{"response":{"docs":[{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2020-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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":["2021-05-25"],"dcterms_description":["Annual financial report for the Bleckley 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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, 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-bb6-b2020-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2020-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY 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 NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA 4 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\ni \r\n1 2 \r\n3 4 5 6 7 \r\n31 32 33 34 35 36 37 \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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 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 Bleckley County Board of Education \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities and each major fund of the Bleckley 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 and each major fund 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 Bleckley 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 25, 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 25, 2021 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nINTRODUCTION \r\nThe discussion and analysis of the Bleckley County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2020. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal year 2020 are as follows: \r\n In fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This implementation caused a restatement of beginning net position for governmental activities and beginning fund balance for the general fund in the amount of $92 thousand. \r\n Government-wide net position at June 30, 2020 was $1.2 million. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities and deferred inflows of resources. The net position at June 30, 2020 of $1.2 million represented an increase of $2.1 million, without consideration of the restatement, when compared to the prior year. This increase in net position is primarily due to an increase in state funding. \r\n General revenues accounts for $10.6 million in revenue or 32.3% of all revenues totaling $32.9 million. Program specific revenues in the form of charges for services and grants and contributions accounted for the remainder. \r\n The School District had $30.9 million in expenses related to governmental activities; however $22.3 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily property and sales taxes) of $10.6 million were adequate to provide for these programs. \r\n On May 7, 2020, the School District issued $16.0 million in general obligations bonds for the construction of a new Bleckley County Primary School and athletic facilities renovations. \r\n Long-term liabilities increased by $18.8 million for fiscal year 2020 when compared to the prior year. This increase was due primarily to the issuance of general obligations bonds. \r\n Among major funds, the general fund had $30.3 million in revenues and $28.7 million in expenditures. The fund balance for the general fund increased from $5.8 million to approximately $6.6 million. The primary reason for the increase was an increase in state funding and property taxes while maintaining low expense levels. \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\ni \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. \r\nThe fund financial statements reflect the School District's most significant funds. For fiscal year 2020, the general fund, the capital projects fund, and the debt service fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets, deferred outflows of resources, liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on 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 \r\nii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\ngeneral government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled in the financial statements. \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2020 and 2019. \r\nTable 1 Net Position \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nNet Change \r\n \r\n$ 28,783,460 $ 9,087,426 $ 19,696,034 \r\n \r\n34,079,175 32,470,156 \r\n \r\n1,609,019 \r\n \r\nTotal Assets \r\n \r\n62,862,635 41,557,582 21,305,053 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n6,860,293 1,821,989 \r\n \r\n5,072,339 737,184 \r\n \r\n1,787,954 1,084,805 \r\n \r\nTotal Deferred Outflows of Resources \r\n \r\n8,682,282 \r\n \r\n5,809,523 \r\n \r\n2,872,759 \r\n \r\nLiabilities Current and Other Liabilities Net Pension Liability Net OPEB Liability Long-term Liabilities \r\n \r\n1,898,231 23,241,198 16,300,968 22,818,466 \r\n \r\n2,360,389 21,451,154 16,117,670 \r\n4,044,324 \r\n \r\n(462,158) 1,790,044 \r\n183,298 18,774,142 \r\n \r\nTotal Liabilities \r\n \r\n64,258,863 43,973,537 20,285,326 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan Related to OPEB Plan \r\n \r\n1,714,840 4,343,943 \r\n \r\n793,804 3,439,489 \r\n \r\n921,036 904,454 \r\n \r\nTotal Deferred Inflows of Resources \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n6,058,783 \r\n \r\n4,233,293 \r\n \r\n1,825,490 \r\n \r\n29,921,265 1,883,235 \r\n(30,577,229) \r\n \r\n27,867,342 1,932,217 \r\n(30,639,284) \r\n \r\n2,053,923 (48,982) 62,055 \r\n \r\nTotal Net Position \r\n \r\n$ 1,227,271 $ (839,725) $ 2,066,996 \r\n \r\n(1) Fiscal year 2019 balances do not reflect the effects of the restatement of net position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \r\niii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 Net position, which is the difference between total assets, deferred outflows of resources, total liabilities and deferred inflows of resources, is one indicator the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expense exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position, can be one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position as measured in the Statement of Activities, are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For fiscal year 2020, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $1.2 million at June 30, 2020. Total assets and deferred outflows of resources increased by $24.2 million which was primarily due to the receipt of bond proceeds for construction of the new Bleckley County Primary School and athletic renovations. Total liabilities and deferred inflows of resources increased by $22.1 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 $2.1 million, without consideration of the restatement. \r\niv \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2020 and June 30, 2019. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\nNet \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nChange \r\n \r\n$ 351,785 $ 465,573 $ \r\n \r\n20,695,103 20,024,240 \r\n \r\n1,226,697 \r\n \r\n666,607 \r\n \r\n(113,788) 670,863 560,090 \r\n \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 Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n22,273,585 21,156,420 1,117,165 \r\n \r\n3,924,756 13,424 \r\n \r\n3,726,102 12,287 \r\n \r\n198,654 1,137 \r\n \r\n1,422,710 57,888 \r\n3,416,436 18,170 \r\n1,791,588 \r\n \r\n1,045,703 45,485 \r\n2,685,124 8,498 \r\n851,468 \r\n \r\n377,007 12,403 \r\n731,312 9,672 \r\n940,120 \r\n \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 Long-Term Debt \r\n \r\n10,644,972 32,918,557 \r\n \r\n8,374,667 29,531,087 \r\n \r\n2,270,305 3,387,470 \r\n \r\n19,853,802 \r\n1,077,672 416,584 333,532 885,939 \r\n1,739,066 420,619 \r\n1,863,027 1,775,236 \r\n127,141 264,992 \r\n36,713 1,947,867 \r\n201,224 \r\n \r\n17,153,747 \r\n997,312 522,224 291,986 701,888 1,557,858 190,347 1,805,672 1,627,105 \r\n71,991 342,148 \r\n42,889 1,958,568 \r\n148,843 \r\n \r\n2,700,055 \r\n80,360 (105,640) \r\n41,546 184,051 181,208 230,272 \r\n57,355 148,131 \r\n55,150 (77,156) \r\n(6,176) (10,701) 52,381 \r\n \r\nTotal Expenses \r\n \r\n30,943,414 27,412,578 3,530,836 \r\n \r\nIncrease In Net Position \r\n \r\n$ 1,975,143 $ 2,118,509 $ (143,366) \r\n \r\n(1) Fiscal Year 2019 balances do not reflect the effects of the restatement of net position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \r\nv \r\n \r\n BLECKLEY 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 $1.1 million for governmental activities. This increase is largely due to state funding, as mentioned above. \r\n \r\nGeneral revenues increased by $2.3 million during fiscal year 2020. This increase is primarily due to an increase in miscellaneous revenue, sales taxes and equalization funds. \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 (1) \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Long-Term Debt \r\n \r\n$ 19,853,802 $ 17,153,747 $ 3,850,339 $ 2,194,044 \r\n \r\n1,077,672 416,584 333,532 885,939 \r\n1,739,066 420,619 \r\n1,863,027 1,775,236 \r\n127,141 264,992 \r\n \r\n997,312 522,224 291,986 701,888 1,557,858 190,347 1,805,672 1,627,105 \r\n71,991 342,148 \r\n \r\n751,507 163,475 \r\n(5,475) 53,662 875,748 414,012 956,971 1,185,860 123,862 28,398 \r\n \r\n644,280 188,805 (37,570) 112,222 726,699 190,347 952,637 970,872 \r\n71,991 51,470 \r\n \r\n36,713 1,947,867 \r\n201,224 \r\n \r\n42,889 1,958,568 \r\n148,843 \r\n \r\n36,713 33,533 201,224 \r\n \r\n42,889 (1,372) 148,844 \r\n \r\nTotal Expenses \r\n \r\n$ 30,943,414 $ 27,412,578 $ 8,669,829 $ 6,256,158 \r\n \r\n(1) Fiscal Year 2019 balances do not reflect the effects of the restatement of net position. See Note 15 in the Notes to the Basic Financial Statements for additional information. \r\n \r\nAlthough program revenues make up a majority of the funding, the School District is still dependent upon tax revenues for governmental activities. For 2020, 28.0% of total expenses were supplemented by taxes and other general revenues compared to 22.8% in 2019. \r\n \r\nvi \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \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 $32.7 million and total expenses of $32.5 million in fiscal year 2020. Total governmental fund balances of $26.6 million at June 30, 2020, increased by $20.0 million from the prior year. The primary reason of this increase was due to the issuance of bonds. \r\nGeneral Fund Budgeting Highlights \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state, federal and local property tax revenue. During the course of fiscal year 2020, the School District amended its general fund budget as needed. \r\nThe School District budget is adopted at the aggregate level and maintained at the program and function levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\nFor the general fund, the final actual revenues of $30.3 million were more than the final budgeted revenue of $29.4 million by $907 thousand. This can be attributed primarily to receiving more miscellaneous revenue than budgeted. \r\nThe general fund's final actual expenditures of $28.7 million were less than the final budgeted expenditures by $784 thousand. The School District did not include revenues and expenditures for school activity accounts in the original or final budget. \r\nCAPITAL ASSETS \r\nAt the fiscal years ended June 30, 2020, the School District had $34.1 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ 259,481 $ 904,308 \r\n31,072,991 1,013,066 829,329 \r\n \r\n259,481 600,343 29,807,104 924,815 878,413 \r\n \r\nTotal \r\n \r\n$ 34,079,175 $ 32,470,156 \r\n \r\nvii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 \r\nThe overall capital assets increased in fiscal year 2020 by $1.6 million is primarily due to completion of the HVAC replacements at Bleckley County Elementary School and Bleckley County High School and construction of a new Bleckley County Primary School. \r\nLONG-TERM LIABILITIES \r\nAt June 30, 2020, the School District had $22.8 million in total long-term liabilities with $1.2 million due within one year. Table 5 summarizes long-term liabilities at June 30, 2020 and 2019. \r\nTable 5 Long-term Liabilities at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2020 \r\n \r\n2019 \r\n \r\nGeneral Obligation Bonds \r\n \r\n$ 19,000,000 $ 3,920,000 \r\n \r\nUnamortized Bond Premiums \r\n \r\n3,818,466 \r\n \r\n124,323 \r\n \r\nTotal \r\n \r\n$ 22,818,466 $ 4,044,323 \r\n \r\nCURRENT ISSUES \r\nApproximately 78.0% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2020. More than a third of certified personnel in the School District have 21 years or more of experience resulting in salaries at the highest possible state pay level. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS and health insurance premium expenses. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that County students receive a quality education from effective personnel. \r\nThe School District is financially stable. The School District's operating millage for fiscal year 2020 was 14.286, which produced approximately $183 thousand per mill. The one percent local sales tax revenue will continue to pay bond debts. \r\nThe School District remains confident in the ability to maximize resources to provide the best possible educational experience for all students. Additionally, the School District will continue to be a good steward of tax dollars while providing educational opportunities for all students. \r\nThe School District issued bonds in May 2020 and began construction of a new primary school in fiscal year 2020. This project is estimated to be complete in fiscal year 2023. \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 the routine operation of the School District and has resulted in the School District having to develop new models of learning and providing safety for its students. \r\n \r\nviii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2020 The School District was awarded $488 thousand in Cares Act funds. The School District used a portion of these funds in fiscal year 2020 for salaries of support staff for remote learning students, as well as necessary cleaning and safety supplies. Approximately $40 thousand was paid with CARES Act funds through June 30, 2020. CONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Aly Rozier, Finance Director, at the Bleckley County Board of Education, 242 East Dykes Street, Cochran, GA 31014. You may also email your questions to Mrs. Rozier at arozier@bleckleyschools.org. \r\nix \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2020 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pensions Plan Related to OPEB Plan \r\nTotal Deferred Outflows of Resources \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Deposits and Unearned Revenue 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 Pensions Plan Related to OPEB Plan \r\nTotal Deferred Inflows of Resources \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n25,450,216.41 \r\n \r\n3,794.49 \r\n \r\n33.89 716,921.36 2,081,368.57 338,051.79 \r\n32,800.22 70,794.52 89,478.85 1,163,788.48 32,915,386.71 \r\n \r\n62,862,635.29 \r\n \r\n6,860,292.56 1,821,989.00 \r\n8,682,281.56 \r\n \r\n259,169.32 1,436,230.54 \r\n152,460.00 50,164.14 207.37 \r\n23,241,198.00 16,300,968.00 \r\n1,166,001.47 21,652,464.22 \r\n64,258,863.06 \r\n \r\n1,714,840.00 4,343,943.00 \r\n6,058,783.00 \r\n \r\n29,921,264.72 \r\n470,040.00 876,169.99 537,025.13 (30,577,229.05) \r\n \r\n$ \r\n \r\n1,227,270.79 \r\n \r\n- 1 - \r\n \r\n BLECKLEY 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$ 19,853,802.18 $ \r\n1,077,672.29 416,583.85 333,531.86 885,939.21 \r\n1,739,066.36 420,618.84 \r\n1,863,026.64 1,775,236.51 \r\n127,141.10 264,992.18 \r\n36,712.62 1,947,866.77 \r\n201,223.63 \r\n \r\n153,775.46 $ \r\n- \r\n198,009.78 \r\n- \r\n \r\n14,836,062.29 $ \r\n309,857.24 253,108.30 339,007.00 735,344.38 863,318.51 \r\n6,606.76 906,055.78 512,155.70 \r\n3,279.30 236,593.71 \r\n1,693,713.90 \r\n- \r\n \r\n1,013,625.76 $ \r\n16,308.19 - \r\n96,933.06 - \r\n77,220.00 - \r\n22,609.58 \r\n- \r\n \r\n(3,850,338.67) \r\n(751,506.86) (163,475.55) \r\n5,475.14 (53,661.77) (875,747.85) (414,012.08) (956,970.86) (1,185,860.81) (123,861.80) (28,398.47) \r\n(36,712.62) (33,533.51) (201,223.63) \r\n \r\nTotal Governmental Activities \r\n \r\n$ 30,943,414.04 $ \r\n \r\n351,785.24 $ 20,695,102.87 $ 1,226,696.59 \r\n \r\n(8,669,829.34) \r\n \r\nGeneral Revenues Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\n \r\n3,924,756.21 13,424.34 \r\n1,422,710.05 57,887.78 \r\n3,416,436.00 18,170.39 \r\n1,791,587.85 \r\n \r\nTotal General Revenues \r\n \r\n10,644,972.62 \r\n \r\nChange in Net Position \r\n \r\n1,975,143.28 \r\n \r\nNet Position - Beginning of Year (Restated) \r\n \r\n(747,872.49) \r\n \r\nNet Position - End of Year \r\n \r\n$ \r\n \r\n1,227,270.79 \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 BLECKLEY COUNTY BOARD OF EDUCATION BALANCE SHEET \r\nGOVERNMENTAL FUNDS JUNE 30, 2020 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 5,515,043.09 $ 3,794.49 \r\n33.89 375,572.70 2,081,368.57 338,051.79 \r\n32,800.22 70,794.52 89,478.85 \r\n \r\n18,209,477.98 $ 1,725,695.34 $ \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n341,348.66 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n25,450,216.41 3,794.49 \r\n33.89 716,921.36 2,081,368.57 338,051.79 \r\n32,800.22 70,794.52 89,478.85 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes Unavailable Revenue - Special Purpose Local Option Sales Tax \r\nTotal Deferred Inflows of Resources \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\n \r\n$ 8,506,938.12 $ 18,550,826.64 $ 1,725,695.34 $ 28,783,460.10 \r\n \r\n$ \r\n \r\n254,169.32 $ \r\n \r\n1,436,230.54 \r\n \r\n- \r\n \r\n207.37 \r\n \r\n1,690,607.23 \r\n \r\n5,000.00 $ - \r\n50,164.14 - \r\n55,164.14 \r\n \r\n- $ - \r\n- \r\n \r\n259,169.32 1,436,230.54 \r\n50,164.14 207.37 \r\n1,745,771.37 \r\n \r\n233,814.69 - \r\n233,814.69 \r\n \r\n231,361.84 \r\n231,361.84 \r\n \r\n- \r\n \r\n233,814.69 \r\n \r\n- \r\n \r\n231,361.84 \r\n \r\n- \r\n \r\n465,176.53 \r\n \r\n160,273.37 399,245.48 6,022,997.35 \r\n6,582,516.20 \r\n \r\n18,264,300.66 \r\n- \r\n18,264,300.66 \r\n \r\n1,725,695.34 \r\n- \r\n1,725,695.34 \r\n \r\n160,273.37 20,389,241.48 \r\n6,022,997.35 \r\n26,572,512.20 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 8,506,938.12 $ 18,550,826.64 $ 1,725,695.34 $ 28,783,460.10 \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 BLECKLEY 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\nLong-term liabilities and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Unamortized bond premiums \r\n \r\n$ 26,572,512.20 \r\n \r\n$ \r\n \r\n259,480.81 \r\n \r\n904,307.67 \r\n \r\n44,353,062.29 \r\n \r\n4,389,953.21 \r\n \r\n1,629,164.39 \r\n \r\n(17,456,793.18) \r\n \r\n34,079,175.19 \r\n \r\n$ (23,241,198.00) (16,300,968.00) \r\n \r\n(39,542,166.00) \r\n \r\n$ \r\n \r\n5,145,452.56 \r\n \r\n(2,521,954.00) \r\n \r\n2,623,498.56 465,176.53 \r\n \r\n$ (19,000,000.00) (152,460.00) \r\n(3,818,465.69) \r\n \r\n(22,970,925.69) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n1,227,270.79 \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 BLECKLEY 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\nPrincipal Bond Issuance Cost Dues and Fees Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nProceeds of Bonds Premiums on Bonds Sold Transfers In Transfers Out \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\n3,947,713.16 $ \r\n \r\n57,887.78 \r\n \r\n20,524,823.84 \r\n \r\n3,638,688.27 \r\n \r\n351,785.24 \r\n \r\n7,909.41 \r\n \r\n1,791,487.85 \r\n \r\n30,320,295.55 \r\n \r\n- $ 1,191,348.21 1,149,476.59 \r\n- \r\n9,430.99 100.00 \r\n2,350,355.79 \r\n \r\n- $ 829.99 - \r\n829.99 \r\n \r\n3,947,713.16 1,249,235.99 21,674,300.43 3,638,688.27 \r\n351,785.24 18,170.39 \r\n1,791,587.85 \r\n32,671,481.33 \r\n \r\n18,223,436.97 \r\n1,023,295.08 418,686.14 307,803.98 799,610.18 \r\n1,661,329.66 205,007.81 \r\n1,889,106.43 1,839,365.56 \r\n123,642.29 264,747.12 \r\n36,712.62 1,931,831.14 \r\n- \r\n- \r\n28,724,574.98 \r\n1,595,720.57 \r\n \r\n- \r\n41.70 2,469,871.27 \r\n205,401.56 \r\n- \r\n2,675,314.53 \r\n(324,958.74) \r\n \r\n- \r\n- \r\n920,000.00 - \r\n4,075.00 154,000.00 \r\n1,078,075.00 \r\n(1,077,245.01) \r\n \r\n18,223,436.97 \r\n1,023,295.08 418,686.14 307,803.98 799,651.88 \r\n1,661,329.66 205,007.81 \r\n1,889,106.43 1,839,365.56 \r\n123,642.29 264,747.12 \r\n36,712.62 1,931,831.14 2,469,871.27 \r\n920,000.00 205,401.56 \r\n4,075.00 154,000.00 \r\n32,477,964.51 \r\n193,516.82 \r\n \r\n(834,194.56) \r\n(834,194.56) \r\n761,526.01 \r\n5,820,990.19 \r\n \r\n14,275,159.65 3,760,353.65 834,194.56 (1,078,075.00) \r\n17,791,632.86 \r\n17,486,674.12 \r\n797,626.54 \r\n \r\n1,724,840.35 - \r\n1,078,075.00 - \r\n2,802,915.35 \r\n1,725,670.34 \r\n25.00 \r\n \r\n16,000,000.00 3,760,353.65 1,912,269.56 (1,912,269.56) \r\n19,760,353.65 \r\n19,953,870.47 \r\n6,618,641.73 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n6,582,516.20 $ \r\n \r\n18,264,300.66 $ 1,725,695.34 $ 26,572,512.20 \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 BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2020 \r\n \r\nEXHIBIT \"F\" \r\n \r\nNet change in fund balances total governmental funds (Exhibit \"E\") \r\nAmounts reported for governmental activities in the Statement of Activities are different because: \r\nGovernmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives as depreciation expense. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net position. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\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 $3,760,353.65 Bond principal retirements Amortization of bond premiums \r\nDistrict pension contributions are reported as expenditures in the governmental funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position because the reported net pension/OPEB liability is measured a year before the District's report date. Pension/OPEB expense, which is the change in the net pension/OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions/OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds \r\n \r\n$ \r\n \r\n19,953,870.47 \r\n \r\n$ \r\n \r\n2,822,787.22 \r\n \r\n(1,199,070.01) \r\n \r\n1,623,717.21 (14,697.88) 221,829.23 \r\n \r\n$ \r\n \r\n(19,760,353.65) \r\n \r\n920,000.00 \r\n \r\n66,211.37 \r\n \r\n(18,774,142.28) \r\n \r\n$ \r\n \r\n(923,126.47) \r\n \r\n(2,947.00) \r\n \r\n(926,073.47) \r\n \r\n(109,360.00) \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n1,975,143.28 \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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 Bleckley County School Building Authority (the Authority) was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the School District. The Authority consists of five members appointed by the governing authority of the School District. The Authority is a component unit of the School District and as such the Authority's financial activity has been blended with the School District's basic financial statements. \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. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's assets, deferred outflows of resources, deferred inflows of resources and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 7 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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. Eliminations have been made to minimize the double counting of internal activities. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST), 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\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide 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- 8 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2020, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The primary objective of this statement is to provide temporary relief to governments and other stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the effective dates of certain provisions in statements and Implementation Guides that first became effective or are scheduled to become effective for period beginning after June 15, 2018, and later. \r\nIn fiscal year 2020, the School District early adopted Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements. Governments with activities meeting the criteria should present a statement of fiduciary net position and a statement of changes in fiduciary net position. The cumulative effect of GASB Statement No. 84 is described in the restatement note. \r\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. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\n \r\n- 9 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\nCAPITAL ASSETS \r\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- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 200,000.00 \r\n \r\nN/A 20 to 80 years 10 to 80 years \r\n5 to 50 years 5 to 10 years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\n \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\nPENSIONS \r\n \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\n \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nFUND BALANCES \r\n \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\n \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\n \r\nThe Bleckley County Board of Commissioners adopted the property tax levy for the 2019 tax digest year (calendar year) on September 19, 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 Bleckley County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2020, for maintenance and operations amounted to $3,324,903.54. \r\n \r\nThe tax millage rate levied for the 2019 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.286 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $609,385.28 during fiscal year ended June 30, 2020. \r\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,191,348.21 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\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, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $50,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS AND CASH EQUIVALENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\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, 2020, the School District had deposits with a carrying amount of $6,944,133.86, which includes $3,794.49 in certificate of deposits that are recorded as investments, and a bank balance of $7,968,976.55. The bank balances insured by Federal depository insurance were $1,003,794.49 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $6,965,182.06. \r\n \r\nReconciliation of cash and cash equivalents to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position \r\n \r\n$ 25,450,216.41 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n3,794.49 \r\n \r\nLess: Investment pools reported as cash and cash equivalents \r\nGeorgia Fund 1 \r\n \r\n18,509,877.04 \r\n \r\nTotal carrying value of deposits - June 30, 2020 \r\n \r\n$ 6,944,133.86 \r\n \r\nCATEGORIZATION OF CASH EQUIVALENTS \r\nThe School District reported cash equivalents of $18,509,877.04 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, $1.00 per share, which approximates fair value. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2020 was 38 days. \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nGeorgia Fund 1, administered by the State of Georgia, Office of the State Treasurer, is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1, does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2019 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2020 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ 259,480.81 $ \r\n \r\n- $ \r\n \r\n- $ 259,480.81 \r\n \r\n600,342.91 2,465,018.77 2,161,054.01 \r\n \r\n904,307.67 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n859,823.72 2,465,018.77 2,161,054.01 \r\n \r\n1,163,788.48 \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\n42,180,508.28 4,144,026.88 1,629,164.39 \r\n \r\n2,172,554.01 346,268.45 - \r\n \r\n100,342.12 \r\n- \r\n \r\n44,353,062.29 4,389,953.21 1,629,164.39 \r\n \r\n12,373,403.92 3,219,212.19 750,751.30 \r\n \r\n906,667.11 243,319.16 \r\n49,083.74 \r\n \r\n85,644.24 \r\n- \r\n \r\n13,280,071.03 3,376,887.11 799,835.04 \r\n \r\nTotal Capital Assets, Being Depreciated, Net 31,610,332.14 1,319,752.45 \r\n \r\n14,697.88 32,915,386.71 \r\n \r\nGovernmental Activities Capital Assets - Net $ 32,470,155.86 $ 3,784,771.22 $ 2,175,751.89 $ 34,079,175.19 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n11,689.62 \r\n \r\n69,481.09 \r\n \r\n12,406.94 \r\n \r\n112,685.20 \r\n \r\n$ 966,602.46 \r\n206,262.85 26,204.70 \r\n$ 1,199,070.01 \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 6: INTERFUND TRANSFERS 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\nGeneral Fund \r\n \r\nTransfers From \r\nCapital Projects Fund \r\n \r\nTotal \r\n \r\nCapital Projects Fund Debt Service Fund \r\n \r\n$ 834,194.56 $ \r\n \r\n- $ \r\n \r\n834,194.56 \r\n \r\n- \r\n \r\n1,078,075.00 \r\n \r\n1,078,075.00 \r\n \r\nTotal \r\n \r\n$ 834,194.56 $ 1,078,075.00 $ 1,912,269.56 \r\n \r\nThe general fund transferred property tax revenues to the capital projects fund to provide supplemental funding for capital construction projects. The capital projects fund transferred SPLOST revenue to the debt service fund to service debt associated with the ESPLOST referendum. \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\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\nBalance July 1, 2019 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2020 \r\n \r\nDue Within One Year \r\n \r\n$ 3,920,000.00 $ 16,000,000.00 $ 920,000.00 $ 19,000,000.00 $ 960,000.00 \r\n \r\n124,323.41 \r\n \r\n3,760,353.65 \r\n \r\n66,211.37 \r\n \r\n3,818,465.69 \r\n \r\n206,001.47 \r\n \r\n$ 4,044,323.41 $ 19,760,353.65 $ 986,211.37 $ 22,818,465.69 $ 1,166,001.47 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\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 entity 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\nDuring the current year, the School District issued general obligation bonds totaling $16,000,000.00 for the construction of a new primary school, athletic projects and renovations. \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2009 General Government - Series 2020 \r\n \r\n2.00% - 5.00% 4.00% - 5.00% \r\n \r\n12/1/2009 5/7/2020 \r\n \r\n10/1/2022 $ 8,900,000.00 $ 3,000,000.00 \r\n \r\n10/1/2042 16,000,000.00 \r\n \r\n16,000,000.00 \r\n \r\n$ 24,900,000.00 $ 19,000,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2021 2022 2023 2024 2025 2026 - 2030 2031 - 2035 2036 - 2040 2041 - 2043 \r\n \r\n$ \r\n \r\n960,000.00 $ \r\n \r\n785,700.00 $ \r\n \r\n206,001.47 \r\n \r\n1,000,000.00 \r\n \r\n818,000.00 \r\n \r\n206,001.47 \r\n \r\n1,040,000.00 \r\n \r\n767,000.00 \r\n \r\n177,311.47 \r\n \r\n485,000.00 \r\n \r\n731,300.00 \r\n \r\n167,748.12 \r\n \r\n510,000.00 \r\n \r\n711,400.00 \r\n \r\n167,748.12 \r\n \r\n2,950,000.00 \r\n \r\n3,219,150.00 \r\n \r\n838,740.59 \r\n \r\n3,760,000.00 \r\n \r\n2,435,875.00 \r\n \r\n838,740.59 \r\n \r\n4,800,000.00 \r\n \r\n1,479,000.00 \r\n \r\n838,740.59 \r\n \r\n3,495,000.00 \r\n \r\n267,625.00 \r\n \r\n377,433.27 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n19,000,000.00 $ 11,215,050.00 $ \r\n \r\n3,818,465.69 \r\n \r\nNOTE 8: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; and natural disasters. