\n \r\n10,794,840.80 \r\n \r\n- \r\n \r\nNet Change in Fund Balances Fund Balances - Beginning \r\n \r\n(2,087,958.37) 32,961,799.99 \r\n \r\n(9,622,543.48) 22,777,590.72 \r\n \r\n(9.99) 34.05 \r\n \r\n(11,710,511.84) 55,739,424.76 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n30,873,841.62 $ 13,155,047.24 $ \r\n \r\n24.06 $ 44,028,912.92 \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 WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2016 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and the difference between the carrying value of refunded debt and the acquisition cost of refunded debt when debt is first issued. These amounts are deferred and amortized in the Statement of Activities. \r\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\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\n \r\n$ \r\n$ 16,335,490.87 (5,011,068.13) \r\n$ 9,935,000.00 452,149.80 \r\n \r\n(11,710,511.84) \r\n11,324,422.74 (477,534.96) (70,851.75) \r\n10,387,149.80 3,948,406.14 \r\n \r\nAccrued interest on issuance of bonds Compensated absences Claims and judgments \r\n \r\n$ \r\n \r\n119,968.75 \r\n \r\n11,756.91 \r\n \r\n(2,215.03) \r\n \r\n129,510.63 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n13,530,590.76 \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 Receivables, Net \r\nTotal Assets LIABILITIES Accounts Payable Funds Held for Others \r\nTotal Liabilities \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2016 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n \r\n$ 443,650.13 1,217.24 \r\n$ 444,867.37 \r\n \r\n$ \r\n \r\n873.75 \r\n \r\n443,993.62 \r\n \r\n$ 444,867.37 \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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBLENDED COMPONENT UNIT \r\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's general fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component unit, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\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\n \r\n- 9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, 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 \r\nSpecial 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 type: \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 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 School District participates in an external investment pool, the State of Georgia local government investment pool (Georgia Fund 1), which does not meet the criteria of this statement. Therefore, the investment in this pool is measured at fair value as provided in paragraph 11 of GASB Statement No. 31, as amended. \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (calculated on the first-in, first-out basis). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 20,000.00 100,000.00 10,000.00 50,000.00 \r\n \r\nN/A 15 years 70 years \r\n10 to 12 years 15 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\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \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\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\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \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\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Whitfield County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on October 20, 2015 (levy date) based on property values as of January 1, 2015. Taxes were due on December 20, 2015 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2015 tax digest are reported as revenue in the governmental funds for fiscal year 2016. The Whitfield County Board of Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $26,951,698.23. \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,842,659.44 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 $9,685,969.02 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\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, capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund. 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\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. At June 30, 2016, $2,321,300.62 of deposits were not secured by surety bond, insurance or collateral as specified above. The School District is working with the affected financial institutions to ensure appropriate levels of collateral are maintained for all of the School District's deposits. \r\n \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\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, School District had deposits with a carrying amount of $24,741,335.29, and a bank balance of $31,224,449.00. The bank balances insured by Federal depository insurance were $1,093,046.51 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $478,854.46. \r\n \r\nAt June 30, 2016, $29, 652,548.03 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ 2,321,300.62 - \r\n27,331,247.41 \r\n \r\nTotal \r\n \r\n$ 29,652,548.03 \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nReconciliation of cash and cash equivalents balances to carrying value of deposits: \r\n \r\nStatement of Net Position Cash and cash equivalents \r\nStatement of Fiduciary Net Position Cash and cash equivalents \r\n \r\n$ 40,382,506.00 443,650.13 \r\n \r\nTotal cash and cash equivalents \r\n \r\n40,826,156.13 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n2,573.07 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\nTotal carrying value of deposits - June 30, 2016 \r\n \r\n16,087,393.91 $ 24,741,335.29 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $16,087,393.91 in Georgia Fund 1, a local government investment pool, which is included in the cash balances above. Georgia Fund 1 is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2016, was 42 days. \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2015 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2016 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n8,624,659.08 $ \r\n \r\n- $ \r\n \r\n1,128,578.51 \r\n \r\n14,632,980.73 \r\n \r\n- $ \r\n \r\n8,624,659.08 \r\n \r\n- \r\n \r\n15,761,559.24 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n9,753,237.59 \r\n \r\n14,632,980.73 \r\n \r\n- \r\n \r\n24,386,218.32 \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\n214,908,891.14 22,779,392.58 12,252,888.59 \r\n \r\n1,597,891.37 \r\n104,618.77 \r\n \r\n31,733,992.47 15,540,248.35 \r\n7,121,487.26 \r\n \r\n3,080,513.91 1,312,721.55 \r\n617,832.67 \r\n \r\n62,394.12 694,198.70 \r\n22,788.50 \r\n \r\n214,846,497.02 23,683,085.25 12,334,718.86 \r\n \r\n2,228.36 297,339.15 \r\n2,278.85 \r\n \r\n34,812,278.02 16,555,630.75 \r\n7,737,041.08 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n195,545,444.23 \r\n \r\n(3,308,557.99) \r\n \r\n477,534.96 \r\n \r\n191,759,351.28 \r\n \r\nGovernmental Activity Capital Assets - Net $ 205,298,681.82 $ 11,324,422.74 $ \r\n \r\n477,534.96 $ 216,145,569.60 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nImprovements of Instructional Services $ Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services \r\n \r\n8,757.80 182,471.47 \r\n96,417.35 233,468.47 \r\n32,878.35 61,422.27 469,681.74 27,255.47 \r\n \r\n$ 3,384,471.83 \r\n1,112,352.92 514,243.38 \r\n$ 5,011,068.13 \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: INTERFUND ASSETS, LIABILITIES, AND TRANSFERS 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 \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nCapital Projects Fund Debt Service Fund \r\n \r\n$ 3,057,875.92 $ \r\n \r\n- \r\n \r\n- \r\n \r\n10,794,840.80 \r\n \r\nTotal \r\n \r\n$ 3,057,875.92 $ 10,794,840.80 \r\n \r\nTransfers are used to move sales tax revenues collected by the government-wide capital projects fund to the debt service fund for bond payments and to move local funds from the general fund to the capital projects fund. \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, 2015 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2016 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation Bonds $ Unamortized Bond Premiums Compensated Absences(1) \r\n \r\n20,290,000.00 $ 828,941.50 248,760.10 \r\n \r\n- $ 236,786.43 \r\n \r\n9,935,000.00 $ 452,149.80 248,543.34 \r\n \r\n10,355,000.00 $ 376,791.70 237,003.19 \r\n \r\n10,355,000.00 376,791.70 - \r\n \r\n$ 21,367,701.60 $ 236,786.43 $ 10,635,693.14 $ 10,968,794.89 $ 10,731,791.70 \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\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 voter-approved property taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2006 General Government - Series 2009 \r\n \r\n3.61% 2.50% - 5.00% \r\n \r\n12/5/2006 3/26/2009 \r\n \r\n4/1/2017 $ 9,910,000.00 $ 4/1/2017 68,335,000.00 \r\n \r\n9,910,000.00 445,000.00 \r\n \r\n$ 78,245,000.00 $ 10,355,000.00 \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2017 \r\n \r\n$ 10,355,000.00 $ \r\n \r\n380,001.00 $ \r\n \r\n376,791.70 \r\n \r\nCompensated absences represent obligations of the School District relating to the 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 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\nThe School District has established a limited risk management program for workers' compensation claims prior to July 1, 2012. In connection with this program, a self-insurance reserve has been established within the general fund by the School District. 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 workers' 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 $ 159,542.60 $ \r\n \r\n- \r\n \r\n$ 79,140.10 $ 80,402.50 \r\n \r\n2016 $ 80,402.50 $ 2,215.03 $ \r\n \r\n- \r\n \r\n$ 82,617.53 \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nGeorgia School Boards Association 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\n- \r\n \r\n$ \r\n \r\n7.65 \r\n \r\n$ \r\n \r\n7.65 \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\n3,836.53 \r\n \r\n$ \r\n \r\n3,836.53 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal programs Capital projects Debt service \r\nAssigned Self-insurance School activity accounts \r\nUnassigned \r\n \r\n$ 209,503.08 \r\n \r\n$ \r\n \r\n607,499.16 \r\n \r\n12,965,070.80 \r\n \r\n190,000.50 \r\n \r\n13,762,570.46 \r\n \r\n$ \r\n \r\n386,449.27 \r\n \r\n1,229,075.33 \r\n \r\n1,615,524.60 28,441,314.78 \r\n \r\nFund Balance, June 30, 2016 \r\n \r\n$ 44,028,912.92 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \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\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2016, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2016 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nDawnville Elementary School HVAC Modification \r\n \r\n$ \r\n \r\nDug Gap Elementary Playground Equipment \r\n \r\nDug Gap Elementary School Renovation \r\n \r\nEastbrook Middle Baseball/Softball Field \r\n \r\nEastbrook Middle School Gym Addition \r\n \r\nEastside Elementary School Modification \r\n \r\nNorthwest High Athletic Facility Renovation \r\n \r\nPleasant Grove Elementary School HVAC Modification \r\n \r\nSoutheast High School Gym Lobby \r\n \r\n$ \r\n \r\n915,840.00 $ 200,000.00 \r\n23,358.69 46,384.15 1,692,177.13 1,538,532.00 914,631.76 1,108,760.00 163,242.09 $ \r\n6,602,925.82 $ \r\n \r\n- $ 682,569.78 842,955.85 3,728,662.87 6,116,580.24 1,039,859.84 3,318,107.90 \r\n15,728,736.48 $ \r\n \r\n222,076.00 - \r\n233,871.80 882,350.70 \r\n500,732.00 \r\n- \r\n1,839,030.50 \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 $203,977.80 for governmental activities for the year ended June 30, 2016. The following future minimum lease payments were required under operating leases at June 30, 2016: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2017 \r\n \r\n$ \r\n \r\n16,998.15 \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\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 12: POST-EMPLOYMENT BENEFITS \r\n \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\n \r\nPlan Description. The Georgia School Personnel Post-Employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2016: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2015  June 30, 2016 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2015  December 31, 2015 $596.20 per member per month \r\n \r\nJanuary 1, 2016  June 30, 2016 $746.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2016 2015 2014 \r\n \r\n100% 100% 100% \r\n \r\n$ 13,936,159.11 $ 13,462,212.72 $ 12,415,236.50 \r\n \r\nNOTE 13: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\n \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\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 14.18% of payroll was required from the School District and 0.09% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $9,407,282.28 and $55,701.92 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\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nBenefits provided: The ERS Plan supports three benefit tiers: Old Plan, New Plan, and Georgia State Employees' Pension and Savings Plan (GSEPS). Employees under the old plan started membership prior to July 1, 1982 and are subject to plan provisions in effect prior to July 1, 1982. Members hired on or after July 1, 1982 but prior to January 1, 2009 are new plan members subject to modified plan provisions. Effective January 1, 2009, new state employees and rehired state employees who did not retain membership rights under the Old or New Plans are members of GSEPS. ERS members hired prior to January 1, 2009 also have the option to irrevocably change their membership to GSEPS. \r\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, 2016 was 24.72% of annual covered payroll for old and new plan members and 21.69% for GSEPS members. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employer contributions to the pension plan were $11,825.00 for the current fiscal year. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined \r\n- 25 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nand paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \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 $202,717.00. \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2016, the School District reported a liability of $91,636,768.00 for its proportionate share of the net pension liability for TRS ($91,547,435.00) and ERS ($89,333.00). \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n$ 91,547,435.00 541,518.00 \r\n \r\nTotal \r\n \r\n$ 92,088,953.00 \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\nAt June 30, 2015, the School District's TRS proportion was 0.601336%, which was a decrease of 0.056811% from its proportion measured as of June 30, 2014. At June 30, 2015, the School District's ERS proportion was 0.002205%, which was a decrease of 0.000263% 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 $887,722.00. \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 $5,510,291.00 for TRS, $10,221.00 for ERS and $52,939.00 for PSERS and revenue of $50,497.00 for TRS and $52,939.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 26 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \r\n \r\nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nERS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience $ \r\n \r\n- \r\n \r\n$ \r\n \r\n805,207.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n714.00 \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n7,722,122.00 \r\n \r\n- \r\n \r\n6,446.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n4,608,681.00 \r\n \r\n7,818,046.00 \r\n \r\n6,271.00 \r\n \r\n7,363.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n9,407,282.28 \r\n \r\n- \r\n \r\n11,825.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 14,015,963.28 $ 16,345,375.00 $ 18,096.00 $ 14,523.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $9,407,282.28 for TRS and $11,825.00 for ERS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\nERS \r\n \r\n2017 2018 2019 2020 2021 \r\n \r\n$ (4,283,509.00) $ $ (4,283,509.00) $ $ (4,283,515.00) $ $ 1,524,459.00 $ $ (410,620.00) $ \r\n \r\n(1,987.00) (5,565.00) (2,873.00) 2,173.00 \r\n- \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n3.00% \r\n3.75%  7.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \r\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \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\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\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\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"H\" \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\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that \r\nis 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of \r\n \r\nthe net pension liability \r\n \r\n$ 157,317,345.00 $ \r\n \r\n91,547,435.00 $ 37,337,379.00 \r\n \r\nEmployees' Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of \r\n \r\nthe net pension liability \r\n \r\n$ \r\n \r\n126,633.00 $ \r\n \r\n89,333.00 $ \r\n \r\n57,534.00 \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 \r\navailable 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 WHITFIELD 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 liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\n2016 2015 \r\n \r\n0.601336% $ 0.658147% $ \r\n \r\n91,547,435.00 $ 83,148,192.00 $ \r\n \r\n541,518.00 $ 464,667.00 $ \r\n \r\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\n92,088,953.00 83,612,859.00 \r\n \r\n$ 63,850,718.44 $ 67,520,931.18 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\nemployee payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n143.38% 123.14% \r\n \r\n81.44% 84.03% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 31 - \r\n \r\n WHITFIELD 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\n2016 2015 \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net pension liability \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\n0.002205% $ 89,333.00 $ 0.002468% $ 92,565.00 $ \r\n \r\n50,407.69 52,608.83 \r\n \r\n177.22% 175.95% \r\n \r\n76.20% 77.99% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 32 - \r\n \r\n WHITFIELD 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\n2016 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\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net pension \r\nliability as a percentage of its covered employee \r\npayroll \r\n \r\nPlan fiduciary net position as a percentage of \r\nthe total pension liability \r\n \r\n0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n887,722.00 $ 887,722.00 $ 3,161,781.05 790,767.00 $ 790,767.00 $ 3,367,655.44 \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 33 - \r\n \r\n WHIFLIELD 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 (1) 2013 (1) 2012 (1) 2011 (1) 2010 (1) 2009 (1) 2008 (1) 2007 (1) \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n9,407,282.28 $ \r\n \r\n9,407,282.28 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n8,347,590.62 $ \r\n \r\n8,347,590.62 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n8,291,570.35 $ \r\n \r\n8,291,570.35 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n7,107,315.20 $ \r\n \r\n7,107,315.20 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,258,930.16 $ \r\n \r\n6,258,930.16 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,351,201.00 $ \r\n \r\n6,351,201.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,649,887.95 $ \r\n \r\n6,649,887.95 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,346,067.91 $ \r\n \r\n6,346,067.91 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n6,155,188.88 $ \r\n \r\n6,155,188.88 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,868,588.24 $ \r\n \r\n5,868,588.24 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 66,318,866.74 $ 63,850,718.44 $ 67,520,931.18 $ 62,290,229.66 $ 60,884,534.63 $ 61,782,110.89 $ 68,274,003.62 $ 68,384,352.51 $ 66,327,466.35 $ 63,239,097.37 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n14.18% 13.07% 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 2014 and prior. \r\n \r\n- 34 - \r\n \r\n WHITFIELD 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\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 required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n$ \r\n \r\n11,825.00 $ \r\n \r\n11,825.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n11,069.52 $ \r\n \r\n11,069.52 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,711.53 $ \r\n \r\n9,711.53 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n7,202.64 $ \r\n \r\n7,202.64 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,455.30 $ \r\n \r\n5,455.30 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,757.18 $ \r\n \r\n4,757.18 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n5,067.26 $ \r\n \r\n5,067.26 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,891.76 $ \r\n \r\n4,891.76 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,659.94 $ \r\n \r\n4,659.94 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n4,308.36 $ \r\n \r\n4,308.36 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\n$ \r\n \r\n47,833.20 \r\n \r\n$ \r\n \r\n50,407.69 \r\n \r\n$ \r\n \r\n52,608.83 \r\n \r\n$ \r\n \r\n48,339.82 \r\n \r\n$ \r\n \r\n46,907.14 \r\n \r\n$ \r\n \r\n45,698.18 \r\n \r\n$ \r\n \r\n48,676.85 \r\n \r\n$ \r\n \r\n46,990.70 \r\n \r\n$ \r\n \r\n44,763.34 \r\n \r\n$ \r\n \r\n41,386.70 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n24.72% 21.96% 18.46% 14.90% 11.63% 10.41% 10.41% 10.41% 10.41% 10.41% \r\n \r\n- 35 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\n \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the 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\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% 5.45% - 9.25% 7.50%, net of pension plan investment \r\nexpense, including inflation \r\n \r\nPublic School Employees Retirement System \r\n \r\nChanges of assumptions: The last experience investigation was prepared for the five-year period ending June 30, 2009, and based on the results of the investigation various assumptions and methods were revised and adopted by the board on December 16,2010. The next experience investigation will be prepared for the period July 1, 2009 through June 30, 2014. \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\nCost-of living adjustments \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% N/A 7.50%, net of pension plan investment \r\nexpense, including inflation 1.50% semi-annually \r\n \r\n- 36 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING USES \r\nOther Uses \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\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\n29,730,000.00 $ \r\n \r\n350,000.00 \r\n \r\n75,984,362.59 \r\n \r\n15,323,721.42 \r\n \r\n1,595,124.91 \r\n \r\n- \r\n \r\n416,343.00 \r\n \r\n123,399,551.92 \r\n \r\n29,730,000.00 $ 350,000.00 \r\n74,950,185.00 17,319,161.42 \r\n1,595,124.91 - \r\n416,343.00 \r\n124,360,814.33 \r\n \r\n29,593,087.30 $ 396,506.08 \r\n77,442,415.05 14,527,596.38 \r\n2,072,783.52 26,212.27 \r\n4,397,168.96 \r\n128,455,769.56 \r\n \r\n(136,912.70) 46,506.08 \r\n2,492,230.05 (2,791,565.04) \r\n477,658.61 26,212.27 \r\n3,980,825.96 \r\n4,094,955.23 \r\n \r\n76,261,153.13 \r\n5,096,384.32 - \r\n3,983,588.38 2,391,799.06 \r\n648,087.94 8,220,742.99 3,171,428.51 9,342,709.88 5,080,236.73 2,376,379.53 \r\n236,389.00 9,437,431.23 \r\n126,246,330.70 \r\n(2,846,778.78) \r\n \r\n77,620,253.13 \r\n5,012,433.32 - \r\n4,467,135.39 2,385,063.06 \r\n693,834.94 8,226,492.99 3,171,428.51 9,342,709.88 5,926,666.74 2,402,047.53 \r\n204,175.00 9,437,431.23 \r\n128,889,671.72 \r\n(4,528,857.39) \r\n \r\n77,568,882.73 \r\n6,505,820.11 3,641,495.33 2,424,316.32 \r\n560,159.15 8,861,004.76 \r\n500,301.35 8,166,719.99 5,851,125.12 2,317,313.63 \r\n288,437.23 373,815.15 10,426,461.14 \r\n127,485,852.01 \r\n969,917.55 \r\n \r\n51,370.40 \r\n(1,493,386.79) (3,641,495.33) 2,042,819.07 1,824,903.91 (8,167,169.82) 7,726,191.64 (4,995,291.48) 3,491,584.76 3,609,353.11 2,113,610.30 \r\n(169,640.15) (989,029.91) \r\n1,403,819.71 \r\n5,498,774.94 \r\n \r\n(2,846,778.78) 29,651,058.14 \r\n \r\n(4,528,857.39) 34,369,164.00 \r\n \r\n(3,057,875.92) (2,087,958.37) 32,961,799.99 \r\n \r\n(3,057,875.92) 2,440,899.02 (1,407,364.01) \r\n \r\n$ \r\n \r\n26,804,279.36 $ \r\n \r\n29,840,306.61 $ \r\n \r\n30,873,841.62 $ \r\n \r\n1,033,535.01 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n \r\n(1) Original and Final Budget amounts do not include the budgeted revenues or expenditures of the various principal accounts and after school program. The actual revenues and expenditures of the various principal accounts and after school program as follows: \r\n \r\nREVENUES \r\n \r\nEXPENDITURES \r\n \r\nSchool Activity Accounts After School Program \r\n \r\n$ \r\n \r\n2,424,324.84 $ \r\n \r\n2,526,153.27 \r\n \r\n356,784.62 \r\n \r\n345,760.09 \r\n \r\n$ \r\n \r\n2,781,109.46 $ \r\n \r\n2,871,913.36 \r\n \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n WHITFIELD 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 \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education for Homeless Children and Youth English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Striving Readers Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Bright From the Start: Georgia Department of Early Care and Learning Child Care and Development Block Grant \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\n2,007,727.84 8,005,545.87 \r\n10,013,273.71 \r\n \r\n10.665 \r\n \r\n486Forest \r\n \r\n8,215.16 \r\n \r\n10.579 \r\n \r\n15155GA350N8103 \r\n \r\n3,877.00 10,025,365.87 \r\n \r\n84.027 84.173 \r\n \r\nH027A150073 H173A150081 \r\n \r\n84.048 84.196 84.365 84.367 84.011 84.371 84.010 \r\n \r\nV048A150010 S196A150011 S365A150010 S367A150001 S011A150011 S371C110049 S010A150010 \r\n \r\n2,316,342.00 58,290.45 \r\n2,374,632.45 \r\n101,161.28 14,552.90 \r\n251,718.65 253,085.39 \r\n55,865.89 680,343.88 2,985,256.63 \r\n4,341,984.62 \r\n6,716,617.07 \r\n \r\n93.575 \r\n \r\nUnavailable \r\n \r\n14,550.59 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 16,756,533.53 \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 Whitfield County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net assets of the Board. \r\n \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following 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 to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGRANTS \r\n \r\nBright From the Start: \r\n \r\nGeorgia Department of Early Care and Learning \r\n \r\nPre-Kindergarten Program \r\n \r\n$ \r\n \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Pupil Transportation - State Bonds Teachers Retirement Vocational Education \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\nGovernor's Office of Student Achievement Innovation Fund \r\n \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n947,108.69 $ \r\n \r\n- $ \r\n \r\n947,108.69 \r\n \r\n3,278,566.00 1,627,269.00 8,271,588.00 4,060,865.00 4,148,245.00 2,249,056.00 7,818,572.00 7,641,618.00 2,258,191.00 9,163,755.00 4,606,811.00 \r\n231,380.00 590,475.00 3,153,959.00 1,519,527.00 445,484.00 271,985.00 \r\n5,827.00 \r\n1,656,624.00 3,273,861.00 3,513,483.00 (3,682,374.00) \r\n1,185,585.00 257,749.00 \r\n7,287,816.00 \r\n234,174.00 154,272.18 198,577.29 617,760.00 \r\n47,230.63 198,442.38 \r\n \r\n- \r\n \r\n3,278,566.00 \r\n \r\n- \r\n \r\n1,627,269.00 \r\n \r\n- \r\n \r\n8,271,588.00 \r\n \r\n- \r\n \r\n4,060,865.00 \r\n \r\n- \r\n \r\n4,148,245.00 \r\n \r\n- \r\n \r\n2,249,056.00 \r\n \r\n- \r\n \r\n7,818,572.00 \r\n \r\n- \r\n \r\n7,641,618.00 \r\n \r\n- \r\n \r\n2,258,191.00 \r\n \r\n- \r\n \r\n9,163,755.00 \r\n \r\n- \r\n \r\n4,606,811.00 \r\n \r\n- \r\n \r\n231,380.00 \r\n \r\n- \r\n \r\n590,475.00 \r\n \r\n- \r\n \r\n3,153,959.00 \r\n \r\n- \r\n \r\n1,519,527.00 \r\n \r\n- \r\n \r\n445,484.00 \r\n \r\n- \r\n \r\n271,985.00 \r\n \r\n- \r\n \r\n5,827.00 \r\n \r\n- \r\n \r\n1,656,624.00 \r\n \r\n- \r\n \r\n3,273,861.00 \r\n \r\n- \r\n \r\n3,513,483.00 \r\n \r\n- \r\n \r\n(3,682,374.00) \r\n \r\n- \r\n \r\n1,185,585.00 \r\n \r\n- \r\n \r\n257,749.00 \r\n \r\n- \r\n \r\n7,287,816.00 \r\n \r\n- \r\n \r\n234,174.00 \r\n \r\n- \r\n \r\n154,272.18 \r\n \r\n- \r\n \r\n198,577.29 \r\n \r\n- \r\n \r\n617,760.00 \r\n \r\n- \r\n \r\n47,230.63 \r\n \r\n- \r\n \r\n198,442.38 \r\n \r\n- \r\n \r\n2,254,834.50 \r\n \r\n6,215.88 \r\n \r\n- \r\n \r\n202,717.00 \r\n \r\n- \r\n \r\n2,254,834.50 6,215.88 \r\n202,717.00 \r\n \r\n$ \r\n \r\n77,442,415.05 $ 2,254,834.50 $ 79,697,249.55 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 SPLOST III \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nAcquisition, construction, equipping, and furnishing of \r\n \r\nnew school buildings and facilities, including but not \r\n \r\nlimited to, a new high school and a new elementary \r\n \r\nschool; the addition, renovation, repair and improvement \r\n \r\nto existing school buildings and facilities; the acquisition \r\n \r\nand purchase of technology and safety equipment, \r\n \r\nincluding but not limited to, computer hardware and \r\n \r\nsoftware and security and safety equipment; the \r\n \r\nacquisition and purchase of school buses and other \r\n \r\ntransportation or maintenance vehicles; the acquisition of \r\n \r\nland; acquisition and purchase of any property necessary \r\n \r\nand desirable therefore; both real an personal. \r\n \r\n$ \r\n \r\nSPLOST IV \r\n \r\n96,100,000.00 $ 108,658,852.54 $ \r\n \r\n3,709,938.45 $ \r\n \r\n88,601,420.04 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nJune 2017 \r\n \r\nPaying all or a portion of the debt service on outstanding \r\n \r\nSeries 2006 and Series 2009 General Obligation Bonds \r\n \r\npreviously issued by the Whitfield County School District; \r\n \r\nacquiring new technology equipment, safety and security \r\n \r\nequipment and other school equipment; adding to, \r\n \r\nrenovating, repairing, improving, equipping and furnishing \r\n \r\nexisting school buildings or other buildings or facilities \r\n \r\nuseful or desirable in connection therewith, including but \r\n \r\nnot limited to HVAC, roofing, electrical, plumbing and \r\n \r\npaving; acquiring land; purchasing textbooks and band \r\n \r\ninstruments; purchasing school buses and school \r\n \r\nvehicles; acquiring any property necessary or desirable \r\n \r\ntherefore, both real and personal. \r\n \r\n68,649,000.00 \r\n \r\n68,649,000.00 \r\n \r\n18,103,403.64 \r\n \r\n12,865,144.79 \r\n \r\n- \r\n \r\n- \r\n \r\nJune 2020 \r\n \r\n$ 164,749,000.00 $ 177,307,852.54 $ 21,813,342.09 $ 101,466,564.83 \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) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. \r\n \r\n(3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 14,021,370.64 \r\n \r\nCurrent Year \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 14,021,370.64 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 26, 2018 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nREPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH \r\nGOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Whitfield 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 January 26, 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\n \r\n (This page left intentionally blank) \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencied in internal control that we consider to be material weaknesses. We did identify a certain deficiency in internal control described in the accompanying Schedule of Findings and Questioned Costs as item FS 2016-001, that we consider to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nSchool District's Response to Findings \r\nThe School District's response to the 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 (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJanuary 26, 2018 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield 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 WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2016 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-2015-001 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInadequate Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\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 WHITFIELD 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: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major program: \r\n \r\nCFDA Number \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 \r\n \r\nChild Nutrition Cluster Title I Grant to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: Auditee qualified as low-risk auditee? \r\n \r\n$750,000.00 No \r\n \r\n- 1 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None FS 2015-001, FS 2014-001, FS-7551-13-01, FS-7551-12-02 \r\n \r\nDescription: The School District did not have adequate controls in place over the financial statement reporting process to ensure all required activity was correctly reported in the financial statements presented for audit. The original financial statements, as presented for audit, contained significant errors and omissions. \r\n \r\nCriteria: Management is responsible for having adequate controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\n \r\nGASB Statement No. 34, Basic Financial Statements - Management's Discussion and Analysis - for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and non-major 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 errors and omissions were noted in the School District's financial statements presented for audit: \r\n \r\n Non-depreciable capital assets were understated by $3,641,251.58, depreciable capital assets were overstated by $99,649.81 and expense was overstated by $3,541,601.77. A significant adjustment was proposed by the auditors and accepted by the School District to properly record capital assets, expense, and net investment in capital assets. \r\n Additionally, net investment in capital assets was understated by $818,125.25, net position restricted for debt service was understated by $94,976.19, net position restricted for capital projects was overstated by $771,098.67, net position restricted for continuation of federal programs was overstated by $9,749.41 and unrestricted net position was overstated by $132,253.36. Adjustments were proposed by the auditor and accepted by the School District to properly classify net position. \r\n Numerous other correction and reclassification entries were proposed by the auditor and accepted by the School District to properly present the financial statements. \r\n \r\n- 2 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Cause: In discussing this deficiency with the School District, they indicated that they failed to ensure that construction in progress and net investment in capital assets were properly calculated and recorded. Effect or Potential Effect: Significant misstatements and misclassifications were included in the financial statements presented for audit. The lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. Recommendation: As part of internal controls over the preparation of financial statements, including note disclosures, management should implement comprehensive preparation and review procedures to ensure that the financial statements are complete and accurate. These procedures should be performed by properly trained personnel possessing a thorough understanding of the applicable GAAP statements, GASB pronouncements and knowledge of the School District's operations. Views of Responsible Officials: We concur with this finding. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 3 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION YEAR ENDED JUNE 30, 2016 \r\n \r\nCORRECTIVE ACTION PLANS - FINANCIAL STATEMENT FINDINGS \r\n \r\nFS 2016-001 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None FS 2015-001, FS 2014-001, FS-7551-13-01, FS-7551-12-02 \r\n \r\nCorrective Action Plans: The School District did not have adequate internal controls over the financial statement reporting process. Effective Fiscal Year 2017, the School District has implemented procedures to ensure construction in progress and other capital asset balances are properly recorded on the financial statements and net position is properly classified. \r\n \r\nEstimated Completion Date: Fiscal Year 2017 \r\n \r\nContact Person: Kelly Coon, Chief Financial Officer Telephone: (706) 217-6704 E-mail: kelly.coon@wcsga.net \r\n \r\nCORRECTIVE ACTION PLANS  FEDERAL AWARD FINDINGS \r\n \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2012-h2013-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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, Whitfield County, 34.80561, -84.96722"],"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 in 2010?; title from cover.","Latest issue consulted: Fiscal year ended June 30, 2014, released in 2016? (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts) (Georgia Government Publications database, viewed August 16, 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":["Whitfield County Board of Education (Ga.)--Appropriations and expenditures--Periodicals.","Education--Georgia--Whitfield County--Auditing--Periodicals.","Education--Georgia--Whitfield County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Georgia Government Documents--Serial"],"dcterms_title":["Whitfield County Board of Education, Dalton, 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-bw59-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 \r\n27 28 30 31 33 \r\n \r\n  WHITFIELD 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\nAugust 8, 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 Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Whitfield 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 Whitfield 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 Whitfield County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual, as presented on page 27, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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 August 8, 2014, on our consideration of the Whitfield 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 Whitfield County Board of Education's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) 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 Continuation of State Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\nGOVERNMENTAL ACTIVITIES \r\n$ 26,720,235.28 4,785,987.08 3,334,311.19 \r\n10,649,455.44 6,539,071.74 339,077.51 51,033.30 183,117.63 9,886,014.11 \r\n199,150,631.29 $ 261,638,934.57 \r\n$ 1,004,379.64 13,828,878.14 214,319.79 389,281.68 219,551.63 185,246.80 9,612,149.80 31,367,944.56 \r\n$ 56,821,752.04 \r\n$ 181,104,492.28 4,946,164.57 14,515.23 389,312.57 4,848,723.78 \r\n13,513,974.10 \r\n$ 204,817,182.53 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITFIELD 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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Items Loss on Disposal of Building \r\nTotal General Revenues and Special Items \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$ 79,473,173.28 $ \r\n5,150,363.34 3,688,621.68 2,441,250.83 \r\n535,689.65 8,312,574.95 \r\n948,407.72 8,284,569.19 5,322,560.82 2,058,151.57 \r\n329,472.18 \r\n335,354.86 9,132,595.57 1,329,113.88 \r\n$ 127,341,899.52 $ \r\n \r\n447,262.61 \r\n192,977.70 1,478,896.57 2,119,136.88 \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$ 50,293,207.87 $ \r\n903,600.75 2,574,981.99 1,887,920.62 2,047,848.36 4,522,901.00 \r\n36,000.15 4,121,467.04 1,692,280.87 \r\n113,970.71 265,377.80 \r\n32,768.51 7,105,334.10 \r\n \r\n1,793,071.30 $ 533,536.50 \r\n \r\n$ 75,597,659.77 $ \r\n \r\n2,326,607.80 $ \r\n \r\n-26,939,631.50 \r\n-4,246,762.59 -1,113,639.69 \r\n-553,330.21 1,512,158.71 -3,789,673.95 \r\n-912,407.57 -3,970,124.45 -3,096,743.45 -1,944,180.86 \r\n-64,094.38 \r\n-302,586.35 -548,364.90 -1,329,113.88 \r\n-47,298,495.07 \r\n \r\n$ \r\n \r\n28,067,770.55 \r\n \r\n760,527.28 \r\n \r\n5,449,248.62 470,023.72 \r\n7,526,551.00 8,937.11 \r\n5,043,975.04 \r\n \r\n-2,045,481.52 \r\n \r\n$ \r\n \r\n45,281,551.80 \r\n \r\n$ \r\n \r\n-2,016,943.27 \r\n \r\n206,834,125.80 \r\n \r\n$ \r\n \r\n204,817,182.53 \r\n \r\n- 3 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories \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$ 13,441,161.50 $ 13,279,073.78 \r\n \r\n52,894.77 \r\n \r\n4,733,061.42 $ \r\n \r\n2,658,694.46 10,649,455.44 \r\n6,539,071.74 339,077.51 51,033.30 183,117.63 \r\n \r\n675,616.73 \r\n \r\n$ 26,720,235.28 \r\n \r\n30.89 \r\n \r\n4,785,987.08 \r\n \r\n3,334,311.19 10,649,455.44 \r\n6,539,071.74 339,077.51 51,033.30 183,117.63 \r\n \r\n$ 33,914,506.35 $ 18,687,751.93 $ \r\n \r\n30.89 $ 52,602,289.17 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts 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$ 920,249.63 $ 13,828,878.14 219,551.63 \r\n1,425,588.00 \r\n$ 16,394,267.40 $ \r\n \r\n84,130.01 $ 185,246.80 269,376.81 $ \r\n \r\n$ 154,043.41 4,806,636.39 $ 18,418,375.12 $ 1,846,338.05 \r\n10,713,221.10 \r\n$ 17,520,238.95 $ 18,418,375.12 $ \r\n \r\n$ 33,914,506.35 $ 18,687,751.93 $ \r\n \r\n0.00 $ \r\n \r\n1,004,379.64 13,828,878.14 \r\n219,551.63 185,246.80 1,425,588.00 \r\n \r\n0.00 $ 16,663,644.21 \r\n \r\n$ 30.89 \r\n \r\n154,043.41 23,225,042.40 \r\n1,846,338.05 10,713,221.10 \r\n \r\n30.89 $ 35,938,644.96 \r\n \r\n30.89 $ 52,602,289.17 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITFIELD 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 Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the governmental funds. \r\nProperty Taxes \r\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 Compensated Absences Payable Bond Premiums, Net of Amortization Claims and Judgments Payable \r\nTotal Long-Term Liabilities \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 35,938,644.96 \r\n \r\n$ 8,624,659.08 1,261,355.03 9,612,998.57 \r\n212,840,630.84 21,604,947.86 -44,907,945.98 \r\n \r\n209,036,645.40 \r\n \r\n1,425,588.00 \r\n \r\n$ -38,990,000.00 -389,281.68 -256,853.26 \r\n-1,733,241.10 -214,319.79 \r\n \r\n-41,583,695.83 \r\n \r\n$ 204,817,182.53 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal 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$ 28,984,987.40 470,023.72 $ \r\n71,052,747.54 14,398,071.03 \r\n2,119,136.88 1,057.44 \r\n4,993,783.04 \r\n \r\n5,449,248.62 \r\n7,845.99 $ 50,192.00 \r\n \r\n$ 122,019,807.05 $ 5,507,286.61 $ \r\n \r\n$ 33.68 \r\n \r\n28,984,987.40 5,919,272.34 \r\n71,052,747.54 14,398,071.03 \r\n2,119,136.88 8,937.11 \r\n5,043,975.04 \r\n \r\n33.68 $ 127,527,127.34 \r\n \r\n$ 76,299,648.25 $ \r\n \r\n632,600.17 \r\n \r\n$ 76,932,248.42 \r\n \r\n5,153,046.48 3,691,019.48 2,208,155.95 \r\n433,501.79 8,010,837.86 \r\n910,313.92 8,251,213.17 5,142,867.51 1,790,518.84 \r\n329,472.18 335,354.86 8,546,884.31 1,661,970.71 \r\n \r\n11,632.50 264,023.55 1,603,910.33 \r\n \r\n5,153,046.48 3,691,019.48 2,208,155.95 \r\n433,501.79 8,010,837.86 \r\n921,946.42 8,251,213.17 5,142,867.51 2,054,542.39 \r\n329,472.18 335,354.86 8,546,884.31 3,265,881.04 \r\n \r\n$ 8,805,000.00 1,855,976.00 \r\n \r\n8,805,000.00 1,855,976.00 \r\n \r\n$ 122,764,805.31 $ 2,512,166.55 $ 10,660,976.00 $ 135,937,947.86 \r\n \r\n$ \r\n \r\n-744,998.26 $ 2,995,120.06 $ -10,660,942.32 $ -8,410,820.52 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 10,660,941.76 $ 10,660,941.76 \r\n \r\n$ -10,660,941.76 \r\n \r\n-10,660,941.76 \r\n \r\n$ \r\n \r\n0.00 $ -10,660,941.76 $ 10,660,941.76 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n-744,998.26 $ -7,665,821.70 $ \r\n \r\n-0.56 $ -8,410,820.52 \r\n \r\n18,265,237.21 26,084,196.82 \r\n \r\n31.45 \r\n \r\n44,349,465.48 \r\n \r\n$ 17,520,238.95 $ 18,418,375.12 $ \r\n \r\n30.89 $ 35,938,644.96 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITFIELD 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\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 \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nNet Decrease in Accrued Interest on Issuance of Bonds Decrease in Compensated Absences Amortization of Bond Premium Decrease in Claims and Judgments \r\nTotal Additional Expenditures \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -8,410,820.52 \r\n \r\n$ 4,028,302.84 -5,019,322.37 \r\n \r\n-991,019.53 \r\n \r\n-2,045,481.52 \r\n \r\n-156,689.57 \r\n \r\n8,805,000.00 \r\n \r\n$ \r\n \r\n74,712.32 \r\n \r\n21,796.33 \r\n \r\n452,149.80 \r\n \r\n233,409.42 \r\n \r\n782,067.87 \r\n \r\n$ -2,016,943.27 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2013 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Accounts Payable Funds Held for Others \r\nTotal Liabilities \r\n \r\nEXHIBIT \"G\" \r\n \r\nAGENCY FUNDS \r\n$ 359,060.87 50,547.94 3,324.39 \r\n$ 412,933.20 \r\n \r\n$ \r\n \r\n1,332.44 \r\n \r\n411,600.76 \r\n \r\n$ 412,933.20 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield 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\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's General Fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Whitfield County Board of Education. \r\nDistrict-wide Statements: The Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds. 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 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. - 9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and flexible spending accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, and 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 donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement establish accounting and financial reporting standards for governments who enter into Service Concession Arrangements (SCA) with other governmental or nongovernmental entities. As of June 30, 2013, the School District has not entered into any arrangements that meet the qualifications to be reported as a SCA in accordance with this standard. \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in 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\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement establish financial reporting standards for the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. The School District changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable reporting changes for the School District. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit quality risks, custodial credit risks, or interest rate risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPROPERTY TAXES \r\nThe Whitfield County Board of Commissioners adopted the property tax levy for the 2012 tax digest year (calendar year) on October 20, 2012 (levy date) based on property values as of January 1, 2012. Taxes were due on December 20, 2012 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2012 tax digest are reported as revenue in the governmental funds for fiscal year 2013. The Whitfield 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, 2013, for maintenance and operations amounted to $27,935,217.47. \r\nThe tax millage rate levied for the 2012 tax year (calendar year) for the Whitfield 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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $289,242.65 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 $5,449,248.62 and is to be used for capital outlay for educational purposes. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nConsumable Supplies On the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 $ 50,000.00 \r\n \r\nN/A 15 years 70 years 10 to 12 years 15 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\nCOMPENSATED ABSENCES \r\n \r\nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\n \r\nBeginning of Year Liability \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nEnd of Year Liability \r\n \r\n2011 2012 2013 \r\n \r\n$ \r\n \r\n277,832.15 $ \r\n \r\n191,085.21 $ \r\n \r\n169,115.24 $ \r\n \r\n299,802.12 \r\n \r\n$ \r\n \r\n299,802.12 $ \r\n \r\n189,461.80 $ \r\n \r\n210,614.33 $ \r\n \r\n278,649.59 \r\n \r\n$ \r\n \r\n278,649.59 $ \r\n \r\n202,060.15 $ \r\n \r\n223,856.48 $ \r\n \r\n256,853.26 \r\n \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. The School District recognizes bond issuance costs during the fiscal year bonds are issued. To conform to generally accepted accounting principles, 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. \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- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNET POSITION \r\nThe School District's net position in the District-wide Statements is classified as follows: \r\nNet investment in capital assets - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\nRestricted net position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net position - Unrestricted net position represents resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Continuation of State Programs Capital Projects Debt Service \r\nAssigned Self-Insurance School Activity Accounts \r\nUnassigned \r\n \r\n$ \r\n \r\n154,043.41 \r\n \r\n$ 4,792,121.16 14,515.23 \r\n17,639,811.76 778,594.25 \r\n \r\n23,225,042.40 \r\n \r\n$ \r\n \r\n845,244.30 \r\n \r\n1,001,093.75 \r\n \r\n1,846,338.05 10,713,221.10 \r\n \r\nFund Balance, June 30, 2013 \r\n \r\n$ 35,938,644.96 \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. 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- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\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 $35,759,523.39. The amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2013, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n34,601,877.61 \r\n \r\nTotal \r\n \r\n$ 34,601,877.61 \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2013, the carrying value of the School District's total investments was $4,763,415.76, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2013, was 43 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2012 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2013 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n8,624,659.08 \r\n \r\n$ 8,624,659.08 \r\n \r\n19,274,238.91 $ 1,261,355.03 $ 19,274,238.91 \r\n \r\n1,261,355.03 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n$ 27,898,897.99 $ 1,261,355.03 $ 19,274,238.91 $ 9,886,014.11 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 195,516,802.80 $ 20,869,911.60 $ \r\n \r\n20,433,672.74 \r\n \r\n1,171,275.12 \r\n \r\n9,612,998.57 \r\n \r\n3,546,083.56 $ 212,840,630.84 21,604,947.86 9,612,998.57 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n24,067,214.25 11,749,810.69 \r\n5,572,200.71 \r\n \r\n2,914,878.22 1,608,389.08 \r\n496,055.07 \r\n \r\n1,500,602.04 \r\n \r\n25,481,490.43 13,358,199.77 \r\n6,068,255.78 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 184,174,248.46 $ 17,021,864.35 $ 2,045,481.52 $ 199,150,631.29 \r\n \r\nGovernmental Activity Capital Assets - Net $ 212,073,146.45 $ 18,283,219.38 $ 21,319,720.43 $ 209,036,645.40 \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\nImprovements of Instructional Services \r\n \r\n$ \r\n \r\nEducational Media Services \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nBusiness Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nCentral Support Services \r\n \r\nFood Services \r\n \r\n$ \r\n4,707.09 172,337.52 \r\n96,058.19 228,828.63 \r\n16,574.60 29,347.57 623,572.38 \r\n750.25 \r\n \r\n3,405,123.78 \r\n1,172,176.23 442,022.36 \r\n \r\n$ 5,019,322.37 \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2013, 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$ 10,660,941.76 \r\n \r\nTransfers are used to move sales tax revenues collected by the Capital Projects Fund to Debt Service Fund for bond 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\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 has established a limited risk management program for workers' compensation claims prior to July 1, 2012. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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 workers' 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\n895,941.83 $ 447,729.21 $ \r\n \r\n102,865.46 $ 0.00 $ \r\n \r\n551,078.08 $ 233,409.42 $ \r\n \r\n447,729.21 214,319.79 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2012 $ 2013 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n51,148.00 $ 23,217.00 $ \r\n \r\n51,148.00 $ 23,217.00 $ \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 $550 thousand loss per occurrence, up to $2 million. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nNOTE 9: OPERATING LEASES \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2013, for governmental funds amounted to $206,125.20. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2014 2015 2016 \r\n \r\n$ \r\n \r\n206,125.20 \r\n \r\n206,125.20 \r\n \r\n188,948.10 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n601,198.50 \r\n \r\nNOTE 10: LONG-TERM DEBT \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \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 - Series 2006 General Government - Series 2009 \r\n \r\n3.61% 2.50% - 5.00% \r\n \r\nAmount \r\n$ 9,910,000.00 29,080,000.00 \r\n$ 38,990,000.00 \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$ \r\n \r\nCompensated Absences (1) \r\n \r\nBond Premiums Amortized \r\n \r\n47,795,000.00 278,649.59 $ \r\n2,185,390.90 \r\n \r\n$ 202,060.15 \r\n \r\n8,805,000.00 $ 223,856.48 452,149.80 \r\n \r\n38,990,000.00 $ 256,853.26 \r\n1,733,241.10 \r\n \r\n9,160,000.00 452,149.80 \r\n \r\n$ 50,259,040.49 $ \r\n \r\n202,060.15 $ 9,481,006.28 $ 40,980,094.36 $ 9,612,149.80 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2013, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2014 2015 2016 2017 \r\n \r\n$ 9,160,000.00 $ 9,540,000.00 9,935,000.00 \r\n10,355,000.00 \r\n \r\n1,557,188.50 $ 1,305,288.50 \r\n859,876.00 380,001.00 \r\n \r\n452,149.80 452,149.80 452,149.80 376,791.70 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 38,990,000.00 $ 4,102,354.00 $ 1,733,241.10 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $7,878,074.41 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 $7,653,240.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $32,226.41 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \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 $192,608.00 \r\n \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  schedule of State Revenue. \r\nNOTE 12: SPECIAL ITEMS \r\n \r\nThe School District disposed of the old Eastbrook Middle School. The historical value of the building was $3,546,083.56 and the accumulated depreciation was $1,500,602.04. The loss on disposal of $2,045,481.52 is reported on the Statement of Activities. \r\nNOTE 13: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2013, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nEastbrook Middle School STEM Labs at High and Middle Schools \r\n \r\n$ \r\n \r\n5,131.60 $ \r\n \r\n4,250,850.55 \r\n \r\n755,907.36 \r\n \r\n1,058,507.17 \r\n \r\n$ \r\n \r\n761,038.96 $ \r\n \r\n5,309,357.72 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\nNOTE 14: 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 15: 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\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 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\nFor certificated teachers, librarians and regional educational service agencies and certain other \r\neligible participants: \r\n \r\nJuly 2012 - February 2013 March 2013 - June 2013 \r\n \r\n$912.34 per member per month $937.34 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2012 - June 2013 \r\n \r\n$446.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ 12,270,194.76 $ 11,003,880.52 $ 10,059,535.41 \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 16: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2013, were 6.00% of annual salary. Employer contributions required for fiscal year 2013 were 11.41% of annual salary as required by the June 30, 2010, actuarial valuation. The employer contribution rate will increase to 12.28% effective July 1, 2013. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n7,068,617.61 \r\n \r\n$ \r\n \r\n6,368,009.68 \r\n \r\n$ \r\n \r\n6,235,080.52 \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\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$ 27,861,350.00 $ 27,861,350.00 $ 28,984,987.40 $ \r\n \r\n800,000.00 \r\n \r\n800,000.00 \r\n \r\n470,023.72 \r\n \r\n66,203,597.00 \r\n \r\n66,203,597.00 \r\n \r\n71,052,747.54 \r\n \r\n13,467,531.00 \r\n \r\n13,650,120.00 \r\n \r\n14,398,071.03 \r\n \r\n2,119,136.88 \r\n \r\n27,800.00 \r\n \r\n27,800.00 \r\n \r\n1,057.44 \r\n \r\n1,535,260.00 \r\n \r\n1,395,260.00 \r\n \r\n4,993,783.04 \r\n \r\n1,123,637.40 -329,976.28 \r\n4,849,150.54 747,951.03 \r\n2,119,136.88 -26,742.56 \r\n3,598,523.04 \r\n \r\n$ 109,895,538.00 $ 109,938,127.00 $ 122,019,807.05 $ 12,081,680.05 \r\n \r\n$ 73,872,590.00 $ 73,398,660.00 $ 76,299,648.25 $ -2,900,988.25 \r\n \r\n4,139,573.00 3,431,973.00 2,347,189.00 \r\n574,896.00 7,202,904.00 \r\n501,665.00 8,262,796.00 5,598,442.00 1,720,671.00 \r\n226,028.00 7,711,018.00 \r\n \r\n3,896,073.00 3,291,268.00 2,539,938.00 \r\n595,441.00 7,212,904.00 1,176,960.00 8,344,932.00 5,608,442.00 1,730,671.00 \r\n226,926.00 7,710,118.00 \r\n \r\n5,153,046.48 3,691,019.48 2,208,155.95 \r\n433,501.79 8,010,837.86 \r\n910,313.92 8,251,213.17 5,142,867.51 1,790,518.84 \r\n329,472.18 335,354.86 8,546,884.31 1,661,970.71 \r\n \r\n-1,256,973.48 -399,751.48 331,782.05 -433,501.79 \r\n-7,415,396.86 6,302,590.08 -7,074,253.17 3,202,064.49 3,817,923.16 1,401,198.82 \r\n-108,428.86 -836,766.31 -1,661,970.71 \r\n \r\n$ 115,589,745.00 $ 115,732,333.00 $ 122,764,805.31 $ -7,032,472.31 \r\n \r\n$ -5,694,207.00 $ -5,794,206.00 $ \r\n \r\n-744,998.26 $ 5,049,207.74 \r\n \r\n$ \r\n \r\n31,099.00 $ \r\n \r\n31,099.00 $ \r\n \r\n-31,099.00 \r\n \r\n-31,099.00 \r\n \r\n0.00 $ 0.00 \r\n \r\n31,099.00 -31,099.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ -5,694,207.00 $ -5,794,206.00 $ \r\n \r\n-744,998.26 $ 5,049,207.74 \r\n \r\n12,331,344.00 \r\n \r\n13,855,119.81 \r\n \r\n18,265,237.21 \r\n \r\n4,410,117.40 \r\n \r\n$ 6,637,137.00 $ 8,060,913.81 $ 17,520,238.95 $ 9,459,325.14 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The principal accounts had actual revenues of $2,314,884.78 and actual expenditures of $2,248,418.18. \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 WHITFIELD 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\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program \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 $ 8,321,502.26 (1) \r\n \r\n$ 8,321,502.26 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n$ 8,321,502.26 \r\n \r\n84.196 \r\n \r\nN/A $ \r\n \r\n45,083.50 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ 2,583,763.25 \r\n \r\nN/A \r\n \r\n45,538.10 \r\n \r\n$ 2,629,301.35 \r\n \r\n* 84.010 \r\n \r\nN/A $ 3,966,380.36 \r\n \r\n84.048 84.410 84.365 84.367 84.011 \r\n \r\nN/A $ N/A N/A N/A N/A \r\n \r\n110,282.05 5,451.00 \r\n311,782.30 377,398.48 \r\n51,550.32 \r\n \r\n$ 856,464.15 \r\n \r\n$ 7,497,229.36 \r\n \r\nTotal Expenditures of Federal Awards N/A = Not Available \r\n \r\n$ 15,818,731.62 \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $73,258.81. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($1,862,622.70) 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 $10,357.08, 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 Whitfield 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 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Math and Science Supplements Move On When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement \r\nOffice of the State Treasurer Public School Employees' Retirement \r\nTechnical College System of Georgia Vocational-Technology School \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 $7,653,240.00 are included as part of the Quality Basic Education revenue allotments above. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n797,816.74 \r\n \r\n4,186,955.00 1,330,378.00 9,155,313.00 3,121,405.00 4,520,806.00 1,286,194.00 8,133,655.00 7,121,771.00 2,301,798.00 8,345,862.00 4,091,121.00 \r\n3,327.00 651,801.00 3,225,462.00 1,530,660.00 447,998.00 299,077.00 \r\n1,790,385.00 3,243,692.00 3,551,005.00 \r\n1,185,663.00 224,671.00 \r\n7,526,551.00 215,756.00 473,381.85 \r\n-10,396,222.00 \r\n245,752.26 900.00 \r\n127,448.95 533,536.50 \r\n32,226.41 \r\n192,608.00 \r\n1,553,992.83 \r\n$ 71,052,747.54 \r\n \r\n WHITFIELD 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\nPROJECTS \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nAcquisitions, construction and equipping of \r\n \r\na new elementary school, a new middle \r\n \r\nschool and a new high school, including the \r\n \r\nacquisition of any furniture, fixtures and \r\n \r\nequipment necessary or desirable \r\n \r\ntherefore; renovations and improvements \r\n \r\nat existing schools, including the \r\n \r\nacquisition of any furniture, fixtures and \r\n \r\nequipment necessary or desirable \r\n \r\ntherefore; the acquisition, construction and \r\n \r\nequipping of a central warehouse facility; \r\n \r\nthe acquisition of school buses; and system- \r\n \r\nwide technology improvements. \r\n \r\n$ \r\n \r\n53,531,937.00 $ \r\n \r\n74,147,354.79 $ \r\n \r\n739,918.62 $ \r\n \r\n73,407,436.17 $ 74,147,354.79 $ \r\n \r\n0.00 \r\n \r\nCompleted \r\n \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore; both real an personal. \r\n \r\n96,100,000.00 108,658,852.54 1,772,247.93 \r\n \r\n85,039,132.35 \r\n \r\nDecember 31, 2014 \r\n \r\nPaying all or a portion of the debt service on outstanding Series 2006 and Series 2009 General Obligation Bonds previously issued by the Whitfield County School District; acquiring new technology equipment, safety and security equipment and other school equipment; adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desirable in connection therewith, including but not limited to HVAC, roofing, electrical, plumbing and paving; acquiring land; purchasing textbooks and band instruments; purchasing school buses and school vehicles; acquiring any property necessary or desirable therefore, both real and personal. \r\n \r\n68,649,000.00 \r\n \r\n68,649,000.00 \r\n \r\nDecember 31, 2017 \r\n \r\n$ 218,280,937.00 $ 251,455,207.33 $ 2,512,166.55 $ 158,446,568.52 $ 74,147,354.79 $ \r\n \r\n0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. \r\n \r\n(3) The voters of Whitfield 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$ 9,955,561.89 \r\n \r\nCurrent Year \r\n \r\n1,855,976.00 \r\n \r\nTotal \r\n \r\n$ 11,811,537.89 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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\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\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory III \r\n \r\nCategory IV \r\n \r\nCategory V \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n4,725,635.00 $ 1,512,250.00 10,370,712.00 3,494,519.00 5,131,684.00 1,455,267.00 9,206,023.00 8,086,650.00 2,570,272.00 9,296,515.00 \r\n4,558,022.00 4,515.00 \r\n736,706.00 3,613,357.00 \r\n \r\n4,880,177.32 $ 342,803.60 \r\n12,129,379.79 1,478,961.48 5,430,219.60 682,967.65 7,905,198.40 9,241,469.74 1,779,250.11 \r\n128,879.23 678,228.52 5,306,998.17 191,342.35 176,225.41 4,010,403.37 \r\n33,878.31 827,791.35 3,073,817.46 \r\n \r\n94,065.17 $ 749.81 \r\n349,228.44 2,971.15 \r\n157,683.33 853.97 \r\n341,338.18 380,181.33 162,947.88 \r\n \r\n4,974,242.49 343,553.41 \r\n12,478,608.23 1,481,932.63 5,587,902.93 683,821.62 8,246,536.58 9,621,651.07 1,942,197.99 \r\n \r\n11,225.85 372.39 \r\n12,893.51 3,403.20 \r\n7,642.09 5.99 \r\n11,720.87 12,773.02 \r\n \r\n140,105.08 678,600.91 5,319,891.68 194,745.55 176,225.41 4,018,045.46 \r\n33,884.30 839,512.22 3,086,590.48 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ \r\n \r\n64,762,127.00 $ 58,297,991.86 $ 1,550,056.18 $ 59,848,048.04 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n1,724,526.00 337,399.00 \r\n \r\n2,026,719.93 97,677.28 \r\n \r\n145,182.63 360,076.41 \r\n \r\n2,171,902.56 457,753.69 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ \r\n \r\n66,824,052.00 $ 60,422,389.07 $ 2,055,315.22 $ 62,477,704.29 \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- 33 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nAugust 8, 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 Whitfield 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 Whitfield 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 Whitfield County Board of Education's basic financial statements and have issued our report thereon dated August 8, 2014. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Whitfield 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 Whitfield County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Whitfield County Board of Education's internal control. \r\nOur consideration of internal control was for the limited purpose described in the preceding paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses. \r\n \r\n2013YB-42 \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. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS-7551-13-01 and FS-7551-13-02 to be material weaknesses. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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 Whitfield County Board of Education in a separate letter dated August 8, 2014. \r\nWhitfield County Board of Education's Response to Findings \r\nWhitfield County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Whitfield 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 the response. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013YB-42 \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\nAugust 8, 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 Whitfield 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 Whitfield 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. Whitfield 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 Whitfield 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 Whitfield 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 Whitfield County Board of Education's compliance. \r\n2013SA-10 \r\n \r\n  Opinion on Each Major Federal Program \r\nIn our opinion, the Whitfield 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 Whitfield 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 Whitfield 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 Whitfield County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITFIELD 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-7551-11-01 FS-7551-12-01 FS-7551-12-02 \r\n \r\nPreviously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCAPITAL ASSETS Failure to Maintain Adequate Capital Asset Records Material Weakness Finding control Number: FS-7551-12-01 \r\n \r\nOur capital assets were tracked on a spreadsheet with the inherent risk of errors of this method of accounting. The system has purchased new financial accounting software that includes a Fixed Asset module and we transferred the fixed asset inventory into the new software. The new software has assisted in capturing new assets and calculated the annual depreciation entry. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7551-11-01 \r\n \r\nUnresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Finding Control Number: FA-7551-11-01 \r\n \r\nThe School District has implemented new procedures to ensure that all staff charged to the Special Education Cluster meets with Federal guidelines including having a director who will approve all Special Education hires. In addition, the new financial software includes position control which will be an additional control with the hiring process and charging staff correctly. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITFIELD 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 weaknesses identified?  