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceed commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk Management Fund \r\nThe School District participates in the Georgia School Boards Association Risk Management Fund (the Fund), a public entity risk pool organized on August 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, errors and omissions liability, cyber risk and property damage, including safety engineering and other loss prevention and control techniques, and to administer the Fund including the processing and defense of claims brought against members of the Fund. The School District pays an annual contribution to the Fund for coverage. Reinsurance is provided to the Fund through agreements by the Fund with insurance companies according to their specialty for property (including coverage for flood and earthquake), machinery breakdown, general liability, errors and omissions, crime, cyber risk and automobile risks. Reinsurance limits and retentions vary by line of coverage. \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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\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 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n2020 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,807.00 \r\n \r\n$ \r\n \r\n1,807.00 \r\n \r\n$ \r\n \r\n- \r\n \r\nSURETY BOND \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers' Education \r\n \r\n$ 50,000.00 $ 10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2020: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nUnassigned \r\n \r\n$ \r\n \r\n70,794.52 \r\n \r\n89,478.85 $ 160,273.37 \r\n \r\n$ 399,245.48 17,236,525.66 2,753,470.34 \r\n \r\n20,389,241.48 6,022,997.35 \r\n \r\nFund Balance, June 30, 2020 \r\n \r\n$ 26,572,512.20 \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: BROADBAND SPECTRUM LEASE \r\nEffective August 18, 2005, the School District entered into a five year lease agreement with automatic renewals, with Nextel Spectrum Acquisition Corporation for the lease of excess spectrum capacity on Education Broadband Service licenses currently held by School District. These licenses were granted to the School District by the Federal Communications Commission. The lease agreement requires monthly lease payments over the term of the lease, of which $28,459.44 was recognized during fiscal year 2020 as a general revenue on the Statement of Activities. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS COMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2020, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2020 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nNew Bleckley County Primary School \r\n \r\n$ 3,800,182.73 $ 888,352.96 $ 9,261,151.00 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts payable at year end. \r\n \r\nOPERATING LEASES \r\nThe School District leases copiers \u0026 modular units under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $38,519.69 for governmental activities for the year ended June 30, 2020. The following future minimum lease payments were required under operating leases at June 30, 2020: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2021 2022 2023 - 2025 \r\n \r\n$ 190,145.08 167,593.20 417.82 \r\n \r\nTotal \r\n \r\n$ 358,156.10 \r\n \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 13: 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 $450,524.00 for the year ended June 30, 2020. Active employees are not required to contribute to the School OPEB Fund. \r\nOPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB \r\nAt June 30, 2020, the School District reported a liability of $16,300,968.00 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 0.132829%, which was an increase of 0.006015% from its proportion measured as of June 30, 2018. \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nFor the year ended June 30, 2020, the School District recognized OPEB expense of $453,471.00. At June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nOPEB Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 1,773,376.00 \r\n \r\nChanges of assumptions \r\n \r\n566,101.00 \r\n \r\n2,297,922.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n35,498.00 \r\n \r\n- \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n769,866.00 \r\n \r\n272,645.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n450,524.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 1,821,989.00 $ 4,343,943.00 \r\n \r\nSchool District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2021 2022 2023 2024 2025 2026 \r\n \r\n$ (712,945.00) $ (712,945.00) $ (714,310.00) $ (586,747.00) $ (234,773.00) $ (10,758.00) \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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 Medicare Eligible Ultimate trend rate \r\n \r\n7.250% 5.375% \r\n \r\nPre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \r\n \r\n4.75% 4.75% \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- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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\nFixed income Domestic Stocks -- Large Cap Domestic Stocks -- Small Cap Int'l Stocks - Developed Mkt Int'l Stocks - Emerging Mkt Alternatives \r\nTotal \r\n \r\nTarget allocation \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n100.00% \r\n \r\nLong-Term Expected Real Rate of Return* \r\n(0.10)% 8.90% \r\n13.20% 8.90% \r\n10.90% 12.00% \r\n \r\n*Net of Inflation \r\n \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.87% to 3.58%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.50% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2119. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2026. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.58%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 18,947,105.00 $ \r\n \r\n16,300,968.00 $ 14,148,454.00 \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net \r\nOPEB liability, as well as what the School District's proportionate share of the net OPEB liability would \r\nbe if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1- \r\npercentage-point higher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 13,731,838.00 $ \r\n \r\n16,300,968.00 $ 19,563,958.00 \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 14: RETIREMENT PLANS \r\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6.00% of their annual pay during fiscal year 2020. The School District's contractually required contribution rate for the year ended June 30, 2020 was 21.14% of annual School District payroll, of which 20.95% of payroll was required from the School District and 0.19% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,927,885.56 and $26,962.24 from the School District and the State, respectively. \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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 $61,877.00. \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 $23,241,198.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 23,241,198.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n222,123.00 \r\n \r\nTotal \r\n \r\n$ 23,463,321.00 \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- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nAt June 30, 2019, the School District's TRS proportion was 0.108085%, which was a decrease of 0.007479% from its proportion measured as of June 30, 2018. \r\n \r\nAt June 30, 2020, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $405,620.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2019. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2018. An expected total pension liability as of June 30, 2019 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2019. \r\n \r\nFor the year ended June 30, 2020, the School District recognized pension expense of $3,839,773.00 for TRS and $125,088.00 for PSERS and revenue of $11,002.00 for TRS and $125,088.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2020, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 1,309,992.00 $ \r\n \r\n6,890.00 \r\n \r\nChanges of assumptions \r\n \r\n2,230,296.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\nSchool District contributions subsequent to the measurement date \r\nTotal \r\n \r\n- \r\n \r\n553,444.00 \r\n \r\n392,119.00 1,154,506.00 \r\n \r\n2,927,885.56 \r\n \r\n- \r\n \r\n$ 6,860,292.56 $ 1,714,840.00 \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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$ 1,071,950.00 $ 36,498.00 $ 595,737.00 $ 513,382.00 \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 \r\n \r\n1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period July 1, 2009 June 30, 2014, with the exception of the longterm assumed rate of return. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return Post-retirement benefit increases \r\n \r\n7.30%, net of pension plan investment expense, including inflation \r\n1.50% semi-annually \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected \r\nto 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \r\nafter disability retirement. There is a margin for future mortality improvement in the tables used by the \r\nSystem. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number \r\n \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \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\nPSERS Target allocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 51.00% \r\n1.50% 12.40% \r\n5.10% - \r\n \r\n30.00% 46.20% \r\n1.30% 12.40% \r\n5.10% 5.00% \r\n \r\n(0.10)% 8.90% 13.20% 8.90% 10.90% 12.00% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of assumed rate of inflation. \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.25%. The discount rate used to measure the total PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.25%) or 1-percentage-point higher (8.25%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.25%) \r\n \r\nCurrent Discount Rate (7.25%) \r\n \r\n1% Increase (8.25%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 37,727,266.00 $ \r\n \r\n23,241,198.00 $ 11,328,502.00 \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- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2020 \r\n \r\nEXHIBIT \"G\" \r\n \r\nNOTE 15: 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$ \r\n \r\n(839,724.77) \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification Scholarship Account Reclassification \r\n \r\n75,471.94 16,380.34 \r\n \r\nNet Position, July 1, 2019, as restated \r\n \r\n$ \r\n \r\n(747,872.49) \r\n \r\nFund Balance (General Fund), July 1, 2019, as previously reported $ 5,729,137.91 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: School Activity Account Reclassification Scholarship Account Reclassification \r\n \r\n75,471.94 16,380.34 \r\n \r\nFund Balance (General Fund), July 1, 2019, as restated \r\n \r\n$ 5,820,990.19 \r\n \r\nNet Position (Fiduciary Funds), July 1, 2019 as previously reported $ \r\n \r\n91,852.28 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 84: Restatement for School Activity Account Beginning Net Position Restatement for Scholarship Account Beginning Net Position \r\n \r\n(75,471.94) (16,380.34) \r\n \r\nNet Position (Fiduciary Funds), July 1, 2019, as restated \r\n \r\n$ \r\n \r\n- \r\n \r\nNOTE 16: RELATED PARTY TRANSACTIONS \r\nDuring the year under review, the School District conducted business with one related party, Rozier Auto Parts. Rozier Auto Parts is owned by the Finance Director's husband's family. Current year expenditures for Rozier Auto Parts total $7,351.81. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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\n0.108085% $ 23,241,198.00 $ 0.115564% $ 21,451,154.00 $ 0.111939% $ 20,804,208.00 $ 0.112846% $ 23,281,388.00 $ 0.113809% $ 17,326,290.00 $ 0.113422% $ 14,329,374.00 $ \r\n \r\n222,123.00 $ 23,463,321.00 $ 13,318,312.29 198,244.00 $ 21,649,398.00 $ 13,891,719.37 343,456.00 $ 21,147,664.00 $ 13,064,761.59 542,805.00 $ 23,824,193.00 $ 12,667,465.64 412,723.00 $ 17,739,013.00 $ 12,299,400.07 329,613.00 $ 14,658,987.00 $ 11,837,505.64 \r\n \r\n174.51% 154.42% 159.24% 183.79% 140.87% 121.05% \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- 31 - \r\n \r\n BLECKLEY 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 \"2\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \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\n2,927,885.56 $ \r\n \r\n2,927,885.56 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,757,125.03 $ \r\n \r\n2,757,125.03 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n2,313,812.96 $ \r\n \r\n2,313,812.96 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,834,059.26 $ \r\n \r\n1,834,059.26 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,767,095.82 $ \r\n \r\n1,767,095.82 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,579,743.81 $ \r\n \r\n1,579,743.81 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 13,975,768.69 $ 13,318,312.29 $ 13,891,719.37 $ 13,064,761.59 $ 12,667,465.64 $ 12,299,400.07 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.95% 20.70% 16.66% 14.04% 13.95% 12.84% \r\n \r\nThis schedule is intended to show information for 10 years. Addtional years will be displayed as they become available. \r\n \r\n- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n2020 2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the School \r\nDistrict \r\n \r\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\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\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\n405,620.00 $ 405,620.00 $ 800,531.63 348,127.00 $ 348,127.00 $ 744,680.75 306,322.00 $ 306,322.00 $ 701,720.36 405,517.00 $ 405,517.00 $ 698,123.79 267,010.00 $ 267,010.00 $ 688,106.87 239,626.00 $ 239,626.00 $ 688,182.25 \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- 33 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"4\" \r\n \r\nYear Ended \r\n2020 2019 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share \r\nof the net OPEB liability \r\n \r\nState of Georgia's proportionate share of the net OPEB liability associated \r\nwith the School District \r\n \r\nTotal \r\n \r\n0.132829% $ 16,300,968.00 $ 0.126814% $ 16,117,670.00 $ 0.127887% $ 17,968,072.00 $ \r\n \r\n- \r\n \r\n$ 16,300,968.00 \r\n \r\n- \r\n \r\n$ 16,117,670.00 \r\n \r\n- \r\n \r\n$ 17,968,072.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 9,728,022.24 $ 9,902,646.68 $ 9,392,659.42 \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\n167.57% 162.76% 191.30% \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- 34 - \r\n \r\n BLECKLEY 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\n450,524.00 $ \r\n \r\n450,524.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n715,377.00 $ \r\n \r\n715,377.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n657,264.00 $ \r\n \r\n657,264.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n666,817.00 $ \r\n \r\n666,817.00 $ \r\n \r\n- \r\n \r\nSchool District's coveredemployee payroll \r\n \r\n$ \r\n \r\n10,124,568.40 \r\n \r\n$ \r\n \r\n9,728,022.24 \r\n \r\n$ \r\n \r\n9,902,646.68 \r\n \r\n$ \r\n \r\n9,392,659.42 \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n4.45% 7.35% 6.64% 7.10% \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 BLECKLEY 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- 36 - \r\n \r\n BLECKLEY 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\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers From Other Funds Operating Transfers To Other Funds \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning (Restated) \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n3,859,323.00 $ \r\n \r\n3,859,323.00 $ \r\n \r\n3,947,713.16 $ \r\n \r\n- \r\n \r\n- \r\n \r\n57,887.78 \r\n \r\n20,431,741.93 \r\n \r\n20,526,758.71 \r\n \r\n20,524,823.84 \r\n \r\n3,617,184.00 \r\n \r\n4,575,363.12 \r\n \r\n3,638,688.27 \r\n \r\n375,000.00 \r\n \r\n375,000.00 \r\n \r\n351,785.24 \r\n \r\n1,000.00 \r\n \r\n1,000.00 \r\n \r\n7,909.41 \r\n \r\n76,050.80 \r\n \r\n76,050.80 \r\n \r\n1,791,487.85 \r\n \r\n28,360,299.73 \r\n \r\n29,413,495.63 \r\n \r\n30,320,295.55 \r\n \r\n88,390.16 57,887.78 (1,934.87) (936,674.85) (23,214.76) \r\n6,909.41 1,715,437.05 \r\n906,799.92 \r\n \r\n17,663,861.48 \r\n1,105,194.99 513,128.87 311,891.26 740,899.27 \r\n1,591,891.22 207,867.60 \r\n2,160,902.50 1,841,387.43 \r\n82,548.67 251,240.70 \r\n42,572.54 1,984,050.80 \r\n28,497,437.33 \r\n(137,137.60) \r\n \r\n18,448,110.96 \r\n1,166,856.17 521,464.87 311,891.26 749,542.27 \r\n1,591,891.22 209,367.60 \r\n2,117,682.28 1,835,142.43 \r\n82,548.67 423,439.64 \r\n42,572.54 2,008,150.80 \r\n29,508,660.71 \r\n(95,165.08) \r\n \r\n18,223,436.97 \r\n1,023,295.08 418,686.14 307,803.98 799,610.18 \r\n1,661,329.66 205,007.81 \r\n1,889,106.43 1,839,365.56 \r\n123,642.29 264,747.12 \r\n36,712.62 1,931,831.14 \r\n28,724,574.98 \r\n1,595,720.57 \r\n \r\n224,673.99 \r\n143,561.09 102,778.73 \r\n4,087.28 (50,067.91) (69,438.44) \r\n4,359.79 228,575.85 \r\n(4,223.13) (41,093.62) 158,692.52 \r\n5,859.92 76,319.66 \r\n784,085.73 \r\n1,690,885.65 \r\n \r\n12,604.00 (428,873.00) (416,269.00) (553,406.60) 5,484,468.58 \r\n37,215.55 \r\n \r\n428,873.00 (428,873.00) \r\n(95,165.08) 5,484,468.58 58,874.26 \r\n \r\n(834,194.56) (834,194.56) 761,526.01 5,820,990.19 \r\n- \r\n \r\n(428,873.00) (405,321.56) (834,194.56) 856,691.09 336,521.61 \r\n(58,874.26) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4,968,277.53 $ \r\n \r\n5,448,177.76 $ \r\n \r\n6,582,516.20 $ \r\n \r\n1,134,338.44 \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 $1,626,133.24 and $1,590,747.93, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2020 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Stabilization Funds Rural Education Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Direct Rural Health Development Network Grant Pass-Through From Georgia Department of Human Services Affordable Care Act (ACA) Abstinence Education Program \r\nTotal U. S. Department of Health and Human Services \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nPASSEDTHROUGH TO SUBRECIPIENTS \r\n \r\n10.553 \r\n \r\n205GA324N1099 \r\n \r\n$ \r\n \r\n427,334.68 $ \r\n \r\n- \r\n \r\n10.555 \r\n \r\n205GA324N1099 \r\n \r\n1,460,557.00 \r\n \r\n- \r\n \r\n1,887,891.68 \r\n \r\n- \r\n \r\n84.027 84.027 84.173 \r\n \r\nH027A180073 H027A190073 H173A190081 \r\n \r\n30,802.00 492,642.08 \r\n24,994.00 \r\n548,438.08 \r\n \r\n84.048 84.425D 84.358 84.358 84.424A 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \r\n \r\nV048A190010 S425D200012 S365B180010 S358B190010 S424A180011 S424A190011 S367A180001 S367A190001 S010A180010 S010A190010 S287C180010 S287C190010 \r\n \r\n31,012.00 39,578.86 \r\n6,973.00 48,484.15 \r\n81.00 29,531.38 \r\n2,611.00 45,260.55 123,438.66 687,373.85 23,831.00 202,512.20 \r\n1,240,687.65 \r\n1,789,125.73 \r\n \r\n93.912 93.235 \r\n \r\nD06RH27765 42700-040-0000088155 \r\n \r\n164,586.03 67,207.58 \r\n231,793.61 \r\n \r\n- \r\n- \r\n- \r\n- \r\n- \r\n140,856.94 \r\n- \r\n140,856.94 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n3,908,811.02 $ \r\n \r\n140,856.94 \r\n \r\nNote 1. Basis of Presentation \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Bleckley County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. \r\nNote 3. Indirect Cost Rate \r\nThe Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n BLECKLEY 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 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 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 Vocational Supervisors Education Equalization Funding Grant Other State Programs CTAE Opportunities Equipment Grant Food Services Hygiene Products in Georgia Schools Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Safety Grant School Security Grant Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nHuman Resources, Georgia Department of Georgia Communities in Schools Dropout Prevention \r\nOffice of the State Treasurer Public School Employees Retirement \r\nPublic Health, Georgia Department of Shape Grant \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n732,983.05 $ \r\n \r\n- $ \r\n \r\n732,983.05 \r\n \r\n721,470.00 \r\n \r\n- \r\n \r\n419,507.00 \r\n \r\n- \r\n \r\n1,266,203.00 \r\n \r\n- \r\n \r\n1,528,821.00 \r\n \r\n- \r\n \r\n484,641.00 \r\n \r\n- \r\n \r\n1,238,446.00 \r\n \r\n- \r\n \r\n1,673,830.00 \r\n \r\n- \r\n \r\n1,428,510.00 \r\n \r\n- \r\n \r\n496,139.00 \r\n \r\n- \r\n \r\n2,811,573.00 \r\n \r\n- \r\n \r\n714,172.00 \r\n \r\n- \r\n \r\n172,857.00 \r\n \r\n- \r\n \r\n116,598.00 \r\n \r\n- \r\n \r\n316,587.00 \r\n \r\n- \r\n \r\n93,767.00 \r\n \r\n- \r\n \r\n59,778.00 \r\n \r\n- \r\n \r\n1,537.00 \r\n \r\n- \r\n \r\n658,825.00 \r\n \r\n- \r\n \r\n763,126.00 \r\n \r\n- \r\n \r\n666,261.00 \r\n \r\n- \r\n \r\n(246,963.00) \r\n \r\n- \r\n \r\n373,854.00 \r\n \r\n- \r\n \r\n52,430.00 \r\n \r\n- \r\n \r\n7,070.00 \r\n \r\n- \r\n \r\n3,416,436.00 \r\n \r\n- \r\n \r\n68,443.64 \r\n \r\n- \r\n \r\n48,200.00 \r\n \r\n- \r\n \r\n56.16 \r\n \r\n- \r\n \r\n6,958.21 \r\n \r\n- \r\n \r\n45,150.00 \r\n \r\n- \r\n \r\n77,220.00 \r\n \r\n- \r\n \r\n17,038.95 \r\n \r\n- \r\n \r\n63,088.12 \r\n \r\n- \r\n \r\n26,962.24 \r\n \r\n- \r\n \r\n64,171.51 \r\n \r\n- \r\n \r\n25,000.00 61,877.00 \r\n3,200.00 \r\n \r\n1,149,476.59 - \r\n \r\n48,999.96 \r\n \r\n- \r\n \r\n721,470.00 419,507.00 1,266,203.00 1,528,821.00 484,641.00 1,238,446.00 1,673,830.00 1,428,510.00 496,139.00 2,811,573.00 714,172.00 172,857.00 116,598.00 316,587.00 \r\n93,767.00 59,778.00 \r\n1,537.00 \r\n658,825.00 763,126.00 666,261.00 (246,963.00) \r\n373,854.00 52,430.00 7,070.00 \r\n3,416,436.00 \r\n68,443.64 48,200.00 \r\n56.16 6,958.21 45,150.00 77,220.00 17,038.95 63,088.12 26,962.24 64,171.51 \r\n1,149,476.59 \r\n25,000.00 \r\n61,877.00 \r\n3,200.00 \r\n48,999.96 \r\n \r\n$ 20,524,823.84 $ \r\n \r\n1,149,476.59 $ \r\n \r\n21,674,300.43 \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 BLECKLEY 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\nThe renewal of general obligation bonds in the principal amount not to exceed $6,000,000.00 to pay costs of, \r\n(a) acquiring textbooks, computer technology equipment, and software, safety/security equipment and technology \r\n(b) acquiring school buses and other vehicles \r\n(c) acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal \r\n(d) a portion of the principal and interest on the above described general obligation bonds. \r\nPROJECT \r\nThe issuance of general obligation bonds in the principal amount not to exceed $16,000,000.00 to pay costs of, \r\n(a) acquiring, constructing, equipping, and furnishing new school buildings and facilities useful and desirable in connection therewith, including, but not limited to, a Primary School building, bus maintenance and storage faculties, and support athletic/physical education facilities \r\n(b) adding to, renovating, repairing, improving and equipping the existing schools and facilities including, but not limited to, vocational/agricultural facilities, gymnasiums, HVAC and physical education and athletic facilities \r\n(c) acquiring miscellaneous new equipment, fixtures and furnishings for the School District, including textbooks, band instruments, computer technology equipment and software, interactive boards, safety and security technology, food service equipment, tables, desks and chairs, school buses and other vehicles \r\n(d) acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal \r\n(e) paying capitalized interest and/or costs of issuing. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- \r\n \r\n- $ - \r\n \r\n- $ - \r\n \r\n- $ - \r\n \r\n- $ - \r\n \r\n- \r\n \r\n2,204,308.51 \r\n \r\n1,602,890.60 \r\n \r\n601,417.91 \r\n \r\n2,204,308.51 \r\n \r\n6,000,000.00 6,000,000.00 \r\n \r\n3,920,000.00 6,124,308.51 \r\n \r\n920,000.00 2,522,890.60 \r\n \r\n1,761,075.00 2,362,492.91 \r\n \r\n2,204,308.51 \r\n \r\n- \r\n \r\n- \r\n \r\nCompleted \r\n \r\n- \r\n \r\nSeptember 2022 \r\n \r\n- \r\n \r\n3,391,111.67 \r\n \r\n13,391,111.67 \r\n \r\n871,097.37 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nMay 2022 \r\n \r\n- \r\n \r\n1,000,000.00 \r\n \r\n1,000,000.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n1,608,888.33 \r\n \r\n1,608,888.33 \r\n \r\n205,401.56 \r\n \r\n- \r\n \r\n6,000,000.00 \r\n \r\n16,000,000.00 \r\n \r\n1,076,498.93 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nMay 2022 \r\n \r\nSeptember 2022 \r\n- \r\n \r\n$ 12,000,000.00 $ 22,124,308.51 $ 3,599,389.53 $ 2,362,492.91 $ 2,204,308.51 $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of Bleckley 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$ 402,487.50 \r\n \r\nCurrent Year \r\n \r\n154,000.00 \r\n \r\nTotal \r\n \r\n$ 556,487.50 \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 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 Bleckley 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 and each major fund, of the Bleckley 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 25, 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 25, 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 Bleckley County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Bleckley 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 25, 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 BLECKLEY 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 BLECKLEY 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 \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 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 \r\n \r\nChild Nutrition Cluster Title I Grants to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$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-bb6-b2019-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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":["2020-05-13"],"dcterms_description":["Annual financial report for the Bleckley 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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, 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-bb6-b2019-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2019-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\nMANAGEMENT'S DISCUSSION AND ANALYSIS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 7 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES  BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\ni \r\n1 2 \r\n4 5 6 7 8 9 11 \r\n33 34 35 36 37 38 39 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION I FINANCIAL SCHEDULES SUPPLEMENTARY INFORMATION 8 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 9 SCHEDULE OF STATE REVENUE 10 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n40 41 43 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Bleckley 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 Bleckley 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 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 Other Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated May 13, 2020 on our consideration of the School District's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control over financial reporting and compliance. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nMay 13, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nINTRODUCTION \r\nThe discussion and analysis of the Bleckley County Board of Education's (School District) financial performance provides an overview of the School District's financial activities for the fiscal year ended June 30, 2019. The intent of this discussion and analysis is to look at the School District's financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal year 2019 are as follows: \r\n Government-wide net position at June 30, 2019 was a deficit $840 thousand. Net position reflects the difference between all assets and deferred outflows of resources of the School District (including capital assets, net of depreciation) and all liabilities and deferred inflows of resources. The net position at June 30, 2019 of a deficit $840 thousand represented an increase of $2.1 million when compared to the prior year. This increase in net position is primarily due to an increase in state funding and a decrease in long-term liabilities on general obligation bonds. \r\n The School District had $27.4 million in expenses related to governmental activities; however, $21.2 million of these expenses were offset by program specific charges for services, grants or contributions. General revenues (primarily property and sales taxes) of $8.4 million were adequate to provide for these programs. \r\n The Bleckley County voters approved a one percent sales tax for educational purposes (ESPLOST) for another five years (2022 - 2027) with a 93.7% passing rate in March of 2019. In fiscal year 2020, general obligation bonds will be issued for the construction of Bleckley County Primary School and athletic facilities renovations. \r\n General revenues accounts for $8.4 million in revenue or 28.4% of all revenues totaling $29.5 million. Program specific revenues in the form of charges for services and grants and contributions accounted for the balance of these revenues. \r\n Long-term liabilities decreased by $933 thousand for fiscal year 2019 when compared to the prior year. This decrease was due primarily to principal payments on outstanding debt. \r\n Among major funds, the general fund had $27.9 million in revenues and $27.0 million in expenditures. The fund balance for the general fund increased from $4.9 million to approximately $5.7 million. The primary reason for the increase was an increase in state funding while maintaining low expense levels. \r\nOVERVIEW OF THE FINANCIAL STATEMENTS \r\nThis annual report consists of three parts; management's discussion and analysis, the basic financial statements and required supplementary information. The basic financial statements include two levels of statements that present different views of the School District. These include the government-wide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\ni \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\nThe fund financial statements reflect the School District's most significant funds. For fiscal year 2019, the general fund, the capital projects fund, and the debt service fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets, deferred outflows, liabilities and deferred inflows. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nFund Financial Statements \r\nThe School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. \r\nGovernmental Funds - Most of the School District's activities are reported in governmental funds, which focus on 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 \r\nii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nhelps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. \r\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\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2019 and 2018. \r\n \r\nTable 1 Net Position \r\n \r\nAssets Current and Other Assets Capital Assets, Net \r\nTotal Assets \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plans \r\nTotal Deferred Outflows of Resources \r\nLiabilities Current and Other Liabilities Net Pension Liability Net OPEB Liability Long-term Liabilities \r\nTotal Liabilities \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plans Related to OPEB Plans \r\nTotal Deferred Inflows of Resources \r\n \r\nFiscal Year 2019 \r\n \r\nGovernmental Activities Fiscal \r\nYear 2018 \r\n \r\nNet Change \r\n \r\n$ 9,087,426 $ 32,470,156 \r\n41,557,582 \r\n \r\n7,679,838 $ 32,610,282 \r\n40,290,120 \r\n \r\n1,407,588 (140,126) \r\n1,267,462 \r\n \r\n5,072,339 737,184 \r\n5,809,523 \r\n \r\n3,719,313 662,520 \r\n4,381,833 \r\n \r\n1,353,026 74,664 \r\n1,427,690 \r\n \r\n2,360,389 21,451,154 16,117,670 \r\n4,044,324 \r\n43,973,537 \r\n \r\n1,815,705 20,804,208 17,968,072 \r\n4,977,577 \r\n45,565,562 \r\n \r\n544,684 646,946 (1,850,402) (933,253) \r\n(1,592,025) \r\n \r\n793,804 3,439,489 \r\n4,233,293 \r\n \r\n446,311 1,618,314 \r\n2,064,625 \r\n \r\n347,493 1,821,175 \r\n2,168,668 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n27,867,342 1,932,217 \r\n(30,639,284) \r\n \r\n27,632,705 1,577,966 \r\n(32,168,905) \r\n \r\n234,637 354,251 1,529,621 \r\n \r\nTotal Net Position \r\n \r\n$ \r\n \r\n(839,725) $ \r\n \r\n(2,958,234) $ \r\n \r\n2,118,509 \r\n \r\niii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 Net position, which is the difference between total assets and deferred outflows of resources and total liabilities and deferred inflows of resources, is one indicator the financial condition of the School District. When revenues exceed expenses, the result is an increase in net position. When expense exceed revenues, the result is a decrease in net position. The relationship between revenues and expenses can be thought of as the School District's operating results. The School District's net position, as measured in the Statement of Net Position, can be one way to measure the School District's financial health, or financial position. Over time, increases or decreases in the School District's net position as measured in the Statement of Activities, are one indicator of whether its financial health is improving or deteriorating. However, the School District's goal and mission is to provide success for each child's education, not to generate profits as private corporations do. For fiscal year 2019, liabilities and deferred inflows of resources exceeded assets and deferred outflows of resources by $840 thousand at June 30, 2019. Total assets and deferred outflows of resources increased by $2.7 million which was primarily due to an increase in state funding as well as an increase in deferred outflows of resources related to the defined pension plans. Total liabilities and deferred inflows of resources increased by $577 thousand. 