Significant deficiencies identified? \r\n \r\nYes 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 \r\n \r\nChild Nutrition Cluster Title I, Part A Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$474,561.95 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFinding Control Number: \r\nControl Category: Internal Control Impact: \r\n \r\nFS-7551-13-01 Inadequate Controls over the Financial Reporting Process Financial Reporting Material Weakness \r\n \r\nDescription: The School District's financial statements as presented for audit contained material errors and omissions in accordance with generally accepted accounting principles (GAAP). \r\n \r\nCriteria: Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition: The following errors and/or omissions were noted with the School District's financial statements: \r\n \r\n Various problems with close-out procedures of the new software accounting system resulted in understatements to Salaries and Benefits Payable, State Revenue, and Expenditures of $3,222,880, $1,275,540 and $4,498,420, respectively. A material audit adjustment was proposed and accepted by management to correct the misstatement. \r\n \r\n The School District did not accrue Special Option Local Sales Tax (SPLOST) revenue for the amount received in the subsequent period, but earned at June 30, 2013 of $675,617. An audit adjustment was proposed and accepted by management to correct the omission. This adjustment was material to the Capital Projects Fund. \r\n \r\n Multiple errors were detected relating to the reporting of the Capital Assets which are reported in a separate finding at FS-7551-13-02. \r\n \r\n Many additional errors were detected, which are not material in the aggregate, to the financial statements. Adjustments were not proposed by the auditor, but were brought to the attention of management. \r\n \r\n The Notes to the Financial Statements as presented for audit were incomplete and in many areas inaccurate. Corrections were proposed and accepted by management to ensure proper disclosure of all the information reported within the notes. \r\n \r\n Many reclassification entries were proposed and accepted by management for the following misclassifications. \r\n \r\no Contracts Payable and Retainages Payable were both recorded as Accounts Payable in the amount of $219,551.63 and $185,246.80, respectively. \r\n \r\no Accounts Receivable accounts were not classified correctly resulting in Accounts Receivable  State being understated by $3,808,543, Accounts Receivable  Federal being understated by $6,539,072 and Accounts Receivable  Other being overstated by $10,347,615. \r\n \r\n- 2 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\no The third party bank account for the Flex Spending Account in the amount of $25,000.00 was reported in Agency Funds as Investments and should have been reported as Cash and Cash Equivalents \r\n \r\no The Net Position/Fund Balance for Self-Insurance in the amount of $814,257.51 was reported as Restricted for Continuation of Federal Programs on the both the Statement of Net Position and the Balance Sheet of the General Fund. This account should have been reported as Unrestricted within the Statement of Net Position and Assigned Fund Balance in the General Fund. \r\n \r\no The calculation of Net Investment in Capital Assets reported on the Statement of Net Position did not consider available bond proceeds on hand in the amount of $12,178,710. While these proceeds are anticipated to be used for the acquisition of capital assets, at fiscal year-end the funds have not been expended and should not be reported as a component of the debt that is used in the calculation. \r\n \r\no The School District reported activity of funds 700 and 715 as Private Purpose Trust Funds in error. These funds should have been reported as Agency Funds. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated the cause was a result of the implementation of a new accounting system and assignment of new roles to School District finance department personnel. \r\n \r\nEffect or Potential Effect: Material misstatements and significant misclassifications were included in the financial statements presented for audit. In addition, the lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. \r\n \r\nRecommendation: The School District should review the accounting controls and procedures currently in place, identify weaknesses, and design and implement procedures necessary to strengthen the controls over the preparation of the financial statements. Additionally, the School District should seek training for finance department personnel to ensure that they have a complete understanding of the financial reporting process. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The district has finance department personnel who are working in new roles. Additional training will be given to those employees to assist in accurate posting and financial statement preparation. The district has also encountered significant posting issues in its new accounting software and is working with the vendor to get those corrected. Controls will be in place for financial reporting in fiscal year 2014. \r\n \r\nContact Person: Title: Telephone: Fax: Email: \r\n \r\nDaniel Theis Chief Financial Officer (706) 217-6701 (706) 217-6703 daniel_theis@whitfield.k12.ga.us \r\n \r\n- 3 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFinding Control Number: Control Category: Internal Control Impact: \r\n \r\nFS-7551-13-02 Inadequate Controls over Capital Assets Capital Assets Material Weakness \r\n \r\nDescription: This is a repeat finding (FS-7551-12-01) for the year ended June 20, 2012. The School District did not adequately maintain capital asset inventory records. \r\n \r\nCriteria: Chapter 37 Implementing a Capital Asset Management System of the Financial Management System for Georgia Local Units of Administration provides that the School Districts must establish fixed asset policies, define system requirements, implement a fixed asset system, and maintain fixed asset inventory records. \r\n \r\nCondition: A review of the School District's capital assets policies, procedures, and the related capital assets records revealed the following errors: \r\n \r\n Construction in progress additions for the STEM Labs at the High and Middle Schools were not recorded resulting in an understatement of $1,261,355. An entry was proposed and accepted by management to record these omissions. \r\n \r\n Buildings were understated by $234,468 due to the final payment for the construction of Coahulla Creek High School being omitted from the capital asset listing. An entry was proposed and accepted by management to correct this error. \r\n \r\n The Dawnville Elementary School roofing project in the amount of $306,282.00 was omitted from the capital assets listing. An entry was proposed and accepted by management to correct this error. \r\n \r\n Equipment meeting capitalization threshold purchased during the year was omitted from the capital asset listing resulting in an understatement of $135,420. An entry was proposed and accepted by management to correct this error. \r\n \r\n Depreciation expense was understated by $10,633 as a result of the above errors to Capital Assets. An entry was proposed and accepted by management to correct this error. \r\n \r\n The amount reported on the Capital Asset listing for the new Eastbrook Middle School appears to be overstated by $697,321, along with calculated depreciation of $4,919. The School District should thoroughly review all payments for this facility to ensure the correct amount is reported. This potential error was not corrected in the financial statements. \r\n \r\n The amount of depreciation reported in the current year did not agree to the subsidiary listing provided for audit by $246,324. This potential error was not corrected in the financial statements. \r\n \r\n Five (5) School Food Service equipment items reported on the cafeteria listings in the amount of $90,337 were not reported on the Capital Asset Listing. This potential error was not corrected in the financial statements. \r\n- 4 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\n School Food Service reported three (3) equipment items as disposed of during the current fiscal year in the amount of $49,120; however these items remain on the Capital Asset Listing. This potential error was not corrected in the financial statements. \r\n \r\nCause: In discussing these deficiencies with the School District, they stated the cause was a result of the School District not thoroughly implementing policies and procedures that ensured all Capital Assets were properly recorded. \r\n \r\nEffect or Potential Effect: Material misstatements in Capital Assets were included in the financial statements presented for audit. In addition, the lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. \r\n \r\nRecommendation: The School District should review the accounting controls and procedures currently in place, identify weaknesses, and design and implement procedures necessary to strengthen of controls over the recording of Capital Assets. \r\n \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The district has transitioned from tracking fixed assets on a spreadsheet to a more automated module within our new financial software. Corrections will be made for errors noted during the 2013 audit. Procedures will be put into place to validate Districtwide additions and disposals going forward. \r\n \r\nContact Person: Title: Telephone: Fax: Email: \r\n \r\nDaniel Theis Chief Financial Officer (706) 217-6701 (706) 217-6703 daniel_theis@whitfield.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-bw59-b2014-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. Department of Audits"],"dc_date":["2013/2014"],"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 in 2010?; title from cover.","Latest issue consulted: Fiscal year ended June 30, 2014, released in 2016? 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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-bw59-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n1 2 4 5 6 7 9 10 \r\n27 28 30 31 33 \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMay 17, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield County Board of Education as of and for the year ended June 30, 2014, and the related notes to the financial statements (Exhibits A through H), which collectively comprise the Board's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Whitfield 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 Whitfield County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 2 through 5, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nThe Department of Audits and Accounts provided basic accounting assistance limited to services such as preparing draft financial statements that were based on the School District's chart of accounts and general ledgers including any adjusting, correcting, and closing entries that have been approved by the School District's management; prepare draft notes to the financial statements based on information determine and approved by the School District's management; and prepared trial balances on the School District's chart of accounts. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 17, 2016, on our consideration of the Whitfield 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 Whitfield 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:cb 2014ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2014 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) 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\nGOVERNMENTAL ACTIVITIES \r\n$ 19,017,033.35 25,476,548.09 3,424,389.76 9,456,734.01 2,140,560.41 314,538.50 30,290.67 184,429.39 11,353,752.95 \r\n195,921,858.56 267,320,135.69 \r\n386,753.65 7,229,423.61 \r\n159,542.60 326,322.13 \r\n67,675.52 243,239.84 9,992,149.80 21,365,255.13 39,770,362.28 \r\n181,153,056.83 3,714,993.67 326,322.12 \r\n15,278,996.78 27,076,404.01 $ 227,549,773.41 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITFIELD 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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n69,638,028.52 $ \r\n \r\n5,592,195.72 3,440,426.67 2,432,091.39 \r\n978,311.92 8,101,689.55 \r\n719,849.26 8,251,947.59 5,294,307.38 3,904,040.25 \r\n326,687.70 \r\n \r\n361,289.26 10,624,829.54 \r\n1,042,079.15 \r\n \r\n$ 120,707,773.90 $ \r\n \r\n479,032.68 \r\n144,553.79 1,415,778.43 2,039,364.90 \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$ 55,141,659.81 $ \r\n792,495.65 2,241,060.94 1,741,905.83 2,276,610.60 3,742,800.96 \r\n10,001.67 4,048,911.68 1,535,055.36 \r\n36,547.90 210,302.36 \r\n134.91 7,448,983.45 \r\n \r\n4,250,850.55 $ 231,660.00 \r\n \r\n$ 79,226,471.12 $ \r\n \r\n4,482,510.55 \r\n \r\n-9,766,485.48 \r\n-4,799,700.07 -1,199,365.73 \r\n-690,185.56 1,298,298.68 -4,358,888.59 \r\n-709,847.59 -4,058,482.12 -3,527,592.02 -3,867,492.35 \r\n-116,385.34 \r\n-361,154.35 -1,760,067.66 -1,042,079.15 \r\n-34,959,427.33 \r\n \r\n28,804,475.58 768,476.25 \r\n \r\n10,962,415.20 437,613.05 \r\n11,083,451.00 13,775.14 \r\n5,621,811.99 \r\n57,692,018.21 \r\n22,732,590.88 \r\n204,817,182.53 \r\n \r\n$ \r\n \r\n227,549,773.41 \r\n \r\n- 3 - \r\n \r\n WHITFIELD 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 Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICT-WIDE CAPITAL PROJECTS FUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 12,437,276.30 $ 6,579,757.05 12,046,501.73 13,430,014.82 $ \r\n \r\n2,474,405.52 9,456,734.01 2,140,560.41 \r\n314,538.50 30,290.67 \r\n184,429.39 \r\n \r\n949,984.24 \r\n \r\n$ 39,084,736.53 $ 20,959,756.11 $ \r\n \r\n$ 19,017,033.35 31.54 25,476,548.09 \r\n3,424,389.76 9,456,734.01 2,140,560.41 \r\n314,538.50 30,290.67 \r\n184,429.39 \r\n31.54 $ 60,044,524.18 \r\n \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\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 386,753.65 7,229,423.61 32,026.52 $ 239,278.84 \r\n7,887,482.62 \r\n \r\n35,649.00 3,961.00 \r\n39,610.00 \r\n \r\n$ 386,753.65 7,229,423.61 67,675.52 243,239.84 \r\n7,927,092.62 \r\n \r\n1,308,162.82 \r\n \r\n1,308,162.82 \r\n \r\n155,355.17 3,559,638.50 1,439,260.37 24,734,837.05 \r\n \r\n20,920,146.11 $ \r\n \r\n29,889,091.09 20,920,146.11 \r\n \r\n$ 39,084,736.53 $ 20,959,756.11 $ \r\n \r\n31.54 \r\n \r\n155,355.17 24,479,816.15 \r\n1,439,260.37 24,734,837.05 \r\n \r\n31.54 50,809,268.74 \r\n \r\n31.54 $ 60,044,524.18 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2014 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Position are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings and Improvements 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 Compensated Absences Payable Bond Premiums, Net of Amortization Claims and Judgments Payable \r\nTotal Long-Term Liabilities \r\n \r\n$ 50,809,268.74 \r\n \r\n$ 8,624,659.08 2,729,093.87 9,955,063.87 \r\n213,526,621.84 22,033,303.88 -49,593,131.03 \r\n \r\n207,275,611.51 \r\n \r\n1,308,162.82 \r\n \r\n$ -29,830,000.00 -326,322.13 -246,313.63 \r\n-1,281,091.30 -159,542.60 \r\n \r\n-31,843,269.66 \r\n \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 227,549,773.41 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal 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$ 29,690,377.01 \r\n \r\n437,613.05 $ 10,962,415.20 \r\n \r\n75,770,303.49 \r\n \r\n4,250,850.55 \r\n \r\n14,771,278.63 \r\n \r\n2,039,364.90 \r\n \r\n4,829.15 \r\n \r\n8,912.11 $ \r\n \r\n5,304,910.46 \r\n \r\n1,017,866.79 \r\n \r\n128,018,676.69 16,240,044.65 \r\n \r\n$ 33.88 \r\n \r\n29,690,377.01 11,400,028.25 80,021,154.04 14,771,278.63 \r\n2,039,364.90 13,775.14 \r\n6,322,777.25 \r\n \r\n33.88 144,258,755.22 \r\n \r\n66,419,133.33 \r\n5,592,577.41 3,435,937.72 2,249,619.92 \r\n880,702.69 7,874,664.38 \r\n674,888.94 8,022,696.26 5,022,872.46 1,764,679.98 \r\n326,687.70 361,289.26 10,279,566.45 2,744,508.05 \r\n115,649,824.55 \r\n12,368,852.14 \r\n \r\n12,019.16 288,386.85 2,134,498.00 \r\n586,214.38 \r\n3,021,118.39 13,218,926.26 \r\n \r\n9,160,000.00 1,557,188.50 \r\n10,717,188.50 \r\n-10,717,154.62 \r\n \r\n66,419,133.33 \r\n5,592,577.41 3,435,937.72 2,249,619.92 \r\n880,702.69 7,874,664.38 \r\n686,908.10 8,311,083.11 5,022,872.46 3,899,177.98 \r\n326,687.70 361,289.26 10,279,566.45 3,330,722.43 \r\n9,160,000.00 1,557,188.50 \r\n129,388,131.44 \r\n14,870,623.78 \r\n \r\n-10,717,155.27 -10,717,155.27 \r\n \r\n10,717,155.27 10,717,155.27 \r\n \r\n10,717,155.27 -10,717,155.27 \r\n0.00 \r\n \r\n12,368,852.14 17,520,238.95 \r\n \r\n2,501,770.99 18,418,375.12 \r\n \r\n0.65 30.89 \r\n \r\n14,870,623.78 35,938,644.96 \r\n \r\n$ 29,889,091.09 $ 20,920,146.11 $ \r\n \r\n31.54 $ 50,809,268.74 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITFIELD 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 \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nNet Decrease in Accrued Interest on Issuance of Bonds Decrease in Compensated Absences Amortization of Bond Premium Decrease in Claims and Judgments \r\nTotal Additional Expenditures \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 14,870,623.78 \r\n \r\n$ 3,860,269.69 -4,920,338.32 \r\n \r\n-1,060,068.63 \r\n \r\n-700,965.26 \r\n \r\n-117,425.18 \r\n \r\n9,160,000.00 \r\n \r\n$ \r\n \r\n62,959.55 \r\n \r\n10,539.63 \r\n \r\n452,149.80 \r\n \r\n54,777.19 \r\n \r\n580,426.17 \r\n \r\n$ 22,732,590.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2014 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nOther \r\nTotal Assets LIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS \r\n$ 465,225.59 50,623.14 1,207.61 \r\n$ 517,056.34 \r\n$ 517,056.34 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield 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\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's General Fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Whitfield 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 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: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), 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. - 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\n Debt Service Fund accounts for and reports financial resources that are restricted, including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and flexible spending accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2014, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The provisions of this statement establish accounting and financial reporting standards that reclassify, as deferred outflows or inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows or inflows of resources, certain items that were previously reported as assets and liabilities. \r\nFUTURE ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2015, the School District will adopt Governmental 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 \r\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nemployees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it participates. Based on information provided by the Teachers' Retirement System of Georgia (TRS), the School District's proportionate share of the TRS plan's collective net pension liability is estimated to be $83.1 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 and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit quality risks, custodial credit risks, concentration of credit risks or interest rate risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPROPERTY TAXES \r\nThe Whitfield County Board of Commissioners adopted the property tax levy for the 2013 tax digest year (calendar year) on October 20, 2013 (levy date) based on property values as of January 1, 2013. Taxes were due on December 20, 2013 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2013 tax digest are reported as revenue in the governmental funds for fiscal year 2014. The Whitfield County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2014, for maintenance and operations amounted to $27,670,357.14. \r\n \r\nThe tax millage rate levied for the 2013 tax year (calendar year) for the Whitfield 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\n18.756 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $1,251,543.62 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 $10,962,415.20 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\nINVENTORIES \r\nConsumable Supplies \r\nOn the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \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- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nAll \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\n20,000.00 \r\n \r\nBuildings and Improvements \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nEquipment \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nN/A 15 years 70 years \r\n10 to 12 years 15 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 future periods 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 one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes, and this amount is deferred and will be recognized as an inflow of resources in the period in which the amount becomes available. \r\nCOMPENSATED ABSENCES \r\nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \r\nNET POSITION \r\nThe School District's Net Position in the District-wide Statements is classified as follows: \r\nNet Investment in Capital Assets - This represents the School District's total Investment in Capital Assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of Net Investment in Capital Assets. \r\nRestricted Net Position - This represents resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal programs, 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- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2014, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned Self-Insurance School Activity Accounts \r\nUnassigned \r\n \r\n$ 155,355.17 \r\n \r\n$ 3,559,638.50 20,267,533.40 652,644.25 \r\n \r\n24,479,816.15 \r\n \r\n$ \r\n \r\n390,293.45 \r\n \r\n1,048,966.92 \r\n \r\n1,439,260.37 24,734,837.05 \r\n \r\nFund Balance, June 30, 2014 \r\n \r\n$ 50,809,268.74 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, 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- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\n \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\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\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 $19,535,422.21, which includes $53,163.27 in Certificates of Deposit that are reported as Investments, and a bank balance of $23,737,031.79. The bank balances insured by Federal depository insurance were $1,278,332.94, and the bank balances collateralized with securities held by the pledging institution or by the pledging financial institution's trust department or agent in the School District's name were $146,913.08. \r\n \r\nThe amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 \r\nCategory 3 \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District's deposits by custodial credit risk category at June 30, 2014, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n22,311,785.77 \r\n \r\nTotal \r\n \r\n$ 22,311,785.77 \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2014, the carrying value of the School District's total investments was $25,527,171.23, which is materially the same as fair value. This includes $53,163.27 invested in Certificates of Deposits, which are collateralized in the same manner as other cash deposits. The remaining investment of $25,474,007.96 consisted entirely of funds invested in the Georgia Fund 1 (local government investment pool) administered by the State of Georgia, Office of the State Treasurer is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company and does not operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAA rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2014, was 62 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories. \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2013 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2014 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 8,624,659.08 \r\n \r\n$ 8,624,659.08 \r\n \r\n1,261,355.03 $ 2,480,111.05 $ 1,012,372.21 \r\n \r\n2,729,093.87 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n9,886,014.11 \r\n \r\n2,480,111.05 \r\n \r\n1,012,372.21 \r\n \r\n11,353,752.95 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n212,840,630.84 21,604,947.86 9,612,998.57 \r\n \r\n1,383,312.55 667,153.00 342,065.30 \r\n \r\n697,321.55 238,796.98 \r\n \r\n213,526,621.84 22,033,303.88 9,955,063.87 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n25,481,490.43 13,358,199.77 \r\n6,068,255.78 \r\n \r\n3,043,148.82 1,382,811.10 \r\n494,378.40 \r\n \r\n4,980.87 230,172.40 \r\n \r\n28,519,658.38 14,510,838.47 \r\n6,562,634.18 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n199,150,631.29 \r\n \r\n-2,527,807.47 \r\n \r\n700,965.26 195,921,858.56 \r\n \r\nGovernmental Activity Capital Assets - Net $ 209,036,645.40 $ \r\n \r\n-47,696.42 $ 1,713,337.47 $ 207,275,611.51 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\n$ \r\n \r\nSupport Services \r\n \r\nImprovements of Instructional Services \r\n \r\n$ \r\n \r\n8,757.80 \r\n \r\nEducational Media Services \r\n \r\n182,471.47 \r\n \r\nGeneral Administration \r\n \r\n96,417.35 \r\n \r\nSchool Administration \r\n \r\n233,468.47 \r\n \r\nBusiness Administration \r\n \r\n32,878.35 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n37,578.86 \r\n \r\nStudent Transportation Services \r\n \r\n599,426.60 \r\n \r\nCentral Support Services \r\n \r\n2,895.20 \r\n \r\nFood Services \r\n \r\n$ \r\n \r\n3,244,355.81 \r\n1,193,894.10 482,088.41 \r\n4,920,338.32 \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2014, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ 10,717,155.27 \r\n \r\nEXHIBIT \"H\" \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to Debt Service Fund for bond 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\n \r\nThe School District has established a limited risk management program for workers' compensation claims prior to July 1, 2012. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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 workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning \r\n \r\nClaims and \r\n \r\nof Year \r\n \r\nChanges in \r\n \r\nClaims \r\n \r\nEnd of Year \r\n \r\nLiability \r\n \r\nEstimates \r\n \r\nPaid \r\n \r\nLiability \r\n \r\n2013 $ 2014 $ \r\n \r\n447,729.21 $ 214,319.79 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n233,409.42 $ 54,777.19 $ \r\n \r\n214,319.79 159,542.60 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2013 $ 2014 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n23,217.00 $ 16,961.95 $ \r\n \r\n23,217.00 $ 16,961.95 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its Workers' Compensation insurance coverage. Excess insurance coverage is provided through an agreement by the Fund with the Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Corporation to provide coverage for potential losses sustained by the Fund in excess of $550 thousand loss per occurrence, up to $2 million. In addition to the $550,000 per occurrence retention, the Fund also retains an additional $150,000 per year corridor retention. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nNOTE 9: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2014, for governmental funds amounted to $206,125.20. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental \r\n \r\n2015 2016 \r\n \r\n$ \r\n \r\n206,125.20 \r\n \r\n206,125.20 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n412,250.40 \r\n \r\nNOTE 10: LONG-TERM LIABILITIES \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \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 2006 General Government - Series 2009 \r\n \r\n3.61% $ 9,910,000.00 \r\n \r\n2.50% - 5.00% \r\n \r\n19,920,000.00 \r\n \r\n$ 29,830,000.00 \r\n \r\nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2014, were as follows: \r\n \r\nBalance July 1, 2013 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2014 \r\n \r\nDue Within One Year \r\n \r\nG.O. Bonds \r\n \r\n$ 38,990,000.00 \r\n \r\nCompensated Absences (1) \r\n \r\n256,853.26 $ \r\n \r\nBond Premiums Amortized \r\n \r\n1,733,241.10 \r\n \r\n$ 230,410.44 \r\n \r\n9,160,000.00 $ 29,830,000.00 $ \r\n \r\n240,950.07 \r\n \r\n246,313.63 \r\n \r\n452,149.80 1,281,091.30 \r\n \r\n9,540,000.00 452,149.80 \r\n \r\n$ 40,980,094.36 $ 230,410.44 $ 9,853,099.87 $ 31,357,404.93 $ 9,992,149.80 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2014, 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\nUnamortized \r\n \r\nFiscal Year Ended June 30: \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nBond Premium \r\n \r\n2015 2016 2017 \r\n \r\n$ 9,540,000.00 $ 9,935,000.00 \r\n10,355,000.00 \r\n \r\n1,305,288.50 $ 859,876.00 380,001.00 \r\n \r\n452,149.80 452,149.80 376,791.70 \r\n \r\nTotal Principal and Interest $ 29,830,000.00 $ 2,545,165.50 $ 1,281,091.30 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $7,266,189.73 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 $7,021,320.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $45,575.73 \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \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 $199,294.00 \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \r\n \r\nNOTE 12: SIGNIFICANT COMMITMENTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2014, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nSTEM Labs at the Middle Schools \r\n \r\n$ \r\n \r\nSoutheast Whitfield High School Athletic Projects \r\n \r\nDug Gap Elementary School New Parking Lot \r\n \r\nCTAE Lab Modifications - Northwest Whitfield High School \r\n \r\nCTAE Lab Modifications - Cohulla Creek High School \r\n \r\n38,155.00 $ 21,655.90 \r\n5,633.20 107,433.36 175,865.50 \r\n \r\n349,899.11 \r\n \r\n$ \r\n \r\n348,742.96 $ \r\n \r\n349,899.11 \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. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nmembers 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, 2014: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2013  June 30, 2014 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2013  June 30,2014 \r\n \r\n$596.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2014 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ 12,415,236.50 $ 12,270,194.76 $ 11,003,880.52 \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 \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nemployees 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\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\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2014, were 6% of annual salary. Employer contributions required for fiscal year 2014 were 12.28% of annual salary as required by the June 30, 2011, actuarial valuation. \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2014 2013 2012 \r\n \r\n100% 100% 100% \r\n \r\n$ 7,774,377.02 $ 7,068,617.61 $ 6,368,009.68 \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 WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\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$ 27,400,000.00 $ 28,661,350.00 $ 29,690,377.01 $ 1,029,027.01 \r\n \r\n437,613.05 \r\n \r\n437,613.05 \r\n \r\n73,358,059.00 \r\n \r\n66,651,285.00 \r\n \r\n75,770,303.49 \r\n \r\n9,119,018.49 \r\n \r\n13,269,378.00 \r\n \r\n16,506,419.00 \r\n \r\n14,771,278.63 \r\n \r\n-1,735,140.37 \r\n \r\n1,655,199.00 \r\n \r\n1,303,685.00 \r\n \r\n2,039,364.90 \r\n \r\n735,679.90 \r\n \r\n20,000.00 \r\n \r\n27,800.00 \r\n \r\n4,829.15 \r\n \r\n-22,970.85 \r\n \r\n260,775.00 \r\n \r\n231,575.00 \r\n \r\n5,304,910.46 \r\n \r\n5,073,335.46 \r\n \r\n115,963,411.00 \r\n \r\n113,382,114.00 \r\n \r\n128,018,676.69 \r\n \r\n14,636,562.69 \r\n \r\n74,998,730.00 \r\n4,139,475.00 3,036,209.00 2,474,122.00 \r\n502,059.00 7,845,472.00 \r\n669,092.00 8,238,437.00 5,747,432.00 1,807,073.00 \r\n192,947.00 \r\n8,542,232.00 \r\n \r\n75,761,055.00 \r\n4,179,033.00 4,644,368.00 2,711,147.00 \r\n701,740.00 7,212,904.00 1,176,960.00 8,344,932.00 5,353,064.00 1,730,671.00 \r\n457,786.00 \r\n7,710,118.00 \r\n \r\n66,419,133.33 \r\n5,592,577.41 3,435,937.72 2,249,619.92 \r\n880,702.69 7,874,664.38 \r\n674,888.94 8,022,696.26 5,022,872.46 1,764,679.98 \r\n326,687.70 361,289.26 10,279,566.45 2,744,508.05 \r\n \r\n9,341,921.67 \r\n-1,413,544.41 1,208,430.28 \r\n461,527.08 -178,962.69 -661,760.38 502,071.06 322,235.74 330,191.54 \r\n-34,008.98 131,098.30 -361,289.26 -2,569,448.45 -2,744,508.05 \r\n \r\n118,193,280.00 -2,229,869.00 \r\n \r\n119,983,778.00 -6,601,664.00 \r\n \r\n115,649,824.55 12,368,852.14 \r\n \r\n4,333,953.45 18,970,516.14 \r\n \r\n100,000.00 -100,000.00 \r\n0.00 -2,229,869.00 21,643,817.96 \r\n \r\n31,099.00 -31,099.00 \r\n0.00 -6,601,664.00 21,580,065.38 \r\n \r\n0.00 0.00 0.00 12,368,852.14 17,520,238.95 \r\n \r\n-31,099.00 31,099.00 \r\n0.00 18,970,516.14 -4,059,826.43 \r\n \r\nFund Balances - Ending \r\n \r\n$ 19,413,948.96 $ 14,978,401.38 $ 29,889,091.09 $ 14,910,689.71 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The principal accounts had actual revenues of $2,487,773.36 and actual expenditures of $2,420,766.46. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nSchools and Roads Cluster Pass-Through From Office of the State Treasurer Schools and Roads - Grants to States \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education ARRA - Race-to-the-Top Incentive Grants Career and Technical Education - Basic Grants to States English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Striving Readers Title I Grants to Local Educational Agencies \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nTotal Expenditures of Federal Awards \r\nN/A = Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A \r\n \r\n$ \r\n \r\n9,759,744.89 (1) \r\n \r\n9,759,744.89 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n10.582 \r\n \r\nN/A \r\n \r\n204,963.74 9,964,708.63 \r\n \r\n84.196 \r\n \r\nN/A \r\n \r\n24,893.71 \r\n \r\n84.027 \r\n \r\nN/A \r\n \r\n84.173 \r\n \r\nN/A \r\n \r\n2,626,751.23 52,224.84 \r\n2,678,976.07 \r\n \r\n84.395 84.048 84.365 84.367 84.011 84.371 84.010 \r\n \r\nN/A \r\n \r\n21,797.31 \r\n \r\nN/A \r\n \r\n96,883.52 \r\n \r\nN/A \r\n \r\n295,462.89 \r\n \r\nN/A \r\n \r\n322,151.51 \r\n \r\nN/A \r\n \r\n65,411.37 \r\n \r\nN/A \r\n \r\n123,893.43 \r\n \r\nN/A \r\n \r\n3,725,528.21 \r\n \r\n4,651,128.24 \r\n \r\n7,354,998.02 \r\n \r\n$ 17,319,706.65 \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $212,606.19. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($1,869,739.98) 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 $10,041.33, 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 Whitfield 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 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education (1) Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Move On When Ready Preschool Handicapped Program Pupil Transportation - State Bonds Teachers' Retirement Technology to Support Digital Learning 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\nTechnical College System of Georgia Vocational-Technology School \r\n \r\nGOVERNMENTAL \r\n \r\nFUND 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\n831,344.21 \r\n \r\n$ 831,344.21 \r\n \r\n3,817,630.00 1,536,068.00 9,362,916.00 2,876,562.00 4,464,445.00 1,375,074.00 8,205,108.00 7,586,085.00 2,088,755.00 9,306,026.00 4,380,662.00 \r\n13,549.00 583,891.00 3,428,556.00 1,542,404.00 450,464.00 308,456.00 \r\n1,663,948.00 3,287,250.00 3,548,793.00 \r\n1,186,640.00 260,502.00 \r\n11,083,451.00 216,963.00 187,417.02 \r\n-9,684,354.00 \r\n1,600.00 147,415.57 231,660.00 \r\n45,575.73 74,055.00 453,489.90 \r\n \r\n3,817,630.00 1,536,068.00 9,362,916.00 2,876,562.00 4,464,445.00 1,375,074.00 8,205,108.00 7,586,085.00 2,088,755.00 9,306,026.00 4,380,662.00 \r\n13,549.00 583,891.00 3,428,556.00 1,542,404.00 450,464.00 308,456.00 \r\n1,663,948.00 3,287,250.00 3,548,793.00 \r\n1,186,640.00 260,502.00 \r\n11,083,451.00 216,963.00 187,417.02 \r\n-9,684,354.00 \r\n1,600.00 147,415.57 231,660.00 \r\n45,575.73 74,055.00 453,489.90 \r\n \r\n$ 4,250,850.55 \r\n \r\n4,250,850.55 \r\n \r\n199,294.00 \r\n \r\n199,294.00 \r\n \r\n708,608.06 \r\n \r\n708,608.06 \r\n \r\n$ 75,770,303.49 $ 4,250,850.55 $ 80,021,154.04 \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 $7,021,320.00 are included as part of the Quality Basic Education revenue allotments above. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECTS \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore; both real and personal. \r\nPaying all or a portion of the debt service on outstanding Series 2006 and Series 2009 General Obligation Bonds previously issued by the Whitfield County School District; acquiring new technology equipment, safety and security equipment and other school equipment; adding to, renovating, repairing, improving, equipping and furnishing existing school buildings or other buildings or facilities useful or desirable in connection therewith, including but not limited to HVAC, roofing, electrical, plumbing and paving; acquiring land; purchasing textbooks and band instruments; purchasing school buses and school vehicles; acquiring any property necessary or desirable therefore, both real and personal. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEAR (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ 96,100,000.00 108,658,852.54 1,340,391.14 \r\n \r\n86,811,380.28 ` \r\n \r\nOngoing \r\n \r\n68,649,000.00 \r\n \r\n68,649,000.00 1,575,121.85 \r\n \r\n0.00 \r\n \r\n$ 164,749,000.00 $ 177,307,852.54 $ 2,915,512.99 $ 86,811,380.28 \r\n \r\n0.00 \r\n \r\nOngoing 0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) Changes from the original estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. (3) The voters of Whitfield County approved the imposition of a 1% sales tax to fund the above projects. \r\nAmounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. (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$ 11,811,537.89 \r\n \r\nCurrent Year \r\n \r\n1,557,188.50 \r\n \r\nTotal \r\n \r\n$ 13,368,726.39 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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\nTOTAL QBE FORMULA FUNDS \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n4,371,580.00 $ 4,873,348.40 $ 109,304.59 $ 4,982,652.99 \r\n \r\n1,703,832.00 \r\n \r\n301,341.87 \r\n \r\n777.19 \r\n \r\n302,119.06 \r\n \r\n10,550,134.00 12,073,626.88 \r\n \r\n355,496.13 \r\n \r\n12,429,123.01 \r\n \r\n3,284,303.00 1,452,723.99 \r\n \r\n4,436.65 \r\n \r\n1,457,160.64 \r\n \r\n5,057,522.00 5,321,852.16 \r\n \r\n152,984.04 \r\n \r\n5,474,836.20 \r\n \r\n1,539,605.00 9,262,611.00 8,505,957.00 2,387,880.00 10,342,701.00 \r\n4,894,255.00 13,785.00 \r\n670,718.00 3,836,156.00 \r\n \r\n688,078.66 7,838,655.99 8,778,189.31 1,940,204.71 \r\n213,482.80 748,359.46 5,330,433.00 285,739.55 182,356.60 4,282,829.05 \r\n888,896.21 3,381,036.44 \r\n \r\n1,201.36 322,670.04 366,345.48 \r\n98,041.78 \r\n7,728.68 3,543.48 10,490.50 8,679.02 \r\n168.81 7,964.18 \r\n3.00 11,007.19 \r\n9,918.59 \r\n \r\n689,280.02 8,161,326.03 9,144,534.79 2,038,246.49 \r\n221,211.48 751,902.94 5,340,923.50 294,418.57 182,525.41 4,290,793.23 \r\n3.00 899,903.40 3,390,955.03 \r\n \r\n66,421,039.00 58,581,155.08 \r\n \r\n1,470,760.71 \r\n \r\n60,051,915.79 \r\n \r\n1,739,442.00 340,953.00 \r\n \r\n1,996,370.76 45,622.69 \r\n \r\n152,520.97 311,529.35 \r\n \r\n2,148,891.73 357,152.04 \r\n \r\n$ \r\n \r\n68,501,434.00 $ 60,623,148.53 $ 1,934,811.03 $ 62,557,959.56 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMay 17, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield 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 Whitfield County Board of Education's basic financial statements and have issued our report thereon dated May 17, 2016. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Whitfield 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 Whitfield County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Whitfield County Board of Education's internal control. \r\nOur consideration of internal control was for the limited purpose described in the preceding paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses. \r\n \r\n2014YB-42 \r\n \r\n (This page left intentionally blank) \r\n \r\n A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS-2014-001 and FS-2014-002 to be material weaknesses. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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 Whitfield County Board of Education in a separate letter dated May 17, 2016. \r\nWhitfield County Board of Education's Response to Findings \r\nWhitfield County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Whitfield 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 the response. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:cb 2014YB-42 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMay 17, 2016 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield 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. Whitfield 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 Whitfield 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 Whitfield County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\n \r\n2014SA-10 \r\n \r\n (This page left intentionally blank) \r\n \r\n We believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal program. However, our audit does not provide a legal determination of Whitfield County Board of Education's compliance. \r\nOpinion on Each Major Federal Program \r\nIn our opinion, the Whitfield 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 Whitfield 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 Whitfield 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 Whitfield County Board of Education's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:cb 2014SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS- 7551-12-01 FS- 7551-13-01 FS- 7551-13-02 \r\n \r\nFurther Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nFINANCIAL REPORTING Inadequate controls over Financial Reporting Finding Control Number: FS-7551-13-01 \r\n \r\nThe School District has finance department personnel who are working in new roles. Additional training will be given to those employees to assist in accurate posting and financial statement preparation. The District has also encountered significant posting issues in its new accounting software and is working with the vendor to get those corrected. \r\n \r\nCAPITAL ASSETS Failure to Maintain Adequate Capital Asset Records Finding control Number: FS-7551-13-02 \r\n \r\nThe District has transitioned from tracking fixed assets on a spreadsheet to a more automated module within our new financial software. Corrections will be made for errors noted during the 2013 audit. Procedures will be put into place to validate District-wide additions and disposals going forward. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA- 7551-11-01 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\nI SUMMARY OF AUDITOR'S RESULTS \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 weaknesses identified?  Significant deficiency identified? \r\nNoncompliance material to financial statements noted: \r\nFederal Awards \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\nYes None Reported \r\nNo \r\nNo None Reported \r\nUnmodified \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 \r\n \r\nChild Nutrition Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n$519,892.44 No \r\n \r\n- 1 - \r\n \r\n WHITFIELD 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 Financial Statement Preparation \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: This is a repeat finding (FS-7551-12-02 and FS-7551-13-01) for the years ended June 30, 2012 and June 20, 2013. The School District's accounting procedures were insufficient to provide for adequate controls over the financial statement preparation process. \r\n \r\nCriteria: The School District is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\nGASB Statement No. 34, Basic Financial Statements  Management's Discussion and Analysis  for State and Local Governments (statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental funds balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\nChapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\nCondition: The Department of Audits and Accounts provided basic accounting assistance limited to services such as preparing draft financial statements that were based on the entity's chart of accounts and general ledgers including any adjusting, correcting, and closing entries that have been approved by the entity's staff; prepared draft notes to the financial statements based on information determined and approved by management; and prepared trial balances based on the entity's chart of accounts. \r\n \r\nCause: In discussing this deficiency with the School District, they stated that the cause was a direct result of the previous finance director being terminated and the lack of time and resources to train current Board personnel to accomplish the preparation of financial statements. \r\n \r\nEffect or Potential Effect: The School District did not comply with the requirements of GAAP or the Georgia Department of Education regarding financial reporting. Adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \r\n \r\n- 2 - \r\n \r\n WHITFIELD 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\nRecommendation: As part of internal control over the preparation of financial statements, including disclosures, the School District should continue to implement comprehensive preparation and/or review procedures to ensure that the financial statements are complete and accurate. These procedures should be performed by a properly trained individual possessing a thorough understanding of the applicable GAAP, GASB pronouncements, and knowledge of the School District's activities and operations. \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The Board of Education engaged with an outside consultant for Financial Statement preparation for fiscal year 2014. The consultant failed to perform the contracted duties; therefore, the Board requested statement preparation assistance from the Department of Audits. Beginning with fiscal year 2015, the Board successfully engaged with a consultant for Financial Statement preparation and training for the Finance Director. \r\nContact Person: Kelly Johnson Coon, Finance Director Telephone: (706) 217-6704 Fax: (706) 217-6703 E-mail: kelly_coon@whitfield.k12.ga.us \r\n \r\nFS-2014-002 Inadequate Controls over Capital Assets \r\n \r\nControl Category: \r\n \r\nCapital Assets \r\n \r\nInternal Control Impact: \r\n \r\nMaterial Weakness \r\n \r\nDescription: This is a repeat finding (FS-7551-12-01 and FS-7551-13-02) for the years ended June 20, 2012 and June 30, 2013. The School District did not adequately maintain capital asset inventory records. \r\n \r\nCriteria: Chapter 37 Implementing a Capital Asset Management System of the Financial Management System \r\nfor Georgia Local Units of Administration provides that the School Districts must establish fixed asset \r\npolicies, define system requirements, implement a fixed asset system, and maintain fixed asset \r\ninventory records. \r\n \r\nCondition: A review of the School District's capital assets policies, procedures, and the related capital assets records revealed the following errors: \r\n \r\n Construction in progress additions for the STEM Labs at the High and Middle Schools were not recorded resulting in a calculated understatement of $94,606.14. An entry was proposed and accepted by management to record these omissions. \r\n \r\n Construction in progress additions for the CTAE Labs at Northwest Whitfield and Coahulla Creek High Schools were not recorded resulting in a calculated understatement of $39,610.00. An entry was proposed and accepted by management to record these omissions. \r\n \r\n- 3 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n Construction in progress additions for the Southeast Whitfield High School Track, Tennis, and Football Field projects were not recorded resulting in a calculated understatement of $122,941.52. Current year expenditures for this project were included in additions to Land Improvements by the School District resulting in a calculated understatement of $952,646.02 for the Construction in Progress balance and an overstatement in Land Improvements. An entry was proposed and accepted by management to correct these errors. \r\n Construction in progress additions for the Dug Gap Elementary School Parking Lot were not recorded resulting in a calculated understatement of $621,490.81. An entry was proposed and accepted by management to record these omissions. \r\n Buildings and Building Improvements were understated by $1,012,372.21 due to the completed STEM Labs at Southeast Whitfield and Northwest Whitfield High Schools and the Northwest Georgia College and Career Academy not being added and deleted from Construction in Progress. An entry was proposed and accepted by management to correct this error. \r\n Buildings and Building Improvements were understated in the amount of $98,386.26 for prior year expenditures for the HVAC system at Coahulla Creek High School that were omitted from the capital asset listing. An entry was proposed and accepted by management to record these omissions. \r\n The current year listing of Building and Building Improvement additions included assets in the amount of $92,649.97 that were recorded as Equipment on the capital asset listing. An entry was proposed and accepted by management to correct this error. \r\n Buildings and Buildings Improvements that did not meet the $100,000.00 threshold were included in current year additions in the amount of $172,346.17. An entry was proposed and accepted by management to correct these errors. \r\n Equipment meeting the $10,000.00 threshold purchased during the year was omitted from the capital asset listing resulting in an understatement of $163,908.00. A duplicate asset was recorded resulting in an overstatement of $14,920.00. An entry was proposed and accepted by management to correct these errors. \r\n Equipment was recorded on the Capital Asset listing which did not meet the $10,000.00 threshold resulted in an overstatement of $11,172.96. An entry was proposed and accepted by management to correct these errors. \r\n Land Improvements were recorded on the Capital Asset listing which did not meet the $20,000.000 threshold resulted in an overstatement of $12,725.00. An entry was proposed and accepted by management to correct these errors. \r\n Depreciation expense was understated by $221,768.50 as a result of the above errors to Capital Assets. An entry was proposed and accepted by management to correct this error. \r\n- 4 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Cause: In discussing these deficiencies with the School District, they stated the cause was a result of the School District not thoroughly implementing policies and procedures that ensured all Capital Assets were properly recorded. Effect or Potential Effect: Material misstatements in Capital Assets were included in the financial statements presented for audit. In addition, the lack of controls and monitoring could impact the reporting of the School District's financial position and results of operations. Recommendation: The School District should review the accounting controls and procedures currently in place, identify weaknesses, and design and implement procedures necessary to strengthen of controls over the recording of Capital Assets. Views of Responsible Officials and Corrective Action Plans: We concur with this finding. The Districts Capital Asset inventory was transferred from an Excel spreadsheet to our financial software in fiscal year 2013. Due to transition in the Finance Director position, the Capital Asset inventory was not monitored and updated. During the fiscal year 2014 audit field work, the District put procedures in place to properly record and maintain asset details. Contact Person: Kelly Johnson Coon, Finance Director Telephone: (706) 217-6704 Fax: (706) 217-6703 E-mail: kelly_coon@whitfield.k12.ga.us III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 5 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2011-h2012-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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, Whitfield County, 34.80561, -84.96722"],"dcterms_creator":["Georgia. 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Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 28, 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 Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Whitfield 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 Whitfield 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 Whitfield 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\nIn accordance with Government Auditing Standards, we have also issued our report dated March 28, 2013, on our consideration of the Whitfield County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, \r\n2012ARL-11 \r\n \r\n  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\nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through viii and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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, \r\n \r\nGSG:as 2012ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2012, and June 30, 2011. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2012 and 2011 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $206.8 million and $206.8 million, respectively, for the fiscal years ended June 30, 2012, and 2011. Of these amounts $15.1 million and $17.0 million, respectively, for fiscal years 2012 and 2011 are available for spending at the School District's discretion. \r\n The School District had $120.1 million and $115.9 million, respectively, in expenses for the fiscal years ended June 30, 2012, and June 30, 2011, relating to governmental activities. Only $78.0 million and $78.7 million of the above mentioned expenses for 2012 and 2011 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $42.1 million and $48.3 million, respectively, for 2012 and 2011 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $42.1 million or 35.07% of all revenues totaling $120.1 million for fiscal year 2012 and $48.3 million or 38.06% of all revenues totaling $127.0 million for fiscal year 2011. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the districtwide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net 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 Whitfield County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net 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 reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net 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 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 WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\n \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 1 provides a summary of the School District's net assets for fiscal years 2012 and 2011. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2012 \r\n \r\nYear 2011 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ \r\n \r\n62,828,100 $ 94,869,294 \r\n \r\n212,073,146 \r\n \r\n193,551,548 \r\n \r\nTotal Assets \r\n \r\n$ \r\n \r\n274,901,246 $ 288,420,842 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ \r\n \r\n17,808,080 $ 20,339,311 \r\n \r\n50,259,040 \r\n \r\n61,272,343 \r\n \r\nTotal Liabilities \r\n \r\n$ \r\n \r\n68,067,120 $ 81,611,654 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ \r\n \r\n181,073,962 $ 169,895,115 \r\n \r\n10,664,782 \r\n \r\n19,928,667 \r\n \r\n15,095,382 \r\n \r\n16,985,406 \r\n \r\nTotal Net Assets \r\n \r\n$ \r\n \r\n206,834,126 $ 206,809,188 \r\n \r\nTable 2 shows the Changes in Net Assets for fiscal years ending June 30, 2012, and June 30, 2011. \r\n \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \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 Other Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Grants and Contributions not Restricted to Specific Programs 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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\nIncrease in Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2012 \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2,057,803 $ \r\n \r\n1,796,552 \r\n \r\n73,630,475 \r\n \r\n76,412,891 \r\n \r\n2,295,585 \r\n \r\n457,752 \r\n \r\n$ \r\n \r\n77,983,863 $ \r\n \r\n78,667,195 \r\n \r\n$ \r\n \r\n24,005,762 $ \r\n \r\n24,516,571 \r\n \r\n848,152 \r\n \r\n909,610 \r\n \r\n6,289,591 348,477 \r\n \r\n11,376,624 341,491 \r\n \r\n7,043,657 38,584 \r\n3,546,996 \r\n \r\n7,440,441 288,611 \r\n3,472,674 \r\n \r\n$ \r\n \r\n42,121,219 $ \r\n \r\n48,346,022 \r\n \r\n$ 120,105,082 $ 127,013,217 \r\n \r\n$ \r\n \r\n73,695,428 $ \r\n \r\n71,918,897 \r\n \r\n4,827,637 3,339,301 2,295,468 \r\n612,075 7,460,635 \r\n558,194 7,855,698 5,173,223 2,573,752 \r\n613,818 \r\n \r\n4,066,754 2,872,354 2,394,144 \r\n741,096 7,187,933 \r\n450,734 7,498,148 5,357,189 1,931,977 \r\n862,253 \r\n \r\n332,375 8,550,377 2,192,163 \r\n \r\n317,995 7,570,214 2,684,664 \r\n \r\n$ 120,080,144 $ 115,854,352 \r\n \r\n$ \r\n \r\n24,938 $ \r\n \r\n11,158,865 \r\n \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \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. \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 2012 \r\n \r\nYear 2011 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2012 \r\n \r\nYear 2011 \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: Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 73,695,428 $ 71,918,897 $ 21,907,919 $ 16,972,960 \r\n \r\n4,827,637 3,339,301 2,295,468 \r\n612,075 7,460,635 \r\n558,194 7,855,698 5,173,223 2,573,752 \r\n613,818 \r\n \r\n4,066,754 2,872,354 2,394,144 \r\n741,096 7,187,933 \r\n450,734 7,498,148 5,357,189 1,931,977 \r\n862,253 \r\n \r\n3,909,041 1,042,786 \r\n480,621 -1,379,519 3,356,627 \r\n518,689 3,513,833 3,350,734 2,418,111 \r\n425,965 \r\n \r\n3,463,805 1,618,332 \r\n656,113 -1,591,045 3,524,626 \r\n449,102 3,438,996 3,342,423 1,926,680 \r\n742,657 \r\n \r\n332,375 8,550,377 2,192,163 \r\n \r\n317,995 7,570,214 2,684,664 \r\n \r\n289,769 69,542 \r\n2,192,163 \r\n \r\n316,659 -358,815 2,684,664 \r\n \r\nTotal Expenses \r\n \r\n$ 120,080,144 $ 115,854,352 $ 42,096,281 $ 37,187,157 \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 of $120.2 million and total expenditures of $150.2 million for fiscal year 2012 and total revenues of $126.7 million and total expenditures of $145.3 million for fiscal year 2011. \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 years 2012 and 2011, the School District amended its general fund budget as needed. \r\nDuring fiscal year 2012 the General Fund had final actual revenues totaling $111.5 million, which was more than the final budgeted amounts of $105.7 million by $5.8 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting. State revenues exceeded \r\n \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\nbudgeted revenues by $0.8 million due to conservative budgeting. Federal revenue collections were less than budgeted revenues by $90 thousand. Unspent Federal funds carry over to the following year and are planned for use in fiscal year 2012. Miscellaneous revenues exceeded budgeted revenues by $3.0 due to unbudgeted revenues from school activity accounts of $2.4 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return continues to decrease as a result of declining interest rates. \r\nDuring fiscal year 2011 the General Fund had final actual revenues totaling $115.0 million, which was more than the final budgeted amounts of $110.2 million by $4.8 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting. State revenues exceeded budgeted revenues by $3.3 million due conservative budgeting. Federal revenue collections were less than budgeted revenues by $1.7 million. Miscellaneous revenues exceeded budgeted revenues $2.7 due to unbudgeted revenues from school activity accounts of $2.4 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return continues to decrease as a result of declining interest rates. \r\nDuring the fiscal year 2012, the General Fund had final actual expenditures totaling $114.0 million, which was more than the final budgeted amount of $112.5 million by $1.5 million. Instructional actual expenditures were less than budget by $0.2 million due to conservative budgeting. Student Transportation actual expenditures exceeded budget by $0.1 million due to increased fuel costs. The total expenditures include unbudgeted expenditures from school activity accounts of $1.9 million. \r\nDuring the fiscal year 2011, the General Fund had final actual expenditures totaling $108.3 million, which was less than the final budgeted amount of $108.1 million by $0.2 million. Instructional budget exceeded actual expenses $0.6 million due to conservative budgeting. Student Transportation actual expenditures exceeded budget by $0.6 million due to increased fuel costs. The total expenditures include unbudgeted expenditures from school activity accounts of $2.5 million. \r\nGeneral fund expenditures exceeded revenues resulting in a deficit of $2,486,900 for the fiscal year 2012. General fund revenues exceeded expenditures and other financing uses resulting in a surplus of $6,789,881 for the fiscal year 2011. \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt the fiscal years ended June 30, 2012, and June 30, 2011, the School District had $212.1 million and $193.6 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The district is nearing completion of the construction of Eastbrook Middle School and completed other renovation projects funded through ESPLOST. \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2012 \r\n \r\nYear 2011 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n8,624,659 $ \r\n \r\n19,274,239 \r\n \r\n171,449,588 \r\n \r\n8,683,862 \r\n \r\n4,040,798 \r\n \r\n8,624,659 41,723,302 130,786,584 \r\n7,868,132 4,548,871 \r\n \r\nTotal \r\n \r\n$ 212,073,146 $ \r\n \r\n193,551,548 \r\n \r\nIn accordance with the 2006 referendum pass by 2/3's of the voters, the School District has numerous construction projects in progress including a new elementary and high school, additions and renovations. \r\n \r\nDebt \r\n \r\nAt the fiscal years ending June 30, 2012, and June 30, 2011, the School District had $50.3 million and $61.3 million, respectively, in outstanding debt. Table 5 summarizes the School District's debt for general obligation bonds. \r\nTable 5 \r\nDebt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2012 \r\n \r\nYear 2011 \r\n \r\nCompensated Absences Bonds Payable Bond Premium Amortized \r\n \r\n$ \r\n \r\n278,649 $ \r\n \r\n47,795,000 \r\n \r\n2,185,391 \r\n \r\n299,802 58,335,000 \r\n2,637,541 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n50,259,040 $ \r\n \r\n61,272,343 \r\n \r\nAt June 30, 2012, and June 30, 2011, the School District's assigned bond rating was \"Aa1\" as determined by Moody's Investors Services, Inc. \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\nCurrent Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n Economic Recession  decreases in total State funding for education have been forecasted as a result of slowing state tax revenues. Whitfield County Schools continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our customers. The District continues to provide an increasing amount of local monies to meet various mandated educational requirements. Whitfield County School District remains optimistic about the ability of the District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District will continue to meet its obligation to the citizens of Whitfield County in accordance with the 2006 ESPLOST referendum. This referendum includes plans for renovations, classroom technology, new elementary and high schools and other capital needs that may arise. \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 demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) 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 ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Continuation of State 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$ 41,491,201.42 6,601,115.13 \r\n2,809,980.01 8,696,508.54 2,663,599.66 \r\n394,726.70 72,036.35 98,931.97 \r\n27,898,897.99 184,174,248.46 \r\n$ 274,901,246.23 \r\n \r\n$ \r\n \r\n993,936.92 \r\n \r\n13,694,678.38 \r\n \r\n447,729.21 \r\n \r\n463,994.00 \r\n \r\n1,264,874.59 \r\n \r\n942,866.84 \r\n \r\n9,257,149.80 41,001,890.69 \r\n \r\n$ 68,067,120.43 \r\n \r\n$ 181,073,961.83 \r\n4,011,208.74 14,545.40 \r\n463,994.00 6,175,033.99 15,095,381.84 \r\n$ 206,834,125.80 \r\n \r\n$ 274,901,246.23 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITFIELD 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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n73,695,428.70 $ \r\n \r\n4,827,637.01 3,339,300.59 2,295,468.65 \r\n612,075.06 7,460,635.14 \r\n558,193.97 7,855,697.66 5,173,222.87 2,573,751.67 \r\n613,817.81 \r\n \r\n332,374.70 8,550,377.24 2,192,163.50 \r\n \r\n$ 120,080,144.57 $ \r\n \r\n409,246.89 \r\n183,440.82 1,465,115.63 2,057,803.34 \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\n49,490,837.19 $ \r\n \r\n918,595.63 2,296,514.94 1,732,280.90 1,974,831.89 4,027,952.55 \r\n39,505.24 4,141,212.97 1,822,488.65 \r\n155,640.83 187,852.65 \r\n \r\n42,606.00 6,800,155.86 \r\n \r\n$ \r\n \r\n73,630,475.30 $ \r\n \r\n1,887,425.03 $ \r\n82,566.99 16,762.02 76,055.57 17,210.91 \r\n215,563.93 2,295,584.45 $ \r\n \r\n-21,907,919.59 \r\n-3,909,041.38 -1,042,785.65 \r\n-480,620.76 1,379,518.85 -3,356,627.02 \r\n-518,688.73 -3,513,832.96 -3,350,734.22 -2,418,110.84 \r\n-425,965.16 \r\n-289,768.70 -69,541.82 \r\n-2,192,163.50 \r\n-42,096,281.48 \r\n \r\n$ \r\n \r\n24,005,762.05 \r\n \r\n848,151.61 \r\n \r\n6,289,591.01 348,477.36 \r\n7,043,657.00 38,584.19 \r\n3,546,996.14 \r\n \r\n$ \r\n \r\n42,121,219.36 \r\n \r\n$ \r\n \r\n24,937.88 \r\n \r\n206,809,187.92 \r\n \r\n$ \r\n \r\n206,834,125.80 \r\n \r\n- 3 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2012 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other 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$ 19,642,172.02 $ 21,849,029.40 \r\n \r\n42,460.78 \r\n \r\n6,558,622.90 $ \r\n \r\n2,801,889.41 8,696,508.54 2,663,599.66 \r\n394,726.70 72,036.35 98,931.97 \r\n \r\n8,090.60 \r\n \r\n$ 41,491,201.42 \r\n \r\n31.45 \r\n \r\n6,601,115.13 \r\n \r\n2,809,980.01 8,696,508.54 2,663,599.66 \r\n394,726.70 72,036.35 98,931.97 \r\n \r\n$ 34,412,325.43 $ 28,415,742.90 $ \r\n \r\n31.45 $ 62,828,099.78 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts 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$ 870,132.27 $ 13,694,678.38 \r\n1,582,277.57 \r\n \r\n123,804.65 \r\n1,264,874.59 942,866.84 \r\n \r\n$ 16,147,088.22 $ 2,331,546.08 \r\n \r\n$ 993,936.92 13,694,678.38 1,264,874.59 942,866.84 1,582,277.57 \r\n$ 18,478,634.30 \r\n \r\n$ \r\n \r\n98,931.97 \r\n \r\n3,955,896.39 $ 26,084,196.82 $ \r\n \r\n2,536,283.12 \r\n \r\n11,674,125.73 \r\n \r\n$ 18,265,237.21 $ 26,084,196.82 $ \r\n \r\n$ 31.45 \r\n \r\n98,931.97 30,040,124.66 \r\n2,536,283.12 11,674,125.73 \r\n \r\n31.45 $ 44,349,465.48 \r\n \r\n$ 34,412,325.43 $ 28,415,742.90 $ \r\n \r\n31.45 $ 62,828,099.78 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2012 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported as assets in governmental funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment 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 Accrued Interest Payable Compensated Absences Payable Unamortized Bond Premiums Claims and Judgments Payable \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 44,349,465.48 \r\n \r\n$ 8,624,659.08 19,274,238.91 9,612,998.57 \r\n195,516,802.80 20,433,672.74 -41,389,225.65 \r\n \r\n212,073,146.45 \r\n \r\n1,582,277.57 \r\n \r\n$ -47,795,000.00 -463,994.00 -278,649.59 \r\n-2,185,390.90 -447,729.21 \r\n \r\n-51,170,763.70 \r\n \r\n$ 206,834,125.80 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal 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$ 24,960,939.61 348,477.36 $ \r\n66,648,560.87 14,025,571.44 \r\n2,057,803.34 1,348.16 \r\n3,499,008.92 \r\n \r\n6,289,591.01 2,295,584.45 \r\n37,205.04 $ 47,987.22 \r\n \r\n$ 111,541,709.70 $ 8,670,367.72 $ \r\n \r\n$ 30.99 \r\n \r\n24,960,939.61 6,638,068.37 \r\n68,944,145.32 14,025,571.44 \r\n2,057,803.34 38,584.19 \r\n3,546,996.14 \r\n \r\n30.99 $ 120,212,108.41 \r\n \r\n$ 70,695,114.61 $ \r\n \r\n209,705.98 \r\n \r\n$ 70,904,820.59 \r\n \r\n4,820,820.80 3,337,487.09 2,176,937.68 \r\n587,297.08 7,341,162.70 \r\n521,238.98 7,830,360.87 5,243,390.26 1,791,145.92 \r\n613,817.81 332,374.70 8,667,761.19 \r\n69,700.00 \r\n \r\n6,816.21 1,813.50 11,474.73 \r\n33,108.92 11,930.00 \r\n788,370.75 \r\n16,642.64 22,222,622.10 \r\n \r\n4,827,637.01 3,339,300.59 2,188,412.41 \r\n587,297.08 7,341,162.70 \r\n554,347.90 7,842,290.87 5,243,390.26 2,579,516.67 \r\n613,817.81 332,374.70 8,684,403.83 22,292,322.10 \r\n \r\n$ 10,540,000.00 2,304,226.00 \r\n \r\n10,540,000.00 2,304,226.00 \r\n \r\n$ 114,028,609.69 $ 23,302,484.83 $ 12,844,226.00 $ 150,175,320.52 \r\n \r\n$ -2,486,899.99 $ -14,632,117.11 $ -12,844,195.01 $ -29,963,212.11 \r\n \r\n$ 12,844,193.82 $ $ -12,844,193.82 \r\n \r\n12,844,193.82 -12,844,193.82 \r\n \r\n$ -12,844,193.82 $ 12,844,193.82 $ \r\n \r\n0.00 \r\n \r\n$ -2,486,899.99 $ -27,476,310.93 $ \r\n \r\n-1.19 $ -29,963,212.11 \r\n \r\n20,752,137.20 \r\n \r\n53,560,507.75 \r\n \r\n32.64 \r\n \r\n74,312,677.59 \r\n \r\nFund Balances - Ending \r\n \r\n$ 18,265,237.21 $ 26,084,196.82 $ \r\n \r\n31.45 $ 44,349,465.48 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITFIELD 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\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 Assets. In the current year, these amounts consist of: \r\nBond Principal Retirements \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nNet Decrease in Accrued Interest on Issuance of Bonds Decrease in Compensated Absences Amortization of Bond Premium Decrease in Claims and Judgments \r\nTotal Additional Expenditures \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -29,963,212.11 \r\n \r\n$ 23,153,636.67 -4,632,038.18 \r\n \r\n18,521,598.49 \r\n \r\n-107,025.95 \r\n \r\n10,540,000.00 \r\n \r\n$ \r\n \r\n112,062.50 \r\n \r\n21,152.53 \r\n \r\n452,149.80 \r\n \r\n448,212.62 \r\n \r\n1,033,577.45 \r\n \r\n$ \r\n \r\n24,937.88 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 \r\nASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 347,035.89 60,458.65 \r\n80.00 $ 407,574.54 \r\n$ 407,574.54 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield 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\nThe Northwest Georgia College and Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's General Fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Whitfield County Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), 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- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and flexible spending accounts. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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\n \r\n- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nINVESTMENTS \r\n \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n \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\nThe School District does not have a formal policy regarding investment policies that address credit quality risks, custodial credit risks, or interest rate risks. \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 Whitfield County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on October 20, 2011 (levy date). Taxes were due on December 20, 2011 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2011 tax digest are reported as revenue in the governmental funds for fiscal year 2012. The Whitfield 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 $24,112,788.00. \r\n \r\nThe tax millage rate levied for the 2011 tax year (calendar year) for the Whitfield 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\n14.756 m ills \r\n \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $6,289,591.01 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\nConsumable Supplies One the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items as used. \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nC a pitaliz a tio n Policy \r\n \r\nEstim ated Useful Life \r\n \r\nLand \r\n \r\nLand Im provem ents \r\n \r\n$ \r\n \r\nBuildings and Im provem ents \r\n \r\n$ \r\n \r\nEquipm e nt \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 2 0 ,0 0 0 .0 0 1 0 0 ,0 0 0 .0 0 1 0 ,0 0 0 .0 0 5 0 ,0 0 0 .0 0 \r\n \r\nN/A 15 years 70 years \r\n10 to 12 years 15 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\n \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCOMPENSATED ABSENCES \r\n \r\nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\n \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation lease in excess of 15 days is forfeited. \r\n \r\nBeginning of Year Liability \r\n \r\nIn c re a s e s \r\n \r\nDecreases \r\n \r\nEnd of Year Liability \r\n \r\n2010 2011 2012 \r\n \r\n$ \r\n \r\n303,607.83 $ \r\n \r\n185,557.24 $ \r\n \r\n211,332.92 $ \r\n \r\n2 7 7 ,8 3 2 .1 5 \r\n \r\n$ \r\n \r\n277,832.15 $ \r\n \r\n191,085.21 $ \r\n \r\n169,115.24 $ \r\n \r\n2 9 9 ,8 0 2 .1 2 \r\n \r\n$ \r\n \r\n299,802.12 $ \r\n \r\n189,461.80 $ \r\n \r\n210,614.33 $ \r\n \r\n2 7 8 ,6 4 9 .5 9 \r\n \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. The School District recognizes bond issuance costs during the fiscal year bonds are issued. To conform to generally accepted accounting principles, 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. \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 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 and State 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\n \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFUND BALANCES \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\nFund Balances of the Governmental Funds at June 30, 2012, are as follows: \r\n \r\nN o nspe nda ble In v e n to rie s \r\nRestricted Continuation of Federal Program s Continuation of State Program s Capital Projects Debt Service \r\nAssigned School Activity Accounts Se lf-In s u ra n c e \r\nUnassigned \r\n \r\n$ \r\n \r\n9 8 ,9 3 1 .9 7 \r\n \r\n$ 3,941,350.99 1 4 ,5 4 5 .4 0 \r\n2 5 ,1 5 6 ,2 4 0 .2 7 9 2 7 ,9 8 8 .0 0 \r\n \r\n3 0 ,0 4 0 ,1 2 4 .6 6 \r\n \r\n$ \r\n \r\n9 3 4 ,6 2 7 .1 5 \r\n \r\n1 ,6 0 1 ,6 5 5 .9 7 \r\n \r\n2 ,5 3 6 ,2 8 3 .1 2 1 1 ,6 7 4 ,1 2 5 .7 3 \r\n \r\nFund Balance, June 30, 2012 \r\n \r\n$ 44,349,465.48 \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 \r\n- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nregarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, 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\nNOTE 4: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\n- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. At June 30, 2012, the bank balances were $45,428,957.02. The amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2012, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 2 3 \r\nTotal \r\n \r\n$ \r\n \r\n0 .0 0 \r\n \r\n1 7 1 ,3 5 1 .3 3 \r\n \r\n0 .0 0 \r\n \r\n$ \r\n \r\n1 7 1 ,3 5 1 .3 3 \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\n \r\nThe School District's investments as of June 30, 2012, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \r\n \r\nInvestm ent Type \r\n \r\nFair Value \r\n \r\nInvestm ent M aturity Less Than 1 Year \r\n \r\nDebt Securities U. S. Treasuries \r\n \r\n$ \r\n \r\n31.45 $ \r\n \r\n3 1 .4 5 \r\n \r\nInvestm ent Pools Office of the State Treasurer Georgia Fund 1 \r\n \r\nTotal Investm ents \r\n \r\n$ \r\n \r\n6 ,5 8 2 ,0 0 0 .8 1 6 ,5 8 2 ,0 3 2 .2 6 \r\n \r\nThe Georgia Fund 1, formerly referred to as LGIP, 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 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nInterest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. \r\nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. \r\n \r\nAt June 30, 2012, $31.45 of the School District's applicable investments were uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \r\nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing custodial credit risk. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2011 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2012 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLa n d Construction in Progress \r\n \r\n$ 8,624,659.08 \r\n \r\n$ 8,624,659.08 \r\n \r\n41,723,302.05 $ 22,301,622.64 $ 44,750,685.78 \r\n \r\n19,274,238.91 \r\n \r\nTotal Capital Assets Not B eing Depreciated \r\n \r\n$ 50,347,961.13 $ 22,301,622.64 $ 44,750,685.78 $ 27,898,897.99 \r\n \r\nCapital Assets B eing Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 152,051,779.94 $ 43,465,022.86 $ \r\n \r\n18,295,995.79 \r\n \r\n2,137,676.95 \r\n \r\n9,612,998.57 \r\n \r\n0.00 \r\n \r\n$ 195,516,802.80 20,433,672.74 9,612,998.57 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n21,265,196.25 10,427,863.66 \r\n5,064,127.56 \r\n \r\n2,802,018.00 1,321,947.03 \r\n508,073.15 \r\n \r\n24,067,214.25 11,749,810.69 \r\n5,572,200.71 \r\n \r\nTotal Capital Assets, B eing Depreciated, Net $ 143,203,586.83 $ 40,970,661.63 $ \r\n \r\n0.00 $ 184,174,248.46 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 193,551,547.96 $ 63,272,284.27 $ 44,750,685.78 $ 212,073,146.45 \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nIn s tru c tio n Support Services \r\nEducational M edia Services General Adm inistration School Adm inistration M aintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 3,170,839.08 \r\n \r\n$ 164,845.92 3 0 ,2 5 0 .3 7 \r\n1 9 5 ,9 0 3 .9 2 3 4 ,4 9 7 .6 9 \r\n6 0 1 ,2 9 5 .2 0 \r\n \r\n1 ,0 2 6 ,7 9 3 .1 0 4 3 4 ,4 0 6 .0 0 \r\n \r\n$ 4,632,038.18 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2012, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers F ro m \r\nDistrict-w ide C a pita l Pro je c ts \r\n \r\nDebt Service Fund \r\n \r\n$ 12,844,193.82 \r\n \r\nTransfers are used to move sales tax revenues collected by the Capital Projects Fund to Debt Service Fund for bond 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 has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaim s and Changes in Estim ates \r\n \r\nClaim s Paid \r\n \r\nEnd of Year Liability \r\n \r\n2011 $ 2012 $ \r\n \r\n780,557.75 $ 895,941.83 $ \r\n \r\n429,934.11 $ 102,865.46 $ \r\n \r\n314,550.03 $ 551,078.08 $ \r\n \r\n8 9 5 ,9 4 1 .8 3 4 4 7 ,7 2 9 .2 1 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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\nClaim s and Changes in Estim ates \r\n \r\nClaim s Paid \r\n \r\nEnd of Year Liability \r\n \r\n2011 $ 2012 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n246,510.03 $ 51,148.00 $ \r\n \r\n246,510.03 $ 51,148.00 $ \r\n \r\n0 .0 0 0 .0 0 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition C overed \r\n \r\nAm ount \r\n \r\nSu p e rin te n d e n t All Other Em ployees \r\n \r\n$ \r\n \r\n1 0 0 ,0 00 .0 0 \r\n \r\n$ \r\n \r\n1 0 0 ,0 00 .0 0 \r\n \r\nNOTE 9: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2012, for governmental funds amounted to $206,125.20. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernm ental Funds \r\n \r\n2013 2014 2015 2016 \r\n \r\n2 0 6 ,1 2 5 .2 0 2 0 6 ,1 2 5 .2 0 2 0 6 ,1 2 5 .2 0 1 8 8 ,9 4 8 .1 0 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n8 0 7 ,3 2 3 .7 0 \r\n \r\nNOTE 10: LONG-TERM DEBT \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \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\nAm ount \r\n \r\nGeneral Governm ent - Series 2006 General Governm ent - Series 2009 \r\n \r\n3.61% $ 9,910,000.00 \r\n \r\n2.50% - 5.00% \r\n \r\n3 7 ,8 8 5 ,0 0 0 .0 0 \r\n \r\n$ 47,795,000.00 \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\nA d d i ti o n s \r\n \r\nGovernmental Funds D e d u cti o n s \r\n \r\nBalance June 30, 2012 \r\n \r\nDue Within One Year \r\n \r\nG.O. Bonds Compensated Absences (1) B ond Premiums Amortized \r\n \r\n$ 58,335,000.00 299,802.12 $ \r\n2,637,540.70 \r\n \r\n$ 10,540,000.00 $ 47,795,000.00 $ 8,805,000.00 \r\n \r\n189,461.80 \r\n \r\n210,614.33 \r\n \r\n278,649.59 \r\n \r\n452,149.80 \r\n \r\n2,185,390.90 \r\n \r\n452,149.80 \r\n \r\n$ 61,272,342.82 $ \r\n \r\n189,461.80 $ 11,202,764.13 $ 50,259,040.49 $ 9,257,149.80 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 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\nI n te r e st \r\n \r\nU n a m o r ti z e d Bond Premium \r\n \r\n2013 2014 2015 2016 2017 \r\n \r\n$ \r\n \r\n8,805,000.00 $ \r\n \r\n9,160,000.00 \r\n \r\n9,540,000.00 \r\n \r\n9,935,000.00 \r\n \r\n10,335,000.00 \r\n \r\n1,855,976.00 $ 1,557,188.50 1,305,288.50 \r\n859,876.00 380,001.00 \r\n \r\n452,149.80 452,149.80 452,149.80 452,149.80 376,791.70 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 47,775,000.00 $ \r\n \r\n5,958,330.00 $ \r\n \r\n2,185,390.90 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $9,191,019.87 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 $9,042,055.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $24,494.87 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \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 $124,470.00 \r\nNOTE 12: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2012, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed C o ntra cts \r\n \r\nFunding Available From State \r\n \r\nEastbrook M iddle School \r\n \r\n$ 1,323,342.17 $ 4,250,850.55 \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: SUBSEQUENT EVENTS \r\nIn the subsequent fiscal year, voters authorized a Special Purpose Local Option Sales Tax to take effect January 1, 2013. It is projected that the tax will raise no more than $105,000,000.00 and will be used for various capital projects and debt service payments. \r\nNOTE 15: 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 \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nState provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2012: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other \r\neligible participants: \r\n \r\nJune 2011 July 2011 August 2011 - March 2012 April 2012 - June 2012 \r\n \r\n1.429% of covered payroll for July coverage 18.534% of covered payroll for August coverage 24.000% of covered payroll for September - April coverage \r\n3.958% of covered payroll for May - July coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2011 - August 2011 \r\n \r\n$246.20 per member per month \r\n \r\nSeptember 2011 - June 2012 $296.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2012 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntribute d \r\n \r\nRequired C o n trib u tio n \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n1 1 ,0 0 3 ,8 8 0 .5 2 \r\n \r\n$ \r\n \r\n1 0 ,0 5 9 ,5 3 5 .4 1 \r\n \r\n$ \r\n \r\n1 0 ,7 7 4 ,1 4 9 .9 6 \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 16: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2012, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2012 were 10.28% of annual salary as required by the June 30, 2009, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntribute d \r\n \r\nRequired C o n trib u tio n \r\n \r\n2012 2011 2010 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n6 ,3 6 8,0 0 9.6 8 \r\n \r\n$ \r\n \r\n6 ,2 3 5,0 8 0.5 2 \r\n \r\n$ \r\n \r\n6 ,7 3 0,7 8 3.2 0 \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 Food Services Operation \r\nCapital Outlay Debt Service \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOther Sources Other Uses \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\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$ 23,790,000.00 $ 23,790,000.00 $ 24,960,939.61 $ 1,170,939.61 \r\n \r\n348,477.36 \r\n \r\n348,477.36 \r\n \r\n65,407,982.00 \r\n \r\n65,848,853.00 \r\n \r\n66,648,560.87 \r\n \r\n799,707.87 \r\n \r\n12,106,358.00 \r\n \r\n14,116,505.00 \r\n \r\n14,025,571.44 \r\n \r\n-90,933.56 \r\n \r\n1,389,973.00 \r\n \r\n1,389,973.00 \r\n \r\n2,057,803.34 \r\n \r\n667,830.34 \r\n \r\n27,800.00 \r\n \r\n27,800.00 \r\n \r\n1,348.16 \r\n \r\n-26,451.84 \r\n \r\n481,575.00 \r\n \r\n481,575.00 \r\n \r\n3,499,008.92 \r\n \r\n3,017,433.92 \r\n \r\n$ 103,203,688.00 $ 105,654,706.00 $ 111,541,709.70 $ 5,887,003.70 \r\n \r\n$ 69,923,470.00 $ 70,848,741.00 $ 70,695,114.61 $ 153,626.39 \r\n \r\n3,961,678.00 2,657,243.00 2,331,200.00 \r\n756,600.00 7,057,123.00 \r\n414,736.00 8,556,073.00 4,675,362.00 1,676,036.00 \r\n155,055.00 7,566,666.00 \r\n \r\n4,059,241.00 3,628,167.00 2,319,767.00 \r\n601,805.00 7,055,794.00 \r\n729,514.00 8,556,073.00 5,134,195.00 1,700,036.00 \r\n277,159.00 7,566,666.00 \r\n \r\n4,820,820.80 3,337,487.09 2,176,937.68 \r\n587,297.08 7,341,162.70 \r\n521,238.98 7,830,360.87 5,243,390.26 1,791,145.92 \r\n613,817.81 8,667,761.19 \r\n332,374.70 69,700.00 \r\n \r\n-761,579.80 290,679.91 142,829.32 \r\n14,507.92 -285,368.70 208,275.02 725,712.13 -109,195.26 \r\n-91,109.92 -336,658.81 -1,101,095.19 -332,374.70 \r\n-69,700.00 \r\n \r\n$ 109,731,242.00 $ 112,477,158.00 $ 114,028,609.69 $ -1,551,451.69 \r\n \r\n$ -6,527,554.00 $ -6,822,452.00 $ -2,486,899.99 $ 4,335,552.01 \r\n \r\n$ \r\n \r\n827,059.00 $ \r\n \r\n827,059.00 \r\n \r\n-827,059.00 \r\n \r\n-827,059.00 \r\n \r\n$ -827,059.00 827,059.00 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ -6,527,554.00 $ -6,822,452.00 $ -2,486,899.99 $ 4,335,552.01 \r\n \r\n20,829,335.70 \r\n \r\n20,829,325.88 \r\n \r\n20,752,137.20 \r\n \r\n-77,188.68 \r\n \r\n$ 14,301,781.70 $ 14,006,873.88 $ 18,265,237.21 $ 4,258,363.33 \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 ($2,381,409.53) or expenditures ($1,935,508.07) of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FFEDERAL 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\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Safe and Drug-Free Schools and Communities - State Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nTotal Expenditures of Federal Awards \r\nN/A = Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 8,129,210.91 (1) \r\n \r\n$ 8,129,210.91 \r\n \r\n10.665 \r\n \r\nN/A \r\n \r\n(3) \r\n \r\n$ 8,129,210.91 \r\n \r\n84.196 \r\n \r\nN/A $ \r\n \r\n33,639.00 \r\n \r\n* 84.027 * 84.173 \r\n \r\nN/A $ 2,477,322.00 \r\n \r\nN/A \r\n \r\n39,806.07 \r\n \r\n$ 2,517,128.07 \r\n \r\n84.010 \r\n \r\nN/A $ 3,937,354.09 \r\n \r\n84.048 84.410 84.365 84.367 84.011 84.186 \r\n \r\nN/A $ N/A N/A N/A N/A N/A \r\n \r\n138,226.15 33,690.00 \r\n310,058.05 414,639.24 \r\n50,883.87 952.55 \r\n \r\n$ 948,449.86 \r\n \r\n$ 7,436,571.02 \r\n \r\n$ 15,565,781.93 \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FFEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $402,205.98. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($1,649,680.44) 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 $9,239.14, 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 Whitfield 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 WHITFIELD 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Mid-term Adjustment Hold-Harmless Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Education Equalization Funding Grant Food Services Nursing Services Other State Programs Dual Enrollment Funding Health Insurance Preschool Handicapped Program Teachers' Retirement Virtual Schools Grant Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\nTechnical College System of Georgia Grant for Northwest Georgia College and Career Academy \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\n808,022.99 \r\n \r\n$ \r\n \r\n808,022.99 \r\n \r\n3,456,824.00 1,245,525.00 7,768,940.00 2,643,913.00 3,945,939.00 1,090,538.00 7,034,842.00 6,251,008.00 1,830,867.00 6,441,524.00 3,089,978.00 \r\n6,814.00 556,771.00 2,543,643.00 1,309,634.00 383,518.00 286,937.00 \r\n1,502,164.00 2,855,897.00 3,454,510.00 \r\n136,620.00 -10,631,233.00 \r\n1,193,349.00 7,043,657.00 \r\n213,016.00 201,967.00 \r\n74,196.00 9,042,055.00 \r\n127,145.45 24,494.87 3,625.00 \r\n474,889.56 \r\n \r\n3,456,824.00 1,245,525.00 7,768,940.00 2,643,913.00 3,945,939.00 1,090,538.00 7,034,842.00 6,251,008.00 1,830,867.00 6,441,524.00 3,089,978.00 \r\n6,814.00 556,771.00 2,543,643.00 1,309,634.00 383,518.00 286,937.00 \r\n1,502,164.00 2,855,897.00 3,454,510.00 \r\n136,620.00 -10,631,233.00 \r\n1,193,349.00 7,043,657.00 \r\n213,016.00 201,967.00 \r\n74,196.00 9,042,055.00 \r\n127,145.45 24,494.87 3,625.00 \r\n474,889.56 \r\n \r\n$ 2,295,584.45 \r\n \r\n2,295,584.45 \r\n \r\n124,470.00 \r\n \r\n124,470.00 \r\n \r\n112,500.00 \r\n \r\n112,500.00 \r\n \r\n$ 66,648,560.87 $ 2,295,584.45 $ 68,944,145.32 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n WHITFIELD 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 \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\nAcquisitions, construction and equipping of a new \r\n \r\nelementary school, a new middle school and a new \r\n \r\nhigh school, including the acquisition of any furniture, \r\n \r\nfixtures and equipment necessary or desirable \r\n \r\ntherefore; renovations and improvements at existing \r\n \r\nschools, including the acquisition of any furniture, \r\n \r\nfixtures and equipment necessary or desirable \r\n \r\ntherefore; the acquisition, construction and equipping \r\n \r\nof a central warehouse facility; the acquisition of \r\n \r\nschool buses; and system-wide technology \r\n \r\nimprovements \r\n \r\n$ \r\n \r\n53,531,937.00 $ \r\n \r\n75,692,499.23 $ \r\n \r\n3,198,624.16 $ \r\n \r\n70,208,812.01 $ \r\n \r\n0.00 $ \r\n \r\n0.00 June 2015 \r\n \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore, both real and personal. \r\n \r\n96,100,000.00 108,658,852.54 19,866,615.31 \r\n \r\n65,172,517.04 \r\n \r\n0.00 \r\n \r\n0.00 June 2016 \r\n \r\n$ 149,631,937.00 $ 184,351,351.77 $ 23,065,239.47 $ 135,381,329.05 $ \r\n \r\n0.00 $ \r\n \r\n0.00 \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \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 Whitfield 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$ 7,651,335.89 \r\n \r\nCurrent Year \r\n \r\n2,304,226.00 \r\n \r\nTotal \r\n \r\n$ 9,955,561.89 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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\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\nDirect Instructional Programs \r\n \r\nKindergarten Program \r\n \r\n$ \r\n \r\nKindergarten Program-Early Intervention Program \r\n \r\nPrimary Grades (1-3) Program \r\n \r\nPrimary Grades-Early Intervention (1-3) Program \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) \r\n \r\nProgram \r\n \r\nMiddle Grades (6-8) Program \r\n \r\nMiddle School (6-8) Program \r\n \r\nHigh School General Education (9-12) Program \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\nStudents with Disabilities \r\n \r\nCategory I \r\n \r\nCategory II \r\n \r\nCategory III \r\n \r\nCategory IV \r\n \r\nCategory V \r\n \r\nGifted Student - Category VI \r\n \r\nRemedial Education Program \r\n \r\nAlternative Education Program \r\n \r\nEnglish Speakers of Other Languages (ESOL) \r\n \r\n4,065,106.00 $ 1,356,007.00 9,126,164.00 2,856,654.00 4,573,518.00 \r\n \r\n4,897,806.16 $ 426,948.39 \r\n11,611,308.86 1,413,435.18 5,513,755.29 \r\n \r\n96,900.25 $ 962.57 \r\n318,605.07 2,262.73 \r\n130,811.44 \r\n \r\n4,994,706.41 427,910.96 \r\n11,929,913.93 1,415,697.91 5,644,566.73 \r\n \r\n1,269,882.00 8,060,332.00 7,241,426.00 2,078,530.00 \r\n \r\n795,435.42 8,198,342.94 8,909,308.46 1,657,509.91 \r\n \r\n2,250.96 363,133.42 679,462.64 143,978.68 \r\n \r\n797,686.38 8,561,476.36 9,588,771.10 1,801,488.59 \r\n \r\n7,348,139.00 \r\n3,609,273.00 7,846.00 \r\n640,181.00 2,962,888.00 \r\n \r\n121,866.61 518,794.99 4,733,890.30 177,683.32 137,372.58 3,626,302.61 \r\n960,545.15 3,026,857.06 \r\n \r\n6,130.33 1,085.43 34,845.89 1,098.49 \r\n16,893.94 \r\n5,097.55 19,250.44 \r\n \r\n127,996.94 519,880.42 4,768,736.19 178,781.81 137,372.58 3,643,196.55 \r\n965,642.70 3,046,107.50 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ 55,195,946.00 $ 56,727,163.23 $ 1,822,769.83 $ 58,549,933.06 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n1,511,992.00 330,567.00 \r\n \r\n1,991,711.59 141,519.62 \r\n \r\n155,813.48 156,076.06 \r\n \r\n2,147,525.07 297,595.68 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 57,038,505.00 $ 58,860,394.44 $ 2,134,659.37 $ 60,995,053.81 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 28, 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 Whitfield 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 Whitfield County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated March 28, 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 Whitfield County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Whitfield 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 Whitfield County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Whitfield County Board of Education's internal control over financial reporting. \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 and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control over financial reporting that we consider to be material weaknesses. \r\n \r\n2012YB-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 items FS-7551-12-01, and FS-7551-12-02 to be material weaknesses. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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 Whitfield County Board of Education in a separate letter dated March 28, 2013. \r\nWhitfield 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 Whitfield 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 Whitfield 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, \r\n \r\nGSG:as 2012YB-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\nMarch 28, 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 Whitfield 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 Whitfield 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. Whitfield 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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield 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 Whitfield 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 Whitfield County Board of Education's compliance with those requirements. \r\nIn our opinion, the Whitfield 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 Whitfield 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 Whitfield 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 Whitfield 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 Whitfield 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, \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  WHITFIELD 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 AND STATUS \r\n \r\nFS-7551-11-01 \r\n \r\nUnresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7551-11-01 \r\n \r\nWith the departure of the former Chief Financial Officer (CFO), we had no staff that worked on the FY 2011 books and the former CFO was not available to complete the preparation of the financial statements. Accordingly, we requested that the auditors complete the FY 2011 financial statements in conjunction with the audit. \r\n \r\nThe School District has hired a new CFO and added a position of Finance Director. However, these actions happened well into the FY 2012 year and we still had about half the year completed with no CFO in place and more than half the year before the Finance Director was able to assume her new duties. The School District is also implementing new financial software and is therefore planning to ask the same financial statement preparation assistance for FY 2012. With the new staff and the new software in place, the School District is putting additional financial statement controls in place to begin full financial statement preparation in place for FY 2013. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7551-08-01 FA-7551-10-01 FA-7551-11-01 \r\n \r\nPreviously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Finding Control Number: FA-7551-11-01 \r\n \r\nThe School District has implemented new procedures to ensure that all staff charged to the Special Education Cluster meets with Federal guidelines including having a director who will approve all Special Education hires. In addition, the new financial software includes position control which will be an additional control with the hiring process and charging staff correctly. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITFIELD 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:  Material weaknesses identified?  Significant deficiency identified? \r\n \r\nYes None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnqualified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \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$466,973.46 \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 Maintain Adequate Capital Asset Records Material Weakness Finding Control Number: FS-7551-12-01 \r\n \r\nCondition: The School District did not adequately maintain capital assets inventory records. \r\n \r\n- 1 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2012 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCriteria: Chapter 37 Implementing a Capital Assets Management System of the Financial Management for Georgia Local Units of Administration provides that School Districts must establish fixed assets policies, define system requirements, implement a fixed asset system, and maintain fixed assets inventory records. \r\nQuestioned Cost: N/A \r\nInformation: A review of the School District's capital assets records noted the following deficiencies and errors or omissions: \r\n The School District did not calculate depreciation expense.  The School District failed to provide an accurate and complete listing of equipment.  The School District did not appropriately classify the completed high school project assets \r\nwhen reclassifying from construction in progress into the various classifications of land, buildings, equipment and land improvements. \r\nCause: The School District failed to ensure that adequate accounting procedures were in place to process, record and report capital assets and the related activity. \r\nEffect: The failure of the School District to maintain a complete and accurate capital assets listing can lead to inaccurate internal and external reporting, as well as noncompliance with generally accepting accounting principles. \r\nRecommendation: The School District should review its capital asset records and make appropriate adjustments to ensure that the capital assets are properly maintained and correctly reported. \r\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7551-12-02 \r\nCondition: The School District did not have adequate controls in place over the financial statement reporting process. \r\nCriteria: Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\nQuestioned Cost: N/A \r\n- 2 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2012 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS Information: The Department of Audits and Accounts provided basic accounting assistance limited to services such as preparing draft financial statements that were based on the entity's chart of accounts and general ledgers including any adjusting, correcting, and closing entries that have been approved by the entity's staff; prepared draft notes to the financial statements based on information determined and approved by management; and prepared trial balances based on the entity's chart of accounts. During the audit, the following correcting entries were proposed and accepted by the client to properly present the entity's financial statements. \r\n Several entries were necessary to tie beginning net assets and beginning fund balance to the prior year totals. \r\n Entries were necessary to properly record Property Taxes, Sales Taxes, Contracts Payable, Capital Assets and On-Behalf Payments. \r\n Numerous reclassification entries were made to improve financial statement presentation.  Supplemental Schedules and Notes to the Basic Financial Statements were prepared by the \r\nauditor. \r\nCause: The School District did not maintain an adequate system of internal control over the financial statement reporting process. Effect: The School District did not comply with the requirements of the Georgia Department of Education regarding financial reporting. Several adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. Recommendation: The School District should implement controls over the financial statement reporting process to ensure that all required activity is included in the financial statement information. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 3 - \r\n \r\n  SECTION V MANAGEMENT'S RESPONSES \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nFinding Control Number: FS-7551-12-01 \r\n \r\nWe concur with this finding. Our capital assets were tracked on a spreadsheet with the inherent risk of errors of this method of accounting. The system has purchased new financial accounting software that includes a Fixed Asset module and we are transferring the fixed asset inventory into the new software. We will review the inventory with our audit team to insure the accuracy of the assets on hand at June 30, 2012. The new software will assist in capturing new assets and will calculate the annual depreciation entry in addition to our procedures of validating asset disposals and acquisitions with our Directors and Principals and insuring compliance with our fixed asset policy. \r\n \r\nFinding Control Number: FS-7551-12-02 \r\n \r\nWe concur with this finding. As mentioned last year: \"The school district has hired a new CFO and added a position of Finance Director. However, these actions happened will into the FY 2012 year and we still had about half the year completed with no CFO in place and more than half the year before the Finance Director was able to assume her new duties. The district is also implementing new financial software and is therefore planning to ask the same financial statement preparation assistance for FY 2012. With the new staff and the new software in place, the district is putting additional financial statement controls in place to begin full financial statement preparation in place for FY 2013.\" \r\n \r\nWe went live with the new software on January 1, 2013. With the new tools and staffing in place for the entire year, we are on track to issue the FY 2013 financials with our internal staff. \r\n \r\nContact Person: Telephone: Fax: Email: \r\n \r\nRon Hale, CFO (706) 217-6701 (706) 217-6703 ron_hale@whitfield.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2010-h2011-belec-p-btext","title":"Whitfield County Board of Education, Dalton, 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. 