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 $2.1 million. \r\niv \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2019 and June 30, 2018. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues \r\n \r\nProgram Revenues: \r\n \r\nCharges for Services \r\n \r\n$ \r\n \r\nOperating Grants and Contributions \r\n \r\nCapital Grants and Contributions \r\n \r\nTotal Program Revenues \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Taxes Grants and Contributions not Restrictd to Specific Programs Investment Earnings Miscellaneous \r\nSpecial Item Insurance Proceeds \r\n \r\nFiscal Year 2019 \r\n \r\nGovernmental Activities Fiscal \r\nYear 2018 \r\n \r\n465,573 $ 20,024,240 \r\n666,607 \r\n21,156,420 \r\n \r\n227,979 $ 19,143,254 \r\n- \r\n19,371,233 \r\n \r\n3,726,102 12,287 \r\n1,045,703 45,485 \r\n2,685,124 8,498 \r\n851,468 \r\n- \r\n \r\n3,725,649 - \r\n1,009,642 47,300 \r\n2,400,469 7,622 \r\n1,049,589 \r\n81,537 \r\n \r\nTotal General Revenues and Special Item \r\n \r\n8,374,667 \r\n \r\n8,321,808 \r\n \r\nTotal Revenues \r\nProgram Expenses: Instruction Support Services Pupil Servies Improvement of Instructional Services Educational Media Services Federal Grant Administration 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\n29,531,087 \r\n17,153,747 \r\n997,312 522,224 291,986 \r\n701,888 1,557,858 190,347 1,805,672 1,627,105 \r\n71,991 342,148 \r\n42,889 1,958,568 \r\n148,843 \r\n \r\n27,693,041 \r\n16,815,489 \r\n964,313 446,646 398,332 \r\n3,807 718,869 1,525,152 180,801 1,761,242 1,584,014 \r\n32,182 266,467 \r\n40,842 1,869,244 \r\n171,337 \r\n \r\nTotal Expenses \r\n \r\n27,412,578 \r\n \r\n26,778,737 \r\n \r\nIncrease in Net Position \r\n \r\n$ \r\n \r\n2,118,509 $ \r\n \r\n914,304 $ \r\n \r\nNet Change \r\n237,594 880,986 666,607 1,785,187 \r\n453 12,287 \r\n36,061 (1,815) 284,655 \r\n876 (198,121) \r\n(81,537) 52,859 1,838,046 \r\n338,258 \r\n32,999 75,578 (106,346) (3,807) (16,981) 32,706 \r\n9,546 44,430 43,091 39,809 75,681 \r\n2,047 89,324 (22,494) \r\n633,841 1,204,205 \r\n \r\nv \r\n \r\n BLECKLEY 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 $1.8 million for governmental activities. This increase is largely due to state funding, as mentioned above. General revenues increased by $53 thousand during fiscal year 2019. This minimal increase is primarily due to an increase in sales taxes and equalization funds. \r\n \r\nGovernmental Activities \r\n \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity. \r\n \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services Federal Grant Administration General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt \r\nTotal Expenses \r\n \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal Year 2019 \r\n \r\nFiscal Year 2018 \r\n \r\nNet Cost of Services \r\n \r\nFiscal Year 2019 \r\n \r\nFiscal Year 2018 \r\n \r\n$ 17,153,747 $ 16,815,489 $ \r\n \r\n2,194,044 $ \r\n \r\n3,010,360 \r\n \r\n997,312 522,224 291,986 \r\n701,888 1,557,858 190,347 1,805,672 1,627,105 \r\n71,991 342,148 \r\n \r\n964,313 446,646 398,332 \r\n3,807 718,869 1,525,152 180,801 1,761,242 1,584,014 \r\n32,182 266,467 \r\n \r\n644,280 188,805 (37,570) \r\n112,222 726,699 190,347 952,637 970,872 \r\n71,991 51,470 \r\n \r\n672,541 108,245 \r\n74,561 3,807 (6,847) \r\n704,714 180,697 974,223 1,421,515 \r\n29,852 68,745 \r\n \r\n42,889 1,958,568 \r\n148,843 \r\n \r\n40,842 1,869,244 \r\n171,337 \r\n \r\n42,889 (1,372) 148,844 \r\n \r\n40,842 (47,088) 171,337 \r\n \r\n$ 27,412,578 $ 26,778,737 $ \r\n \r\n6,256,158 $ \r\n \r\n7,407,504 \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, 22.8% of total expenses were supplemented by taxes and other general revenues compared to 27.7% in 2018. \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 $29.5 million and total expenses of $28.7 million in fiscal year 2019. Total governmental fund balances of $6.5 million at June 30, 2019, increased by $783 thousand from the prior year. The majority of the increase in fund balances was primarily due to expenditures being less than anticipated and revenues being more than anticipated, also resulting in a cash increase of $536 thousand. \r\nGeneral Fund Budgeting Highlights \r\nvi \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nThe School District's budget is prepared according to Georgia Law. The most significant budgeted fund is the general fund, funded primarily through state, federal and local property tax revenues. During the course of fiscal year 2019, the School District amended its general fund budget as needed. \r\n \r\nThe School District budget is adopted at the aggregate level and maintained at the program and function levels to facilitate budgetary control. The budgeting systems are designed to control the total budget, but provide flexibility to meet the ongoing programmatic needs. The budgeting systems are also designed to control total site budgets but provide flexibility for site management as well. \r\n \r\nFor the general fund, the final actual revenues of $27.9 million were more than the final budgeted revenue of $26.8 million by $1.2 million. This can be attributed primarily to receiving more state revenue than originally anticipated. \r\n \r\nThe general fund's final actual expenditures of $27.0 million were less than the final budgeted expenditures by $61 thousand. The School District did not include revenues and expenditures for school activity accounts in the original or final budget. \r\n \r\nCAPITAL ASSETS \r\n \r\nAt the fiscal years ended June 30, 2019, the School District had $32.5 million invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation. \r\n \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2019 \r\n \r\n2018 \r\n \r\nLand Constuction In Progress Buildings and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n259,481 $ \r\n \r\n259,481 \r\n \r\n600,343 \r\n \r\n- \r\n \r\n29,807,104 \r\n \r\n30,630,722 \r\n \r\n924,815 \r\n \r\n792,582 \r\n \r\n878,413 \r\n \r\n927,497 \r\n \r\nTotal \r\n \r\n$ 32,470,156 $ 32,610,282 \r\n \r\nThe overall capital assets decreased in fiscal year 2019 by $140 thousand is primarily due to depreciation. \r\nConstruction in progress increased primarily due to the installment of HVAC units at Bleckley County Elementary School and Bleckley County High School. Construction in progress also includes amounts paid to architects for the beginning phases of the new Bleckley County Primary School construction. \r\n \r\nvii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2019 \r\n \r\nLONG-TERM LIABILITIES \r\n \r\nAt June 30, 2019, the School District had $4.0 million in total long-term liabilities outstanding with $958 thousand due within one year. Table 5 summarizes long-term liabilities at June 30, 2019 and 2018. \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 2019 \r\n \r\nYear 2018 \r\n \r\nGeneral Obligation Bonds $ Unamortized Bond Premium \r\n \r\n3,920,000 $ 124,323 \r\n \r\n4,815,000 162,577 \r\n \r\nTotal \r\n \r\n$ 4,044,323 $ 4,977,577 \r\n \r\nCURRENT ISSUES \r\nApproximately 80% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2019. More than a third of certified personnel in the School District have 21 years or more of experience resulting in salaries at the highest possible state pay level. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that County students receive a quality education from effective personnel. \r\nThe School District is financially stable. The School District's operating millage for fiscal year 2019 was 14.286, which produced approximately $243 thousand per mill. The one percent local sales tax revenue will continue to pay bond debts. \r\nThe School District was awarded a federal school improvement grant to assist in recruiting and retaining qualified staff. \r\nThe School District remains confident in the ability to maximize resources to provide the best possible educational experience for all students. Additionally, the School District will continue to be a good steward of tax dollars while providing quality educational opportunities for all students. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Aly Rozier, Finance Director, at the Bleckley County Board of Education, 242 East Dykes Street, Cochran, GA 31014. You may also email your questions to Mrs. Rozier at arozier@bleckley.k12.ga.us. \r\n \r\nviii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2019 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nInterest Taxes State Government Federal Government Local Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\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 Payroll Withholdings 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\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n5,254,194.44 \r\n \r\n3,766.24 \r\n \r\n25.15 415,000.55 2,764,853.50 490,558.66 \r\n5,688.50 15,967.09 59,985.82 77,385.78 859,823.72 31,610,332.14 \r\n \r\n41,557,581.59 \r\n \r\n5,072,339.03 737,184.00 \r\n5,809,523.03 \r\n \r\n302,294.12 1,456,124.38 \r\n371.75 43,100.00 512,167.41 46,323.00 \r\n8.32 21,451,154.00 16,117,670.00 \r\n958,253.35 3,086,070.06 \r\n43,973,536.39 \r\n \r\n793,804.00 3,439,489.00 \r\n4,233,293.00 \r\n \r\n27,867,342.04 \r\n619,175.36 754,551.54 558,490.41 (30,639,284.12) \r\n \r\n$ \r\n \r\n(839,724.77) \r\n \r\n- 1 - \r\n \r\n BLECKLEY 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 17,153,747.37 $ \r\n997,311.60 522,224.25 291,985.53 701,887.83 1,557,858.29 190,347.02 1,805,672.45 1,627,105.28 \r\n71,990.87 342,147.58 \r\n42,888.84 1,958,567.72 \r\n148,843.52 \r\n$ 27,412,578.15 $ \r\n \r\n225,822.94 \r\n- \r\n239,749.58 \r\n- \r\n465,572.52 \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$ 14,270,922.74 $ \r\n353,031.31 333,419.37 329,555.00 589,666.12 831,158.90 \r\n817,774.36 501,793.69 \r\n290,677.50 \r\n1,706,241.41 \r\n- \r\n$ 20,024,240.40 $ \r\n \r\n462,957.29 $ (2,194,044.40) \r\n \r\n35,261.53 154,440.00 - \r\n \r\n(644,280.29) (188,804.88) \r\n37,569.47 (112,221.71) (726,699.39) (190,347.02) (952,636.56) (970,871.59) \r\n(71,990.87) (51,470.08) \r\n \r\n13,948.59 \r\n- \r\n \r\n(42,888.84) 1,371.86 \r\n(148,843.52) \r\n \r\n666,607.41 \r\n \r\n(6,256,157.82) \r\n \r\n3,726,101.73 12,287.08 \r\n1,045,703.08 45,485.42 \r\n2,685,124.00 8,498.06 \r\n851,467.87 \r\n8,374,667.24 \r\n2,118,509.42 \r\n(2,958,234.19) \r\n \r\n$ \r\n \r\n(839,724.77) \r\n \r\n- 3 - \r\n \r\n BLECKELY 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\nInterest Taxes State Government Federal Government Local Other Prepaid Items Inventories \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 4,505,207.20 $ 3,766.24 \r\n25.15 320,013.25 2,252,686.09 490,558.66 \r\n5,688.50 15,967.09 59,985.82 77,385.78 \r\n \r\n748,962.24 $ - \r\n94,987.30 512,167.41 \r\n- \r\n \r\n25.00 $ - \r\n \r\n5,254,194.44 3,766.24 \r\n \r\n- \r\n \r\n25.15 \r\n \r\n- \r\n \r\n415,000.55 \r\n \r\n- \r\n \r\n2,764,853.50 \r\n \r\n- \r\n \r\n490,558.66 \r\n \r\n- \r\n \r\n5,688.50 \r\n \r\n- \r\n \r\n15,967.09 \r\n \r\n- \r\n \r\n59,985.82 \r\n \r\n- \r\n \r\n77,385.78 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Contracts Payable Retainages Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\n \r\n$ 7,731,283.78 $ 1,356,116.95 $ \r\n \r\n$ \r\n \r\n302,294.12 $ \r\n \r\n1,456,124.38 \r\n \r\n371.75 \r\n \r\n- \r\n \r\n- \r\n \r\n8.32 \r\n \r\n1,758,798.57 \r\n \r\n- $ 512,167.41 46,323.00 - \r\n558,490.41 \r\n \r\n243,347.30 \r\n \r\n- \r\n \r\n137,371.60 559,189.54 5,032,576.77 \r\n5,729,137.91 \r\n \r\n797,626.54 \r\n- \r\n797,626.54 \r\n \r\n25.00 $ 9,087,425.73 \r\n \r\n- $ \r\n \r\n302,294.12 \r\n \r\n- \r\n \r\n1,456,124.38 \r\n \r\n- \r\n \r\n371.75 \r\n \r\n- \r\n \r\n512,167.41 \r\n \r\n- \r\n \r\n46,323.00 \r\n \r\n- \r\n \r\n8.32 \r\n \r\n- \r\n \r\n2,317,288.98 \r\n \r\n- \r\n \r\n243,347.30 \r\n \r\n25.00 \r\n- \r\n25.00 \r\n \r\n137,371.60 1,356,841.08 5,032,576.77 \r\n6,526,789.45 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 7,731,283.78 $ 1,356,116.95 $ \r\n \r\n25.00 $ 9,087,425.73 \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 BLECKLEY 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 Unamortized bond premiums \r\n \r\n$ \r\n \r\n6,526,789.45 \r\n \r\n$ \r\n \r\n259,480.81 \r\n \r\n600,342.91 \r\n \r\n42,180,508.28 \r\n \r\n4,144,026.88 \r\n \r\n1,629,164.39 \r\n \r\n(16,343,367.41) \r\n \r\n32,470,155.86 \r\n \r\n$ (21,451,154.00) (16,117,670.00) \r\n \r\n(37,568,824.00) \r\n \r\n$ \r\n \r\n4,278,535.03 \r\n \r\n(2,702,305.00) \r\n \r\n1,576,230.03 243,347.30 \r\n \r\n$ \r\n \r\n(3,920,000.00) \r\n \r\n(43,100.00) \r\n \r\n(124,323.41) \r\n \r\n(4,087,423.41) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ \r\n \r\n(839,724.77) \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Dues and Fees Interest \r\nTotal Expenditures \r\nRevenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,665,867.41 $ 45,485.42 \r\n19,001,278.03 3,886,111.31 465,572.52 7,306.48 851,467.87 \r\n27,923,089.04 \r\n \r\n- $ 1,045,703.08 \r\n512,167.41 - \r\n1,191.58 - \r\n1,559,062.07 \r\n \r\n- $ 3,665,867.41 \r\n \r\n- \r\n \r\n1,091,188.50 \r\n \r\n- \r\n \r\n19,513,445.44 \r\n \r\n- \r\n \r\n3,886,111.31 \r\n \r\n- \r\n \r\n465,572.52 \r\n \r\n- \r\n \r\n8,498.06 \r\n \r\n- \r\n \r\n851,467.87 \r\n \r\n- \r\n \r\n29,482,151.11 \r\n \r\n16,575,254.56 \r\n1,006,522.56 529,452.53 300,996.25 642,705.98 \r\n1,594,773.59 194,907.22 \r\n1,808,237.74 1,953,834.73 \r\n72,837.65 342,147.58 \r\n42,888.84 1,948,946.79 \r\n- \r\n- \r\n27,013,506.02 \r\n909,583.02 \r\n \r\n- \r\n675.05 595,490.41 \r\n- \r\n596,165.46 \r\n962,896.61 \r\n \r\n- \r\n- \r\n895,000.00 7,425.00 \r\n186,943.75 \r\n1,089,368.75 \r\n(1,089,368.75) \r\n \r\n16,575,254.56 \r\n1,006,522.56 529,452.53 300,996.25 643,381.03 \r\n1,594,773.59 194,907.22 \r\n1,808,237.74 1,953,834.73 \r\n72,837.65 342,147.58 \r\n42,888.84 1,948,946.79 \r\n595,490.41 \r\n895,000.00 7,425.00 \r\n186,943.75 \r\n28,699,040.23 \r\n783,110.88 \r\n \r\n(100,000.00) (100,000.00) 809,583.02 4,919,554.89 \r\n \r\n100,000.00 (1,089,368.75) \r\n(989,368.75) (26,472.14) 824,098.68 \r\n \r\n1,089,368.75 - \r\n1,089,368.75 - \r\n25.00 \r\n \r\n1,189,368.75 (1,189,368.75) \r\n783,110.88 5,743,678.57 \r\n \r\nFund Balances - Ending \r\n \r\n$ 5,729,137.91 $ \r\n \r\n797,626.54 $ \r\n \r\n25.00 $ 6,526,789.45 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n BLECKLEY 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\nBond principal retirements 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 and OPEB liability is measured a year before the District's report date. Pension and OPEB expense, which is the change in the net pension and OPEB liability adjusted for changes in deferred outflows and inflows of resources related to pensions and OPEB, is reported in the Statement of Activities. \r\nPension expense OPEB expense \r\nSome items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. \r\nAccrued interest on issuance of bonds \r\n \r\n$ \r\n \r\n783,110.88 \r\n \r\n$ \r\n \r\n961,907.41 \r\n \r\n(1,102,033.57) \r\n \r\n(140,126.16) 72,521.40 \r\n \r\n$ \r\n \r\n895,000.00 \r\n \r\n38,253.35 \r\n \r\n933,253.35 \r\n \r\n$ \r\n \r\n358,587.07 \r\n \r\n103,891.00 \r\n \r\n462,478.07 \r\n \r\n7,271.88 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n2,118,509.42 \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 \r\nLIABILITIES Accounts Payable Funds Held for Others \r\nTotal Liabilities NET POSITION Held in Trust for Private Purposes \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2019 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 16,380.34 $ 76,796.94 \r\n \r\n$ \r\n \r\n1,325.00 \r\n \r\n75,471.94 \r\n \r\n$ 76,796.94 \r\n \r\n$ 16,380.34 \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2019 \r\nADDITIONS Investment Earnings Interest \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n32.73 \r\n \r\n16,347.61 \r\n \r\n$ \r\n \r\n16,380.34 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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 Bleckley County School Building Authority (the Authority) was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the School District. The Authority consists of five members appointed by the governing authority of the School District. The Authority is a component unit of the School District and as such the Authority's financial activity has been blended with the School District's basic financial statements. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component units, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \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, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit a scholarship for female students who attend Bleckley County High School. \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\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted resources available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 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 disclosures. \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\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \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\n \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\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\nPREPAID ITEMS \r\n \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\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 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 200,000.00 \r\n \r\nN/A 20 to 80 Years 10 to 80 Years \r\n5 to 50 Years 5 to 10 Years \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\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\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nPOSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) \r\nFor purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Georgia School Employees Postemployment Benefit Fund (School OPEB Fund) and additions to/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nfund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\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 Bleckley County Board of Commissioners adopted the property tax levy for the 2018 tax digest year (calendar year) on September 27, 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 Bleckley County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.50% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2019, for maintenance and operations amounted to $3,307,262.95. \r\nThe tax millage rate levied for the 2018 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.286 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $346,317.38 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 $1,045,703.08 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service, and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $50,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\n \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2019, the School District had deposits with a carrying amount of $5,351,137.96, which includes $3,766.24 in certificate of deposits that are recorded as investments, and a bank balance of $6,095,095.74. The bank balances insured by Federal depository insurance were $1,003,766.24 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $5,091,329.50. \r\n \r\nReconciliation of cash and cash equivalents to carrying value of deposits: \r\n \r\nCash and cash equivalents Statement of Net Position Statement of Fiduciary Net Position \r\n \r\n$ 5,254,194.44 93,177.28 \r\n \r\nTotal cash and cash equivalents \r\n \r\n5,347,371.72 \r\n \r\nAdd: Deposits with original maturity of three months or more reported as investments \r\n \r\n3,766.24 \r\n \r\nTotal carrying value of deposits - June 30, 2019 \r\n \r\n$ 5,351,137.96 \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2018 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2019 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n259,480.81 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n600,342.91 \r\n \r\n- $ - \r\n \r\n259,480.81 600,342.91 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n259,480.81 \r\n \r\n600,342.91 \r\n \r\n- \r\n \r\n859,823.72 \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\n42,163,808.28 3,933,758.89 1,629,164.39 \r\n11,533,085.73 3,141,177.06 701,667.56 \r\n \r\n16,700.00 344,864.50 \r\n- \r\n840,318.19 212,631.64 \r\n49,083.74 \r\n \r\n134,596.51 \r\n- \r\n \r\n42,180,508.28 4,144,026.88 1,629,164.39 \r\n \r\n134,596.51 \r\n- \r\n \r\n12,373,403.92 3,219,212.19 750,751.30 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n32,350,801.21 \r\n \r\n(740,469.07) \r\n \r\n- \r\n \r\n31,610,332.14 \r\n \r\nGovernmental Activities Capital Assets - Net $ 32,610,282.02 $ \r\n \r\n(140,126.16) $ \r\n \r\n- $ 32,470,155.86 \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n$ 11,689.62 70,268.99 5,603.44 83,079.96 \r\n \r\n901,378.29 \r\n170,642.01 30,013.27 \r\n \r\n$ 1,102,033.57 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS \r\nInterfund transfers for the year ended June 30, 2019, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nCapital Projects \r\n \r\nGeneral Fund \r\n \r\nFund \r\n \r\nCapital Projects Fund Debt Service Fund \r\n \r\n$ 100,000.00 $ \r\n \r\n- \r\n \r\n- \r\n \r\n1,089,368.75 \r\n \r\nTotal \r\n \r\n$ 100,000.00 $ 1,089,368.75 \r\n \r\nThe general fund transferred property tax revenues to the capital projects fund to provide supplemental funding for capital construction projects. The capital projects fund transferred SPLOST revenue to the debt service fund to service debt associated with the ESPLOST referendum. \r\nNOTE 7: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities were as follows: \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\nBalance July 1, 2018 \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nJune 30, 2019 \r\n \r\nDue Within One Year \r\n \r\n$ 4,815,000.00 $ 162,576.76 \r\n \r\n- $ 895,000.00 $ 3,920,000.00 $ 920,000.00 \r\n \r\n- \r\n \r\n38,253.35 \r\n \r\n124,323.41 \r\n \r\n38,253.35 \r\n \r\n$ 4,977,576.76 $ \r\n \r\n- $ 933,253.35 $ 4,044,323.41 $ 958,253.35 \r\n \r\nVoters have authorized $16,000,000.00 in general obligation debt that has not been issued as of June 30, 2019. \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 entity 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\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nIssue Date \r\n \r\nMaturity Date \r\n \r\nAmount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2009 2.00% - 5.00% 12/1/2009 \r\n \r\n10/1/2022 $ 8,900,000.00 $ 3,920,000.00 \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\n920,000.00 $ \r\n \r\n960,000.00 \r\n \r\n1,000,000.00 \r\n \r\n1,040,000.00 \r\n \r\n154,000.00 $ 118,800.00 \r\n77,000.00 26,000.00 \r\n \r\n38,253.35 38,253.35 38,253.35 \r\n9,563.36 \r\n \r\nTotal Principal and Interest $ 3,920,000.00 $ \r\n \r\n375,800.00 $ \r\n \r\n124,323.41 \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; natural disasters and unemployment compensation. 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\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nUNEMPLOYMENT COMPENSATION \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nThe School District had no unemployment compensation claims in the past two years. \r\n \r\nSURETY BOND \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Drivers' Education \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n$ \r\n \r\n10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2019: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Debt Service \r\nUnassigned \r\n \r\n$ 59,985.82 77,385.78 $ \r\n \r\n137,371.60 \r\n \r\n$ 559,189.54 797,651.54 \r\n \r\n1,356,841.08 5,032,576.77 \r\n \r\nFund Balance, June 30, 2019 \r\n \r\n$ 6,526,789.45 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nNOTE 10: BROADBAND SPECTRUM LEASE \r\nEffective August 18, 2005, the School District entered into a five-year lease agreement with automatic renewals, with Nextel Spectrum Acquisition Corporation for the lease of excess spectrum capacity on Education Broadband Service licenses currently held by the School District. These licenses were granted to the School District by the Federal Communications Commission. The lease agreement requires monthly lease payments over the term of the lease, of which $28,459.44 was recognized during fiscal year 2019 as a general revenue on the Statement of Activities. \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\n \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2019, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nExpenditures through \r\nJune 30, 2019 (2) \r\n \r\nFunding Available From State (1) \r\n \r\nBleckley County Elementary School/Bleckley County High School HVAC Replacement $ 1,648,472.59 $ \r\n \r\n558,490.51 $ 1,149,476.59 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include contracts and retainages payable at year end. \r\n \r\nOPERATING LEASES \r\n \r\nThe School District leases copiers 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 $26,217.50 for governmental activities for the year ended June 30, 2019. \r\n \r\nThe following future minimum lease payments were required under operating leases at June 30, 2019: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2020 \r\n \r\n$ \r\n \r\n22,596.08 \r\n \r\n2021 \r\n \r\n12,615.93 \r\n \r\n2022 \r\n \r\n5,415.75 \r\n \r\n2023 - 2025 \r\n \r\n327.41 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n40,955.17 \r\n \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\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 13: 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 \r\n \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nhealthcare 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 $715,377.00 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 $16,117,670.00 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 0.126814%, which was a decrease of 0.001073% from its proportion measured as of June 30, 2017. \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFor the year ended June 30, 2019, the School District recognized OPEB expense of $611,486.00. At June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 366,614.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n2,730,411.00 \r\n \r\nNet difference between projected and actual \r\n \r\nearnings on OPEB plan investments \r\n \r\n21,807.00 \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\n342,464.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n715,377.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 737,184.00 $ 3,439,489.00 \r\n \r\nSchool District contributions subsequent to the measurement date of $715,377.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2020 2021 2022 2023 2024 2025 \r\n \r\n$ (666,883.00) $ (666,883.00) $ (666,883.00) $ (668,187.00) $ (545,504.00) $ (203,342.00) \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\nPre-Medicare Eligible \r\n \r\n7.30%, compounded annually, net of investment expense, and including inflation \r\n7.50% \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\nThe long-term expected rate of return on OPEB plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected nominal returns, net of investment expense and the assumed rate of inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by \r\n \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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\n \r\nDiscount rate: The discount rate has changed since the prior measurement date from 3.58% to 3.87%. In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.87% was used as the discount rate. This is comprised mainly of the yield or index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.87% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2118. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2018. Therefore, the calculated discount rate of 3.87% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability calculated using the discount rate of 3.87%, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.87%) or 1 percentage-point higher (4.87%) than the current discount rate: \r\n \r\n1% Decrease (2.87%) \r\n \r\nCurrent Discount Rate (3.87%) \r\n \r\n1% Increase (4.87%) \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 18,820,385.00 $ \r\n \r\n16,117,670.00 $ 13,938,213.00 \r\n \r\nSensitivity of the School District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB liability, as well as what the School District's proportionate share of the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1percentage-point higher than the current healthcare cost trend rates: \r\n \r\n1% Decrease \r\n \r\nCurrent Healthcare Cost Trend Rate \r\n \r\n1% Increase \r\n \r\nSchool District's proportionate share of the Net OPEB Liability \r\n \r\n$ 13,550,255.00 $ \r\n \r\n16,117,670.00 $ 19,398,732.00 \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 14: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \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 O.C.G.A 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits 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 20.70% of payroll was required from the School District and 0.20% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,757,125.03 and $25,706.90 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $15.00, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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 $58,277.00. \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 $21,451,154.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 21,451,154.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n198,244.00 \r\n \r\nTotal \r\n \r\n$ 21,649,398.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2018. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2017. An expected total pension liability as of June 30, 2018 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2018. \r\nAt June 30, 2018, the School District's TRS proportion was 0.115564%, which was an increase of 0.003625% 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 $348,127.00. \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 $2,378,327.00 for TRS and $80,604.00 for PSERS and revenue of ($20,205.00) for TRS and $80,604.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2019, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 1,420,097.00 $ 44,211.00 \r\n \r\nChanges of assumptions \r\n \r\n323,690.00 \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n586,516.00 \r\n \r\n571,427.00 163,077.