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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-bw59-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n(Including Independent Auditor's Reports) \r\n \r\n WHITFIELD 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 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 ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\ni \r\n1 2 4 5 6 7 9 10 \r\n27 \r\n \r\n  WHITFIELD 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 30 31 33 \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  WHITFIELD 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 15, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Whitfield 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 Whitfield 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 Whitfield 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  In accordance with Government Auditing Standards, we have also issued our report dated October 15, 2012, on our consideration of the Whitfield 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\nManagement's Discussion and Analysis and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on pages i through viii and page 27 respectively, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Whitfield 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  WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\nINTRODUCTION \r\nOur discussion and analysis of the Whitfield County Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2010, and June 30, 2011. The intent of this discussion and analysis is to look at the School District's financial performance as a whole; readers should also review the notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2011 and 2010 are as follows: \r\n On the District-wide financial statements, the assets of the School District exceeded liabilities by $206.8 million and $195.6 million, respectively, for the fiscal years ended June 30, 2011, and 2010. Of these amounts $17.0 million and $10.7 million, respectively, for fiscal years 2011 and 2010 are available for spending at the School District's discretion. \r\n The School District had $115.9 million and $122.5 million, respectively, in expenses for the fiscal years ended June 30, 2011, and June 30, 2010, relating to governmental activities. Only $78.7 million and $82.4 million of the above mentioned expenses for 2011 and 2010 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $48.3 million and $51.4 million, respectively, for 2011 and 2010 were adequate to provide for these programs. \r\n As stated above, general revenues accounted for $48.3 million or 38.06% of all revenues totaling $127.0 million for fiscal year 2011 and $51.4 million or 38.5% of all revenues totaling $133.8 million for fiscal year 2010. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the Districtwide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net 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 Whitfield County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \r\ni \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the District's operating funds into one column called governmental activities. In reviewing the District-wide financial statements, a reader might ask the question, are we in a better financial position than last year? The Statement of Net Assets and the Statement of Activities provides the basis for answering this question. These financial statements include all District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \r\nThese two statements report the School District's net 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 reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net 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 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 WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n \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 1 provides a summary of the School District's net assets for fiscal years 2011 and 2010. \r\n \r\nTable 1 Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2011 \r\n \r\nYear 2010 \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\n$ 94,869,294 $ 113,171,178 \r\n \r\n193,551,548 \r\n \r\n174,738,144 \r\n \r\nTotal Assets \r\n \r\n$ 288,420,842 $ 287,909,322 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n$ 20,339,311 $ 20,411,476 \r\n \r\n61,272,343 \r\n \r\n71,847,523 \r\n \r\nTotal Liabilities \r\n \r\n$ 81,611,654 $ 92,258,999 \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\n$ 169,895,115 $ 159,828,406 \r\n \r\n19,928,667 \r\n \r\n25,105,782 \r\n \r\n16,985,406 \r\n \r\n10,716,135 \r\n \r\nTotal Net Assets \r\n \r\n$ 206,809,188 $ 195,650,323 \r\n \r\nTable 2 shows the Changes in Net Assets for fiscal years ending June 30, 2011, and June 30, 2010. \r\n \r\niii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \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 Railroad Cars Other Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible Recording Tax Real Estate Transfer Tax Grants and Contributions not Restricted to Specific Programs 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 Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\nIncrease in Net Assets \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2011 \r\n \r\n2010 \r\n \r\n$ \r\n \r\n1,796,552 $ \r\n \r\n2,040,029 \r\n \r\n76,412,891 \r\n \r\n75,805,451 \r\n \r\n457,752 \r\n \r\n4,512,913 \r\n \r\n$ \r\n \r\n78,667,195 $ \r\n \r\n82,358,393 \r\n \r\n$ \r\n \r\n24,516,571 $ \r\n \r\n27,607,972 \r\n \r\n30,250 \r\n \r\n909,610 \r\n \r\n11,376,624 341,491 \r\n \r\n11,399,348 315,994 72,151 \r\n \r\n7,440,441 288,611 \r\n3,472,674 \r\n \r\n8,036,686 307,294 \r\n3,682,015 \r\n \r\n$ \r\n \r\n48,346,022 $ \r\n \r\n51,451,710 \r\n \r\n$ 127,013,217 $ 133,810,103 \r\n \r\n$ \r\n \r\n71,918,897 $ \r\n \r\n78,166,863 \r\n \r\n4,066,754 2,872,354 2,394,144 \r\n741,096 7,187,933 \r\n450,734 7,498,148 5,357,189 1,931,977 \r\n862,253 \r\n \r\n3,914,572 2,736,472 2,710,292 \r\n784,539 7,181,543 \r\n411,565 7,672,962 4,992,372 1,970,240 1,240,892 \r\n \r\n317,995 7,570,214 2,684,664 \r\n \r\n345,291 7,322,462 3,050,263 \r\n \r\n$ 115,854,352 $ 122,500,328 \r\n \r\n$ \r\n \r\n11,158,865 $ \r\n \r\n11,309,775 \r\n \r\niv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \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. \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 2011 \r\n \r\nYear 2010 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2011 \r\n \r\nYear 2010 \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: Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 71,918,897 $ 78,166,863 $ 16,972,960 $ 21,200,006 \r\n \r\n4,066,754 2,872,354 2,394,144 \r\n741,096 7,187,933 \r\n450,734 7,498,148 5,357,189 1,931,977 \r\n862,253 \r\n \r\n3,914,572 2,736,472 2,710,292 \r\n784,539 7,181,543 \r\n411,565 7,672,962 4,992,372 1,970,240 1,240,892 \r\n \r\n3,463,805 1,618,332 \r\n656,113 -1,591,045 3,524,626 \r\n449,102 3,438,996 3,342,423 1,926,680 \r\n742,657 \r\n \r\n3,187,693 1,626,995 \r\n557,399 -1,398,162 2,713,840 \r\n410,239 3,549,577 3,426,852 1,965,515 1,112,418 \r\n \r\n317,995 7,570,214 2,684,664 \r\n \r\n345,291 7,322,462 3,050,263 \r\n \r\n316,659 -358,815 2,684,664 \r\n \r\n343,927 -1,604,628 3,050,263 \r\n \r\nTotal Expenses \r\n \r\n$ 115,854,352 $ 122,500,328 $ 37,187,157 $ 40,141,934 \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 of $126.7 million and total expenditures of $145.3 million for fiscal year 2011 and total revenues of $133.3 million and total expenditures of $147.8 million for fiscal year 2010. \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 years 2011 and 2010, the School District amended its general fund budget as needed. \r\nDuring fiscal year 2011 the General Fund had final actual revenues totaling $115.0 million, which was more than the final budgeted amounts of $110.2 million by $4.8 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting. State revenues exceeded \r\n \r\nv \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\nbudgeted revenues by $3.3 million due to conservative budgeting. Federal revenue collections were less than budgeted revenues by $1.7 million. Unspent Federal funds carry over to the following year and are planned for use in fiscal year 2012. Miscellaneous revenues exceeded budgeted revenues by $2.7 due to unbudgeted revenues from school activity accounts of $2.4 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return continues to decrease as a result of declining interest rates. \r\nDuring fiscal year 2010 the General Fund had final actual revenues totaling $116.8 million, which was more than the final budgeted amounts of $114.0 million by $2.8 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting. Property and sales taxes (Intangible and Real Estate taxes) exceeded budgeted revenues $1.3 million due to conservative budgeting. State revenues were less than budgeted revenues $8.6 million due to slowing revenue collections. Federal revenue collections exceeded budgeted revenues $7.1 million primarily due to the receipt of Federal stimulus funding (American Reinvestment and Recovery Act). The American Recovery and Reinvestment Act of 2010, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2010 and signed into law on February 17, 2010 by President Barack Obama. The primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for those most impacted by the recession and invest in infrastructure, education, health, and 'green' energy. The ARRA funds helped offset the declines in state revenue. Miscellaneous revenues exceeded budgeted revenues $2.7 due to unbudgeted revenues from school activity accounts of $2.6 million. Investment revenue is primarily derived from our investment of cash in the State's Local Government Investment Pool (LGIP). The rate of return continues to decrease as a result of declining interest rates. \r\nDuring the fiscal year 2011, the General Fund had final actual expenditures totaling $108.3 million, which was more than the final budgeted amount of $108.1 million by $0.2 million. Instructional budget exceeded actual expenses by $0.6 million due to conservative budgeting. Student Transportation actual expenditures exceeded budget by $0.6 million due to increased fuel costs. The total expenditures include unbudgeted expenditures from school activity accounts of $2.5 million. \r\nDuring the fiscal year 2010, the General Fund had final actual expenditures totaling $115.9 million, which was less than the final budgeted amount of $118.1 million by $2.2 million. Instructional budget exceeded actual expenses $1.7 million due to conservative budgeting. The total expenditures include unbudgeted expenditures from school activity accounts of $3.2 million. \r\nDuring the fiscal year 2010, the General Fund transferred to the Capital Projects Fund $2.2 million for the purpose of providing sewer service to the new high school under construction through an intergovernmental agreement with Dalton Utilities. \r\nGeneral fund revenues exceeded expenditures and other financing uses resulting in a surplus of $6,789,881 for the fiscal year 2011. General fund expenditures exceeded revenues and other financing uses resulting in a deficit of $1,329,916 for the fiscal year 2010. \r\nvi \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt the fiscal years ended June 30, 2011, and June 30, 2010, the School District had $193.6 million and $174.7 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The District is nearing completion of the construction of Coahulla Creek High School and completed other renovation projects funded through ESPLOST. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2011 \r\n \r\nYear 2010 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n8,624,659 $ \r\n \r\n41,723,302 \r\n \r\n130,786,584 \r\n \r\n7,868,132 \r\n \r\n4,548,871 \r\n \r\n8,624,659 20,652,693 132,198,317 \r\n8,204,594 5,057,881 \r\n \r\nTotal \r\n \r\n$ 193,551,548 $ \r\n \r\n174,738,144 \r\n \r\nIn accordance with the 2006 referendum pass by 2/3's of the voters, the School District has numerous construction projects in progress including a new elementary and high school, additions and renovations. \r\n \r\nDebt \r\n \r\nAt the fiscal years ending June 30, 2011, and June 30, 2010, the School District had $58.3 million and $68.5 million, respectively, in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \r\nTable 5 \r\nDebt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2011 \r\n \r\nYear 2010 \r\n \r\nCompensated Absences Bonds Payable Bond Premium Amortized \r\n \r\n$ \r\n \r\n299,802 $ \r\n \r\n58,335,000 \r\n \r\n2,637,541 \r\n \r\n277,832 68,480,000 \r\n3,089,691 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n61,272,343 $ \r\n \r\n71,847,523 \r\n \r\nvii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\nAt June 30, 2011, and June 30, 2010, the School District's assigned bond rating was \"Aa1\" as determined by Moody's Investors Services, Inc. Current Issues Currently known facts, decisions or conditions that are expected to have a significant effect on financial positions or results of operations. \r\n Economic Recession  decreases in total State funding for education have been forecasted as a result of slowing state tax revenues. Whitfield County Schools continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our customers. The District continues to provide an increasing amount of local monies to meet various mandated educational requirements. Whitfield County School District remains optimistic about the ability of the District to maximize all of the financial resources to provide a quality education to our students. \r\n Capital Improvements - The School District will continue to meet its obligation to the citizens of Whitfield County in accordance with the 2006 ESPLOST referendum. This referendum includes plans for renovations, classroom technology, new elementary and high schools and other capital needs that may arise. \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 demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\nviii \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) 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 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\nGOVERNMENTAL ACTIVITIES \r\n$ 66,361,426.38 12,120,242.19 3,841,978.65 9,017,730.62 2,465,184.37 495,616.45 350,235.23 216,880.13 50,347,961.13 \r\n143,203,586.83 \r\n$ 288,420,841.98 \r\n$ 2,255,647.60 13,247,549.15 895,941.83 576,056.50 1,315,098.18 2,049,017.98 10,992,149.80 50,280,193.02 \r\n$ 81,611,654.06 \r\n$ 169,895,114.75 4,260,290.46 576,056.50 \r\n15,092,319.90 16,985,406.31 $ 206,809,187.92 \r\n$ 288,420,841.98 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2011 \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 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 Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 71,918,897.33 $ 349,711.60 \r\n \r\n4,066,754.19 2,872,353.63 2,394,143.94 \r\n741,096.22 7,187,932.52 \r\n450,734.38 7,498,148.34 5,357,189.02 1,931,977.42 \r\n862,252.34 \r\n \r\n20,562.65 \r\n \r\n317,994.84 7,570,213.97 2,684,663.50 \r\n \r\n1,426,277.52 \r\n \r\n$ 115,854,351.64 $ 1,796,551.77 \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 \r\n \r\nOPERATING \r\n \r\nCAPITAL \r\n \r\nGRANTS AND \r\n \r\nGRANTS AND \r\n \r\nCONTRIBUTIONS CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ 54,596,225.57 \r\n602,949.71 1,254,021.36 1,738,031.02 2,332,140.93 3,663,306.88 \r\n1,632.20 4,038,590.08 1,557,014.26 $ \r\n5,297.12 119,594.87 \r\n1,335.61 6,502,751.04 \r\n$ 76,412,890.65 $ \r\n \r\n$ -16,972,960.16 \r\n \r\n457,752.00 \r\n \r\n-3,463,804.48 -1,618,332.27 \r\n-656,112.92 1,591,044.71 -3,524,625.64 \r\n-449,102.18 -3,438,995.61 -3,342,422.76 -1,926,680.30 \r\n-742,657.47 \r\n \r\n-316,659.23 358,814.59 -2,684,663.50 \r\n \r\n457,752.00 $ -37,187,157.22 \r\n \r\n$ 24,516,571.33 909,609.80 \r\n11,376,623.79 341,490.76 \r\n7,440,441.00 288,610.86 \r\n3,472,674.07 $ 48,346,021.61 $ 11,158,864.39 \r\n195,650,323.53 \r\n$ 206,809,187.92 \r\n \r\n- 3 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2011 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government Local Other 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$ 21,640,459.04 $ 44,720,967.34 32,211.12 12,087,998.43 $ \r\n \r\n2,840,186.07 9,017,730.62 2,465,184.37 \r\n495,616.45 240,418.15 216,880.13 \r\n \r\n1,001,792.58 109,817.08 \r\n \r\n$ 36,948,685.95 $ 57,920,575.43 $ \r\n \r\n$ 66,361,426.38 32.64 12,120,242.19 \r\n3,841,978.65 9,017,730.62 2,465,184.37 \r\n495,616.45 350,235.23 216,880.13 \r\n32.64 $ 94,869,294.02 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts 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$ \r\n \r\n1,259,696.08 $ \r\n \r\n995,951.52 \r\n \r\n13,247,549.15 \r\n \r\n1,315,098.18 \r\n \r\n2,049,017.98 \r\n \r\n1,689,303.52 \r\n \r\n$ 16,196,548.75 $ 4,360,067.68 \r\n \r\n$ 2,255,647.60 13,247,549.15 1,315,098.18 2,049,017.98 1,689,303.52 \r\n$ 20,556,616.43 \r\n \r\n$ \r\n \r\n216,880.13 \r\n \r\n4,105,375.04 $ 53,560,507.75 $ \r\n \r\n2,678,468.19 \r\n \r\n13,751,413.84 \r\n \r\n$ 20,752,137.20 $ 53,560,507.75 $ \r\n \r\n$ 32.64 \r\n \r\n216,880.13 57,665,915.43 \r\n2,678,468.19 13,751,413.84 \r\n \r\n32.64 $ 74,312,677.59 \r\n \r\n$ 36,948,685.95 $ 57,920,575.43 $ \r\n \r\n32.64 $ 94,869,294.02 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n WHITFIELD COUNTY BOARD OF FEDUCATION 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\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 Compensated Absences Payable Unamortized Bond Premiums Claims and Judgments Payable \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 74,312,677.59 \r\n \r\n$ 8,624,659.08 41,723,302.05 9,612,998.57 \r\n152,051,779.94 18,295,995.79 -36,757,187.47 \r\n \r\n193,551,547.96 \r\n \r\n1,689,303.52 \r\n \r\n$ -58,335,000.00 -576,056.50 -299,802.12 \r\n-2,637,540.70 -895,941.83 \r\n \r\n-62,744,341.15 \r\n \r\n$ 206,809,187.92 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n WHITFIELD 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 Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal 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$ 25,115,170.85 \r\n \r\n341,490.76 $ 11,376,623.79 \r\n \r\n69,414,199.79 \r\n \r\n14,896,883.85 \r\n \r\n1,796,551.77 \r\n \r\n25,384.74 \r\n \r\n263,189.18 $ \r\n \r\n3,451,974.07 \r\n \r\n20,700.00 \r\n \r\n$ 115,041,655.83 $ 11,660,512.97 $ \r\n \r\n$ 36.94 \r\n \r\n25,115,170.85 11,718,114.55 69,414,199.79 14,896,883.85 \r\n1,796,551.77 288,610.86 \r\n3,472,674.07 \r\n \r\n36.94 $ 126,702,205.74 \r\n \r\n$ 68,435,960.06 $ \r\n \r\n194,032.82 \r\n \r\n$ 68,629,992.88 \r\n \r\n4,064,031.89 2,865,955.89 2,215,659.69 \r\n705,624.79 6,976,729.90 \r\n445,458.90 7,439,462.55 5,114,541.96 1,428,891.04 \r\n862,252.34 317,994.84 7,389,601.57 \r\n \r\n2,722.30 6,397.74 14,772.78 \r\n7,085.63 5,275.48 73,534.64 \r\n469.71 648,370.35 \r\n500,133.00 22,582,927.64 \r\n \r\n4,066,754.19 2,872,353.63 2,230,432.47 \r\n705,624.79 6,983,815.53 \r\n450,734.38 7,512,997.19 5,115,011.67 2,077,261.39 \r\n862,252.34 317,994.84 7,889,734.57 22,582,927.64 \r\n \r\n$ 10,145,000.00 2,811,476.00 \r\n \r\n10,145,000.00 2,811,476.00 \r\n \r\n$ 108,262,165.42 $ 24,035,722.09 $ 12,956,476.00 $ 145,254,363.51 \r\n \r\n$ 6,779,490.41 $ -12,375,209.12 $ -12,956,439.06 $ -18,552,157.77 \r\n \r\n$ \r\n \r\n10,390.55 \r\n \r\n$ 12,956,427.37 $ 12,966,817.92 \r\n \r\n$ -12,966,817.92 \r\n \r\n-12,966,817.92 \r\n \r\n$ \r\n \r\n10,390.55 $ -12,966,817.92 $ 12,956,427.37 $ \r\n \r\n0.00 \r\n \r\n$ 6,789,880.96 $ -25,342,027.04 $ \r\n \r\n-11.69 $ -18,552,157.77 \r\n \r\n13,962,256.24 \r\n \r\n78,902,534.79 \r\n \r\n44.33 \r\n \r\n92,864,835.36 \r\n \r\nFund Balances - Ending \r\n \r\n$ 20,752,137.20 $ 53,560,507.75 $ \r\n \r\n32.64 $ 74,312,677.59 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n WHITFIELD 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\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 \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: \r\nNet Decrease in Accrued Interest on Issuance of Bonds Increase in Compensated Absences Amortization of Bond Premium Increase in Claims and Judgments \r\nTotal Additional Expenditures \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ -18,552,157.77 \r\n \r\n$ 22,769,008.87 -3,942,597.22 \r\n \r\n18,826,411.65 \r\n \r\n311,010.28 \r\n \r\n-13,008.02 \r\n \r\n10,145,000.00 \r\n \r\n$ \r\n \r\n126,812.50 \r\n \r\n-21,969.97 \r\n \r\n452,149.80 \r\n \r\n-115,384.08 \r\n \r\n441,608.25 \r\n \r\n$ 11,158,864.39 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n (This page left intentionally blank) \r\n \r\n ASSETS Cash and Cash Equivalents Investments Accounts Receivable, Net \r\nOther \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nWHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS $ 266,970.21 60,280.28 \r\n80.00 $ 327,330.49 \r\n$ 327,330.49 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield 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\nThe Whitfield County Career Academy (Charter School) is organized as a high school in Whitfield County, with a focus toward integrating academics and advanced career/technical education programs. The Charter School may serve students in grades 9 through 12, as well as post-secondary students through an agreement with Dalton State College. The financial statements of the Charter School have been included with the School District's General Fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Whitfield County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n \r\n- 10 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund type: \r\n Agency funds account for assets held by the School District as an agent for various school activity accounts and flexible spending accounts. \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, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities 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- 11 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \r\nCASH AND CASH EQUIVALENTS 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\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks, and foreign currency risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n- 12 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPROPERTY TAXES \r\nThe Whitfield County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on October 20, 2010 (levy date). Taxes were due on December 20, 2010 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2010 tax digest are reported as revenue in the governmental funds for fiscal year 2011. The Whitfield 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 $24,205,559.05. \r\nTax millage rates levied for the 2010 tax year (calendar year) for the Whitfield County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.756 m ills \r\n \r\nSALES TAXES \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $11,376,623.79 and is to be used for capital outlay for educational purposes or debt services. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nConsumable Supplies \r\nOn the basic financial statements, inventories of consumable supplies 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 consumable supplies are recorded as an asset when purchased and expense/expenditure are recorded as the inventory items are used. \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 \r\n- 13 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nC a pita liz a tio n Policy \r\n \r\nEstim ate d Useful Life \r\n \r\nLand Land Im provem ents Buildings and Im provem ents Equipm e nt Intangible Assets \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 $ 50,000.00 \r\n \r\nN/A 15 years 70 years 10 to 12 years 15 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\nCOMPENSATED ABSENCES \r\nMembers of the Teachers' Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nVacation leave of 10 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\n \r\nBeginning of Year Liability \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nEnd of Year Liability \r\n \r\n2009 $ 2010 $ 2011 $ \r\n \r\n283,536.86 $ 303,607.83 $ 277,832.15 $ \r\n \r\n212,984.23 $ 185,557.24 $ 191,085.21 $ \r\n \r\n192,913.26 $ 211,332.92 $ 169,115.24 $ \r\n \r\n303,607.83 277,832.15 299,802.12 \r\n \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. The School District recognizes bond issuance costs during the fiscal year bonds are issued. To conform to generally accepted accounting principles, 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. \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 Assets. \r\n- 14 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \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 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- 15 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \r\n \r\nN o nspe nda ble In v e n to rie s \r\nRestricted Continuation of Federal Program s Capital Projects Debt Service \r\nAssigned School Activity Accounts Se lf-In s u ra n c e \r\nUnassigned \r\n \r\n$ \r\n \r\n$ 4,105,375.04 5 2 ,4 0 8 ,4 2 7 .3 9 1 ,1 5 2 ,1 1 3 .0 0 \r\n \r\n$ \r\n \r\n9 2 0 ,6 1 6 .2 2 \r\n \r\n1 ,7 5 7 ,8 5 1 .9 7 \r\n \r\nFund Balance, June 30, 2011 \r\n \r\n$ \r\n \r\n2 1 6 ,8 8 0 .1 3 \r\n5 7 ,6 6 5 ,9 1 5 .4 3 \r\n2 ,6 7 8 ,4 6 8 .1 9 1 3 ,7 5 1 ,4 1 3 .8 4 7 4 ,3 1 2 ,6 7 7 .5 9 \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 AND INVESTMENTS 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- 16 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \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 $78,488,512.67. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\n \r\nThe School District's investments as of June 30, 2011, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \r\n \r\nInvestm ent Type \r\n \r\nFair Value \r\n \r\nInvestm ent M aturity Less than 1 Year \r\n \r\nDebt Securities \r\n \r\nU. S. Treasuries \r\n \r\n$ \r\n \r\n32.64 $ \r\n \r\n3 2 .6 4 \r\n \r\nInvestm ent Pools Office of State Treasurer Georgia Fund 1 \r\n \r\n3 ,9 5 2 ,1 1 4 .5 0 \r\n \r\nTotal Investm ents \r\n \r\n$ 3,952,147.14 \r\n \r\nThe Georgia Fund 1, formerly referred to as LGIP, 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 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.ga.gov/SGD/cafr.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \r\nInterest Rate Risk \r\nInterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \r\n \r\n- 17 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCustodial Credit Risk \r\n \r\nCustodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk for investments. \r\n \r\nAt June 30, 2011, $32.64 of the School District's applicable investments were (1) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the name of the School District and (2) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \r\nCredit Quality Risk \r\n \r\nCredit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing custodial credit risk. \r\nNOTE 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2010 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2011 \r\n \r\n$ 8,624,659.08 20,652,692.76 $ 22,063,528.15 $ \r\n \r\n$ 8,624,659.08 \r\n \r\n992,918.86 \r\n \r\n41,723,302.05 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ 29,277,351.84 $ 22,063,528.15 $ 992,918.86 $ 50,347,961.13 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 151,282,424.54 $ 17,458,852.26 9,612,998.57 \r\n \r\n769,355.40 929,044.18 $ \r\n \r\n$ 152,051,779.94 \r\n \r\n91,900.65 \r\n \r\n18,295,995.79 \r\n \r\n9,612,998.57 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n19,084,107.25 9,254,258.07 4,555,117.56 \r\n \r\n2,181,089.00 1,252,498.22 \r\n509,010.00 \r\n \r\n78,892.63 \r\n \r\n21,265,196.25 10,427,863.66 \r\n5,064,127.56 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 145,460,792.49 $ -2,244,197.64 $ \r\n \r\n13,008.02 $ 143,203,586.83 \r\n \r\nGovernmental Activity Capital Assets - Net $ 174,738,144.33 $ 19,819,330.51 $ 1,005,926.88 $ 193,551,547.96 \r\n \r\n- 18 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction \r\n \r\nSupport Services \r\n \r\nEducational Medial Services \r\n \r\n$ \r\n \r\nGeneral Administration \r\n \r\nSchool Administration \r\n \r\nMaintenance and Operation of Plant \r\n \r\nStudent Transportation Services \r\n \r\nFood Services \r\n \r\n$ \r\n145,573.29 30,250.37 \r\n115,345.60 37,621.46 \r\n643,064.25 \r\n \r\n$ \r\n \r\n2,526,300.37 \r\n971,854.97 444,441.88 3,942,597.22 \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$ \r\n \r\n10,390.55 \r\n \r\n12,956,427.37 \r\n \r\nTotal \r\n \r\n$ 12,966,817.92 \r\n \r\nTransfers are used (1) to move sales tax revenues collected by the Capital Projects Fund to Debt Service Fund for bond payments; and (2) to return unused local funds from the Capital Projects Fund to the General Fund. \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 has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund \r\n \r\n- 19 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nwith 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estim ate s \r\n \r\nC laim s Paid \r\n \r\nEnd of Year Liability \r\n \r\n2010 \r\n \r\n$ \r\n \r\n2011 \r\n \r\n$ \r\n \r\n960,918.16 $ 780,557.75 $ \r\n \r\n122,234.90 $ 429,934.11 $ \r\n \r\n302,595.31 $ 314,550.03 $ \r\n \r\n7 8 0 ,5 5 7 .7 5 8 9 5 ,9 4 1 .8 3 \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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 ate s \r\n \r\nC laim 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\n115,792.00 $ 246,510.03 $ \r\n \r\n115,792.00 $ 246,510.03 $ \r\n \r\n0 .0 0 0 .0 0 \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Other Employees \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nNOTE 8: OPERATING LEASES \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2011, for governmental funds amounted to $225,512.80. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernm ental Funds \r\n \r\n2012 2013 2014 2015 2016 \r\n \r\n$ \r\n \r\n2 0 6 ,1 2 5 .2 0 \r\n \r\n2 0 6 ,1 2 5 .2 0 \r\n \r\n2 0 6 ,1 2 5 .2 0 \r\n \r\n2 0 6 ,1 2 5 .2 0 \r\n \r\n1 8 8 ,9 4 8 .1 0 \r\n \r\nTotal \r\n \r\n$ 1,013,448.90 \r\n \r\n- 20 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 9: LONG-TERM DEBT COMPENSATED ABSENCES \r\n \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\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\nAm ount \r\n \r\nGeneral Governm ent - Series 2006 General Governm ent - Series 2009 \r\n \r\n3 .6 1 0 % 2.50% - 5.00% \r\n \r\n$ 9,910,000.00 4 8 ,4 2 5 ,0 0 0 .0 0 \r\n \r\n$ 58,335,000.00 \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 Deductions \r\n \r\nBalance June 30, 2011 \r\n \r\nDue Within One Year \r\n \r\nG. O. Bonds Compensated Absences (1) Bond Premium Amortized \r\n \r\n$ 68,480,000.00 277,832.15 $ \r\n3,089,690.50 \r\n \r\n$ 10,145,000.00 $ 58,335,000.00 $ 10,540,000.00 \r\n \r\n191,085.21 \r\n \r\n169,115.24 \r\n \r\n299,802.12 \r\n \r\n452,149.80 \r\n \r\n2,637,540.70 \r\n \r\n452,149.80 \r\n \r\n$ 71,847,522.65 $ \r\n \r\n191,085.21 $ 10,766,265.04 $ 61,272,342.82 $ 10,992,149.80 \r\n \r\n(1) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. \r\n \r\nAt June 30, 2011, 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\nI n te r e st \r\n \r\nU n a m o r ti z e d Bond Premium \r\n \r\n2012 2013 2014 2015 2016 2017 \r\n \r\n$ 10,540,000.00 $ 8,805,000.00 9,160,000.00 9,540,000.00 9,935,000.00 \r\n10,355,000.00 \r\n \r\n2,304,226.00 $ 1,855,976.00 1,557,188.50 1,305,288.50 \r\n859,876.00 380,001.00 \r\n \r\n452,149.80 452,149.80 452,149.80 452,149.80 452,149.80 376,791.70 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 58,335,000.00 $ 8,262,556.00 $ 2,637,540.70 \r\n \r\n- 21 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 10: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $255,831.12 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 $171,223.61 \r\n \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $26,588.51 \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 $58,019.00 \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed C o ntra cts \r\n \r\nFunding Available From State \r\n \r\nCoahulla Creek High School Esatbrook M iddle School \r\n \r\n$ \r\n \r\n2,423,412.04 $ \r\n \r\n1 8 ,2 6 8 ,2 0 0 .2 1 \r\n \r\n4 6 0 ,4 6 3 .5 0 6 ,5 4 6 ,4 3 5 .0 0 \r\n \r\n$ 20,691,612.25 $ \r\n \r\n7 ,0 0 6 ,8 9 8 .5 0 \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 GEORGIA 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 \r\n \r\n- 22 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nand their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the health insurance coverage. \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"pay-as-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2011: \r\nFor certificated teachers, librarians and regional educational service agencies: \r\n \r\nJuly 2010 - April 2011 May 2011 - June 2011 \r\n \r\n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \r\n \r\n$162.72 per member per month $218.20 per member per month $246.20 per member per month \r\n \r\nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \r\n \r\nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntrib ute d \r\n \r\nRequired C o ntrib utio n \r\n \r\n2011 2010 2009 \r\n \r\n100% 100% 100% \r\n \r\n$ 10,059,535.41 $ 10,774,149.96 $ 7,759,012.74 \r\n \r\n- 23 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 14: RETIREMENT PLANS TEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\n \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage C o ntrib ute d \r\n \r\nRequired C o ntrib utio n \r\n \r\n2011 2010 2009 \r\n \r\n100% 100% 100% \r\n \r\n$ 6,235,080.52 $ 6,730,783.20 $ 6,465,762.11 \r\n \r\n- 24 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"H\" \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 25 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 Community Services \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\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\n$ 24,628,000.00 $ 25,109,610.00 $ 25,115,170.85 \r\n \r\n341,490.76 \r\n \r\n64,779,755.00 \r\n \r\n66,139,192.00 \r\n \r\n69,414,199.79 \r\n \r\n13,171,583.00 \r\n \r\n16,629,038.00 \r\n \r\n14,896,883.85 \r\n \r\n1,578,194.00 \r\n \r\n1,578,194.00 \r\n \r\n1,796,551.77 \r\n \r\n30,000.00 \r\n \r\n30,000.00 \r\n \r\n25,384.74 \r\n \r\n772,725.00 \r\n \r\n772,725.00 \r\n \r\n3,451,974.07 \r\n \r\n$ 104,960,257.00 $ 110,258,759.00 $ 115,041,655.83 \r\n \r\n$ 70,477,076.00 $ 69,049,526.00 $ 68,435,960.06 \r\n \r\n4,242,172.00 3,080,197.00 2,262,796.00 \r\n745,205.00 6,822,999.00 \r\n412,642.00 8,093,827.00 4,629,816.00 1,735,892.00 \r\n137,990.00 7,135,468.00 \r\n10,000.00 \r\n \r\n3,706,409.00 2,696,692.00 2,287,171.00 \r\n753,136.00 6,916,234.00 \r\n797,252.00 8,052,687.00 4,512,006.00 2,052,852.00 \r\n130,223.00 7,135,468.00 \r\n10,000.00 \r\n \r\n4,064,031.89 2,865,955.89 2,215,659.69 \r\n705,624.79 6,976,729.90 \r\n445,458.90 7,439,462.55 5,114,541.96 1,428,891.04 \r\n862,252.34 7,389,601.57 \r\n317,994.84 \r\n \r\n$ 109,786,080.00 $ 108,099,656.00 $ 108,262,165.42 \r\n \r\n$ -4,825,823.00 $ 2,159,103.00 $ 6,779,490.41 \r\n \r\n$ 1,381,808.00 $ 1,381,808.00 $ \r\n \r\n-1,381,808.00 \r\n \r\n-1,381,808.00 \r\n \r\n10,390.55 \r\n \r\n$ \r\n \r\n0.00 $ \r\n \r\n0.00 $ \r\n \r\n10,390.55 \r\n \r\n$ -4,825,823.00 $ 2,159,103.00 $ 6,789,880.96 \r\n \r\n13,324,371.45 \r\n \r\n13,933,732.78 \r\n \r\n13,962,256.24 \r\n \r\n$ 8,498,548.45 $ 16,092,835.78 $ 20,752,137.20 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n WHITFIELD 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 Education of Homeless Children and Youth Cluster Pass-Through From Georgia Department of Education Education for Homeless Children and Youth \r\nEducational 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 Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund English Language Acquisition Grants Improving Teacher Quality State Grants Migrant Education - State Grant Program Safe and Drug-Free Schools and Communities - State Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nTotal Expenditures of Federal Awards \r\nN/A = Not Available \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n(2) 6,973,545.33 (1) \r\n6,973,545.33 \r\n \r\n10.665 \r\n \r\nN/A $ \r\n \r\n(3) 6,973,545.33 \r\n \r\n84.196 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n20,152.44 \r\n \r\n84.318 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n2,118.86 \r\n \r\n* 84.027 * 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n2,496,136.40 49,932.31 \r\n2,546,068.71 \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n2,353,006.24 \r\n \r\n84.048 * 84.410 \r\n84.365 * 84.367 \r\n84.011 84.186 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n$ \r\n \r\n123,036.66 2,708,883.00 \r\n318,377.52 489,152.77 \r\n48,297.52 332.02 \r\n3,688,079.49 \r\n8,609,425.74 \r\n \r\n$ \r\n \r\n15,582,971.07 \r\n \r\n- 28 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $392,106.05. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($1,567,550.86) 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 $9,436.08, 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 Whitfield 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 WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervision Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Funding Health Insurance Math and Science Supplements Preschool Handicapped Program State Bonds for Buses Teachers' Retirement Virtual Schools Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\nSCHEDULE \"3\" \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n$ 1,051,586.00 \r\n4,491,085.00 1,021,946.00 10,084,248.00 2,039,395.00 4,768,130.00 1,339,388.00 8,495,943.67 8,110,838.33 1,824,742.00 7,277,854.00 4,085,176.00 \r\n3,956.00 637,971.00 3,177,452.00 1,532,338.00 451,975.00 293,470.00 \r\n1,753,761.00 3,220,390.00 3,565,533.00 \r\n1,242,221.00 205,687.00 29,270.00 \r\n7,440,441.00 223,730.00 198,736.45 \r\n-10,094,973.00 \r\n2,881.00 171,223.61 102,084.01 122,286.21 457,752.00 \r\n26,588.51 1,075.00 \r\n58,019.00 \r\n$ 69,414,199.79 \r\n \r\n WHITFIELD 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\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\nAcquisitions, construction and equipping of a \r\n \r\nnew elementary school, a new middle school \r\n \r\nand a new high school, including the \r\n \r\nacquisition of any furniture, fixtures and \r\n \r\nequipment necessary or desirable therefore; \r\n \r\nrenovations and improvements at existing \r\n \r\nschools, including the acquisition of any \r\n \r\nfurniture, fixtures and equipment necessary \r\n \r\nor desirable therefore; the acquisition, \r\n \r\nconstruction and equipping of a central \r\n \r\nwarehouse facility; the acquisition of school \r\n \r\nbuses; and system-wide technology \r\n \r\nimprovements. \r\n \r\n$ \r\n \r\n53,531,937.00 $ \r\n \r\n75,679,593.67 $ \r\n \r\n2,791,718.43 $ \r\n \r\n67,417,093.58 \r\n \r\nOngoing \r\n \r\nAcquisition, construction, equipping, and furnishing of new school buildings and facilities, including but not limited to, a new high school and a new elementary school; the addition, renovation, repair and improvement to existing school buildings and facilities; the acquisition and purchase of technology and safety equipment, including but not limited to, computer hardware and software and security and safety equipment; the acquisition and purchase of school buses and other transportation or maintenance vehicles; the acquisition of land; acquisition and purchase of any property necessary and desirable therefore, both real and personal. \r\n \r\n96,100,000.00 101,856,943.70 $ 20,107,715.12 \r\n \r\n45,064,801.92 Ongoing \r\n \r\n$ 149,631,937.00 $ 177,536,537.37 $ 22,899,433.55 $ 112,481,895.50 \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 Whitfield 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$ 4,839,859.89 \r\n \r\nCurrent Year \r\n \r\n2,811,476.00 \r\n \r\nTotal \r\n \r\n$ 7,651,335.89 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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 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) \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\n5,148,740.00 $ 4,754,374.05 $ \r\n \r\n1,093,539.00 \r\n \r\n532,102.99 \r\n \r\n11,500,604.00 10,533,244.08 \r\n \r\n2,165,353.00 \r\n \r\n1,143,542.56 \r\n \r\n5,405,469.00 \r\n \r\n4,904,527.91 \r\n \r\n80,958.42 $ 1,627.73 \r\n274,476.40 4,459.84 \r\n106,215.14 \r\n \r\n4,835,332.47 533,730.72 \r\n10,807,720.48 1,148,002.40 5,010,743.05 \r\n \r\n1,536,537.00 8,980,846.00 8,522,938.00 2,165,686.00 7,986,402.00 \r\n4,429,528.00 8,976.00 \r\n727,131.00 3,591,571.00 \r\n \r\n874,598.19 7,844,098.16 8,625,765.53 1,905,297.61 \r\n185,004.57 619,305.30 3,950,597.34 238,454.03 140,253.89 3,376,551.88 \r\n920,298.32 3,003,850.51 \r\n \r\n1,166.90 360,614.36 242,955.51 123,930.80 \r\n8,401.23 2,588.23 17,943.92 4,733.66 \r\n11,693.68 \r\n7,691.56 21,501.76 \r\n \r\n875,765.09 8,204,712.52 8,868,721.04 2,029,228.41 \r\n193,405.80 621,893.53 3,968,541.26 243,187.69 140,253.89 3,388,245.56 \r\n927,989.88 3,025,352.27 \r\n \r\n$ 63,263,320.00 $ 53,551,866.92 $ 1,270,959.14 $ 54,822,826.06 \r\n \r\n1,731,780.00 331,761.00 \r\n \r\n2,020,980.10 74,874.43 \r\n \r\n150,492.37 172,484.09 \r\n \r\n2,171,472.47 247,358.52 \r\n \r\n$ 65,326,861.00 $ 55,647,721.45 $ 1,593,935.60 $ 57,241,657.05 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 33 - \r\n \r\n  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 15, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated October 15, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. \r\nInternal Control Over Financial Reporting \r\nManagement of Whitfield County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Whitfield 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 Whitfield County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Whitfield County Board of Education's internal control over financial reporting. \r\nOur consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and therefore, there can be no assurances that all deficiencies, significant deficiencies or material weaknesses have been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified a certain deficiency in internal control over financial reporting that we consider to be a material weakness. \r\n \r\n2011YB-41 \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 item FS-7551-11-01 in the accompanying Schedule of Findings and Questioned Costs to be a material weakness. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Whitfield 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 Whitfield County Board of Education in a separate letter dated October 15, 2012. \r\nWhitfield 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 Whitfield 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 the management, members of the Whitfield County Board of Education, others within the entity, Federal awarding agencies and passthrough entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2011YB-41 \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 15, 2012 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Whitfield 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 Whitfield 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. Whitfield 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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield 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 Whitfield 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 Whitfield County Board of Education's compliance with those requirements. \r\nIn our opinion, the Whitfield 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. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7551-11-01. \r\n2011SA-40 \r\n \r\n  Internal Control Over Compliance \r\nManagement of Whitfield 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 Whitfield 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 Whitfield 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. However, we identified a certain deficiency in internal control over compliance that we consider to be a significant deficiency as described in the accompanying Schedule of Findings and Questioned Costs as item FA-7551-11-01. 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\nWhitfield 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 Whitfield 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 Whitfield 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-40 \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  WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \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\nSEE AUDITOR'S COMMENTS \r\n \r\nFS-7551-09-01 \r\n \r\nFurther Action Not Warranted \r\n \r\nFS-7551-09-02 \r\n \r\nPreviously Reported Corrective Action Implemented \r\n \r\nFS-7551-10-01 \r\n \r\nFurther Action Not Warranted \r\n \r\n(1) \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 Statements on Auditing Standards (SAS) 112 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7551-08-01 FA-7551-10-01 \r\n \r\nUnresolved  See Corrective Action/Responses Unresolved  See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Amount: $1,161.46 Finding Control Number: FA-7551-08-01 \r\n \r\nProcedures were created to ensure prior approval of promotional purchases from Food Service Funds. Procedures include a Promotion/Request/Approval form that contains the name of the school, name of promotion, dates of promotion, objective, description of plan, estimated cost and procedures for awarding items. A follow-up report was created to document the completion of the promotions and the results of the effort. \r\n \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027, 84.173, 84.391, and 84.392) Finding Control Number: FA-7551-10-01 \r\n \r\nThe School District will implement necessary training to ensure that employees charged with the responsibility to ensure compliance with Federal programs are adequately trained. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  WHITFIELD 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\nUnqualified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nYes 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: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\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\nYes \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 84.410 84.367 \r\n \r\nChild Nutrition Cluster Special Education Cluster Education Jobs Fund Improving Teacher Quality State Grants \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$467,489.13 \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\nFINANCIAL REPORTING Inadequate Controls over Financial Reporting Material Weakness Finding Control Number: FS-7551-11-01 \r\n \r\nCondition: The School District did not have adequate controls in place over the financial statement reporting process. \r\n \r\n- 1 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2011 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCriteria: Chapter 22A Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\nQuestioned Cost: N/A \r\nInformation: During the audit, the following correcting entries were proposed and accepted by the client to properly present the entity's financial statements. \r\n Several entries were necessary to tie beginning net assets and beginning fund balance to the prior year totals. \r\n Entries were necessary to properly record Property Taxes, Contracts Payable, Long-Term Debt, Depreciation Expense, Capital Assets, and On-Behalf Payments. \r\n Numerous reclassification entries were made to improve financial statement presentation.  Supplemental Schedules and Notes to the Basic Financial Statements were prepared by the \r\nauditor. \r\nThe Department of Audits and Accounts provided basic accounting assistance limited to services such as preparing draft financial statements that were based on the entity's chart of accounts and general ledgers including any adjusting, correcting, and closing entries that have been approved by the entity's staff; prepared draft notes to the financial statements based on information determined and approved by management; and prepared trial balances based on the entity's chart of accounts. \r\nCause: The School District did not maintain an adequate system of internal control over the financial statement reporting process. \r\nEffect: The School District did not comply with the requirements of the Georgia Department of Education regarding financial reporting. Several adjustments were necessary in order for the School District's financial statements to be in conformity with generally accepted accounting principles. \r\nRecommendation: The School District should implement controls over the financial statement reporting process to ensure that all required activity is included in the financial statement information. \r\n- 2 - \r\n \r\n WHITFIELD 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 Inadequate Internal Control Procedures Significant Deficiency Nonmaterial Noncompliance U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027 and 84.173) Finding Control Number: FA-7551-11-01 \r\nCondition: This is a repeat finding (FA-7551-10-01) from the year ended June 30, 2010. A review of expenditures charged to the Special Education Cluster (CFDA 84.027 and 84.173) programs revealed that the School District failed to implement internal control procedures to ensure expenditures were in compliance with grant requirements. \r\nCriteria: Provisions of OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, require that \"to be allowable under Federal awards, costs must be...authorized or not prohibited under state or local laws or regulations\" and \"conform to any limitations or exclusions set forth in these principles, Federal laws, terms and conditions of the Federal award, or other governing regulations as to types or amounts of cost items.\" \r\nQuestioned Cost: $52,394.25 \r\nInformation: A review of personal service expenditures for the Special Education Cluster revealed that salaries and benefits were paid to an employee who is not a Special Education employee. \r\nCause: Management failed to monitor compliance with Federal guidelines to ensure that expenditures charged to the Federal program were allowable. \r\nEffect: Failure to ensure that program expenditures are allowable resulted in noncompliance with the Federal grant. \r\nRecommendation: The School District should implement procedures to ensure the all expenditures charged to the Federal program are allowable under OMB Circular A-87. Georgia Department of Education should review these expenditures and determine whether a refund of grant funds is warranted. \r\n- 3 - \r\n \r\n  SECTION V MANAGEMENT'S RESPONSES \r\n \r\n  WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2011 \r\n \r\nFinding Control Number: FS-7551-11-01 \r\n \r\nWe concur with this finding. With the departure of the former CFO, we had no staff that worked on the FY 2011 books and the former CFO was not available to complete the preparation of the financial statements. Accordingly, we requested that the auditors complete the FY 2011 financial statements in conjunction with the audit. \r\n \r\nThe School District has hired a new CFO and added a position of Finance Director. However, these actions happened well into the FY 2012 year and we still had about half the year completed with no CFO in place and more than half the year before the Finance Director was able to assume her new duties. The district is also implementing new financial software and is therefore planning to ask the same financial statement preparation assistance for FY 2012. With the new staff and the new software in place, the district is putting additional financial statement controls in place to begin full financial statement preparation in place for FY 2013. \r\n \r\nFinding Control Number: FA-7551-11-01 \r\n \r\nWe concur with this finding. The district has implemented new procedures to insure that all staff charged to the Special Education Cluster meet with Federal guidelines including having a director who will approve all Special Education hires. In addition, the new financial software includes position control which will be an additional control with the hiring process and charging staff correctly. \r\n \r\nContact Person: Title: Telephone: Fax: Email: \r\n \r\nRon Hale CFO (706) 217-6701 (706) 217-6703 ron_hale@whitfield.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-b2009-h2010","title":"Whitfield County Board of Education, Dalton, 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. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, Whitfield County, 34.80561, -84.96722"],"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-bw59-b2009-h2010"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bw59-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--Whitfield County--fast--https://id.oclc.org/worldcat/entity/E39PBJhMm6RmjF4fBM7tvcFqcP","Periodicals--fast","Statistics--fast"],"fulltext":"WHITFIELD COUNTY BOARD OF EDUCATION \r\nDALTON, 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 WHITFIELD 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 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 ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTlVlTlES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES- BUDGET AND ACTUAL \r\nGENERAL FUND \r\n \r\n WHITFIELD 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 COMPLlANCE 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 MNOR 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 WHITFIELD COUNTY BOARD OF EDUCATION \r\n- TABLE OF CONTENTS - \r\nSECTION V MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES \r\n \r\n SECTION I FINANClAL \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\nOctober 6. 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 Whitfield County Board of Education \r\nINDEPENDENTAUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through H) of the Whitfield 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 Whitfield 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 GovernmentAuditing 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 remainingfund information of the Whitfield 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 GovernmentAuditing Standards, we have also issued our report dated October 6, 2011, on our consideration of the Whitfield 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 \r\n \r\n that testing, and not toprovide 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 Audl;tng Standardsand 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 viii 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 Whitfield 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 o f States, Local Governments, and Non-Prom Organiraions, 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\nq+34a2d d % \r\n~ u d e lWl . Hinton, CPA, CGFM State Auditor \r\n \r\n WHITFIELD 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 Whitfield County Board of Education's financial performance provides an overview of the School District's financial activities for the fiscal years ended June 30, 2009 and 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 notes to the basic financial statements and financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2010 and 2009 are as follows: \r\na On the District-wide financial statements, the assets of the School District exceeded liabilities by $195.6 million and $184.3 million, respectively, for the fiscal years ended June 30, 2010, and 2009. Of these amounts $10.7 and $12.1 million, respectively, for fiscal years 2010 and 2009 are available for spending a t the School District's discretion. \r\nThe School District had $122.5 million and $124.4 million, respectively, in expenses for the fiscal years ended June 30, 2010, and June 30, 2009, relating to governmental activities. Only $82.4 million and $79.8 million of the above mentioned expenses for 2010 and 2009 were offset by program specific charges for services, grants and contributions. General revenues (primarily property and sales taxes) totaling $51.4 million and $54.7 million, respectively,for 2010 and 2009 were adequate to provide for these programs. \r\nAs stated above, general revenues accounted for $51.4 million or 38.5% of all revenues totaling $133.8 million for fiscal year 2010 and $54.7 million or 40.7% of all revenues totaling $134.5 million for fiscal year 2009. Program specific revenues in the form of charges for services, grants and contribution accounted for the rest. \r\nOverview of the Financial Statements \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the Districtwide and fund financial statements. \r\nThe District-wide financial statements include the Statement of Net 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 Whitfield County School District, the General Fund, District-wide Capital Projects Fund, and Debt Service Fund are the most significant funds. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nDistrict-wide Statements \r\nThe District-wide financial statements are basically a consolidation of all of the 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 provides the basis for answering this question. These financial statements include all School District's assets and liabilities and uses the accrual basis of accounting similar to the accounting used by most private-sector companies. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash is received or paid. \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 reflects the School District's governmental activities. \r\nFund Financial Statements \r\nThe School District uses many funds to account for a multitude of financial transactions during the fiscal year. However, the fund financial statements presented in this report provide detail information about only the School District's significant or major funds. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The differences between governmental activities (reported in the Statement of Net 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 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\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\n \r\nFINANCIALANALYSIS 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 fiscal years 2010 and 2009. \r\n \r\nTable 1 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\nAssets Current and Other Assets Capital Assets, Net \r\n \r\nTotal Assets \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\nTotal Liabilities \r\n \r\nNet Assets Invested in Capital Assets, Net of Related Debt Restricted Unrestricted \r\n \r\nTotal Net Assets \r\n \r\nTable 2 shows the Changes in Net Assets for fiscal years ending June 30, 2 0 1 0 and June 30,2009. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\n \r\nTable 2 Change in Net Assets \r\nRevenues Program Revenues: Chargesfor 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Intangible RecordingTax Real Estate Transfer Tax Grants and Contributions not Restricted to Specific Programs 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 Bus~nessAdmlnlstration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-InstructionalServices Community Services Food Services Interest on Short-Termand Long-Term Debt \r\nTotal Expenses \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 WHITFIELD 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. \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\nF~scal \r\n \r\nYear 2010 \r\n \r\nYear 2009 \r\n \r\nInstruction Support Services: \r\nPupil Services Improvement of Instructional Services EducationalMedia Serv~ces General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Servlces Other Support Services Operationsof Non-InstructionalServices: Community Services Food Services Interest on Short-Term and Long-Term Debt \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 of $133.3 million and total expenditures of $147.8 million for fiscal year 2010 and total revenues of $133.9 million and total expenditures of $156.4 million for fiscal year 2009. The decrease in expenditures is due to a decrease in ESPLOST activity. \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 years 2010 and 2009, the School District amended its general fund budget as needed. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\nDuring fiscal year 2010, the General Fund had final actual revenues totaling $116.8 million, which was more than the final budgeted amounts of $114.0 million by $2.8 million. This difference (final actual vs. final budget) was primarily due to conservative budgeting. Property and sales taxes (Intangible and Real Estate taxes) exceeded budgeted revenues $1.3 million due to conservative budgeting. State revenues were less than budgeted revenues $8.6 million due to slowing revenue collections. Federal revenue collections exceeded budgeted revenues $7.1 million primarily due to the receipt of Federal stimulus funding (American Reinvestment and Recovery Act). The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 1 1 1 t h United States Congress in February 2009 and signed into law on February 17, 2009 by President Barack Obama. The primary objective for ARRA was to save and create jobs almost immediately. Secondary objectives were to provide temporary relief programs for those most impacted by the recession and invest in infrastructure, education, health, and 'green' energy. The ARRA funds helped offset the declines in state revenue. Miscellaneous revenues exceeded budgeted revenues $2.7 due to unbudgeted revenues from school activity accounts of $2.6 million. lnvestment revenue is primarily derived from our investment of cash in the State's Local Government lnvestment Pool (LGIP). The rate of return continues to decrease as a result of declining interest rates. \r\nDuring fiscal year 2009, the General Fund had final actual revenues totaling $118.5 million, which was less than the final budgeted amounts of $119.7 million by $1.2 million. This difference (final actual vs. final budget) was primarily due to a reduction in revenues due to a slowing economy. Property and sales taxes (Intangible and Real Estate taxes) exceeded budgeted revenues $1.4 million due to conservative budgeting. State revenues were less than budgeted revenues $6.9 million due to slowing revenue collections. Federal revenue collections exceeded budgeted revenues $1.2 million primarily due to American Recovery and Reinvestment Funds (ARRA). Miscellaneous revenues exceeded budgeted revenues $2.8 due to unbudgeted revenues from school activity accounts of $2.5 million. lnvestment revenue is primarily derived from our investment of cash in the State's Local Government lnvestment Pool (LGIP). The rate of return decreased as a result of the slow economy. \r\nDuring the fiscal year 2010, the General Fund had final actual expenditures totaling $115.9 million, which was less than the final budgeted amount of $118.1 million by $2.2 million. Instructional budget exceeded actual expenses $1.7 million due to conservative budgeting. The total expenditures include unbudgeted expenditures from school activity accounts of $3.2 million. \r\nDuring the fiscal year 2009, the General Fund had final actual expenditures totaling $118.2 million, which was less than the final budgeted amount of $121.6 million by $3.4 million. Instructional budget exceeded actual expenses $4.0 million due to conservative budgeting. The total expenditures include unbudgeted expenditures from school activity accounts of $3.0 million. \r\nDuring the fiscal year 2010, the General Fund transferred to the Capital Projects Fund $2.2 million for the purpose of providing sewer service to the new high school under construction through an intergovernmental agreement with Dalton Utilities. \r\nGeneral fund expenditures exceeded revenues and other financing uses resulting in a deficit of $1,329,916 for the fiscal year 2010. General fund expenditures exceeded revenues and other financing uses resulting in a deficit of $155,569 for the fiscal year 2009. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30,2010 \r\n \r\nCAPITAL ASSETS AND DEBT ADMINISTRATION \r\nCapital Assets \r\nAt the fiscal years ended June 30, 2010 and June 30, 2009, the School District had $174.7 million and $160.0 million, respectively, invested in capital assets, all in governmental activities. Table 4 reflects a summary of these balances net of accumulated depreciation. The district completed the construction of Cedar Ridge Elementary School and renovation of Dug Gap Elementary School funded through ESPLOST. An Athletic Facility was constructed at Westside Middle School funded by a donation from a member of the Westside community. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nLand Construction In Progress Buildingand Improvements Equipment Land Improvements \r\nTotal \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2010 \r\n \r\nYear 2009 \r\n \r\n$ \r\n \r\n8,624,659 $ \r\n \r\n20,652,693 \r\n \r\n132,198,317 \r\n \r\n8,204,594 \r\n \r\n5,057,881 \r\n \r\n7,426,174 22,397,164 116,767,922 \r\n8,248,348 5,172,501 \r\n \r\nIn accordance with the 2006 referendum pass by 2/3's of the voters, the School District has numerous construction projects in progress including a new elementary and high school, additions and renovations. \r\n \r\nDebt \r\n \r\nAt the fiscal years ending June 30, 2010 and June 30, 2009, the School District had $68.5 million and $78.2 million, respectively, in bonds outstanding. Table 5 summarizes the School District's debt for general obligation bonds. \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2010 \r\n \r\nYear 2009 \r\n \r\nCompensated Absences Bonds Payable Bond Premium Amortized \r\nTotal \r\n \r\n$ \r\n \r\n277,832 $ \r\n \r\n68,480,000 \r\n \r\n3,089,691 \r\n \r\n303,608 78,245,000 \r\n3,541,840 \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCALYEAR ENDED JUNE 30,2010 \r\nAt June 30, 2010 and June 30, 2009, the School District's assigned bond rating was \"Aal\" as determined by Moody's Investors Services, Inc. \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. \r\nEconomic Recession - decreases in total State funding for education have been forecasted as a result of slowing state tax revenues. Whitfield County Schools continues to prioritize its educational programs and seek opportunities for gained efficiencies within its resources to meet the growing demands of our customers. The School District continues to provide an increasing amount of local monies to meet various mandated educational requirements. Whitfield County School District remains 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 will continue to meet its obligation to the citizens of Whitfield County in accordance with the 2006 ESPLOST referendum. This referendum includes plans for renovations, classroom technology, new elementary and high schools and other capital needs that may arise. \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 demonstrate the School District's accountability for the funds it receives. If you have questions about this report or need additional financial information, contact Whitfield County Board of Education, 1306 South Thornton Avenue, Dalton, Georgia 30720. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30,2010 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Rece~vableN, et \r\nTaxes State Government Federal Government Local Other Inventories Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Claims Incurred but not Reported (IBNR) 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 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 \"AA\" \r\nGOVERNMENTAL ACTIVITIES \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30,2010 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Buslness Adm~nlstratlon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-InstructionalServices Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Governmental Act~vitles \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Speclfic Programs Investment Earnlngs Miscellaneous \r\nTotal General Revenues \r\nChange In Net Assets \r\nNet Assets - Beginning of Year \r\n- Net Assets End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGESFOR SERVICES \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 2 - \r\n \r\n PROGRAM 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 WHITFIELD COUNN BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30,2010 \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nTaxes State Government Federal Government LOca l Other Inventories \r\nTotal Assets \r\n \r\nLIABILITIES AND FUND BALANCES \r\n \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable De~ositsand Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nReserved for: Continuation of Federal Programs Debt Service Capital Projects \r\nUnreserved Designatedfor Student Act~vities Designatedfor Self-Insurance UndesignatedReported in: General Fund \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\nTOTAL \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -4- \r\n \r\n WHITFIELD COUNN BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30.2010 \r\n- Total 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\nLong-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liab~litiesin the funds. Long-Term Liabilities at year-end consist of: \r\nBonds Payable Accrued Interest Compensated Absences Unamortized Bond Premiums Claims and Judgments \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\nEXHIBIT \" D \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. -5- \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDEDJUNE 30,2010 \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Chargesfor Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent lnstructlon Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operationof Plant Student Transportation Services Central Support Services Other Support Services CommunitySew~ces Food Services Operation \r\nCapital Outlay Debt Services \r\nPr~nc~pal Interest \r\nTotal Expenditures \r\nExcess of Revenuesover (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- Fund 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\nThe notes to the basic financial statements are an integral part of thls statement - 6 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION RECONCILIATION OFTHE GOVERNMENTALFUNDSSTATEMENT 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 GovernmentaiActivities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmentai 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: Capital Outlay Depreciation Expense Excess of Capital Outlay over Depreciation Expense \r\nCapital Assets purchased with UniversalService Fund (e-rate) proceeds are not reported in Governmental Funds. However, in the Statement of Activities, the e-rate proceeds are shown as Capital Grants and Contributions. \r\nTaxes reponed in the Statement of Activities that do not provide current financial resources are not reponed as revenues in the funds. \r\nThe net effect of various misceiianeoustransactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \r\nRepayment of Long-Term Debt is reported as an expenditure In Governmental Funds, but the repayment reduces Long-TermLiabilities in the Statement of Net Assets. In the current year, these amounts consist of: Bond Principal Retirements \r\nSome items reported in the Statement of Activities do not require the use of current financial resourcesand therefore are not reported as expenditures in Governmental Funds. These activities consist of: Net Decrease in Accrued Interest Decrease in CompensatedAbsences Amortization of Bond Premium Decrease in Claims and Judgments Total Additional EXDenditUreS \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- 7 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30,2010 \r\nASSETS Cash and Cash Equivalents Investments \r\nTotal Assets \r\nLIABILITIES Funds Held for Others \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n- 8 - \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30.2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Whitfield 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\nThe Whitfield County Career Academy (Charter School) is responsible for the public education of all students attending its school. The Charter School was created through a contract between the School District and the Charter School whereby all State funding associated with the students attending the Charter School and certain specified local funds are turned over to the Charter School to cover the cost of its operations. The financial statements of the Charter School have been included with the School District's general fund. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Whitfield County Board of Education. \r\nDisfrct-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\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 Financia/ 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\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \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\nDistrict-wide Capital Projects Fund accounts for financial resources includingspecial Purpose Local Option Sales Tax (SPLOST), Bond Proceeds, and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation of major capital facilities. \r\nDebt Service Fund accounts for taxes (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 type: \r\nAgency funds account for assets held by the School District as an agent for various school activity accounts and flexible spending accounts. \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\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, compensated absences and claims and judgments, 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\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \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 \r\n(GASB) Statement No. 51, Accounting and Reporfing for Intangible Assets. The provisions of this Statement generally require retroactive reporting for intangible assets acquired after June 30, 1980, \r\nwith 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 Instruments. The provisions of this Statement impacts disclosure \r\nregarding 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\nl NVESTM ENTS \r\nComposition of lnvestments 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\nI . 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\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\n4. Obligations of any corporation of the United States government, 5. 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. \r\n \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\n \r\nRECEIVABLES \r\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 Whitfield County Board of Commissioners fixed the property tax levy for the 2009 tax digest year (calendar year) on November 7, 2009 (levy date). Taxes were due on January 8, 2010 (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 Whitfield 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 $25,885,771.44. \r\n \r\nThe tax millage rate levied for the 2009 tax year (calendar year) for the Whitfield County Board of Education was as follows (a mill equals $1per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.756 mills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $11,701,762.99 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\nConsumable Supplies On the basic financial statements, inventories of consumable supplies are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby consumable supplies are recorded as an asset when purchased and expense/expenditure are recorded as the inventory items are used. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \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 Federallyassigned 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 \r\n \r\nstatements are as follows: \r\n \r\nCapitalization \r\n \r\nEstimated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment \r\n \r\nAll $ 20,000.00 $ 100,000.00 $ 10,000.00 \r\n \r\nN/A 1 5 years 7 0 years 1 0 to 1 2 years \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\nCOMPENSATED ABSENCES \r\nMembers of the Teachers Retirement System of Georgia (TRS) may apply unused sick leave toward early retirement. The liability for early retirement will be borne by TRS rather than by the individual school districts. Otherwise, sick leave does not vest with the employee, and no liability is reported in the School District's financial statements. \r\nVacation leave of 1 0 days is awarded on a fiscal year basis to all full time personnel employed on a twelve month basis. No other employees are eligible to earn vacation leave. Vacation leave not utilized during the fiscal year may be carried over to the next fiscal year, providing such vacation leave does not exceed 15 days. At the end of September, all vacation leave in excess of 15 days is forfeited. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nBeginning of Year Liability \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nEXHIBIT \"H\" \r\nEnd of Year Liability \r\n \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. The School District recognizes bond issuance costs during the fiscal year bonds are issued. To conform to generally accepted accounting principles, 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 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 Assets. \r\nN ET 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\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 3: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATIONOF 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. 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. At June 30, 2010, the bank balances were $93,115,930.19. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledgingfinancial institution's trust department or agent in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nThe School District's investments as of June 30, 2010, are presented below. All investments are presented by investment type and debt securities are presented by maturity. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 3 0 , 2 0 1 0 \r\n \r\nEXHIBIT \"H\" \r\n \r\nlnvestment Type \r\n \r\nFair Value \r\n \r\nInvestment Maturity Less than 1Year \r\n \r\nDebt Securities U. S. Treasuries \r\n \r\n$ \r\n \r\n44.33 $ \r\n \r\n44.33 \r\n \r\nlnvestment Pools Office of Treasury and Fiscal Services Georgia Fund 1 \r\n \r\n5,365,358.37 \r\n \r\nTotal Investments \r\n \r\n$ 5,365,402.70 \r\n \r\nThe Georgia Fund 1,formerly referred to as LGIP, administered by the State of Georgia, Office of Treasury and Fiscal Services 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 Treasury and Fiscal Services for the Georgia Fund 1(Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1is disclosed in the State of GeorgiaComprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at htt~://www.audits.aa.aov/SGD/cafr.htmI. \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the lnvestment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1may not exceed 6 0 days. The weighted average maturity for Georgia Fund 1on June 30,2010, was 46 days. \r\n \r\nlnterest Rate Risk lnterest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \r\n \r\nCustodial Credit Risk Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \r\n \r\nAt June 30, 2010, $44.33 of the School District's applicable investments were (1) uninsured and unregistered, with securities held by the counterparty's trust department or agent in the name of the School District and (2) uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent, but not in the School District's name. \r\n \r\nCredit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\nNOTE 4: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2009 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\n$ \r\n \r\n7,416,174.07 $ \r\n \r\n1,265,388.81 $ \r\n \r\n56,903.80 $ \r\n \r\n22,397,163.58 \r\n \r\n18,207,289.76 \r\n \r\n19,951,760.58 \r\n \r\nBalances June 30,2010 \r\n8,624,659.08 20,652,692.76 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ 29,813,337.65 $ 19,472,678.57 $ 20,008,664.38 $ 29,277,351.84 \r\n \r\nCapital Assets, Being Depreciated: Bulldings and Improvements Equ~pment Land Improvements \r\n \r\n$ 133,806,757.77 $ 15,904,949.84 9,227,290.07 \r\n \r\n17,475,666.77 $ 1,553,902.42 385,708.50 \r\n \r\n0.00 $ \r\n \r\n151,282,424.54 17,458,852.26 9,612,998.57 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n4,054,789.46 \r\n \r\n500,328.10 \r\n \r\n4,555,117.56 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 130,188,770.93 $ \r\nGovernmental Activity Capital Assets - Net $ 160,002,108.58 $ \r\n \r\n15,272,021.56 $ 34,744,700.13 $ \r\n \r\n0.00 $ 145,460,792.49 20,008,664.38 $ 174,738,144.33 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\nInstruction Support Services \r\nEducational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \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 Fund \r\n \r\nCapital Proiects \r\n \r\nDistrict-wide Capital Projects Debt Service Fund \r\n \r\nTotal \r\n \r\nTransfers are used (1)to move SPLOST funds from Capital Projects to Debt Service for bond payments and, (2) to move local funds from the General Fund to Capital Projects for local building projects. \r\n \r\nNOTE 7: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District 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 has established a limited risk management program for workers' compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. 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. An excess coverage insurance policy covers individual claims in excess of $250,000.00 loss per occurrence, up to the statutory limit. \r\n \r\nChanges in the workers' 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\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as \r\n \r\nfollows: \r\n \r\nClaims and \r\n \r\nBeginningof 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\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\nSuperintendent All Other Employees NOTE 8: OPERATING LEASES \r\n \r\nAmount \r\n \r\nWhitfield County Board of Education has entered into various leases as lessee for office equipment and mobile units. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2010, for governmental funds amounted to $332,377.04. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\nTotal \r\nNOTE 9: LONG-TERM DEBT \r\nCOMPENSATED ABSENCES \r\nCompensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30.2010 \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\nInterest Rates \r\nGeneral Government- Series 2006 General Government- Series 2009 \r\n \r\nEXHIBIT \"H\" \r\nAmount \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2010, were as follows: \r\n \r\nBalance July 1, 2009 \r\n \r\nAdditions \r\n \r\nGovernmental Funds \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2010 \r\n \r\nDue Within One Year \r\n \r\nG. 0. Bonds Compensated Absences (1) Bond Premiums Amortrzed \r\n \r\n$ 78,245,000.00 303,607.83 $ \r\n3,541,840.30 \r\n \r\n$ 185,557.24 \r\n \r\n9,765,000.00 $ 211,332.92 452.149.80 \r\n \r\n68,480,000.00 $ 277.832.15 \r\n3,089.690.50 \r\n \r\n10,145,000.00 452,149.80 \r\n \r\n71) The portion of Compensated Absences due within one year has been determined to be immaterial to the \r\nbasic financial statements. \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\nPrincipal \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 $223,426.48 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \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 $153,001.01 \r\n \r\nPaid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $27,705.13 \r\n \r\nOffice of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer'sCost In the amount of $42,720.34 \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, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nCareer Academy Eastbrook Middle School New High School \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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 of the cost of health insurance coverage. \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\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, 2010: \r\nFor certificated teachers, librarians and regional educational service agencies: \r\n \r\nJuly 2009 August 2009 - 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 18.534% of covered payroll for December - July Coverage \r\n \r\nFor non-certificatedschool 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 WHITFIELD COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30,2010 \r\n \r\nEXHIBIT \"H\" \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1,1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 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\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 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 1 0 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 WHITFIELD COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30,2010 \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 Instruct~on Support Services Pupil Services Improvement of Instructional ServlCeS Educational Media Services General Admin~stratlon School Administration Business Administration Maintenance and Operation of Plant Student Transportat~onServices Central Support Services Other Support Services Commun~tyServices Food Services Operation \r\nTotal Expenditures \r\nExcessof Revenuesover (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\nFund Balances- Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nNotes to the Schedule of Revenues. Exoenditures and Changes in Fund Balances Budoet and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expendituresof the various principal accounts \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual b a s s of accounting whlch IS the basis of accounting used in the presentatlon of the fund financial statements. \r\n \r\nSCHEDULE \"1\" \r\nACTUAL AMOUNTS \r\n \r\nSee notes to the baslc financial Statements. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURESOF FEDERALAWARDS \r\nYEAR ENDED JUNE 30,2010 \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 Treasury and Fiscal Services \r\nSchools and Roads- Grants to States \r\nOther Programs Pass-Through From Georgia Department of Education Food Services ARRA - Child Nutrition Discret~onaryGrants Lim~tedAvailability \r\nTotal U. S. Department of Agriculture \r\nEducation. U. S. Department of Education of Homeless Children and Youth Cluster Pass-ThroughFrom Georgia Departmentof Education Educationfor Homeless Ch~ldrenand Youth \r\nEducation Technology State Grants Cluster Pass-ThroughFrom Georgia Department of Education Education Technolow State Grants \r\nSpecial Education Cluster Pass-ThroughFrom Georgia Department of Education Special Education \r\nARRA - Grants to States \r\nARRA - Preschool Grants Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nState Fiscal Stabilization Fund Cluster Pass-ThroughFrom Georgia Department of Education \r\nARRA - Education State Grants \r\nTitle I, Part A Cluster Pass-ThroughFrom Georgia Department of Education \r\nARRA - Title I Grants to Local EducationalAgencies \r\nTitle IGrants to Local EducationalAgencies \r\nTotal Title I, Part A Ciuster \r\nOther Programs Pass-ThroughFrom Georgia Department of Education Career and Technical Education-Basic Grants to States English Language Acquisition Grants ImprovingTeacher Quality State Grants \r\nMigrant Education - State Grant Program Safe and Drug-FreeSchools and Communities - State Grants \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDEDJUNE 30.2010 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nHealth and Human Services. U. S. Department of Child Care and Development Fund Cluster Pass-ThroughFrom Bright From the Start: Georg~aDepartment of Eariy Care and Learning ARRA - Chlld Care and Development Block Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nTotal Federal Financial Assistance \r\nN/A = Not Available \r\nNotesto the Schedule of Expendituresof Federal Awards \r\n(1) lnciudes the Federally assigned value of donated cornmodltles for the Food Donatlon Program in the amount of $437,925.10. \r\n(2) Expendituresfor the funds earned on the School Breakfast Program ($1,530,268.60) were not malntalned separately and are included in the 2010 Nat~onaSl chool Lunch Program. \r\n(3) Funds earned on this program. in the amount of $8,495.33, do not require reportingof 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 accompanyingscheduie of expenditures of Federal awards includes the Federal grant activity of the Whiffield 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 bas~cf~nanciasl tatements. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDEDJUNE 30,2010 \r\n \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 Kindergarten Program - Early Intervention Program PrimaryGrades (1-3) Program Primaty Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program \r\nUpper Elementary Grades - Early Intervention (4-5) Program \r\nMiddle School (6-8) Program High School General Educatlon (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 2 0 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Educat~onEqualization FundingGrant Food Services Vocational Education Amended Formula Adjustment Other State Programs Dual Enrollment Health Insurance National Teacher Certification Preschool Handicapped Program Teachers' Retirement Virtual School State Grant \r\nGeorgia State Financing and Investment Commission Reimbursementon Construction Projects \r\nOffice of Treasury and Fiscal Services Public School Employees Retirement \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nSCHEDULE \"3\" TOTAL \r\n \r\nSee notes to the basicfinancial statements. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 3 0 , 2 0 1 0 \r\n \r\nSCHEDULE \"4\" \r\n \r\nAcquisit~onsc, onstruction and equipping of a new elementary school, a new middle school and a new high school, includingthe acquisition of any furniture. fixtures and equipment necessaly or desirable therefore: renovations and improvements at existing schools, ~ncludingthe acquisition of any furniture, fixtures and equipment necessary or deslrable therefore; the acqulsltlon, construction and equipping of a central warehouse facility; the acquisition of school buses; and system-wide technology Improvements. \r\nAcquisition, construction, equlpplng, and furnlshlng of new school build~ngsand facilities, includ~ngbut not llmited to, a new h~ghschool and a new elementary school; the addition, renovation, repalr and Improvement to existing school buildings and facilities: the acquisition and purchase of technology and safety equipment, ~ncludingbut not l~mitedto, computer hardware and software and security and safety equipment; the acquisition and purchaseof school buses and other transportation or maintenance vehicles: the acquisition of land; acquisition and purchase of any property necessary and desirable therefore, both real and personal. \r\n \r\nORIGINAL EST1MATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS ( 2 ) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\n(1)The School District's original cost estlmate as specified in the resolutioncalling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) Changes from the orlginal estimated costs reflect actual ESPLOST revenue, state capital grants, investment earnings and current estimated costs. \r\n \r\n(3) The voters of Whitfield County approved the imposition of a 1%sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expendituresshown 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$ 1,697.285.61 \r\n \r\nCurrent Year \r\n \r\nTotal \r\n \r\nSee notes to the basic financial statements. \r\n \r\n (This page left intentionally blank) \r\n \r\n WHITFIELD 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\nDirect Instructional Programs Kindergarten Program K~ndergartenProgram-Early lnterventlon Program Pr1ma1-yGrades(1-3) Program Primary Grades-Early Intervention (1-3) Program Upper ElementaryGrades (4-5) Program Upper ElementaryGrades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Educat~on(9-12) Program Vocational Laboratory (9-12) Program Students wlth Disabilities Category I Category II Category Ill 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 OBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not ~ncludethe Impact of the State amended formula adjustment. \r\n \r\nSee notes to the bas~cfinancial statements \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 6563174 \r\n \r\nDEPARTMENOTF AUDITSAND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nOctober 6, 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 Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATERS 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 Whitfield County Board of Education as of and for the year ended June 30, 2010, which collectively comprise Whitfield County Board of Education's basic financial statements and have issued our report thereon dated October 6, 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 GovernmentAuditing 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 Whitfield 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 Whitfield County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Whitfield 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\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-7551-10-01, described in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. A signficant 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 Whitfield 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 Whitfield County Board of Education in a separate letter dated October 6, 2011. \r\nWhitfield 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 Whitfield 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 Whitfield 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 d s e lWl . Hinton, CPA, CGFM State 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\nOctober 6 , 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 Whitfield County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WlTH REOUIREMENTS 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\nLadies and Gentlemen: \r\nCompliance \r\nWe have audited Whitfield 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. Whitfield 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 Whitfield County Board of Education's management. Our responsibility is to express an opinion on Whitfield 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, L m l 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 Whitfield 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 Whitfield County Board of Education's compliance with those requirements. \r\n \r\n As described in item FA-7551-10-01 in the accompanying Schedule of Findings and Questioned Costs, Whitfield County Board of Education did not comply with requirements regarding Activities Allowed/Unallowed and Allowable Costs/Cost Principles that are applicable to its Special Education Cluster. Compliance with such requirements is necessary, in our opinion, for Whitfield County Board of Educationto comply with requirements applicable to that program. \r\nIn our opinion, except for the noncompliance described in the preceding paragraph, Whitfield 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\nInternal Control Over Com~liance \r\nManagement of Whitfield 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 Whitfield 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 Whitfield 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 certain deficiencies in internal control over compliance that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies. \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-7551-10-01to be a material weakness. \r\nWhitfield 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 Whitfield County Board of Education's response and, accordingly, we express no opinion on the response. \r\n \r\n This report is intended solely for the information and use of management, members of the Whitfield 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~us\u0026elWl . 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 WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFS-7551-08-0 1 FS-7551-09-01 FS-7551-09-02 \r\n \r\nFurther Action Not Warranted Partially Resolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDlTURES/LIABILITIES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Finding Control Number: FS-7551-09-01 \r\n \r\nA Business Advisory Committee has performed Local School Accounting Internal audits for all schools. These audits have been designed to assess compliance with existing internal controls. In addition, the committee had conducted one-on-one training through internal audit exit conferences and have reviewed and modified existing procedures as considered necessary. \r\n \r\nCAPITAL ASSETS Failure to Maintain and Report Capital Assets Finding Control Number: FS-7551-09-02 \r\n \r\nA physical inventory of all capital assets was conducted for the purpose of updating the fixed assets schedule in accordance with the School District's fixed asset policy. Necessary adjustments were made to both cost and accumulated depreciation. A schedule was prepared regarding a restatement of prior year fixed assets. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nFINDING CONTROL NUMBER AND STATUS \r\n \r\nFA-7551-08-01 \r\n \r\nUnresolved - See Corrective Action/Responses \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30,2010 \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nCORRECTIVE ACTION/RESPONSES \r\nALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures U. S. Department of Agriculture Through Georgia Department of Education Child Nutrition Cluster (CFDA 10.553 and 10.555) Amount: $1,161.46 Finding Control Number: FA-7551-08-01 \r\nProcedures were created to ensure prior approval of promotional purchases from Food Service Funds. Procedures include a Promotion/Request/Approval form that contains the name of the school, name of promotion, dates of promotion, objective, description of plan, estimated cost and procedures for awarding items. A follow-up report was created to document the completion of the promotions and the results of the effort. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n WHITFIELD 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\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\nMaterial weakness identified? \r\n \r\nN 0 \r\n \r\nSignificant deficiency identified? \r\n \r\nYes \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\nYes None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: \r\n \r\nUnqualified for all major programs except for Special Education Cluster, which was qualified. \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\nYes \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbeds) \r\n \r\nName of Federal Program or Cluster \r\n \r\nTitle I, Part A Cluster Special Education Cluster State Fiscal Stabilization Fund Cluster \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30,2010 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDlTURES/LIABILlTlES/DISBURSEMENTS Inadequate Internal Control Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-7551-10-01 \r\nCondition: This is a repeat finding (FS-7551-09-01, FS-7551-08-01 and FS-7551-07-01)from the years ended June 30, 2009, June 30, 2008, and June 30, 2007, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\nQuestioned Cost: N/A \r\nInformation: Cash and Cash Equivalents The bank reconciliation function was not separated from the record keeping and voucher payment functions. \r\nRevenues/Receivables/Receipts Deposit preparation was not separated from the record keeping and cash custody functions. \r\nThe following deficiencies were noted during our tests of transactions: Receipts were not deposited in a timely manner. Revenues were not recorded in the proper account. \r\nExpenditures/Liabilities/Disbursements The following deficiencies were noted during our tests of transactions: \r\nVouchers did not have approval prior to purchase. Vouchers did not show evidence of receipt. Vouchers did not include invoices. Expenditureswere not recorded in the proper account. \r\nCause: These deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. \r\nEffect: Errors and/or irregularities may not be detected in a timely manner \r\nRecommendation: Management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30,2010 \r\nIll FEDERALAWARD FINDINGSAND QUESTIONEDCOSTS \r\nACTIVITIES ALLOWED/UNALLOWED ALLOWABLE COSTS/COST PRINCIPLES Inadequate Internal Control Procedures Material Weakness Material Noncompliance U. S. Department of Education Through Georgia Department of Education Special Education Cluster (CFDA 84.027,84.173, 84.391, and 84.392) Finding Control Number: FA-7551-10-01 \r\nCondition: A review of expenditures charged to the Special Education Cluster (CFDA 84.027, 84.173, 84.391, and 84.392) programs revealed that the School District failed to implement internal control procedures to ensure expenditures were in compliance with grant requirements. \r\nCriteria: Provisions of 0MB Circular A-87, CostPrinciples for State, Local, and Indian Tribal Governments,require \r\n... that \"to be allowable under Federal awards, costs must be authorized or not prohibited under state \r\nor local laws or regulations\" and \"conform to any limitations or exclusions set forth in these principles, Federal laws, terms and conditions of the Federal award, or other governing regulations as to types or amounts of cost items.\" \r\nQuestioned Cost: N/A \r\nInformation: A review of personal service expenditures for the Special Education Cluster revealed that approximately $1.3 million of salaries and benefits were paid to employees that were not Special Education employees. After this situation was discovered by the auditor, Georgia Department of Education allowed the School District to replace these expenditures with Quality Basic Education Special Education program expenditures which resulted in no questioned costs. \r\nCause: Management failed to monitor compliance with Federal guidelines to ensure that expenditures charged to the Federal Program were allowable. \r\nEffect: Failure to ensure that program expenditures are allowable can result in noncompliance with the requirements of the Federal grant. \r\nRecommendation: The School District should implement procedures to ensure that all expenditures charged to the Federal program are allowable under OMB Circular A-87. The Georgia Department of Education has reviewed this matter and determined that the School District will be able to replace those employees with Special Education employees in order to avoid returningthe grant funds. \r\n \r\n SECTION V MANAGEMENT'S RESPONSES \r\n \r\n WHITFIELD COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30,2010 \r\n \r\nFinding Control Number: FS-7551-10-01 \r\n \r\nWe concur with this finding. Duringfiscal year 2009, a Business Advisory committee was created to support and assess accounting transactions and to ensure sound fiscal management through compliance with the district's internal controls. The committee continuously works with our schools' bookkeepers to strengthen their knowledge and understanding of the district's internal controls through internal audits and support. \r\n \r\nFinding Control Number: FA-7551-10-01 \r\n \r\nWe concur with this finding. The district will implement necessarytraining to ensure that employees charged with the responsibility to ensure compliance with federal programs are adequately trained. \r\n \r\nContact Person: Telephone: Fax: Email: \r\n \r\nKenny Sheppard, Controller 706-217-6701 706-2 17-6703 ksheppard@whitfield.k12.ga.u~ \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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