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n2,757,125.03 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 5,072,339.03 $ 793,804.00 \r\n \r\nThe School District contributions subsequent to the measurement date are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2020 2021 2022 2023 2024 \r\n \r\n$ 1,231,282.00 $ 626,319.00 $ (482,312.00) $ 113,284.00 $ 32,837.00 \r\n \r\nActuarial assum ptions: The total pension liability as of June 30, 2018 was determined by an actuarial valuation as of June 30, 2017, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\nInflation Salary increases Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\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- 29 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \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, 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\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\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\n \r\nTRS Target allocation \r\n \r\nPSERS Target allocation \r\n \r\nLong-term expected real rate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\n \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nTotal \r\n \r\n100.00% \r\n \r\n100.00% \r\n \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\nDiscount rate: The discount rate used to measure the total TRS pension liability was 7.50%. The discount rate used to measure the total PSERS pension liability was 7.30%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position \r\n \r\n- 30 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2019 \r\n \r\nEXHIBIT \"I\" \r\n \r\nwas 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 \r\n \r\nof the net pension liability \r\n \r\n$ 35,808,118.00 $ \r\n \r\n21,451,154.00 $ 9,620,285.00 \r\n \r\nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net \r\n \r\nposition is available in the separately issued TRS and PSERS financial report which is publicly available \r\n \r\nat www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 15: RELATED PARTY TRANSACTIONS \r\n \r\nDuring the year under review, the School District conducted business with one related party, Rozier Auto Parts. Rozier Auto Parts is owned by the Finance Director's husband's family. Current year expenditures for Rozier Auto Parts total $9,408.13. The School District also receives counseling services provided directly to students through Georgia Outreach. Although the School District does not incur any local costs, the Superintendent's daughter is employed by Georgia Outreach. \r\n \r\nNOTE 16: SUBSEQUENT EVENT \r\n \r\nIn December 2019, a strain of coronavirus (COVID-19) began to spread worldwide, resulting in a severe impact to the United States economy in March 2020. The spread of COVID-19 has had a negative impact on virtually all businesses and individuals which comprise the tax base of all levels of government. The extent of this impact is uncertain but is expected to have negative results on financial operations, however the impact cannot be reasonably estimated at this time. \r\n \r\n- 31 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2019 2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the \r\nnet 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\nTotal \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its covered \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n0.115564% $ 0.111939% $ 0.112846% $ 0.113809% $ 0.113422% $ \r\n \r\n21,451,154.00 $ 20,804,208.00 $ 23,281,388.00 $ 17,326,290.00 $ 14,329,374.00 $ \r\n \r\n198,244.00 $ 21,649,398.00 $ 13,891,719.37 343,456.00 $ 21,147,664.00 $ 13,064,761.59 542,805.00 $ 23,824,193.00 $ 12,667,465.64 412,723.00 $ 17,739,013.00 $ 12,299,400.07 329,613.00 $ 14,658,987.00 $ 11,837,505.64 \r\n \r\n154.42% 159.24% 183.79% 140.87% 121.05% \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- 33 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n2019 2018 2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n348,127.00 $ 306,322.00 $ 405,517.00 $ 267,010.00 $ 239,626.00 $ \r\n \r\nTotal \r\n348,127.00 306,322.00 405,517.00 267,010.00 239,626.00 \r\n \r\nSchool District's covered payroll \r\n \r\n$ \r\n \r\n744,680.75 \r\n \r\n$ \r\n \r\n701,720.36 \r\n \r\n$ \r\n \r\n698,123.79 \r\n \r\n$ \r\n \r\n688,106.87 \r\n \r\n$ \r\n \r\n688,182.25 \r\n \r\nSchool District's proportionate share of the net pension liability as a percentage of its \r\ncovered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\nN/A \r\n \r\n85.26% \r\n \r\nN/A \r\n \r\n85.69% \r\n \r\nN/A \r\n \r\n81.00% \r\n \r\nN/A \r\n \r\n87.00% \r\n \r\nN/A \r\n \r\n88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 34 - \r\n \r\n BLECKLEY 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\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\n0.126814% $ \r\n \r\n16,117,670.00 $ \r\n \r\n- \r\n \r\n0.127887% $ \r\n \r\n17,968,072.00 $ \r\n \r\n- \r\n \r\nTotal \r\n$ 16,117,670.00 $ 17,968,072.00 \r\n \r\nSchool District's covered-employee \r\npayroll \r\n$ 9,902,646.68 $ 9,392,659.42 \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\n162.76% 191.30% \r\n \r\n2.93% 1.61% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 35 - \r\n \r\n BLECKLEY 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 contribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2019 \r\n \r\n$ \r\n \r\n2,757,125.03 $ \r\n \r\n2,757,125.03 $ \r\n \r\n- \r\n \r\n2018 \r\n \r\n$ \r\n \r\n2,313,812.96 $ \r\n \r\n2,313,812.96 $ \r\n \r\n- \r\n \r\n2017 \r\n \r\n$ \r\n \r\n1,834,059.26 $ \r\n \r\n1,834,059.26 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n1,767,095.82 $ \r\n \r\n1,767,095.82 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n1,579,743.81 $ \r\n \r\n1,579,743.81 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 13,318,312.29 $ 13,891,719.37 $ 13,064,761.59 $ 12,667,465.64 $ 12,299,400.07 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n20.70% 16.66% 14.04% 13.95% 12.84% \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 BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"5\" \r\n \r\nYear Ended \r\n2019 2018 2017 \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\n715,377.00 $ \r\n \r\n715,377.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n657,264.00 $ \r\n \r\n657,264.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n666,817.00 $ \r\n \r\n666,817.00 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n$ 9,728,022.24 $ 9,902,646.68 $ 9,392,659.42 \r\n \r\n7.35% 6.64% 7.10% \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\n \r\nChanges of assumptions: On November 18, 2015, th-e Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The \r\n \r\nexpectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the \r\n \r\nSociety of Actuaries' projection scale BB (set forward one year for males). \r\n \r\n \r\n \r\nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\n \r\nPublic School Employees Retirement System \r\nChanges of assumptions: On March 15, 2018, the Board adopted a new funding policy. Because of this new funding policy, the assumed investment rate of return was reduced from 7.50% to 7.40% for June 30, 2017 actuarial valuation. In addition, based on the Board's new funding policy, the assumed investment rate of return was further reduced by 0.10% from 7.40% to 7.30% as of the June 30, 2018 measurement date. \r\nOn-December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (-set forward 3 years for males and 2 years for females). \r\nIn 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\n \r\nSchool OPEB Fund \r\nChanges of benefit terms: There have been no changes in benefit terms. \r\nChanges in assumptions: I: June 30, 2017 valuation: the June 30, 2017 actuarial valuation was revised, for various factors, including the methodology used to determine how employees and retirees were assigned to each of the OPEB Funds and anticipated participation percentages. Current and former employees of State organizations (including technical colleges, community service boards and public health departments) are now assigned to the State OPEB fund based on their last employer payroll location: irrespective of retirement affiliation. \r\nThe discount rate was updated from 3.58% as of June 30, 2017 to 3.87% as of June 30, 2018. \r\n \r\n- 38 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nOperating Transfers From Other Funds Operating Transfers To Other Funds \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n3,859,323.00 $ \r\n \r\n3,859,323.00 $ \r\n \r\n3,665,867.41 $ \r\n \r\n- \r\n \r\n- \r\n \r\n45,485.42 \r\n \r\n18,408,245.80 \r\n \r\n18,590,696.51 \r\n \r\n19,001,278.03 \r\n \r\n3,569,175.00 \r\n \r\n4,070,056.79 \r\n \r\n3,886,111.31 \r\n \r\n222,400.00 \r\n \r\n222,400.00 \r\n \r\n465,572.52 \r\n \r\n500.00 \r\n \r\n500.00 \r\n \r\n7,306.48 \r\n \r\n10,100.00 \r\n \r\n18,100.00 \r\n \r\n851,467.87 \r\n \r\n26,069,743.80 \r\n \r\n26,761,076.30 \r\n \r\n27,923,089.04 \r\n \r\n(193,455.59) 45,485.42 \r\n410,581.52 (183,945.48) 243,172.52 \r\n6,806.48 833,367.87 \r\n1,162,012.74 \r\n \r\n16,364,688.65 \r\n934,766.70 507,618.39 284,988.11 575,684.53 1,412,118.61 188,473.16 2,072,806.42 1,822,301.90 \r\n84,201.92 245,890.55 \r\n1,879,441.00 \r\n26,372,979.94 \r\n(303,236.14) \r\n \r\n16,556,595.36 \r\n979,578.50 528,492.39 284,988.11 606,270.45 1,412,118.61 198,473.19 2,222,806.42 1,813,757.90 \r\n81,576.92 510,213.59 \r\n1,879,441.00 \r\n27,074,312.44 \r\n(313,236.14) \r\n \r\n16,575,254.56 \r\n1,006,522.56 529,452.53 300,996.25 642,705.98 \r\n1,594,773.59 194,907.22 \r\n1,808,237.74 1,953,834.73 \r\n72,837.65 342,147.58 \r\n42,888.84 1,948,946.79 \r\n27,013,506.02 \r\n909,583.02 \r\n \r\n(18,659.20) \r\n(26,944.06) (960.14) \r\n(16,008.14) (36,435.53) (182,654.98) \r\n3,565.97 414,568.68 (140,076.83) \r\n8,739.27 168,066.01 (42,888.84) (69,505.79) \r\n60,806.42 \r\n1,222,819.16 \r\n \r\n(100,000.00) (100,000.00) (403,236.14) 4,877,067.30 \r\n(2,434.18) \r\n \r\n12,700.00 (112,700.00) (100,000.00) (413,236.14) 4,877,067.30 \r\n2,993.97 \r\n \r\n(100,000.00) (100,000.00) 809,583.02 4,919,554.89 \r\n- \r\n \r\n(12,700.00) 12,700.00 \r\n1,222,819.16 \r\n42,487.59 (2,993.97) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4,471,396.98 $ \r\n \r\n4,466,825.13 $ \r\n \r\n5,729,137.91 $ \r\n \r\n1,262,312.78 \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 $746,451.44 and $718,094.29, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Rural Education Student Support and Academic Enrichment Program Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U.S. Department of Direct Rural Health Development Network Grant Pass-Through From Georgia Department of Human Services Affordable Care Act (ACA) Abstinence Education Program \r\nTotal U. S. Department of Health and Human Services \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\nPASSEDTHROUGH TO SUBRECIPIENTS \r\n \r\n10.553 \r\n \r\n195GA324N1099 \r\n \r\n$ \r\n \r\n420,818.27 $ \r\n \r\n- \r\n \r\n10.555 \r\n \r\n195GA324N1099 \r\n \r\n1,458,884.61 \r\n \r\n- \r\n \r\n1,879,702.88 \r\n \r\n- \r\n \r\n84.027 \r\n \r\nH027A170073 \r\n \r\n60,644.94 \r\n \r\n- \r\n \r\n84.027 \r\n \r\nH027A180073 \r\n \r\n443,726.72 \r\n \r\n- \r\n \r\n84.173 \r\n \r\nH173A170081 \r\n \r\n2,243.70 \r\n \r\n- \r\n \r\n84.173 \r\n \r\nH173A180081 \r\n \r\n22,190.30 \r\n \r\n- \r\n \r\n528,805.66 \r\n \r\n- \r\n \r\n84.048 \r\n \r\nV048A180010 \r\n \r\n30,132.21 \r\n \r\n- \r\n \r\n84.358 \r\n \r\nS365B170010 \r\n \r\n1,967.00 \r\n \r\n- \r\n \r\n84.358 \r\n \r\nS365B180010 \r\n \r\n39,075.69 \r\n \r\n- \r\n \r\n84.424A \r\n \r\nS424A170011 \r\n \r\n1,851.00 \r\n \r\n- \r\n \r\n84.424A \r\n \r\nS424A180011 \r\n \r\n27,962.46 \r\n \r\n- \r\n \r\n84.367 \r\n \r\nS367A170001 \r\n \r\n25,253.15 \r\n \r\n- \r\n \r\n84.367 \r\n \r\nS367A180001 \r\n \r\n67,736.68 \r\n \r\n- \r\n \r\n84.010 \r\n \r\nS010A170010 \r\n \r\n100,597.07 \r\n \r\n- \r\n \r\n84.010 \r\n \r\nS010A180010 \r\n \r\n577,637.13 \r\n \r\n- \r\n \r\n84.287 \r\n \r\nS287C170010 \r\n \r\n50,396.00 \r\n \r\n- \r\n \r\n84.287 \r\n \r\nS287C180010 \r\n \r\n312,139.40 \r\n \r\n- \r\n \r\n1,234,747.79 \r\n \r\n- \r\n \r\n1,763,553.45 \r\n \r\n- \r\n \r\n93.912 93.235 \r\n \r\nD06RH27765 42700-040-0000062510 \r\n \r\n190,727.31 77,199.66 \r\n267,926.97 \r\n \r\n201,775.52 - \r\n201,775.52 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 3,911,183.30 $ \r\n \r\n201,775.52 \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 Bleckley 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- 40 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"9\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle 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 Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations State Health Benefit Plan Employer Holiday Categorical Grants Pupil Transportation Regular Nursing Services Vocational Supervisors Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Disability Services Pupil Transportation - State Bonds School Safety Grant School Security Grant Teachers Retirement Vocational Education \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nHuman Resources, Georgia Department of Georgia Communities in Schools Dropout Prevention \r\nOffice of the Governor Connections for Classrooms \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n693,934.23 $ \r\n \r\n- $ \r\n \r\n693,934.23 \r\n \r\n635,362.00 416,279.00 1,253,565.00 1,451,156.00 513,176.00 1,198,485.00 1,534,720.00 1,433,810.00 490,425.00 2,452,632.00 687,238.00 219,894.00 116,038.00 305,975.00 \r\n91,271.00 55,054.00 \r\n1,423.00 \r\n510,750.00 735,397.00 670,824.00 (111,510.00) \r\n371,700.00 50,813.00 7,149.96 \r\n2,685,124.00 \r\n48,246.00 14,926.71 41,910.00 154,440.00 24,079.05 35,506.18 25,706.90 52,090.16 \r\n- \r\n24,000.00 \r\n1,410.84 \r\n58,277.00 \r\n50,000.00 \r\n \r\n- \r\n \r\n635,362.00 \r\n \r\n- \r\n \r\n416,279.00 \r\n \r\n- \r\n \r\n1,253,565.00 \r\n \r\n- \r\n \r\n1,451,156.00 \r\n \r\n- \r\n \r\n513,176.00 \r\n \r\n- \r\n \r\n1,198,485.00 \r\n \r\n- \r\n \r\n1,534,720.00 \r\n \r\n- \r\n \r\n1,433,810.00 \r\n \r\n- \r\n \r\n490,425.00 \r\n \r\n- \r\n \r\n2,452,632.00 \r\n \r\n- \r\n \r\n687,238.00 \r\n \r\n- \r\n \r\n219,894.00 \r\n \r\n- \r\n \r\n116,038.00 \r\n \r\n- \r\n \r\n305,975.00 \r\n \r\n- \r\n \r\n91,271.00 \r\n \r\n- \r\n \r\n55,054.00 \r\n \r\n- \r\n \r\n1,423.00 \r\n \r\n- \r\n \r\n510,750.00 \r\n \r\n- \r\n \r\n735,397.00 \r\n \r\n- \r\n \r\n670,824.00 \r\n \r\n- \r\n \r\n(111,510.00) \r\n \r\n- \r\n \r\n371,700.00 \r\n \r\n- \r\n \r\n50,813.00 \r\n \r\n- \r\n \r\n7,149.96 \r\n \r\n- \r\n \r\n2,685,124.00 \r\n \r\n- \r\n \r\n48,246.00 \r\n \r\n- \r\n \r\n14,926.71 \r\n \r\n- \r\n \r\n41,910.00 \r\n \r\n- \r\n \r\n154,440.00 \r\n \r\n- \r\n \r\n24,079.05 \r\n \r\n- \r\n \r\n35,506.18 \r\n \r\n- \r\n \r\n25,706.90 \r\n \r\n- \r\n \r\n52,090.16 \r\n \r\n512,167.41 - \r\n \r\n512,167.41 24,000.00 1,410.84 58,277.00 \r\n \r\n- \r\n \r\n50,000.00 \r\n \r\n$ 19,001,278.03 $ \r\n \r\n512,167.41 $ 19,513,445.44 \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 BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2019 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\nThe renewal of general obligation bonds in the principal amount not to exceed $6,000,000.00 to pay costs of, \r\n(a) acquiring textbooks, computer technology equipment, and software, safety/security equipment and technology \r\n(b) acquiring school buses and other vehicles \r\n(c) acquiring any capital property necessary or desirable for the foregoing purposes, both real and personal \r\n(d) a portion of the principal and interest on the above described general obligation bonds. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n601,417.91 \r\n \r\n601,417.91 \r\n \r\n- \r\n \r\n- \r\n \r\n6,000,000.00 \r\n \r\n3,920,000.00 \r\n \r\n895,000.00 \r\n \r\n866,075.00 \r\n \r\n- \r\n \r\n- \r\n \r\nNovember 2019 \r\n \r\n- \r\n \r\nSeptember 2022 \r\n \r\n$ 6,000,000.00 $ 4,521,417.91 $ 1,496,417.91 $ 866,075.00 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of Bleckley 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$ 215,543.75 \r\n \r\nCurrent Year \r\n \r\n186,943.75 \r\n \r\nTotal \r\n \r\n$ 402,487.50 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 43 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON \r\nCOMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Bleckley 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 Bleckley County Board of Education (School District), as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements, and have issued our report thereon dated May 13, 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 Compliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMay 13, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\n \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nThe Honorable Brian P. Kemp, Governor of Georgia Members of the General Assembly of the State of Georgia Members of the State Board of Education \r\nand Superintendent and Members of the Bleckley County Board of Education \r\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Bleckley 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 Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2019. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nMay 13, 2020 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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 SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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\n \r\nType of auditor's report issued: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major program: \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 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-bb6-b2018-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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":["2019-09-23"],"dcterms_description":["Annual financial report for the Bleckley 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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, 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-bb6-b2018-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2018-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2018 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nSECTION I FINANCIAL \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\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n3 SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY SCHOOL OPEB FUND \r\n \r\nPage \r\n1 2 3 4 5 6 7 8 9 \r\n31 32 33 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEROGIA 5 SCHEDULE OF CONTRIBUTIONS  SCHOOL OPEB FUND 6 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\n34 35 36 37 \r\n38 39 41 \r\n \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 23, 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 Bleckley 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 Bleckley 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 opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2018, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2018, the Bleckley County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, as amended by GASB Statement No. 85, Omnibus 2017. The School District restated beginning net position for the effect of GASB Statement No. 75. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the required supplementary information listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, as listed in the table of contents, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated September 23, 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 BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2018 \r\nASSETS \r\nCash and Cash Equivalents Investments Receivables, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaids 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 Payroll Withholdings Payable Deposits and Unearned Revenue 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 Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,717,997.00 \r\n \r\n3,747.50 \r\n \r\n22.88 326,327.19 2,133,383.46 354,159.65 \r\n59,781.83 56,991.85 27,426.55 259,480.81 32,350,801.21 \r\n \r\n40,290,119.93 \r\n \r\n3,719,312.96 662,520.00 \r\n4,381,832.96 \r\n \r\n236,985.23 1,371,751.08 \r\n50,371.88 2,157.13 \r\n154,440.00 20,804,208.00 17,968,072.00 \r\n933,253.35 4,044,323.41 \r\n45,565,562.08 \r\n \r\n446,311.00 1,618,314.00 \r\n2,064,625.00 \r\n \r\n27,632,705.26 \r\n582,196.64 995,768.75 (32,168,904.84) \r\n \r\n$ \r\n \r\n(2,958,234.19) \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nEXHIBIT \"B\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services Federal Grant Administration 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 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\nExtraordinary Items Insurance Proceeds \r\nTotal General Revenues and Extraordinary Items \r\nChange in Net Position \r\nNet Position - Beginning of Year (Restated) \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nPROGRAM REVENUES \r\n \r\nOPERATING \r\n \r\nCHARGES FOR \r\n \r\nGRANTS AND \r\n \r\nSERVICES \r\n \r\nCONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET POSITION \r\n \r\n$ 16,815,488.45 $ \r\n964,312.52 446,645.66 398,332.46 \r\n3,806.68 718,869.38 1,525,151.55 180,801.41 1,761,242.39 1,584,014.16 \r\n32,181.98 266,466.99 \r\n40,842.28 1,869,243.64 \r\n171,337.28 \r\n$ 26,778,736.83 $ \r\n \r\n15,158.76 $ \r\n- \r\n212,820.30 \r\n- \r\n227,979.06 $ \r\n \r\n13,789,970.00 $ \r\n291,771.57 338,401.00 323,771.00 \r\n725,716.64 820,437.85 \r\n104.60 787,019.21 162,499.44 \r\n2,329.55 197,721.75 \r\n1,703,510.81 \r\n- \r\n19,143,253.42 \r\n \r\n(3,010,359.69) \r\n(672,540.95) (108,244.66) \r\n(74,561.46) (3,806.68) 6,847.26 \r\n(704,713.70) (180,696.81) (974,223.18) (1,421,514.72) \r\n(29,852.43) (68,745.24) \r\n(40,842.28) 47,087.47 (171,337.28) \r\n(7,407,504.35) \r\n \r\n3,725,648.89 \r\n1,009,642.32 47,300.46 \r\n2,400,469.00 7,621.55 \r\n1,049,589.08 \r\n81,537.04 \r\n8,321,808.34 \r\n914,303.99 \r\n(3,872,538.18) \r\n \r\n$ \r\n \r\n(2,958,234.19) \r\n \r\n- 2 - \r\n \r\n BLECKLEY 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\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,977,270.45 $ 740,701.55 $ \r\n \r\n3,747.50 \r\n \r\n- \r\n \r\n22.88 242,930.06 2,133,383.46 354,159.65 \r\n59,781.83 56,991.85 27,426.55 \r\n \r\n83,397.13 \r\n- \r\n \r\n25.00 $ 4,717,997.00 \r\n \r\n- \r\n \r\n3,747.50 \r\n \r\n- \r\n \r\n22.88 \r\n \r\n- \r\n \r\n326,327.19 \r\n \r\n- \r\n \r\n2,133,383.46 \r\n \r\n- \r\n \r\n354,159.65 \r\n \r\n- \r\n \r\n59,781.83 \r\n \r\n- \r\n \r\n56,991.85 \r\n \r\n- \r\n \r\n27,426.55 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Payroll Withholdings Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\n \r\n$ 6,855,714.23 $ 824,098.68 $ \r\n \r\n25.00 $ 7,679,837.91 \r\n \r\n$ 236,985.23 $ 1,371,751.08 2,157.13 154,440.00 \r\n1,765,333.44 \r\n \r\n- $ - \r\n- \r\n \r\n- $ 236,985.23 \r\n \r\n- \r\n \r\n1,371,751.08 \r\n \r\n- \r\n \r\n2,157.13 \r\n \r\n- \r\n \r\n154,440.00 \r\n \r\n- \r\n \r\n1,765,333.44 \r\n \r\n170,825.90 \r\n \r\n- \r\n \r\n- \r\n \r\n170,825.90 \r\n \r\n84,418.40 514,123.28 \r\n314.84 4,320,698.37 \r\n4,919,554.89 \r\n \r\n824,098.68 \r\n- \r\n824,098.68 \r\n \r\n25.00 \r\n- \r\n25.00 \r\n \r\n84,418.40 1,338,246.96 \r\n314.84 4,320,698.37 \r\n5,743,678.57 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 6,855,714.23 $ 824,098.68 $ \r\n \r\n25.00 $ 7,679,837.91 \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 BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2018 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\nAmounts reported for governmental activities in the Statement of Net Position are different because: \r\nCapital assets used in governmental activities are not financial resources and therefore are not reported in the funds. \r\nLand Buildings and improvements Equipment Land improvements Accumulated depreciation \r\nSome liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability Net OPEB liability \r\nDeferred outflows and inflows of resources related to pensions and OPEB are applicable to future periods and, therefore, are not reported in the funds. \r\nRelated to pensions Related to OPEB \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Unamortized bond premiums \r\n \r\n$ \r\n \r\n5,743,678.57 \r\n \r\n$ \r\n \r\n259,480.81 \r\n \r\n42,163,808.28 \r\n \r\n3,933,758.89 \r\n \r\n1,629,164.39 \r\n \r\n(15,375,930.35) \r\n \r\n32,610,282.02 \r\n \r\n$ (20,804,208.00) (17,968,072.00) \r\n \r\n(38,772,280.00) \r\n \r\n$ \r\n \r\n3,273,001.96 \r\n \r\n(955,794.00) \r\n \r\n2,317,207.96 170,825.90 \r\n \r\n$ \r\n \r\n(4,815,000.00) \r\n \r\n(50,371.88) \r\n \r\n(162,576.76) \r\n \r\n(5,027,948.64) \r\n \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ (2,958,234.19) \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 BLECKLEY 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 Federal Grant Administration General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Operations Food Services Operation \r\nCapital Outlay Debt Services \r\nPrincipal Interest Dues and Fees \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCIANG SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,759,119.68 $ \r\n \r\n- $ \r\n \r\n47,300.46 \r\n \r\n1,009,642.32 \r\n \r\n17,853,995.11 \r\n \r\n- \r\n \r\n3,684,424.97 \r\n \r\n- \r\n \r\n227,979.06 \r\n \r\n- \r\n \r\n7,334.70 \r\n \r\n286.85 \r\n \r\n1,049,589.08 \r\n \r\n- \r\n \r\n26,629,743.06 \r\n \r\n1,009,929.17 \r\n \r\n- $ 3,759,119.68 \r\n \r\n- \r\n \r\n1,056,942.78 \r\n \r\n- \r\n \r\n17,853,995.11 \r\n \r\n- \r\n \r\n3,684,424.97 \r\n \r\n- \r\n \r\n227,979.06 \r\n \r\n- \r\n \r\n7,621.55 \r\n \r\n- \r\n \r\n1,049,589.08 \r\n \r\n- \r\n \r\n27,639,672.23 \r\n \r\n15,670,809.23 \r\n948,273.37 445,469.40 391,222.21 \r\n677.69 672,822.94 1,501,199.17 177,788.59 1,721,060.26 1,504,462.36 \r\n32,143.91 271,863.81 \r\n40,842.28 1,825,327.43 \r\n19,279.40 \r\n- \r\n25,223,242.05 \r\n1,406,501.01 \r\n \r\n- \r\n318,425.82 \r\n- \r\n318,425.82 \r\n691,503.35 \r\n \r\n- \r\n- \r\n865,000.00 1,075.00 \r\n215,543.75 \r\n1,081,618.75 \r\n(1,081,618.75) \r\n \r\n15,670,809.23 \r\n948,273.37 445,469.40 391,222.21 \r\n677.69 672,822.94 1,501,199.17 177,788.59 1,721,060.26 1,504,462.36 \r\n32,143.91 271,863.81 \r\n40,842.28 1,825,327.43 \r\n337,705.22 \r\n865,000.00 1,075.00 \r\n215,543.75 \r\n26,623,286.62 \r\n1,016,385.61 \r\n \r\n(166,634.20) \r\n(166,634.20) 1,239,866.81 \r\n3,679,688.08 \r\n \r\n(914,984.55) (914,984.55) (223,481.20) 1,047,579.88 \r\n \r\n1,081,618.75 - \r\n1,081,618.75 - \r\n25.00 \r\n \r\n1,081,618.75 (1,081,618.75) \r\n1,016,385.61 \r\n4,727,292.96 \r\n \r\nFund Balances - Ending \r\n \r\n$ 4,919,554.89 $ 824,098.68 $ \r\n \r\n25.00 $ 5,743,678.57 \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 BLECKLEY 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\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 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 debt \r\n \r\n$ 1,016,385.61 \r\n \r\n$ \r\n \r\n441,444.88 \r\n \r\n(1,056,887.88) \r\n \r\n(615,443.00) (33,470.79) \r\n \r\n$ \r\n \r\n865,000.00 \r\n \r\n38,253.35 \r\n \r\n903,253.35 \r\n \r\n$ \r\n \r\n(21,056.30) \r\n \r\n(342,393.00) \r\n \r\n(363,449.30) \r\n \r\n7,028.12 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n914,303.99 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 6 - \r\n \r\n ASSETS Cash and Cash Equivalents \r\nLIABILITIES Accounts Payable Funds Held for Others \r\nTotal Liabilities NET POSITION Held in Trust for Private Purposes \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2018 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n16,347.61 $ \r\n \r\n62,118.71 \r\n \r\n$ \r\n \r\n6,750.00 \r\n \r\n55,368.71 \r\n \r\n62,118.71 \r\n \r\n$ \r\n \r\n16,347.61 \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2018 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n33.76 \r\n \r\n500.00 (466.24) 16,813.85 \r\n \r\n$ 16,347.61 \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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 Bleckley County School building Authority County School Building Authority (the Authority) was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the School District. The Authority consists of five members appointed by the governing authority of the School District. The Authority is a component unit of the School District and as such the Authority's financial activity has been blended with the School District's basic financial statements. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District and its component units, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 9 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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 positon often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and bond proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit a scholarship for female students who attend Bleckley County High School. \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\n \r\n- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \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, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This statement establishes standards for recognizing and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures. For defined benefit OPEB, this statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. Note disclosure and required supplementary information requirements about defined benefit OPEB also are addressed. The adoption of this statement has a significant impact on the School District's financial statements. As noted in the Restatement of Net Position note disclosure, the School District restated beginning net position for the cumulative effect of this accounting change. \r\nIn fiscal year 2018, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 81, Irrevocable Split-Interest Agreements. This statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This statement requires that a government recognize revenue when the resources become applicable to the reporting period. The adoption of this statement does not have a significant impact on the School District's financial 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 \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nproviding 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\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\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\nCAPITAL ASSETS \r\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 \r\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nacquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\n \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nALL 5,000.00 5,000.00 5,000.00 200,000.00 \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nN/A 20 to 80 Years 10 to 80 Years \r\n5 to 50 Years 5 to 10 Years \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\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 \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nto/deductions from School OPEB Fund fiduciary net position have been determined on the same basis as they are reported by School OPEB Fund. For this purpose, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\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 Bleckley County Board of Commissioners adopted the property tax levy for the 2017 tax digest year (calendar year) on September 27, 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 Bleckley County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2018, for maintenance and operations amounted to $3,431,906.96. \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe tax millage rate levied for the 2017 tax year (calendar year) for the School District was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n14.334 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $327,212.72 during fiscal year ended June 30, 2018. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax (ESPLOST), at the fund reporting level, during the year amounted to $1,009,642.32 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $50,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\ndeduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\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 $4,800,210.82, which includes $3,747.50 in certificates of deposit that are reported as investments, and a bank balance of $5,788,428.92. The bank balances insured by Federal depository insurance were $1,003,772.50 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $4,783,608.72. \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 5: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2017 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nTransfers \r\n \r\nBalances June 30, 2018 \r\n \r\nGovernmental Activities \r\n \r\nCapital Assets, Not Being Depreciated: \r\n \r\nLand \r\n \r\n$ \r\n \r\nConstruction in Progress \r\n \r\n259,480.81 $ 83,591.29 \r\n \r\n- $ - \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n(83,591.29) \r\n \r\n259,480.81 - \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n343,072.10 \r\n \r\n- \r\n \r\n- \r\n \r\n(83,591.29) \r\n \r\n259,480.81 \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\n41,681,641.63 3,924,874.78 1,629,164.39 \r\n \r\n398,575.36 42,869.52 - \r\n \r\n33,985.41 \r\n- \r\n \r\n83,591.29 - \r\n \r\n42,163,808.28 3,933,758.89 1,629,164.39 \r\n \r\n10,697,957.52 3,010,499.14 644,571.22 \r\n \r\n835,128.21 164,663.33 \r\n57,096.34 \r\n \r\n33,985.41 \r\n- \r\n \r\n- \r\n \r\n11,533,085.73 \r\n \r\n- \r\n \r\n3,141,177.06 \r\n \r\n- \r\n \r\n701,667.56 \r\n \r\nTotal Capital Assets, Being Depreciated, Net 32,882,652.92 (615,443.00) \r\n \r\n- \r\n \r\n83,591.29 \r\n \r\n32,350,801.21 \r\n \r\nGovernmental Activity Capital Assets - Net $ 33,225,725.02 $ (615,443.00) $ \r\n \r\n- $ \r\n \r\n- $ 32,610,282.02 \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$ 9,115.10 \r\n \r\nGeneral Administration \r\n \r\n71,056.89 \r\n \r\nMaintenance and Operation of Plant \r\n \r\n4,803.44 \r\n \r\nStudent Transportation Services \r\n \r\n73,075.57 \r\n \r\nFood Services \r\n \r\n$ 860,134.89 \r\n158,051.00 38,701.99 \r\n \r\n$ 1,056,887.88 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANSFERS Interfund transfers for the year ended June 30, 2018, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From \r\n \r\nGeneral Fund \r\n \r\nCapital Projects Fund \r\n \r\nDebt Service Fund $ 166,634.20 $ 914,984.55 \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nTransfers are used to move property tax revenues collected by the general fund and SPLOST revenues collected by the capital projects fund to the debt service fund to service debt associated with the ESPLOST referendum. NOTE 7: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2017 \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nJune 30, 2018 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\n$ 5,680,000.00 $ 200,830.11 \r\n \r\n$ 5,880,830.11 $ \r\n \r\n- $ 865,000.00 $ 4,815,000.00 $ 895,000.00 \r\n \r\n- \r\n \r\n38,253.35 \r\n \r\n162,576.76 \r\n \r\n38,253.35 \r\n \r\n- $ 903,253.35 $ 4,977,576.76 $ 933,253.35 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates \r\n \r\nGeneral Government - Series 2009 2.00% - 5.00% \r\n \r\nIssue Date 12/1/2009 \r\n \r\nMaturity Date Amount Issued \r\n \r\nAmount Outstanding \r\n \r\n10/1/2022 $ 8,900,000.00 $ 4,815,000.00 \r\n \r\nThe following schedule details debt service requirement to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2019 2020 2021 2022 2023 \r\nTotal Principal and Interest \r\n \r\n$ 895,000.00 $ 186,943.75 $ \r\n \r\n920,000.00 \r\n \r\n154,000.00 \r\n \r\n960,000.00 \r\n \r\n118,800.00 \r\n \r\n1,000,000.00 \r\n \r\n77,000.00 \r\n \r\n1,040,000.00 \r\n \r\n26,000.00 \r\n \r\n$ 4,815,000.00 $ 562,743.75 $ \r\n \r\n38,253.35 38,253.35 38,253.35 38,253.35 \r\n9,563.36 \r\n162,576.76 \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 8: RISK MANAGEMENT INSURANCE Commercial Insurance \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disasters and unemployment compensation. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\n \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\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\nThe School District had no unemployment compensation claims in the past two years. SURETY BOND \r\n \r\nThe School District purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent Driver's Education \r\n \r\n$ 50,000.00 $ 10,000.00 \r\n \r\nNOTE 9: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2018: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Debt Service \r\nAssigned Children and Youth Coordinating Council \r\nUnassigned \r\n \r\n$ 56,991.85 27,426.55 $ \r\n \r\n84,418.40 \r\n \r\n$ 514,123.28 824,123.68 \r\n \r\n1,338,246.96 \r\n \r\n314.84 4,320,698.37 \r\n \r\nFund Balance, June 30, 2018 \r\n \r\n$ 5,743,678.57 \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \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: BROADBAND SPECTRUM LEASE \r\n \r\nEffective August 18, 2005 , the School District entered into a five-year lease agreement with automatic renewals, with Nextel Spectrum Acquisition Corporation for the lease of excess spectrum capacity on Education Broadband Service licenses currently held by School District. These licenses were granted to the School District by the Federal Communications Commission. The lease agreement requires monthly lease payments over the term of the lease, of which $28,459.44 was recognized during fiscal year 2018 as a general revenue on the Statement of Activities. \r\nNOTE 11: SIGNIFICANT COMMITMENTS \r\nOPERATING LEASES \r\n \r\nThe School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases(s) totaled $26,349.97 for governmental activities for the year ended June 30, 2018. \r\n \r\nThe following future minimum lease payments were required under operating leases at June 30, 2018: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2019 2020 2021 2022 \r\n \r\n$ 18,439.68 17,229.68 8,879.44 2,375.78 \r\n \r\nTotal \r\n \r\n$ 46,924.58 \r\n \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nFEDERAL GRANTS \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. Any disallowances resulting from the grantor audit may become a liability of the School District. However, the School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nNOTE 13: 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 \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRetirement System (JRS), Legislative Retirement System (LRS), Teachers Retirement System (TRS) or Public School Employees Retirement System (PSERS). If elected, dependent coverage starts on the same day as retiree coverage. Medicare-eligible retirees are offered Standard and Premium Medicare Advantage plan options. Non-Medicare eligible retiree plan options include Health Reimbursement Arrangement (HRA), Health Maintenance Organization (HMO) and a High Deductible Health Plan (HDHP). The School OPEB Fund also pays for administrative expenses of the fund. By law, no other use of the assets of the School OPEB Fund is permitted. \r\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 $657,264.00 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 $17,968,072.00 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 0.127887%, which was a decrease of 0.001991% 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 $999,657.00. At June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: \r\n \r\nDeferred Outflows of Resources \r\n \r\nOPEB \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ 1,368,223.00 \r\n \r\nChanges of assumptions \r\n \r\n- \r\n \r\n- \r\n \r\nNet difference between projected and actual earnings on OPEB plan investments \r\n \r\n5,256.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n- \r\n \r\n250,091.00 \r\n \r\nSchool District contributions subsequent to \r\n \r\nthe measurement date \r\n \r\n657,264.00 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ \r\n \r\n662,520.00 $ 1,618,314.00 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSchool District contributions subsequent to the measurement date of $657,264.00 are reported as deferred outflows of resources and will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nOPEB \r\n \r\n2019 2020 2021 2022 2023 2024 \r\n \r\n$ (289,749.00) $ (289,749.00) $ (289,749.00) $ (289,749.00) $ (291,064.00) $ (162,998.00) \r\n \r\nActuarial assumptions: The total OPEB liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016 using the following actuarial assumptions and other inputs, applied to all periods included in the measurement and rolled forward to the measurement date of June 30, 2017: \r\n \r\nOPEB: Inflation Salary increases ERS JRS LRS TRS PSERS Long-term expected rate of return Healthcare cost trend rate Pre-Medicare Eligible Medicare Eligible Ultimate trend rate Pre-Medicare Eligible Medicare Eligible Year of Ultimate trend rate \r\n \r\n2.75% \r\n3.25% - 7.00%, including inflation 4.50%, including inflation None 3.25 -- 9.00%, including inflation N/A 3.88%, compounded annually, net of investment expense, and including inflation \r\n7.75% 5.75% \r\n5.00% 5.00% 2022 \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females, as appropriate, with adjustments for mortality improvements based on Scale BB as follows: \r\n For ERS, JRS and LRS members: The RP-2000 Combined Mortality Table projected to 2025 \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- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\n For TRS members: The RP-2000 White Collar Mortality Table projected to 2025 with projection \r\nscale BB (set forward 1 year for males) is used for death after service retirement and beneficiaries. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward two years for males and four years for females) is used for death after disability retirement. \r\n For PSERS members: The RP-2000 Blue-Collar Mortality Table projected to 2025 with \r\nprojection scale BB (set forward 3 years for males and 2 years for females) is used for the period after service retirement and for beneficiaries of deceased members. The RP-2000 Disabled Mortality Table projected to 2025 with projection scale BB (set forward 5 years for both males and females) is used for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the pension systems, which covered the five-year period ending June 30, 2014. \r\n \r\nProjection of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculation. \r\n \r\nAdditionally, there was a change 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. \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\nDiscount rate: In order to measure the total OPEB liability for the School OPEB Fund, a single equivalent interest rate of 3.58% was used as the discount rate. This is comprised mainly of the yield or index rate for 20 year tax-exempt general obligation municipal bonds with an average rating of AA or higher (3.56% per the Bond Buyers Index). The projection of cash flows used to determine the discount rate assumed that contributions from members and from the employer will be made at the current level as averaged over the last five years, adjusted for annual projected changes in headcount. Projected future benefit payments for all current plan members were projected through 2115. Based on these assumptions, the OPEB plan's fiduciary net position was projected to be available to make OPEB payments for inactive employees through year 2029. Therefore, the calculated discount rate of 3.58% was applied to all periods of projected benefit payments to determine the total OPEB liability. \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the discount rate: The following presents the School District's proportionate share of the net OPEB liability \r\ncalculated using the discount rate of 3.58%, as well as what the District's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower (2.58%) or 1 percentage-point higher (4.58%) than the current discount rate: \r\n \r\n1% Decrease (2.58%) \r\n \r\nCurrent Discount Rate (3.58%) \r\n \r\n1% Increase (4.58%) \r\n \r\nNet OPEB Liability \r\n \r\n$ 21,333,867.00 $ \r\n \r\n17,968,072.00 $ 15,311,778.00 \r\n \r\nSensitivity of the District's proportionate share of the net OPEB liability to changes in the healthcare cost trend rates: The following presents the School District's proportionate share of the net OPEB \r\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$ 14,893,485.00 $ \r\n \r\n17,968,072.00 $ 21,971,180.00 \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 14: RETIREMENT PLANS \r\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2018. The School District's contractually required contribution rate for \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nthe year ended June 30, 2018 was 16.81% of annual School District payroll, of which 16.66% of payroll was required from the School District and .15% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $2,313,812.96 and $20,285.66 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan Description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits Provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $60,131.00. \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 $20,804,208.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 20,804,208.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n343,456.00 \r\n \r\nTotal \r\n \r\n$ 21,147,664.00 \r\n \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2017. \r\n \r\nAt June 30, 2017, the School District's TRS proportion was 0.111939%, which was a decrease of 0.000907% from its proportion measured as of June 30, 2016. \r\n \r\nAt June 30, 2018, the School District did not have a PSERS liability for a proportionate share of the net pension liability because of a Special Funding Situation with the State of Georgia, which is responsible for the net pension liability of the plan. The amount of the State's proportionate share of the net pension liability associated with the School District is $306,322.00. \r\n \r\nThe PSERS net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2016. An expected total pension liability as of June 30, 2017 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2017. \r\n \r\nFor the year ended June 30, 2018, the School District recognized pension expense of $2,334,964.00 for TRS and $61,736.00 for PSERS and revenue of $23,983.00 for TRS and $61,736.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\nAt June 30, 2018, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS Deferred Outflows of Resources \r\n \r\nDeferred Inflows of Resources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ 778,206.00 $ 78,513.00 \r\n \r\nChanges of assumptions \r\n \r\n456,054.00 \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\n143,168.00 \r\n \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n171,240.00 \r\n \r\n224,630.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n2,313,812.96 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 3,719,312.96 $ 446,311.00 \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District contributions subsequent to the measurement date of $2,313,812.96 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2019 2020 2021 2022 2023 \r\n \r\n$ (78,836.00) \r\n \r\n$ 1,092,286.00 \r\n \r\n$ 504,695.00 \r\n \r\n$ (568,466.00) \r\n \r\n$ \r\n \r\n9,510.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2017 was determined by an actuarial valuation as of June 30, 2016, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\n3.25%  9.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n2.75% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nPost-retirement mortality rates were based on the RP-2000 Blue-Collar Mortality Table projected \r\nto 2025 with projection scale BB (set forward 3 years for males and 2 years for females) for the period after service retirements and for dependent beneficiaries. The RP-2000 Disabled Mortality projected \r\nto 2025 with projection scale BB (set forward 5 years for both males and females) was used for death \r\nafter disability retirement. There is a margin for future mortality improvement in the tables used by the \r\nSystem. Based on the results of the most recent experience study adopted by the Board on December 17, 2015, the numbers of expected future deaths are 9-11% less than the actual number of deaths that occurred during the study period for healthy retirees and 9-11% less than expected \r\nunder the selected table for disabled retirees. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\n \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial experience study for the period July 1, 2009  June 30, 2014. \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n100.00% \r\n \r\nERS/PSERS Target \r\nallocation \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\nDiscount rate: The discount rate used to measure the total TRS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 34,142,146.00 $ \r\n \r\n20,804,208.00 $ 9,816,745.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publically available at www.trsga.com/publications. \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2018 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 15: 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 $18,581,473.00. This change is in accordance with generally accepted accounting procedures. \r\n \r\nNet Position, July 1, 2017 as previously reported \r\n \r\n$ 14,708,934.82 \r\n \r\nPrior Period Adjustment - Implementation of GASB No. 75: Net OPEB Liability (measurement date) \r\n \r\n(19,248,290.00) \r\n \r\nDeferred Outflows - School District's Contributions made during fiscal year 2017 \r\n \r\n666,817.00 \r\n \r\nNet Position, July 1, 2017, as restated \r\n \r\n$ (3,872,538.18) \r\n \r\nNOTE 16: EXTRAORDINARY ITEM \r\nDuring the fiscal year, the School District received roof damage to the Pre-K building during Hurricane Michael. Insurance paid $81,537.04 to repair the roof. NOTE 17: RELATED PARTY TRANSACTIONS \r\nDuring the year under review, the School District conducted business with one related party, Rozier Auto Parts. Rozier Auto Parts is owned by the Finance Director's husband's family. Current year expenditures for Rozier Auto Parts total $7,240.55. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n2018 2017 2016 2015 \r\n \r\nSchool District's proportion of the net pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the net pension liability \r\nassociated with the School District \r\n \r\n0.111939% $ 0.112846% $ 0.113809% $ 0.113422% $ \r\n \r\n20,804,208.00 $ 23,281,388.00 $ 17,326,290.00 $ 14,329,374.00 $ \r\n \r\n343,456.00 $ 542,805.00 $ 412,723.00 $ 329,613.00 $ \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 \r\npercentage of the total pension liability \r\n \r\n21,147,664.00 $ 23,824,193.00 $ 17,739,013.00 $ 14,658,987.00 $ \r\n \r\n13,064,761.59 12,667,465.64 12,299,400.07 11,837,505.64 \r\n \r\n159.24% 183.79% 140.87% 121.05% \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- 31 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the 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 \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \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\n306,322.00 $ 306,322.00 $ 405,517.00 $ 405,517.00 $ 267,010.00 $ 267,010.00 $ 239,626.00 $ 239,626.00 $ \r\n \r\n701,720.36 698,123.79 688,106.87 688,182.25 \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- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET OPEB LIABILITY \r\nSCHOOL OPEB FUND FOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended 2018 \r\n \r\nSchool District's proportion of the net OPEB liability \r\n \r\nSchool District's proportionate share \r\nof 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\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nSchool District's proportionate share of the net OPEB liability as \r\na percentage of its covered-employee \r\npayroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total OPEB liability \r\n \r\n0.127887% $ 17,968,072.00 $ \r\n \r\n- \r\n \r\n$ 17,968,072.00 $ 9,392,659.42 \r\n \r\n191.30% \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- 33 - \r\n \r\n BLECKLEY 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\n2018 2017 2016 2015 \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\n2,313,812.96 $ \r\n \r\n2,313,812.96 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,834,059.26 $ \r\n \r\n1,834,059.26 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,767,095.82 $ \r\n \r\n1,767,095.82 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n1,579,743.81 $ \r\n \r\n1,579,743.81 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 13,891,719.37 $ 13,064,761.59 $ 12,667,465.64 $ 12,299,400.07 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n16.66% 14.04% 13.95% 12.84% \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 BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS SCHOOL OPEB FUND \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 contribution \r\n \r\nContribution deficiency (excess) \r\n \r\nSchool District's coveredemployee payroll \r\n \r\nContribution as a percentage of covered-employee payroll \r\n \r\n2018 \r\n \r\n$ \r\n \r\n657,264.00 $ \r\n \r\n657,264.00 $ \r\n \r\n- \r\n \r\n$ \r\n \r\n9,902,646.68 \r\n \r\n6.64% \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"6\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\nSchool OPEB Fund \r\nChanges of benefit terms: In the June 30, 2010 actuarial valuation, there was a change of benefit terms to require Medicare-eligible recipients to enroll in a Medicare Advantage plan to receive the State subsidy. \r\nChanges in assumptions: In the revised June 30, 2017 actuarial valuation, there was a change relating to employee allocation. Employees were previously allocated based on their Retirement System membership, and currently employees are allocated based on their current employer payroll location. Additionally, there were changes to the discount rate and an increase in the investment rate of return due to a longer term investment strategy. \r\nIn the June 30, 2015 actuarial valuation, decremental and underlying inflation assumptions were changed to reflect the Retirement Systems' experience studies. \r\nIn the June 30, 2012 actuarial valuation, a data audit was performed and data collection procedures and assumptions were changed. \r\n \r\n- 36 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"7\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services Federal Grant Administration 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 Capital Outlay \r\nTotal Expenditures \r\nExcess of Revenues over Expenditures \r\nOTHER FINANCING SOURCES \r\nOther Sources \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 3,823,323.00 $ 3,823,323.00 $ \r\n \r\n36,000.00 \r\n \r\n36,000.00 \r\n \r\n17,306,750.00 \r\n \r\n17,509,867.00 \r\n \r\n3,729,844.19 \r\n \r\n4,117,748.00 \r\n \r\n229,000.00 \r\n \r\n229,000.00 \r\n \r\n4,500.00 \r\n \r\n4,500.00 \r\n \r\n105,100.00 \r\n \r\n105,100.00 \r\n \r\n3,759,119.68 $ 47,300.46 \r\n17,853,995.11 3,684,424.97 227,979.06 7,334.70 1,049,589.08 \r\n \r\n25,234,517.19 \r\n \r\n25,825,538.00 \r\n \r\n26,629,743.06 \r\n \r\n(64,203.32) 11,300.46 344,128.11 (433,323.03) (1,020.94) \r\n2,834.70 944,489.08 \r\n804,205.06 \r\n \r\n15,256,757.02 \r\n894,236.21 344,428.59 387,529.79 \r\n565,294.66 1,369,616.73 178,381.46 1,769,574.06 1,486,580.36 100,194.49 243,066.42 \r\n1,879,441.00 \r\n- \r\n24,475,100.79 \r\n759,416.40 \r\n \r\n15,552,170.38 \r\n975,266.21 345,960.59 387,529.79 \r\n693,174.66 1,369,616.73 185,033.46 1,769,369.06 1,493,754.36 102,819.49 452,622.42 \r\n1,879,441.00 \r\n- \r\n25,206,758.15 \r\n618,779.85 \r\n \r\n15,670,809.23 \r\n948,273.37 445,469.40 391,222.21 \r\n677.69 672,822.94 1,501,199.17 177,788.59 1,721,060.26 1,504,462.36 \r\n32,143.91 271,863.81 \r\n40,842.28 1,825,327.43 \r\n19,279.40 \r\n25,223,242.05 \r\n1,406,501.01 \r\n \r\n(118,638.85) \r\n26,992.84 (99,508.81) \r\n(3,692.42) (677.69) \r\n20,351.72 (131,582.44) \r\n7,244.87 48,308.80 (10,708.00) 70,675.58 180,758.61 (40,842.28) 54,113.57 (19,279.40) \r\n(16,483.90) \r\n787,721.16 \r\n \r\n(100,000.00) 659,416.40 3,637,999.44 \r\n(4,440.56) \r\n \r\n(100,000.00) 518,779.85 3,637,999.44 (19,229.73) \r\n \r\n(166,634.20) 1,239,866.81 3,679,688.08 \r\n- \r\n \r\n(66,634.20) 721,086.96 \r\n41,688.64 19,229.73 \r\n \r\nFund Balances - Ending \r\n \r\n$ 4,292,975.28 $ 4,137,549.56 $ 4,919,554.89 $ \r\n \r\n782,005.33 \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 or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $704,333.01 and $679,064.04, respectively. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 37 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"8\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Rural Education Rural Education Student Support and Academic Enrichment Program Supporting Effective Instruction State Grants Supporting Effective Instruction State Grants Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Direct Rural Health Development Network Grant Pass-Through From Georgia Department of Human Services Affordable Care Act (ACA) Abstinence Education Program \r\nTotal U.S. Department of Health and Human Services \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n10.553 10.555 \r\n \r\n18185GA324N1099 18185GA324N1100 \r\n \r\n$ 465,549.99 1,286,647.70 \r\n1,752,197.69 \r\n \r\n84.027 84.173 \r\n \r\nH027A160073 H173A170081 \r\n \r\n532,583.75 23,580.00 \r\n556,163.75 \r\n \r\n84.048 84.358 84.358 84.424A 84.367 84.367 84.010 84.010 84.287 84.287 \r\n \r\nV048A170010 S358B180010 S358B170010 S424A170011 S367A160001 S367A170001 S010A170010 S010A180010 S287C180010 S287C170010 \r\n \r\n26,920.09 40,311.47 \r\n8,060.00 12,407.00 57,244.00 11,877.22 131,564.00 539,511.40 273,918.73 47,903.00 \r\n1,149,716.91 \r\n1,705,880.66 \r\n \r\n93.912 93.235 \r\n \r\nD06RH27765 42700-040-0000062510 \r\n \r\n288,316.19 67,617.86 \r\n355,934.05 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 3,814,012.40 \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 Bleckley 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\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 in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 38 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2018 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle 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 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 Vocational Supervisors Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Teacher of the Year Teachers' Retirement Vocational Education \r\nHuman Resources, Georgia Department of Georgia Communities in School Dropout Prevention \r\nOffice of the Governor Connections in Classrooms \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"9\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n745,930.30 \r\n \r\n668,898.00 293,151.00 1,372,870.00 1,379,107.00 838,875.00 348,333.00 1,503,977.00 1,499,104.00 408,512.00 2,355,692.00 706,440.00 198,931.00 114,338.00 298,856.00 \r\n89,353.00 52,419.00 \r\n1,410.00 \r\n534,582.00 715,873.00 661,268.00 (230,862.00) \r\n383,350.00 48,323.00 8,251.99 \r\n2,400,469.00 \r\n46,746.64 13,653.12 55,387.00 \r\n507.25 20,285.66 68,763.28 \r\n24,000.00 \r\n119,250.00 \r\n60,131.00 \r\n47,819.87 \r\n$ 17,853,995.11 \r\n \r\n- 39 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2018 \r\n \r\nSCHEDULE \"10\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nThe renewal of general obligation bonds in the principal amount not to exceed $6,000,000 to pay costs of, \r\n \r\n(a) acquiring textbooks, computer technology \r\n \r\nequipment, and software, safety/security \r\n \r\nequipment and technology \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(b) raencqouvaritninggs,cimhoporlobvuinsge,scaondstoruthcetirngveahnicdleesquipping \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(c) thaecqaucrqinugisaitnioyncgaopfitaanl yprporpoepretrytyn,ebcoetshsareray loarnd \r\n \r\ndesirable for the foregoing purposes, both \r\n \r\nreal 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\n(d) a portion of the principal and interest on the \r\n \r\nabove described general \r\n \r\nobligation bonds. \r\n \r\n6,000,000.00 \r\n \r\n4,815,000.00 \r\n \r\n866,075.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nSeptember 2022 \r\n \r\n$ 6,000,000.00 $ 4,815,000.00 $ 866,075.00 $ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \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 Bleckley 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 Current Year Total \r\n \r\n$ \r\n \r\n- \r\n \r\n215,543.75 \r\n \r\n$ 215,543.75 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 41 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 23, 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 Bleckley 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 Bleckley 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 September 23, 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\nSeptember 23, 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 Bleckley 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 Bleckley 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 each of its major federal programs for the year ended June 30, 2018. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nControl Procedures at the Central Office Accounting Controls (OVERALL) Cash and Cash Equivalents Capital Assets Employee Compensation Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nFS-2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\n- 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-2016-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nFS-2016-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nFS 2017-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Revenues/Receivables/Receipts Employee Compensation General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies or material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow Book), will be communicated in a management letter. \r\n \r\n- 2 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018 \r\n \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nFS 2017-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nFurther Action Not Warranted (1) \r\n \r\n(1) Finding/internal control deficiencies of this nature, that are not deemed significant deficiencies \r\nor material weaknesses and do not require reporting in the audit report in accordance with Statements on Auditing Standards (SAS) 122 or Governmental Auditing Standards (Yellow \r\nBook), will be communicated in a management letter. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n- 3 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nAny audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? \r\n \r\nIdentification of major program: \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\nUnmodified No No No \r\nNo No Unmodified No \r\n$750,000.00 No \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2017-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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":["2018-11-30"],"dcterms_description":["Annual financial report for the Bleckley County Board of Education."],"dc_format":["application/pdf"],"dcterms_identifier":null,"dcterms_language":["eng"],"dcterms_publisher":["Atlanta, Ga. : 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-bb6-b2017-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2017-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY 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 CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA 4 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 5 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\ni \r\n1 2 \r\n4 5 6 7 8 9 11 \r\n31 32 33 34 35 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n6 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 7 SCHEDULE OF STATE REVENUE 8 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n36 37 39 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n GREG S. GRIFFIN \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nNovember 30, 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 Bleckley 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 Bleckley 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 \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 financial statements referred to above present fairly, in all material respects, the respective financial position of the of the governmental activities, each major fund, and the aggregate remaining fund information of the School District as of June 30, 2017, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2017, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures, GASB Statement No. 80, Blending Requirements for Certain Component Units, and GASB Statement No. 82, Pension Issues. Our opinions are not modified with respect to these matters. \r\nOther Matters \r\nRequired Supplementary Information \r\nAccounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Schedules of Proportionate Share of the Net Pension Liability, Schedule of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages i through ix , and pages 31 through 35, 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 \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 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 30, 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 BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nINTRODUCTION \r\nThe discussion and analysis of the Bleckley County Board of Education's (the 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 financial statements and the notes to the basic financial statements to enhance their understanding of the School District's financial performance. \r\nFINANCIAL HIGHLIGHTS \r\nKey financial highlights for the fiscal years 2017 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 $14,708,935 and $14,975,414, respectively, for the fiscal years ended June 30, 2017 and 2016. \r\n The School District had $27,135,849 and $24,152,003 in expenses relating to governmental activities for the fiscal years ended June 30, 2017 and June 30, 2016, respectively. Only $19,282,094 and $18,058,533 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) of $7,587,276 and $7,205,661, respectively, for 2017 and 2016, along with fund balance were adequate to provide for these programs. \r\n General revenues accounts for $7,587,276, in revenue or 28.24% of all revenues. Program specific revenues in the form of charges for services and sales, grants and contributions accounted for $19,282,094 or 71.76% of total revenues of $26,869.370. \r\n The current ratio, which measures the School District's ability to transform current assets into cash and pay its short-term liabilities, was 2.65% and 2.57% for the fiscal years ended June 30, 2017 and June 30, 2016, respectively. Generally, a ratio greater than 2.0 is considered very financially stable. \r\n The Bleckley County voters passed a one percent sales tax for educational purposes (ESPLOST) for another five years (2018-2022) March 1, 2016. \r\n Long-term debt decreased by $878,253 for 2017 and decreased by $853,253 for 2016. This decrease for 2017 was due primarily to the principal payments on outstanding debt. \r\n The general fund (the primary operating fund), presented on a current financial resource basis, ended the fiscal year with a fund balance of $3,679,688, an increase of $509,678 from the June 30, 2016 fund balance of $3,170,010. \r\n Among major funds, the general fund had $25,776,836 in revenues and $25,067,158 in expenditures. The fund balance for the general fund increased from $3,170,010 to approximately $3,679,688. Several factors led to this increase: increased enrollment which led to increased state funding, a concerted effort to reduce expenditures, and additional operational efficiencies achieved in fiscal year 17. \r\ni \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \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 governmentwide and fund financial statements. \r\nThe government-wide financial statements include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the School District presenting both short-term and long-term information about the overall financial status. \r\nThe fund financial statements focus on individual parts, reporting the School District's operation in more detail. The governmental funds statements disclose how basic services are financed in the shortterm as well as what remains for future spending. The fiduciary funds statements provide information about the financial relationships in which the School District acts solely as a trustee or agent for the benefit of others. \r\nThe fund financial statements reflect the School District's most significant funds. For the years ending June 30, 2017 and 2016, the general fund, the capital projects fund, and the debt service fund represent the most significant funds. \r\nThe financial statements also include notes that explain some of the information in the statements and provide more detailed data. The statements are followed by a section of required supplementary information that further explains and supports the financial statements. Additionally, other supplementary information (not required) is also presented that further supplements understanding of the financial statements. \r\nGovernment-Wide Statements \r\nThe government-wide statements report information about the School District as a whole using accounting methods similar to those used by private-sector companies. The Statement of Net Position includes all of the School District's assets and liabilities. All of the current fiscal year's revenues and expenses are accounted for in the Statement of Activities regardless of when cash is received or paid. \r\nThe two government-wide statements report the School District's net position and how it has changed. Net position, the difference between the School District's assets and deferred outflows of resources, and liabilities and deferred inflows of resources, are one way to measure the School District's overall financial health or position. Over time, increases or decreases in net position are an indication of whether its financial health is improving or deteriorating. Changes may be the result of many factors, including those not under the School District's control, such as the property tax base, facility conditions, required educational programs and other factors. \r\nIn the Statement of Net Position and the Statement of Activities, the School District has one distinct type of activity: \r\n Governmental Activities  All of the School District's programs and services are reported here including instruction, support services, operation and maintenance of plant, pupil transportation, food service, student activity accounts and various others. \r\nii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Fund Financial Statements The School District's fund financial statements provide detailed information about the most significant funds, not the School District as a whole. Some funds are required by State law and some by bond requirements. The School District's major governmental funds are the general fund, the capital projects fund, and the debt service fund. Governmental Funds - Most of the School District's activities are reported in governmental funds, which focus on the determination of financial position and change in financial position, not on income determination. These funds are reported using the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the School District's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance educational programs. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds are reconciled to the financial statements. Fiduciary Funds - The School District is the trustee, or fiduciary, for assets that belong to others, such as school clubs and organizations within the principals' accounts. The School District is responsible for ensuring that the assets reported in these funds are used only for their intended purposes and by those to whom the assets belong. The School District excludes these activities from the governmentwide financial statements because it cannot use these assets to finance its operations. \r\niii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nFINANCIAL ANALYSIS OF THE SCHOOL DISTRICT AS A WHOLE \r\nRecall that the Statement of Net Position provides the perspective of the School District as a whole. Table 1 provides a summary of the School District's net position for fiscal years 2017 and 2016. \r\n \r\nTable 1 Net 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$ \r\n \r\n7,828,566 $ \r\n \r\n7,019,006 \r\n \r\n33,225,725 \r\n \r\n34,218,172 \r\n \r\nTotal Assets \r\n \r\n41,054,291 \r\n \r\n41,237,178 \r\n \r\nDeferred Outflows of Resources Related to Defined Benefit Pension Plan \r\n \r\n6,015,808 \r\n \r\n2,168,470 \r\n \r\nLiabilities Current and Other Liabilities Long-Term Liabilities \r\n \r\n2,954,376 29,162,218 \r\n \r\n2,730,976 24,085,373 \r\n \r\nTotal Liabilities \r\n \r\n32,116,594 \r\n \r\n26,816,349 \r\n \r\nDeferred Inflows of Resources Related to Defined Benefit Pension Plan \r\n \r\n244,570 \r\n \r\n1,613,885 \r\n \r\nNet Position Net Investment in Capital Assets Restricted Unrestricted (Deficit) \r\n \r\n27,278,596 1,526,817 \r\n(14,096,478) \r\n \r\n27,459,089 1,285,281 \r\n(13,768,956) \r\n \r\nTotal Net Position \r\n \r\n$ 14,708,935 $ 14,975,414 \r\n \r\nTotal assets and deferred outflows of resources increased by $3,664,451, which was primarily due to changes in deferred outflows relating to pensions. \r\n \r\nTotal liabilities and deferred inflows of resources increased by $3,930,930, mainly due to an increase in net pension liability. 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 net position of 266,479. \r\n \r\nNet position decreased $266,479 in fiscal year 2017. This decrease is primarily due to changes in deferred outflows relating to pensions mentioned above. \r\n \r\niv \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\n \r\nTable 2 shows the changes in net position for fiscal years ending June 30, 2017 and June 30, 2016. \r\n \r\nTable 2 Change in Net Position \r\n \r\nRevenues \r\n \r\nProgram Revenues: \r\n \r\nCharges for Services \r\n \r\n$ \r\n \r\nOperating Grants and Contributions \r\n \r\nCapital Grants and Contributions \r\n \r\nGovernmental Activities \r\n \r\nFiscal Year \r\n \r\nFiscal Year \r\n \r\n2017 \r\n \r\n2016 \r\n \r\n400,211 $ 18,804,667 \r\n77,216 \r\n \r\n429,646 17,273,743 \r\n355,144 \r\n \r\nTotal Program Revenues \r\n \r\n19,282,094 \r\n \r\n18,058,533 \r\n \r\nGeneral Revenues: Taxes Property Taxes For Maintenance and Operations Railroad Cars Other Taxes Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Taxes Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\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\n \r\n3,670,294 10,081 - \r\n \r\n3,634,628 9,779 \r\n15,194 \r\n \r\n886,450 85,274 44,969 \r\n2,067,342 6,704 \r\n816,162 \r\n7,587,276 \r\n26,869,370 \r\n17,160,995 \r\n1,020,689 442,407 398,051 719,476 \r\n1,567,840 184,219 \r\n1,688,329 1,488,814 \r\n28,890 234,638 \r\n42,029 1,957,575 \r\n201,897 \r\n \r\n1,010,599 \r\n39,030 \r\n1,586,943 6,057 \r\n903,431 \r\n7,205,661 \r\n25,264,194 \r\n15,057,660 \r\n887,233 421,108 356,982 413,737 1,470,804 145,301 1,698,064 1,344,612 \r\n24,858 183,334 \r\n46,613 1,878,339 \r\n223,358 \r\n \r\nTotal Expenses \r\n \r\n27,135,849 \r\n \r\n24,152,003 \r\n \r\nIncrease (Decrease) in Net Position \r\n \r\n$ \r\n \r\n(266,479) $ 1,112,191 \r\n \r\nv \r\n \r\n BLECKLEY 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 $1,223,561 for governmental activities. This increase is largely due to an increase in funds earned through the State Quality Basic Education (QBE) Funding Formula and a decrease in QBE Austerity Reduction from one fiscal period to the next. \r\nGeneral revenues increased by $381,615 during fiscal year 2017 primarily due to increased equalization funding. \r\nGovernmental Activities \r\nThe Statement of Activities shows the cost of program services and the charges for services and grants offsetting those services. Table 3 shows the total cost of services and the net cost of services. Net cost of services can be defined as the total cost less fees generated by the activities and intergovernmental revenue provided for specific programs. The net cost reflects the financial burden on the School District's taxpayers by each activity as compared to the prior year. \r\nTable 3 Governmental Activities \r\n \r\nTotal Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nNet Cost of Services \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nInstruction Support Services: \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services: Community Services Food Services Interest on Short-Term and Long-Term Debt \r\n \r\n$ 17,160,995 $ 15,057,660 $ 3,302,831 $ 2,434,939 \r\n \r\n1,020,689 442,407 398,051 719,476 \r\n1,567,840 184,219 \r\n1,688,329 1,488,814 \r\n28,890 234,638 \r\n \r\n887,233 421,108 356,982 413,737 1,470,804 145,301 1,698,064 1,344,612 \r\n24,858 183,334 \r\n \r\n751,326 108,177 \r\n89,550 181,783 774,872 172,227 897,483 1,237,588 \r\n28,890 49,541 \r\n \r\n676,603 188,698 \r\n49,471 (395,523) 682,459 145,302 901,676 1,106,490 \r\n24,858 26,153 \r\n \r\n42,029 1,957,575 \r\n201,897 \r\n \r\n46,613 1,878,339 \r\n223,358 \r\n \r\n42,029 15,561 201,897 \r\n \r\n46,613 (17,627) 223,358 \r\n \r\nTotal Expenses \r\n \r\n$ 27,135,849 $ 24,152,003 $ 7,853,755 $ 6,093,470 \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, 28.94% of instruction and support activities were supplemented by taxes and other general revenues compared to 25.23% in 2016. \r\n \r\nvi \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 Expenses increased $2,983,846 from the prior year, the net costs of providing services increased $1,760,285. This situation occurred because of increased instructional staffing and other instructional costs. FINANCIAL ANALYSIS OF THE SCHOOL DISTRICT'S FUNDS The School District's governmental funds are accounted for using the modified accrual basis of accounting. Total governmental funds had revenues and other financing sources of $26,948,965 and expenditures and other financing uses of $26,435,811. The general fund had an overall increase of $509,678. The increase in the general fund for the year is due mostly to increased enrollment which led to increased state funding and additional operational efficiencies achieved in 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, funded primarily through state revenue and local property tax revenue. 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 and other financing sources totaling $25,776,836, which represented an increase from the original budgeted amount of $23,630,751 by $2,146,085. This difference (final actual vs. original budget) was due to multiple grants not approved prior to the submission of the original budget. The final budget of $25,466,112 represents a more accurate amount. Final actual expenditures during fiscal year 2017 totaling $25,067,158 represented an increase from the original budgeted amount of $22,609,675 by $2,457,483. The increase in actual expenditures versus original budgeted expenditures was due primarily to salary and benefit increases, new software and computer purchases, and an increase in supplies expenditures. The final budget of $24,950,105 represents a more accurate amount. \r\nvii \r\n \r\n BLECKLEY 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 $33,225,725 and $34,218,172, respectively, invested in capital assets, net of accumulated depreciation. These assets are made up of a broad range of capital assets, including land; buildings; transportation, food service and maintenance equipment. Table 4 reflects a summary of these balances, by class, net of accumulated depreciation, as compared to the prior fiscal year. \r\nTable 4 Capital Assets (Net of Depreciation) \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nLand Construction In Progress Building and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n259,481 $ \r\n \r\n259,481 \r\n \r\n83,591 \r\n \r\n- \r\n \r\n30,983,684 \r\n \r\n31,817,997 \r\n \r\n914,376 \r\n \r\n1,107,017 \r\n \r\n984,593 \r\n \r\n1,033,677 \r\n \r\nTotal \r\n \r\n$ 33,225,725 $ 34,218,172 \r\n \r\nThe overall capital assets decreased in fiscal year 2017 by $992,447 mainly due to depreciation. \r\n \r\nConstruction in progress increased primarily due to the high school athletic expansion, which began in June 2017. \r\n \r\nDEBT ADMINISTRATION \r\n \r\nAt June 30, 2017, the School District had $5,880,830 in long-term liabilities which consisted of $5,680,000 in bond debt and $200,830 in unamortized bond premiums outstanding with $903,253 due within one year. Table 5 summarizes bond debt outstanding at June 30, 2017 and 2016. \r\n \r\nTable 5 Debt at June 30 \r\n \r\nGovernmental Activities \r\n \r\nFiscal \r\n \r\nFiscal \r\n \r\nYear 2017 \r\n \r\nYear 2016 \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\n$ 5,680,000 $ 6,520,000 \r\n \r\n200,830 \r\n \r\n239,083 \r\n \r\n$ 5,880,830 $ 6,759,083 \r\n \r\nviii \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 \r\nCURRENT ISSUES \r\nIn fiscal year 2018, the cost of the employer portion of TRS pension will increase approximately $332,000. In addition, revenues will again be cut as the State of Georgia imposes another QBE Austerity Reduction expected to cost the School District approximately $272,137 in earned revenue, bringing the grand total of revenue lost since the cuts began in 2003 to approximately $16.0 million. \r\nApproximately 79% of general fund expenses, the main operating fund for the School District, were related to salaries and employee benefits for the year ended June 30, 2017. Approximately 41% of certified personnel in the School District have 21 years or more of experience, resulting in salaries at the highest possible state pay level. With such personnel heavy expenses, it is difficult to offset mandated expense increases such as TRS. The School District consistently evaluates how funds can be spent smarter and more effectively to ensure that Bleckley County students receive a quality education from effective personnel. \r\nThe School District's millage rate for fiscal year 2017 was 14.349. The net digest was relatively flat during fiscal years 2017 and 2016. The net digest for fiscal year 2017 was $245.4 million, which produced approximately $245,000 per mill. As shown in Table 2, property tax and sales tax are responsible for covering 17% of the School District's costs. It is anticipated that this pressure to provide local monies to meet mandated educational requirements and operational costs will continue. \r\nThe most significant challenge facing the School District is the relative uncertainty regarding how School Districts will be funded moving forward. The General Assembly is in the process of exploring new funding formulas that would likely cement in the austerity reductions received annually and change the way personnel salaries are calculated. It is uncertain at this point what type of financial impact these changes might have on the School District's finances. \r\nGeneral fund revenues were positively impacted in fiscal year 2017 by the School District's decision to implement the newly offered Community Eligibility Plan (CEP) for school food reimbursements. This change resulted in additional revenues versus fiscal year 2016 in excess of $100 thousand. The School District remains vigilant at controlling costs, and maintained general fund expenditures comparable to fiscal year 2016. Year over year spending increases were attributable to increases in salaries. As expected, revenues in fiscal year 2017 exceeded expenditures. Through rigorous controls, the general fund balance increased by $509 thousand. \r\nCONTACTING THE SCHOOL DISTRICT'S FINANCIAL MANAGEMENT \r\nThis financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the School District's finances and to show the School District's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Aly Rozier at the Bleckley County Board of Education, 242 East Dykes Street. You may also email your questions to arozier@bleckley.k12.ga.us. \r\nix \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2017 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Contracts Payable Deposits and Unearned Revenues Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,848,380.17 \r\n \r\n15,702.76 \r\n \r\n38.49 361,000.85 1,944,076.82 537,889.92 \r\n22,924.03 51,938.71 46,613.77 343,072.10 32,882,652.92 \r\n \r\n41,054,290.54 \r\n \r\n6,015,808.26 \r\n \r\n245,761.56 2,580,560.07 \r\n57,400.00 66,298.50 \r\n4,355.74 23,281,388.00 \r\n903,253.35 4,977,576.76 \r\n32,116,593.98 \r\n \r\n244,570.00 \r\n \r\n27,278,596.41 \r\n470,313.08 922,425.00 134,078.38 (14,096,478.05) \r\n \r\n$ 14,708,934.82 \r\n \r\n- 1 - \r\n \r\n BLECKLEY 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 17,160,995.05 $ \r\n1,020,689.13 442,406.84 398,050.41 719,475.96 \r\n1,567,840.39 184,219.15 \r\n1,688,329.21 1,488,813.73 \r\n28,890.05 234,638.24 \r\n42,029.41 1,957,575.17 \r\n201,896.64 \r\n$ 27,135,849.38 $ \r\n \r\n186,128.39 \r\n- \r\n214,082.31 \r\n- \r\n400,210.70 \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$ 13,672,034.96 $ \r\n269,363.17 334,229.85 308,500.00 537,693.25 792,968.40 11,992.45 790,846.70 174,009.12 \r\n185,097.19 \r\n1,727,932.33 \r\n- \r\n$ 18,804,667.42 $ \r\n \r\n- $ \r\n77,216.25 - \r\n- \r\n77,216.25 \r\n \r\n(3,302,831.70) \r\n(751,325.96) (108,176.99) \r\n(89,550.41) (181,782.71) (774,871.99) (172,226.70) (897,482.51) (1,237,588.36) \r\n(28,890.05) (49,541.05) \r\n(42,029.41) (15,560.53) (201,896.64) \r\n(7,853,755.01) \r\n \r\n3,670,293.86 10,081.31 \r\n886,450.00 85,274.04 44,969.18 \r\n2,067,342.19 6,703.96 \r\n816,161.50 \r\n7,587,276.04 \r\n(266,478.97) \r\n14,975,413.79 \r\n \r\n$ \r\n \r\n14,708,934.82 \r\n \r\n- 3 - \r\n \r\n BLECKLEY 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 Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,812,859.08 $ 1,035,496.09 $ \r\n \r\n15,702.76 \r\n \r\n- \r\n \r\n38.49 282,618.56 1,944,076.82 537,889.92 \r\n22,924.03 51,938.71 46,613.77 \r\n \r\n78,382.29 \r\n- \r\n \r\n25.00 $ 4,848,380.17 \r\n \r\n- \r\n \r\n15,702.76 \r\n \r\n- \r\n \r\n38.49 \r\n \r\n- \r\n \r\n361,000.85 \r\n \r\n- \r\n \r\n1,944,076.82 \r\n \r\n- \r\n \r\n537,889.92 \r\n \r\n- \r\n \r\n22,924.03 \r\n \r\n- \r\n \r\n51,938.71 \r\n \r\n- \r\n \r\n46,613.77 \r\n \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Contracts Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\n \r\n$ 6,714,662.14 $ 1,113,878.38 $ \r\n \r\n25.00 $ 7,828,565.52 \r\n \r\n$ \r\n \r\n245,761.56 $ \r\n \r\n2,580,560.07 \r\n \r\n- \r\n \r\n4,355.74 \r\n \r\n2,830,677.37 \r\n \r\n- $ 66,298.50 - \r\n66,298.50 \r\n \r\n- $ \r\n \r\n245,761.56 \r\n \r\n- \r\n \r\n2,580,560.07 \r\n \r\n- \r\n \r\n66,298.50 \r\n \r\n- \r\n \r\n4,355.74 \r\n \r\n- \r\n \r\n2,896,975.87 \r\n \r\n204,296.69 \r\n \r\n- \r\n \r\n- \r\n \r\n204,296.69 \r\n \r\n98,552.48 418,374.37 3,162,761.23 \r\n3,679,688.08 \r\n \r\n1,047,579.88 \r\n- \r\n1,047,579.88 \r\n \r\n25.00 \r\n- \r\n25.00 \r\n \r\n98,552.48 1,465,979.25 3,162,761.23 \r\n4,727,292.96 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 6,714,662.14 $ 1,113,878.38 $ \r\n \r\n25.00 $ 7,828,565.52 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 4 - \r\n \r\n BLECKLEY 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 Land improvements Buildings Equipment 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 governmental 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 Bond premiums, net of amortization \r\nNet Position of governmental activities (Exhibit \"A\") \r\n \r\n$ 4,727,292.96 \r\n \r\n$ \r\n \r\n259,480.81 \r\n \r\n83,591.29 \r\n \r\n1,629,164.39 \r\n \r\n41,681,641.63 \r\n \r\n3,924,874.78 \r\n \r\n(14,353,027.88) \r\n \r\n33,225,725.02 \r\n \r\n(23,281,388.00) 5,771,238.26 204,296.69 \r\n \r\n$ (5,680,000.00) (57,400.00) \r\n(200,830.11) \r\n \r\n(5,938,230.11) \r\n \r\n$ 14,708,934.82 \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 BLECKLEY 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 Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,613,669.10 $ 44,969.18 \r\n16,746,083.02 4,149,443.80 400,210.70 6,298.96 816,161.14 \r\n25,776,835.90 \r\n \r\n- $ 85,274.04 \r\n405.00 - \r\n85,679.04 \r\n \r\n- $ 886,450.00 \r\n- \r\n886,450.00 \r\n \r\n3,613,669.10 1,016,693.22 16,746,083.02 4,149,443.80 \r\n400,210.70 6,703.96 \r\n816,161.14 \r\n26,748,964.94 \r\n \r\n15,614,051.53 \r\n979,124.19 427,267.06 382,065.26 630,815.46 1,500,287.77 177,302.50 1,688,098.50 1,471,019.07 \r\n27,506.72 234,514.64 \r\n42,029.41 1,893,075.46 \r\n- \r\n- \r\n25,067,157.57 \r\n709,678.33 \r\n \r\n- \r\n82,203.79 \r\n- \r\n82,203.79 \r\n3,475.25 \r\n \r\n- \r\n- \r\n840,000.00 4,250.00 \r\n242,200.00 \r\n1,086,450.00 \r\n(200,000.00) \r\n \r\n15,614,051.53 \r\n979,124.19 427,267.06 382,065.26 630,815.46 1,500,287.77 177,302.50 1,688,098.50 1,471,019.07 \r\n27,506.72 234,514.64 \r\n42,029.41 1,893,075.46 \r\n82,203.79 \r\n840,000.00 4,250.00 \r\n242,200.00 \r\n26,235,811.36 \r\n513,153.58 \r\n \r\n(200,000.00) (200,000.00) 509,678.33 3,170,009.75 \r\n \r\n3,475.25 1,044,104.63 \r\n \r\n200,000.00 - \r\n200,000.00 - \r\n25.00 \r\n \r\n200,000.00 (200,000.00) \r\n- \r\n513,153.58 \r\n4,214,139.38 \r\n \r\n$ 3,679,688.08 $ 1,047,579.88 $ \r\n \r\n25.00 $ 4,727,292.96 \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 BLECKLEY 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 outlay 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 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 premiums \r\nSchool District pension contributions are reported as expenditure in the governmetnal funds when made. However, they are reported as deferred outflows of resources in the Statement of Net Position bvecause 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 reproted 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. The net effect of these adjustments are: \r\nAccrued interest on issuance of bonds \r\n \r\n$ 513,153.58 \r\n \r\n$ 176,651.65 (1,120,767.54) \r\n \r\n(944,115.89) \r\n \r\n(48,331.53) \r\n \r\n66,706.07 \r\n \r\n$ 840,000.00 38,253.36 \r\n \r\n878,253.36 \r\n \r\n(738,444.56) 6,300.00 \r\n \r\nChange in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ (266,478.97) \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 \r\nLIABILITIES Accounts Payable Funds Held for Others \r\nTotal Liabilities NET POSITION Held in Trust for Private Purposes \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2017 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n16,813.85 $ \r\n \r\n68,600.65 \r\n \r\n$ \r\n \r\n4,800.00 \r\n \r\n63,800.65 \r\n \r\n$ \r\n \r\n68,600.65 \r\n \r\n$ \r\n \r\n16,813.85 \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2017 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n34.65 \r\n \r\n1,000.00 (965.35) \r\n17,779.20 \r\n \r\n$ 16,813.85 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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 Bleckley County School Building Authority (the Authority) was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the School District. The Authority consists of five members appointed by the governing authority of the School District. The Authority is a component unit of the School District and as such the Authority's financial activity has been blended with the School District's basic financial statements. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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 positon often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit a scholarship for female students who attend Bleckley County High School. \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\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \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 general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 77, Tax Abatement Disclosures. This statement requires governments that enter into tax abatement agreements to disclose the following information; (1) brief descriptive information, such as the tax being abated, the authority under which tax abatements are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing abated taxes, and the types of commitments made by tax abatement recipients; (2) the gross dollar amount of taxes abated during the period; and (3) commitments made by a government, other than to abate taxes, as part of a tax abatement agreement. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 80, Blending Requirements for Certain Component Units  an amendment of GASB Statement No. 14. This statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does apply to component units included in the financial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organization Are Component Units. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2017, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 82, Pension Issues  an amendment of GASB Statements No. 67, No. 68 and No. 73. This statement addresses certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 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\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\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\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at the acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ 200,000.00 \r\n \r\nN/A 20 to 80 Years 10 to 80 Years \r\n5 to 50 Years 5 to 10 Years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\n \r\nPENSIONS \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nFUND BALANCES \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District's fund balances are classified as follows: \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\nThe Bleckley County Board of Commissioners adopted the property tax levy for the 2016 tax digest year (calendar year) on October 12, 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 Bleckley County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2017, for maintenance and operations amounted to $3,314,101.19. \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\n14.349 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $289,486.60 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 $971,724.04 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general, debt service and capital projects funds. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $50,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\n \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2017, the School District had deposits with a carrying amount of $4,949,497.43, which includes $15,702.76 in certificates of deposit that are reported as investments, and a bank balance of $5,852,172.22. The bank balances insured by Federal depository insurance were $1,015,702.76 and the bank balances collateralized with securities held by the pledging financial institution in the School District's name were $4,836,469.46. \r\n \r\nNOTE 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the capital assets for governmental activities during the fiscal year: \r\n \r\nBalances July 1, 2016 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2017 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\n$ \r\n \r\n259,480.81 $ \r\n \r\n- \r\n \r\n- $ 83,591.29 \r\n \r\n- $ - \r\n \r\n259,480.81 83,591.29 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\n \r\n259,480.81 \r\n \r\n83,591.29 \r\n \r\n- \r\n \r\n343,072.10 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n41,681,641.63 3,880,145.95 1,629,164.39 \r\n \r\n93,060.36 \r\n- \r\n \r\n48,331.53 \r\n- \r\n \r\n41,681,641.63 3,924,874.78 1,629,164.39 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n9,863,644.68 2,773,128.18 \r\n595,487.48 \r\n \r\n834,312.84 237,370.96 \r\n49,083.74 \r\n \r\n- \r\n \r\n10,697,957.52 \r\n \r\n- \r\n \r\n3,010,499.14 \r\n \r\n- \r\n \r\n644,571.22 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n33,958,691.63 \r\n \r\n(1,027,707.18) \r\n \r\n48,331.53 \r\n \r\n32,882,652.92 \r\n \r\nGovernmental Activity Capital Assets - Net $ 34,218,172.44 $ \r\n \r\n(944,115.89) $ \r\n \r\n48,331.53 $ 33,225,725.02 \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n$ 8,571.60 71,056.89 2,484.05 90,560.48 \r\n \r\n901,232.93 \r\n172,673.02 46,861.59 \r\n \r\n$ 1,120,767.54 \r\n \r\nNOTE 6: INTERFUND TRANSFERS INTERFUND TRANFERS \r\nInterfund transfers for the year ended June 30, 2017, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From General Fund \r\n \r\nDebt Service Fund \r\n \r\n$ 200,000.00 \r\n \r\nTransfers are used to move revenues collected by the general fund to the debt service fund to service debt associated with the ESPLOST referendum. \r\n \r\nNOTE 7: SHORT-TERM DEBT \r\nThe School District issued a tax anticipation note in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $ \r\n \r\n- $ 500,000.00 $ 500,000.00 $ \r\n \r\n- \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 8: LONG-TERM LIABILITIES \r\nThe changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2016 \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nJune 30, 2017 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation Bonds Unamortized Bond Premiums \r\n \r\n$ 6,520,000.00 $ 239,083.47 \r\n \r\n- $ 840,000.00 $ 5,680,000.00 $ 865,000.00 \r\n \r\n- \r\n \r\n38,253.36 \r\n \r\n200,830.11 \r\n \r\n38,253.35 \r\n \r\n$ 6,759,083.47 $ \r\n \r\n- $ 878,253.36 $ 5,880,830.11 $ 903,253.35 \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nThe School District's bonded debt consists of various issues of general obligation bonds that are generally noncallable with interest payable semiannually. Bond proceeds primarily pay for acquiring or constructing capital facilities. The School District repays general obligation bonds from voterapproved sales taxes. General obligation bonds are direct obligations and pledge the full faith and credit of the School District. \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nDescription \r\n \r\nInterest Rates Issue Date Maturity Date Amount Issued \r\n \r\nAmount Outstanding \r\n \r\nGeneral Government - Series 2009 2.00% to 5.00% 12/1/2009 10/1/2022 $ 8,900,000.00 $ 5,680,000.00 \r\n \r\nThe following schedule details debt service requirements to maturity for the School District's total general obligation bonds payable: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2018 \r\n2019 2020 2021 2022 2023 \r\n \r\n$ 865,000.00 $ 215,543.75 $ \r\n \r\n895,000.00 \r\n \r\n186,943.75 \r\n \r\n920,000.00 960,000.00 1,000,000.00 \r\n \r\n154,000.00 118,800.00 \r\n77,000.00 \r\n \r\n1,040,000.00 \r\n \r\n26,000.00 \r\n \r\n38,253.35 \r\n38,253.35 38,253.35 38,253.35 38,253.35 \r\n9,563.36 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 5,680,000.00 $ 778,287.50 $ \r\n \r\n200,830.11 \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 9: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disasters and unemployment compensation. Except as described below, the School District carries commercial insurance for these risks. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\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\nThe School District has had no unemployment claims in the past two fiscal years. \r\nSURETY BOND \r\nThe School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 50,000.00 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2017: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nUnassigned \r\n \r\n$ 51,938.71 46,613.77 $ \r\n \r\n98,552.48 \r\n \r\n$ 418,374.37 67,779.88 \r\n979,825.00 \r\n \r\n1,465,979.25 3,162,761.23 \r\n \r\nFund Balance, June 30, 2017 \r\n \r\n$ 4,727,292.96 \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\nNOTE 11: BROADBAND SPECTRUM LEASE \r\nEffective August 18, 2005, the School District entered into a five-year lease agreement, with automatic renewals, with Nextel Spectrum Acquisition Corporation for the lease of excess spectrum capacity on Education Broadband Service licenses currently held by School District. These licenses were granted to the School District by the Federal Communications Commission. The lease agreement requires monthly lease payments over the term of the lease, of which $28,459.44 was recognized during Fiscal Year 2017 as a general revenue on the Statement of Activities. \r\n \r\nNOTE 12: SIGNIFICANT COMMITMENTS \r\nCOMMITMENTS UNDER CONSTRUCTION CONTRACTS \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2017: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts (1) \r\n \r\nPayments through June 30, 2017 (2) \r\n \r\nBleckley County High School Athletic Expansion \r\n \r\n$ \r\n \r\n276,306.50 $ \r\n \r\n83,591.29 \r\n \r\n(1) The amounts described are not reflected in the basic financial statements. (2) Payments include Contracts and Retainages Payable at year-end. \r\nOPERATING LEASES \r\nThe School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases(s) totaled $21,616.30 for governmental activities for the year ended June 30, 2017. \r\n \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe following future minimum lease payments were required under operating leases at June 30, 2017: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2018 2019 2020 2021 \r\n \r\n$ \r\n \r\n18,040.28 \r\n \r\n12,314.52 \r\n \r\n10,929.44 \r\n \r\n2,583.63 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n43,867.87 \r\n \r\nNOTE 13: 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 14: 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 of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2017: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2016  June 30, 2017 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2016  December 31, 2016 $746.20 per member per month \r\n \r\nJanuary 1, 2017  June 30, 2017 $846.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2017 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2017 2016 2015 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,352,428.00 $ 2,233,296.80 $ 2,108,601.40 \r\n \r\nNOTE 15: RETIREMENT PLANS \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nP lan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial 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 \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nservice 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, 2016 was 14.27% of annual School District payroll, of which 14.04% of payroll was required from the School District and 0.23% of payroll was required from the State. For the current fiscal year, employer contributions to the pension plan were $1,834,059.26 and $32,553.48 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nP lan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\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 $56,782.00. \r\n \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\nAt June 30, 2017, the School District reported a liability of $23,281,388.00 for its proportionate share of the net pension liability for TRS. \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability $ 23,281,388.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n542,805.00 \r\n \r\nTotal \r\n \r\n$ 23,824,193.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2016. \r\nAt June 30, 2016, the School District's TRS proportion was 0.112846%, which was a decrease of 0.000963% 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 $405,517.00. \r\nThe PSERS net pension liability was measured as of June 30, 2016. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2015. An expected total pension liability as of June 30, 2016 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2016. \r\nFor the year ended June 30, 2017, the School District recognized pension expense of $2,642,598.00 for TRS and $66,479.00 for PSERS and revenue of $70,842.00 for TRS and $66,479.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2017, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred \r\n \r\nDeferred \r\n \r\nOutflows of \r\n \r\nInflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nDifferences between expected and actual experience \r\n \r\n$ \r\n \r\n346,830.00 \r\n \r\n115,127.00 \r\n \r\nChanges of assumptions \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\nSchool District contributions subsequent to the measurement date \r\n \r\n603,421.00 \r\n \r\n- \r\n \r\n2,945,191.00 \r\n \r\n- \r\n \r\n286,307.00 \r\n \r\n129,443.00 \r\n \r\n1,834,059.26 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 6,015,808.26 $ 244,570.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $1,834,059.26 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2018 2019 2020 2021 2022 \r\n \r\n$ 531,954.00 \r\n \r\n$ 531,953.00 \r\n \r\n$ 1,713,062.00 \r\n \r\n$ 1,121,125.00 \r\n \r\n$ \r\n \r\n39,085.00 \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 Investment rate of return \r\n \r\n2.75% \r\n3.25%  9.00%, average, including inflation \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPost-retirement mortality rates were based on the RP-2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males) for service requirements and dependent beneficiaries. The RP-2000 Disabled Mortality table with future mortality improvement projected to 2025 with Society of Actuaries' projection scale BB (set forward two years for males and four years for females) was used for the death after disability retirement. Rates of mortality in active service were based on the RP-2000 Employee Mortality Table projected to 2025 with projection scale BB. \r\nThe actuarial assumptions used in the June 30, 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 and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks Alternative \r\nTotal \r\n* Rates shown are net of the 2.75% assumed rate of inflation \r\n \r\nTRS Target allocation \r\n30.00% 39.80% \r\n3.70% 1.50% 19.40% 5.60% \r\n- \r\n100.00% \r\n \r\nPSERS Target allocation \r\n30.00% 37.20% \r\n3.40% 1.40% 17.80% 5.20% 5.00% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n(0.50)% 9.00% 12.00% 13.50% 8.00% 12.00% 10.50% \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2017 \r\n \r\nEXHIBIT \"I\" \r\n \r\nDiscount rate: The discount rate used to measure the total TRS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net pension liability calculated using the discount rate of 7.50%, as well as what the School District's proportionate share of the net pension liability would be if it were calculated using a discount rate that \r\nis 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net \r\n \r\npension liability \r\n \r\n$ 36,237,768.00 $ \r\n \r\n23,281,388.00 $ 12,613,945.00 \r\n \r\nP ension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publically \r\navailable at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 16: RELATED PARTY TRANSACTIONS \r\nDuring the year under review, the School District conducted business with one related party, Rozier Auto Parts. Rozier Auto Parts is owned by the Finance Director's husband's family. Current year expenditures for Rozier Auto Parts totaled $7,346.65. \r\n \r\n. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"1\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the net \r\npension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proportionate share of the \r\nnet pension liability associated with the \r\nSchool District \r\n \r\n2017 2016 2015 \r\n \r\n0.112846% $ 0.113809% $ 0.113422% $ \r\n \r\n23,281,388.00 $ 17,326,290.00 $ 14,329,374.00 $ \r\n \r\n542,805.00 $ 412,723.00 $ 329,613.00 $ \r\n \r\nTotal \r\n23,824,193.00 17,739,013.00 14,658,987.00 \r\n \r\nSchool District's covered payroll \r\n \r\nSchool District's proportionate share of the net pension \r\nliability as a percentage of its covered payroll \r\n \r\nPlan fiduciary net position as a \r\npercentage of the total pension liability \r\n \r\n$ 12,667,465.64 $ 12,299,400.07 $ 11,837,505.64 \r\n \r\n183.79% 140.87% 121.05% \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- 31 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proprotionate share of the \r\nnet pension liaibility associated with the \r\nSchool District \r\n \r\n2017 2016 2015 \r\n \r\n0.00% $ 0.00% $ 0.00% $ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n405,517.00 $ 267,010.00 $ 239,626.00 $ \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\n405,517.00 $ 267,010.00 $ 239,626.00 $ \r\n \r\n698,123.79 688,106.87 688,182.25 \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- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2017 \r\n \r\n$ \r\n \r\n1,834,059.26 $ \r\n \r\n1,834,059.26 $ \r\n \r\n- \r\n \r\n2016 \r\n \r\n$ \r\n \r\n1,767,095.82 $ \r\n \r\n1,767,095.82 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n1,579,743.81 $ \r\n \r\n1,579,743.81 $ \r\n \r\n- \r\n \r\nSchool District's covered payroll \r\n$ 13,064,761.59 $ 12,667,465.64 $ 12,299,400.07 \r\n \r\nContribution as a percentage of covered \r\npayroll \r\n14.04% 13.95% 12.84% \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"4\" \r\n \r\nTeachers Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. In 2010, assumed rates of salary increase were adjusted to more closely reflect actual and anticipated experience. \r\nOn November 18, 2015, the Board ado-pted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement, disability, withdrawal and salary increases. The expectation of retired life mortality was changed to RP 2000 White Collar Mortality Table with future mortality improvement projected to 2025 with the Society of Actuaries' projection scale BB (set forward one year for males). \r\nPublic School Employees Retirement System \r\nChanges of assumptions: In 2010 and later, the expectation of retired life mortality was changed to the RP 2000 Mortality Tables rather than the 1994 Group Annuity Mortality Table, which was used prior to 2010. In 2010, rates of withdrawal, retirement, disability and mortality were adjusted to more closely reflect actual experience. \r\nOn December 17, 2- 015, the Board adopted recommended changes to the economic and demographic assumptions utilized by the System. Primary among the changes were the updates to rates of mortality, retirement and withdrawal. The expectation of retired life mortality was changed to the RP 2000 Blue Collar Mortality Table projected to 2025 with projection scale BB (set forward 3 years for males and 2 years for females). \r\n \r\n- 34 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"5\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Service Operations 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\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\n$ \r\n \r\n3,723,323.00 $ \r\n \r\n3,723,323.00 $ \r\n \r\n36,000.00 \r\n \r\n36,000.00 \r\n \r\n16,154,788.73 \r\n \r\n16,512,032.48 \r\n \r\n3,202,738.93 \r\n \r\n4,680,856.93 \r\n \r\n239,800.00 \r\n \r\n239,800.00 \r\n \r\n4,500.00 \r\n \r\n4,500.00 \r\n \r\n269,600.00 \r\n \r\n269,600.00 \r\n \r\n23,630,750.66 \r\n \r\n25,466,112.41 \r\n \r\n13,787,227.80 \r\n808,320.04 473,455.02 371,590.45 521,513.33 1,329,304.80 162,127.90 1,659,067.38 1,311,409.83 \r\n38,697.35 262,003.19 \r\n47,997.60 1,836,960.61 \r\n22,609,675.30 \r\n1,021,075.36 \r\n \r\n15,619,874.05 \r\n881,694.04 684,284.02 371,590.45 530,891.33 1,371,432.80 162,127.90 1,695,669.28 1,446,082.08 \r\n38,697.35 262,803.36 \r\n47,997.60 1,836,960.61 \r\n24,950,104.87 \r\n516,007.54 \r\n \r\n(50,000.00) 971,075.36 3,058,377.71 \r\n(3,045.12) \r\n \r\n(50,000.00) 466,007.54 3,058,377.71 \r\n15,988.93 \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n3,613,669.10 $ 44,969.18 \r\n16,746,083.02 4,149,443.80 400,210.70 6,298.96 816,161.14 \r\n \r\n(109,653.90) 8,969.18 \r\n234,050.54 (531,413.13) 160,410.70 \r\n1,798.96 546,561.14 \r\n \r\n25,776,835.90 \r\n \r\n310,723.49 \r\n \r\n15,614,051.53 \r\n979,124.19 427,267.06 382,065.26 630,815.46 1,500,287.77 177,302.50 1,688,098.50 1,471,019.07 \r\n27,506.72 234,514.64 \r\n42,029.41 1,893,075.46 \r\n25,067,157.57 \r\n709,678.33 \r\n \r\n5,822.52 \r\n(97,430.15) 257,016.96 (10,474.81) (99,924.13) (128,854.97) (15,174.60) \r\n7,570.78 (24,936.99) 11,190.63 28,288.72 \r\n5,968.19 (56,114.85) \r\n(117,052.70) \r\n193,670.79 \r\n \r\n(200,000.00) 509,678.33 3,170,009.75 \r\n- \r\n \r\n(150,000.00) 43,670.79 \r\n111,632.04 (15,988.93) \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n4,026,407.95 $ \r\n \r\n3,540,374.18 $ \r\n \r\n3,679,688.08 $ 139,313.90 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expernditures of the various principal accounts are $643,807.04 and $641,038.92, 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- 35 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"6\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Rural Education Rural Education Striving Readers Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Direct Rural Health Development Network 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\n403,091.18 1,412,585.61 \r\n1,815,676.79 \r\n \r\n84.027 84.027 84.173 \r\n \r\nH027A150073 H027A160073 H173A160081 \r\n \r\n91,009.00 432,380.00 \r\n23,946.00 \r\n547,335.00 \r\n \r\n84.048 84.367 84.358 84.358 84.371 84.010 84.010 84.287 84.287 \r\n \r\nV048A160010 S367A160001 S358B150010 S358B160010 S371C110049 S010A150010 S010A160010 S287C150010 S287C160010 \r\n \r\n24,585.49 20,792.31 \r\n1,574.00 44,144.72 759,887.30 79,837.00 465,328.39 42,063.84 287,611.67 \r\n1,725,824.72 \r\n2,273,159.72 \r\n \r\n93.912 \r\n \r\nD06RH27765-02-01 \r\n \r\n246,113.53 \r\n \r\nTotal Expenditures of Federal Awards N/A = Not Available \r\n \r\n$ \r\n \r\n4,334,950.04 \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\nNote 1. Basis of Presentation \r\nThe accompanying schedule of expenditures of federal awards (the \"Schedule\") includes the federal award activity of the Bleckley County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2017. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments , or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Board has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 36 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2017 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Special Education Programs Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Principal Staff and Professional Development Pupil Transportation - State Bonds Teacher of the Year Teachers Retirement Vocational Education Vocational Supervisors \r\nHuman Services, Georgia Department of Family Advocate Program Family Connection \r\nOffice of the Governor Public School Employees Retirement \r\nOffice of the State Treasurer Connections in Classrooms \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"7\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n716,903.00 \r\n \r\n763,552.00 145,523.00 1,749,837.00 602,690.00 715,677.00 423,221.00 1,394,457.00 1,373,258.00 435,065.00 2,408,012.00 659,461.00 205,852.00 110,582.00 283,170.00 \r\n83,939.00 50,310.00 \r\n479,660.00 687,852.00 648,781.00 (200,102.00) \r\n378,481.00 46,216.00 \r\n2,089,204.00 \r\n44,714.00 10,555.98 56,264.00 \r\n1,379.00 77,216.25 \r\n507.25 32,553.48 52,140.85 \r\n6,653.00 \r\n66,232.21 47,000.00 \r\n56,782.00 \r\n42,484.00 \r\n$ 16,746,083.02 \r\n \r\n- 37 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nSCHEDULE \"8\" \r\n \r\nPROJECT \r\nThe issuance of general obligation bonds in the principal amount not to exceed $9,000,000.00 to pay the costs of, \r\n(a) acquiring, constructing, and equipping a new Bleckley County Middle School. \r\n(b) renovating, improving, constructing and equipping new and existing school buildings, athletic facilities and other educational facilities. \r\n(c) the acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, together with school buses, maintenance vehicles and equipment computers and related technology, textbooks, vocational, fine arts, physical education and athletic equipment and safety and security equipment, and; \r\n(d) the costs of issuance of the Bonds including capitalized interest. \r\n(e) a portion of the principal and interest on the above described general obligation bonds. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- \r\n \r\n- $ - \r\n \r\n- $ 9,493,942.55 $ 9,493,942.55 $ \r\n \r\n- \r\n \r\n225,167.75 \r\n \r\n225,167.75 \r\n \r\n- \r\n \r\nComplete \r\n \r\n- \r\n \r\nComplete \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n7,000,000.00 \r\n \r\n10,079,970.30 \r\n \r\n$ 7,000,000.00 $ 10,079,970.30 $ \r\n \r\n- \r\n \r\n5,235.00 \r\n \r\n5,235.00 \r\n \r\n- \r\n \r\n355,625.00 \r\n \r\n355,625.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- $ 10,079,970.30 $ 10,079,970.30 $ \r\n \r\n- \r\n \r\nComplete \r\n \r\n- \r\n \r\nComplete \r\n \r\n- \r\n \r\nComplete \r\n \r\n- \r\n \r\n(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. \r\n \r\n(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. \r\n \r\n(3) The voters of Bleckley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 1,787,220.50 \r\n \r\nCurrent Year \r\n \r\n242,200.00 \r\n \r\nTotal \r\n \r\n$ 2,029,420.50 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \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 30, 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 Bleckley County Board of Education \r\n \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\n \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 Bleckley 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 30, 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\nOur consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be a material weakness and significant deficiencies. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2017-002, to be a material weakness. \r\n \r\n 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 2017-001 and FS 2017-003 to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nSchool District's Response to Findings \r\nThe School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n 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 30, 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 Bleckley County Board of Education \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\nReport on Compliance for Each Major Federal Program \r\nWe have audited the Bleckley County Board of Education (School District) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. The School District's major federal programs are identified in the Summary of Auditor's Results section of the accompanying Schedule of Findings and Questioned Costs. \r\nManagement's Responsibility \r\nManagement is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. \r\nAuditor's Responsibility \r\nOur responsibility is to express an opinion on compliance for each of the School District's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the School District's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. \r\nWe believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the School District's compliance. \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the School District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2017. \r\nReport on Internal Control over Compliance \r\nManagement of the School District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the School District's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the School District's internal control over compliance. \r\nA deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. \r\nOur consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nThe purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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 2015-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nControl Procedure at the Central Office Accounting Controls (OVERALL) Cash and Cash Equivalents Capital Assets Employee Compensation Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nDue to limited size, we are unable to separate duties as recommended and/or required. In fiscal year 2018, the Finance Director started initialing all deposit slips to ensure accuracy of the deposit taken to the bank by the secretary. We have also added one employee to our payroll department. Duties will be split between payroll and human resources. \r\n \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nFinance Director has more experience from year to year preparing financial statements. We attend all trainings provided by Department of Education and Department of Audits to help with this process. In fiscal year 2018, an extra review step will be put into place to ensure accuracy of financial statements before submission. \r\n \r\nFS-2016-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nPartially Resolved \r\n \r\nDue to limited size, we are unable to separate duties as recommended and/or required. In fiscal year 2018, the Finance Director started initialing all deposit slips to ensure accuracy of the deposit taken to the bank by the secretary. We have also added one employee to our payroll department. Duties will be split between payroll and human resources. \r\n \r\n- 1 - \r\n \r\n BLECKLEY 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-2016-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nInternal Controls over Financial Reporting Financial Reporting Material Weakness None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nFinance Director has more experience from year to year preparing financial statements. We attend all trainings provided by Department of Education and Department of Audits to help with this process. In fiscal year 2018, an extra review step will be put into place to ensure accuracy of financial statements before submission. \r\n \r\nFS-2016-003 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nDue to limited number of staff, we are unable to separate duties between more employees. In fiscal year 2017, as well as fiscal year 2018, we will continue to have bookkeepers reconcile each other's bank accounts with principal review. Principals will continue to review all account balances quarterly. Fiscal year 2018 financial statements will reflect a change in agency and governmental accounts, where all have been reviewed and reclassified as needed. Secretaries at each school will also sign off on deposit slips to ensure deposit accuracy. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n- 2 - \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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 deficiencies identified? \r\nNoncompliance material to financial statements noted: \r\n \r\nUnmodified \r\nYes Yes No \r\n \r\nFederal Awards \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 2 CFR 200.516(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\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\n- 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2017-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls at the Central Office Accounting Controls (OVERALL) Revenues/Receivables/Receipts Employee Compensation General Ledger Significant Deficiency None FS 2016-001, FS 2015-001 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls at the central office. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nCondition: Accounting Controls (OVERALL) \r\n The School District does not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial application and school food service point of sale system. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining the custody of assets. In addition, the School District does not have a formal policy for requesting, granting, modifying and removing user access from the school food service point of sale system, and the school food service point of sale system also lacked documentation supporting an annual review of user access. \r\n The School District did not perform a job restore for the financial application to ensure data backed up is recoverable. \r\n The School District did not update its Risk Assessment for the year under audit. \r\n \r\nRevenues  Grants were not properly monitored to ensure that excess funds were deferred or returned to grantor. \r\n \r\nEmployee Compensation \r\n Our examination of twenty-four employees' salaries revealed the following deficiencies: o A one-time special supplement offered to employees was not approved by the Board prior to payment. o Seven employees were overpaid due to their extended year being calculated based on a different number of days than were approved by the Board in a calendar change. o One employee was overpaid due to receiving the full amount of a special supplement while only meeting the qualifications for half. o One employee's salary could not be documented as approved. o One employee received additional pay, although two timesheets were not properly approved and one could not be located. o One employee's additional payments did not agree to pay scales. \r\n \r\n- 2 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nGeneral Ledger  Our examination of twenty-seven journal entries revealed five journal entries were not adequately documented. \r\n \r\nCause: In discussing this deficiency with the School District, they stated that these issues were a result of a lack of separation of duties and internal control procedures within the finance department. \r\n \r\nEffect or Potential Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls impacted its reporting of financial position and results of operations. \r\n \r\nRecommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions. Management should ensure that proper separation of duties exists. In the case when management determines that separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. \r\n \r\nViews of Responsible Officials: \r\n \r\nFS 2017-002 Control Categories: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls Over Financial Reporting Financial Reporting Material Weakness None FS 2016-002, FS 2015-002 \r\n \r\nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. The original financial statements, as presented for audit, contained material and significant errors and omissions. \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 fund balances to the net position of governmental activities in the Statement of Net Position, and (b) total change in governmental fund balances to the change in the net position of governmental activities in the Statement of Activities. In addition, the statement requires information about the government's major and nonmajor funds in the aggregate, to be provided in the fund financial statements. \r\n \r\n- 3 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nChapter II-2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\nCondition: The following errors and omissions were noted in the School District's financial statements, note disclosures and supplementary information presented for audit: \r\n A material audit adjustment totaling $17,326,290.00 was proposed and accepted by the client to correctly present net pension liability and deferred inflows related to the defined benefit pension plan on the government-wide financial statements. \r\n A material reclassification audit adjustment totaling $4,519,302.32 was proposed an accepted by the client to correctly present net position on the government-wide financial statements. \r\n An audit adjustment totaling $11,967.79 was proposed and accepted by the client to move governmental funds incorrectly recorded in the agency fund to the general fund. \r\n An audit adjustment totaling $129,443.00 was proposed and accepted by the client to correctly present deferred inflows related to defined benefit pension plan and deferred outflows related to defined benefit pension plan on the government-wide financial statements. \r\n An audit adjustment totaling $66,298.50 was proposed and accepted by the client to correctly present accounts payable and expenditures on the general fund financial statements and contracts payable and expenditures on the capital projects fund financial statements. \r\n An reclassification audit adjustment totaling $236,599.41 was proposed and accepted by the client to correctly present restricted for continuation of federal programs, restricted for capital projects and unrestricted on the governmental fund financial statements. \r\n An audit adjustment totaling $5,300.00 was proposed and accepted by the client to move agency funds incorrectly recorded in the private purpose trust fund to the agency fund. \r\n Numerous other audit adjustments and reclassification entries were proposed and accepted by management to properly present the School District's financial statements, notes to the financial statements, and schedules. \r\nCause: In discussing this deficiency with the School District, they stated that these issues were a result of the entity's failure to fully understand the financial reporting process. \r\nEffect or Potential Effect: Material 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. \r\n- 4 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nRecommendation: As a part of internal controls over the preparation of financial statements, including disclosures and schedules, the School District should 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. The School District should consider implementing the use of a review checklist to assist in the review process over the financial statements. \r\n \r\nViews of Responsible Officials: \r\n \r\nFS 2017-003 Control Categories: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Control Procedures over School Activity Accounts Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None FS 2016-003 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \r\nFinancial Management for Georgia Local Units of Administration Chapter V-4, School Activity Accounts (Principal Accounts) states in part \"Student Activity Funds (Agency Fund  705) support activities that are based in student organizations.\" In addition, it states \"All activity funds should operate on a cash basis, meaning that no commitments or indebtedness may be incurred unless the fund contains sufficient cash.\" \r\n \r\nCondition: The following deficiencies were noted with the School District's school activity accounts: \r\n \r\nRevenues/Receivables/Receipts  The key accounting functions of custody of assets, receipt preparation and record keeping were not adequately separated. \r\n \r\nExpenditures/Liabilities/Disbursements  The key accounting functions of custody of assets, check preparation and record keeping were not adequately separated.  Our examination of twelve disbursements revealed the following discrepancies: o Five expenditures lacked prior approval. The purchase order was completed after the invoice date. o Two expenditures were checks made payable to \"cash\". \r\n \r\n- 5 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2017 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS General Ledger \r\n During testing of school activity accounts, the auditor noted one account had a deficit balance in the agency fund. \r\nCause: In discussing this deficiency with the School District, they stated that the errors were made due to the schools not having a school activity account policy manual. In addition, the schools do not have adequate personnel in order to be able to separate the duties. Effect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to errors or fraud and not be detected in a timely manner. Recommendation: The School District should establish control procedures to ensure that the key accounting functions of custody of assets, receipt preparation, check preparation and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that reduce vulnerabilities in ineffectively separated functions and the risk of errors and fraud. In addition, the School District should implement procedures to ensure that receipts and disbursements are adequately documented, recorded, and approved. Management should discontinue writing checks made to \"cash\" due to the risk of check loss or fraud. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. Views of Responsible Officials: \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n- 6 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n Bleckley County Board of Education \r\n \r\nKIM WRIGHT, Chair DEREK BELFLOWER, Vice-Chair \r\nMILDRED BLOODWORTH MICHAEL SASSER AMY WILLIAMS \r\n \r\n242 E. Dykes Street P.O. Box 516 \r\nCochran, Georgia 31014-0516 \r\n\"Expect Excellence!\" \r\n \r\nSTEVE J. SMITH, SUPERINTENDENT \r\nANDREA WILLIAMS, ASSISTANT SUPERINTENDENT \r\n(912) 934-2821 FAX (912) 934-9595 www.bleckley.k12.ga.us Twitter: @bleckleyschools \r\n \r\nFINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nFinding Control Number: 2017-001 \r\nWe concur with this finding. Beginning FY2019 one additional employee was hired to process payroll. This will help separate duties within the finance department, and assure more accuracy in daily activities. \r\nContact Person: Aly Rozier, Finance Director Phone : (478) 934-2821 ext: 1002 Fax: (478) 934-9595 E-mail: arozier@bleckley.k12.ga.us \r\nFinding Control Number: 2017-002 \r\nWe concur with this finding. The finance director will continue to gain more experience with preparing financial statements, as well as attend each training opportunity given. After submission of FY2018 financial statements the school district plans to reach out to a CPA firm that prepares multiple school financial statements annually, to see if a review of the school district's financial statements can be looked over and adjusted (if needed) before the initial audit. \r\nContact Person: Aly Rozier, Finance Director Phone : (478) 934-2821 ext: 1002 Fax: (478) 934-9595 E-mail: arozier@bleckley.k12.ga.us \r\nFinding Control Number: 2017-003 \r\nWe concur with this finding. School bookkeepers will continue to reconcile each other's bank statements monthly, and rotate each year. We will review procedures of posting revenues and expenditures within each school to strengthen internal controls. This process will begin immediately. \r\nContact Person: Aly Rozier, Finance Director Phone : (478) 934-2821 ext: 1002 Fax: (478) 934-9595 E-mail: arozier@bleckley.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2016-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2018-07-17"],"dcterms_description":["Annual financial report for the Bleckley 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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). 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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-bb6-b2016-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2016-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2016 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nGOVERNMENT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 11 \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n31 \r\n \r\n2 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\n \r\n32 \r\n \r\n3 SCHEDULE OF CONTRIBUTIONS  TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\n \r\n33 \r\n \r\n4 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n34 \r\n \r\n5 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES - BUDGET AND ACTUAL \r\n \r\nGENERAL FUND \r\n \r\n35 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n6 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 7 SCHEDULE OF STATE REVENUE 8 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\n \r\nPage \r\n36 37 39 \r\n \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nSECTION V MANAGEMENT'S CORRECTIVE ACTION FOR CURRENT YEAR FINDINGS SCHEDULE OF MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n SECTION I FINANCIAL \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 17, 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 Bleckley 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 Bleckley County Board of Education (School District), as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the School District's basic financial statements as listed in the table of contents. \r\nManagement's Responsibility for the Financial Statements \r\nManagement is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. \r\nAuditor's Responsibility \r\nOur responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. \r\nAn audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also \r\n \r\n includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. \r\nWe believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. \r\nOpinions \r\nIn our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the School District, as of June 30, 2016, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2016, the School District adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application, GASB Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and 68, and GASB Statement No. 79, Certain External Investment Pools and Pool Participants. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedules of Proportionate Share of the Net Pension Liability, Schedule of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages 31 through 35 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\n \r\n Other Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the School District's basic financial statements. The accompanying supplementary information, consisting of Schedules 6 through 8, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated July 17, 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 BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2016 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nDEFERRED OUTFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Deposits and Unearned Revenues Net Pension Liability Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nRelated to Defined Benefit Pension Plan \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted (Deficit) \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,237,662.33 \r\n \r\n15,624.42 \r\n \r\n36.17 294,122.07 1,827,941.43 486,574.92 \r\n18,982.62 46,225.18 91,836.49 259,480.81 33,958,691.63 \r\n \r\n41,237,178.07 \r\n \r\n2,168,469.82 \r\n \r\n239,338.27 2,427,582.11 \r\n63,700.00 355.25 \r\n17,326,290.00 \r\n878,253.36 5,880,830.11 \r\n26,816,349.10 \r\n \r\n1,613,885.00 \r\n \r\n27,459,088.97 \r\n304,850.89 903,725.00 \r\n76,704.63 (13,768,955.70) \r\n \r\n$ \r\n \r\n14,975,413.79 \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 BLECKLEY 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 Railroad Cars 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\nPROGRAM REVENUES \r\nCHARGES FOR SERVICES \r\n \r\n$ 15,057,659.57 $ 212,894.17 \r\n \r\n887,232.96 \r\n \r\n- \r\n \r\n421,108.17 \r\n \r\n- \r\n \r\n356,982.04 \r\n \r\n- \r\n \r\n413,736.68 \r\n \r\n- \r\n \r\n1,470,804.17 \r\n \r\n- \r\n \r\n145,301.47 \r\n \r\n- \r\n \r\n1,698,063.48 \r\n \r\n- \r\n \r\n1,344,612.31 \r\n \r\n- \r\n \r\n24,858.07 \r\n \r\n- \r\n \r\n183,334.24 \r\n \r\n- \r\n \r\n46,613.47 1,878,338.70 \r\n223,357.90 \r\n \r\n216,752.07 \r\n- \r\n \r\n$ 24,152,003.23 $ 429,646.24 \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$ 12,409,826.23 $ \r\n \r\n- $ (2,434,939.17) \r\n \r\n210,630.36 232,410.49 307,511.00 531,335.71 788,344.94 \r\n796,387.33 160,901.85 \r\n157,181.30 \r\n \r\n277,924.34 77,220.00 - \r\n \r\n(676,602.60) (188,697.68) \r\n(49,471.04) 395,523.37 (682,459.23) (145,301.47) (901,676.15) (1,106,490.46) (24,858.07) (26,152.94) \r\n \r\n1,679,213.64 \r\n- \r\n \r\n- \r\n \r\n(46,613.47) \r\n \r\n- \r\n \r\n17,627.01 \r\n \r\n- \r\n \r\n(223,357.90) \r\n \r\n$ 17,273,742.85 $ 355,144.34 \r\n \r\n(6,093,469.80) \r\n \r\n3,634,628.42 9,779.03 \r\n15,193.98 \r\n1,010,598.85 39,029.77 \r\n1,586,943.00 6,057.24 \r\n903,430.96 \r\n7,205,661.25 \r\n1,112,191.45 \r\n13,863,222.34 \r\n$ 14,975,413.79 \r\n \r\n- 3 - \r\n \r\n BLECKLEY 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 Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Prepaid Items \r\nTotal Assets \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$ 3,276,791.05 $ 15,624.42 \r\n36.17 210,863.72 1,827,941.43 486,574.92 \r\n18,982.62 46,225.18 91,836.49 \r\n \r\n960,846.28 $ - \r\n83,258.35 \r\n- \r\n \r\n25.00 $ - \r\n- \r\n \r\n4,237,662.33 15,624.42 \r\n36.17 294,122.07 1,827,941.43 486,574.92 \r\n18,982.62 46,225.18 91,836.49 \r\n \r\n$ 5,974,876.00 $ 1,044,104.63 $ \r\n \r\n25.00 $ \r\n \r\n7,019,005.63 \r\n \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Unearned Revenue \r\nTotal Liabilities \r\nDEFERRED INFLOWS OF RESOURCES \r\nUnavailable Revenue - Property Taxes \r\nFUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\n \r\n$ 239,338.27 $ 2,427,582.11 355.25 \r\n2,667,275.63 \r\n \r\n- $ - \r\n- \r\n \r\n137,590.62 \r\n \r\n- \r\n \r\n138,061.67 258,625.71 2,773,322.37 \r\n3,170,009.75 \r\n \r\n1,044,104.63 \r\n- \r\n1,044,104.63 \r\n \r\nTotal Liabilities, Deferred Inflows of Resources, and Fund Balances \r\n \r\n$ 5,974,876.00 $ 1,044,104.63 $ \r\n \r\n- $ - \r\n- \r\n \r\n239,338.27 2,427,582.11 \r\n355.25 \r\n2,667,275.63 \r\n \r\n- \r\n \r\n137,590.62 \r\n \r\n25.00 \r\n- \r\n25.00 \r\n \r\n138,061.67 1,302,755.34 2,773,322.37 \r\n4,214,139.38 \r\n \r\n25.00 $ \r\n \r\n7,019,005.63 \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 BLECKLEY 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. These assets consist of: \r\nLand Land improvements Buildings Equipment Accumulated depreciation \r\nSome liabilities, including net pension obligations, are not due and payable in the current period and, therefore, are not reported in the funds. \r\nNet pension liability \r\nDeferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the funds \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\nLong-term liabilities, and related accrued interest, are not due and payable in the current period and therefore are not reported in the funds. \r\nBonds payable Accrued interest payable Unamortized bond premiums \r\nNet position of governmental activities (Exhibit \"A\") \r\n \r\n$ 4,214,139.38 \r\n \r\n$ \r\n \r\n259,480.81 \r\n \r\n1,629,164.39 \r\n \r\n41,681,641.63 \r\n \r\n3,880,145.95 \r\n \r\n(13,232,260.34) \r\n \r\n34,218,172.44 \r\n \r\n(17,326,290.00) 554,584.82 137,590.62 \r\n \r\n$ (6,520,000.00) (63,700.00) \r\n(239,083.47) \r\n \r\n(6,822,783.47) \r\n \r\n$ 14,975,413.79 \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2016 \r\n \r\nEXHIBIT \"E\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Services Food Services Operation \r\nDebt Services Principal Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,687,759.38 $ 39,029.77 \r\n15,507,161.84 3,381,443.04 429,646.24 5,678.32 903,430.96 \r\n23,954,149.55 \r\n \r\n- \r\n \r\n$ \r\n \r\n1,010,598.85 - \r\n \r\n- \r\n \r\n- \r\n \r\n378.92 - \r\n \r\n1,010,977.77 \r\n \r\n- \r\n \r\n$ 3,687,759.38 \r\n \r\n- \r\n \r\n1,049,628.62 \r\n \r\n- \r\n \r\n15,507,161.84 \r\n \r\n- \r\n \r\n3,381,443.04 \r\n \r\n- \r\n \r\n429,646.24 \r\n \r\n- \r\n \r\n6,057.24 \r\n \r\n- \r\n \r\n903,430.96 \r\n \r\n- \r\n \r\n24,965,127.32 \r\n \r\n14,562,022.69 \r\n894,123.04 428,638.58 368,016.17 454,196.47 1,517,241.67 146,885.27 1,667,333.48 1,316,368.34 \r\n26,205.08 184,981.07 \r\n46,613.47 1,849,525.40 \r\n- \r\n23,462,150.73 \r\n491,998.82 \r\n \r\n- \r\n3,175.00 - \r\n- \r\n3,175.00 \r\n1,007,802.77 \r\n \r\n- \r\n- \r\n815,000.00 698.75 \r\n267,025.00 \r\n1,082,723.75 \r\n(1,082,723.75) \r\n \r\n14,562,022.69 \r\n894,123.04 428,638.58 368,016.17 454,196.47 1,517,241.67 150,060.27 1,667,333.48 1,316,368.34 \r\n26,205.08 184,981.07 \r\n46,613.47 1,849,525.40 \r\n815,000.00 698.75 \r\n267,025.00 \r\n24,548,049.48 \r\n417,077.84 \r\n \r\n(32,100.00) (32,100.00) 459,898.82 2,710,110.93 \r\n \r\n(1,050,623.75) (1,050,623.75) \r\n(42,820.98) 1,086,925.61 \r\n \r\n1,082,723.75 - \r\n1,082,723.75 - \r\n25.00 \r\n \r\n1,082,723.75 (1,082,723.75) \r\n- \r\n417,077.84 3,797,061.54 \r\n \r\n$ 3,170,009.75 $ 1,044,104.63 $ \r\n \r\n25.00 $ 4,214,139.38 \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 BLECKLEY 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\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. \r\nCapital outlay Depreciation expense \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations and disposals) is to decrease net position. \r\nCapital assets purchased with Universal Service Fund (e-rate) proceeds are not reported in governmental funds. However, in the Statement of Activities, the e-rate proceeds are shown as capital grants and contributions. \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \r\nBond principal retirements Amortization of bond premiums \r\nInterest expense reported in the Statement of Activities is recorded as incurred, whereas interest expense in the governmental fund statements is reported when paid. \r\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\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 417,077.84 \r\n \r\n$ 186,727.99 (1,122,154.36) \r\n \r\n(935,426.37) \r\n \r\n(1,536.16) \r\n \r\n277,924.34 (28,157.95) \r\n \r\n$ 815,000.00 38,253.35 \r\n \r\n853,253.35 \r\n \r\n6,112.50 \r\n \r\n522,943.90 $ 1,112,191.45 \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 \r\nLIABILITIES Funds Held for Others \r\nNET POSITION Held in Trust for Private Purposes \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2016 \r\n \r\nEXHIBIT \"G\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ 17,779.20 $ 67,510.36 \r\n \r\n$ 67,510.36 \r\n \r\n$ 17,779.20 \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 BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2016 \r\nADDITIONS Investment Earnings Interest \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n35.57 \r\n \r\n17,743.63 \r\n \r\n$ 17,779.20 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. \r\n \r\n- 9 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley 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 Bleckley County School Building Authority (the Authority) was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the School District. The Authority consists of five members appointed by the governing authority of the School District. \r\nThe Authority is a component unit of the School District and as such the Authority's financial activity has been blended with the School District's basic financial statements. \r\nNOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES \r\nThe accompanying financial statements of the School District have been prepared in conformity with generally accepted accounting principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). GASB is the accepted standard-setting body for governmental accounting and financial reporting principles. The most significant of the School District's accounting policies are described below. \r\nBASIS OF PRESENTATION \r\nThe School District's basic financial statements are collectively comprised of the government-wide financial statements, fund financial statements and notes to the basic financial statements. The government-wide statements focus on the School District as a whole, while the fund financial statements focus on major funds. Each presentation provides valuable information that can be analyzed and compared between years and between governments to enhance the information's usefulness. \r\nGOVERNMENT-WIDE STATEMENTS: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Net Position presents the School District's non-fiduciary assets and liabilities, with the difference reported as net position. Net position is reported in three categories as follows: \r\n1. Net investment in capital assets consists of the School District's total investment in capital assets, net of accumulated depreciation, and reduced by outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of net investment in capital assets. \r\n2. Restricted net position consists of resources for which the School District is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties or imposed by law through constitutional provisions or enabling legislation. \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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 positon often has constraints on resources imposed by management which can be removed or modified. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\nDirect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\nProgram revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFUND FINANCIAL STATEMENTS \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate financial statements are presented for governmental and fiduciary funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n The general fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n The capital projects fund accounts for and reports financial resources including Education Special Purpose Local Option Sales Tax (ESPLOST) and Bond Proceeds that are restricted, committed or assigned for capital outlay expenditures, including the acquisition or construction of capital facilities and other capital assets. \r\n The debt service fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private purpose trust funds are used to report all trust arrangements, other than those properly reported elsewhere, in which principal and income benefit a scholarship for female students who attend Bleckley County High School. \r\n Agency funds are used to report resources held by the School District in a purely custodial capacity (assets equal liabilities) and do not involve measurement of results of operations. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The government-wide and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The School District did not have any items that required a reassessment of value for reporting purposes as a result of adoption of this statement. \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements No. 67 and No. 68. This statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement No. 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 68 for pension plans and pensions that are within their respective scopes. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2016, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 79, Certain External Investment Pools and Pool Participants. This statement addresses accounting and financial reporting for certain external investment pools and pool participants. If an external investment pool meets the criteria in this statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. The adoption of this statement does not have a significant impact on the School District's financial statements. \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nCash and cash equivalents consist of cash on hand, demand deposits, investments in the State of Georgia local government investment pool (Georgia Fund 1) and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated (O.C.G.A.) 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nThe School District can invest its funds as permitted by O.C.G.A. 36-83-4. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. All other investments are reported at fair value. \r\nFor accounting purposes, certificates of deposit are classified as investments if they have an original maturity greater than three months when acquired. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\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\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit future accounting periods are recorded as prepaid items, in both the government-wide and governmental fund financial statements. \r\nCAPITAL ASSETS \r\nOn the government-wide financial statements, capital assets are recorded at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at acquisition value on the date donated. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. The School District does not capitalize book collections or works of art. \r\nCapital acquisition and construction are recorded as expenditures in the governmental fund financial statements at the time of purchase (including ancillary charges), and the related assets are reported as capital assets in the governmental activities column in the government-wide financial statements. \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nDepreciation is computed using the straight-line for all assets, except land, and is used to allocate the actual or estimated historical cost of capital assets over estimated useful lives. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the government-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \r\n \r\nLand Improvements \r\n \r\n$ \r\n \r\nBuildings and Improvements $ \r\n \r\nEquipment \r\n \r\n$ \r\n \r\nIntangible Assets \r\n \r\n$ \r\n \r\nAll 5,000.00 5,000.00 5,000.00 200,000.00 \r\n \r\nN/A 20 to 80 Years 10 to 80 Years \r\n5 to 50 Years 5 to 10 Years \r\n \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\n \r\nIn addition to assets, the statement of financial position will report a separate section for deferred outflows of resources. This separate financial statement element, represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. \r\n \r\nIn addition to liabilities, the statement of financial position will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. \r\n \r\nLONG-TERM LIABILITIES AND BOND DISCOUNTS/PREMIUMS \r\n \r\nIn the School District's government-wide financial statements, outstanding debt is reported as liabilities. Bond premiums and discounts and the difference between the reacquisition price and the net carrying value of refunded debt are deferred and amortized over the life of the bonds using the straight-line method. To conform to generally accepted accounting principles, bond premiums and discounts should be amortized using the effective interest method. The effect of this deviation is deemed to be immaterial to the fair presentation of the basic financial statements. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\n \r\nIn the governmental fund financial statements, the School District recognizes the proceeds of debt and premiums as other financing sources of the current period. Bond issuance costs are reported as debt service expenditures. \r\n \r\nPENSIONS \r\n \r\nFor purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the pension plan's fiduciary net position and additions to/deductions from the plan's fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. \r\n \r\nFUND BALANCES \r\n \r\nFund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. \r\n \r\nThe School District's fund balances are classified as follows: \r\n \r\nNonspendable consists of resources that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRestricted consists of resources that can be used only for specific purposes pursuant constraints either (1) externally imposed by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted consists of resources that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board. The Board is the School District's highest level of decisionmaking authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\n \r\nAssigned consists of resources constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned consists of resources within the general fund not meeting the definition of any aforementioned category. The general fund should be the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it may be necessary to report a negative unassigned fund balance. \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nPROPERTY TAXES \r\n \r\nThe Bleckley County Board of Commissioners adopted the property tax levy for the 2015 tax digest year (calendar year) on September 15, 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 Bleckley County Board of Commissioners bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2016, for maintenance and operations amounted to $3,385,915.44. \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\n14.349 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $276,870.93 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 $1,010,598.85 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 fund. There is no statutory prohibition regarding over expenditure of the budget at \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nany level. The budget for all governmental funds is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate fund level. The budget for the general fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines, and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of O.C.G.A. 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. \r\nThe Superintendent is authorized by the Board to approve adjustments of no more than 10% of the amount budgeted for expenditures in any budget function for any fund. The Superintendent shall report any such adjustments to the Board. If expenditure of funds in any budget function for any fund is anticipated to be more than 25% of the budgeted amount, the Superintendent shall request Board approval for the budget amendment. Any position or expenditure not previously approved in the annual budget that exceeds $50,000.00 shall require Board approval unless the Superintendent deems the position or purchase an emergency. In such case, the expenditure shall be reported to the Board at its regularly scheduled meeting. Under no circumstance is the Superintendent or other staff person authorized to spend funds that exceed the total budget without approval by the Board. \r\nSee the General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual in the Supplementary Information Section for a detail of any over/under expenditures during the fiscal year under review. \r\nNOTE 4: DEPOSITS \r\nCOLLATERALIZATION OF DEPOSITS \r\nO.C.G.A.  45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110% of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A.  45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110% of the daily pool balance. At June 30, 2016, $1,035.76 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- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\n(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n \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\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, 2016, the School District had deposits with a carrying amount of $4,338,576.31, which includes $15,624.42 in Certificates of Deposit that are reported as investments, and a bank balance of $5,415,060.23. The bank balances insured by Federal depository insurance were $1,015,624.42 and the bank balances collateralized with securities held by the pledging financial institution or by the pledging financial institution's trust department or agent in the School District's name were $4,398,400.05. \r\n \r\nAt June 30, 2016, $4,399,435.81 of the School District's bank balance was exposed to custodial credit risk as follows: \r\n \r\nUninsured and Uncollateralized Uninsured with collateral held by the pledging \r\nfinancial institution Uninsured with collateral held by the pledging \r\nfinancial institution's trust department or agent but not in the School District's name \r\n \r\n$ \r\n \r\n1,035.76 \r\n \r\n4,398,400.05 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 4,399,435.81 \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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, 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 \r\n \r\n$ \r\n \r\n261,016.97 $ \r\n \r\n- $ \r\n \r\n1,536.16 $ \r\n \r\n259,480.81 \r\n \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n41,681,641.63 3,415,493.62 1,629,164.39 \r\n \r\n464,652.33 \r\n- \r\n \r\n- \r\n \r\n41,681,641.63 \r\n \r\n- \r\n \r\n3,880,145.95 \r\n \r\n- \r\n \r\n1,629,164.39 \r\n \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements Intangible Assets \r\n \r\n9,029,331.84 2,534,370.40 \r\n546,403.74 - \r\n \r\n834,312.84 238,757.78 \r\n49,083.74 - \r\n \r\n- \r\n \r\n9,863,644.68 \r\n \r\n- \r\n \r\n2,773,128.18 \r\n \r\n- \r\n \r\n595,487.48 \r\n \r\n- \r\n \r\n- \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n34,616,193.66 \r\n \r\n(657,502.03) \r\n \r\n- \r\n \r\n39,958,691.63 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ \r\n \r\n34,877,210.63 $ (657,502.03) $ \r\n \r\n1,536.16 $ 34,218,172.44 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ 8,571.60 36,316.34 27,845.14 \r\n101,356.04 \r\n \r\n$ 902,601.94 \r\n174,089.12 45,463.30 \r\n \r\n$ 1,122,154.36 \r\n \r\nNOTE 6: 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\nCapital Projects \r\n \r\nGeneral Fund \r\n \r\nFund \r\n \r\nDebt service fund \r\n \r\n32,100.00 \r\n \r\n1,050,623.75 \r\n \r\nTransfers are used to move revenues collected by the general fund and sales tax revenues collected by the capital projects fund to the debt service fund to service debt associated with the ESPLOST referendum. \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 7: SHORT-TERM DEBT \r\n \r\nThe School District issued a tax anticipation note in advance of property tax collections, depositing the proceeds in its general fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75% of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes \r\n \r\n$ \r\n \r\n- $ 300,000.00 $ 300,000.00 $ \r\n \r\n- \r\n \r\nNOTE 8: LONG-TERM LIABILITIES The changes in long-term liabilities during the fiscal year for governmental activities, were as follows: \r\n \r\nBalance July 1, 2016 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2017 \r\n \r\nDue Within One Year \r\n \r\nGeneral Obligation (G.0) Bonds Unamortized Bond Premiums \r\n \r\n$ 7,335,000.00 $ 277,336.82 \r\n \r\n- $ 815,000.00 $ 6,520,000.00 $ 840,000.00 \r\n \r\n- \r\n \r\n38,253.35 \r\n \r\n239,083.47 \r\n \r\n38,253.36 \r\n \r\n$ 7,612,336.82 $ \r\n \r\n$ 853,253.35 $ 6,759,083.47 $ 878,253.36 \r\n \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\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 2009 \r\n \r\n2.00 - 5.00% \r\n \r\n12/1/2009 \r\n \r\n10/1/2022 $ 8,900,000.00 $ 6,520,000.00 \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \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\n2017 2018 2019 2020 2021 2022 - 2023 \r\n \r\n$ \r\n \r\n840,000.00 $ \r\n \r\n242,200.00 \r\n \r\n$ \r\n \r\n865,000.00 \r\n \r\n215,543.75 \r\n \r\n895,000.00 \r\n \r\n186,943.75 \r\n \r\n920,000.00 \r\n \r\n154,000.00 \r\n \r\n960,000.00 \r\n \r\n118,800.00 \r\n \r\n2,040,000.00 \r\n \r\n103,000.00 \r\n \r\n38,253.36 38,253.35 38,253.35 38,253.35 38,253.35 47,816.71 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 6,520,000.00 $ 1,020,487.50 \r\n \r\n$ \r\n \r\n239,083.47 \r\n \r\nNOTE 9: RISK MANAGEMENT \r\nINSURANCE \r\nCommercial Insurance \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disasters and unemployment compensation. Settled claims resulting from these insured risks have not exceeded commercial insurance coverage in any of the past three fiscal years. \r\nGeorgia School Boards Association Risk and Insurance Management System \r\nThe School District participates in the Georgia School Boards Association Risk and Insurance Management System (the System), a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the System for its general insurance coverage. Additional coverage is provided through agreements by the System with other companies according to their specialty for property, boiler and machinery (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the System varies by line of coverage. \r\nWORKERS' COMPENSATION \r\nGeorgia Education Workers' Compensation Trust \r\nThe School District participates in the Georgia Education Workers' Compensation Trust (the Trust), a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general workers' compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1.0 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2.0 million. The Trust covers the first $1.0 million of each Employers Liability claim with Safety National providing additional Employers Liability limits up to a $2.0 million per occurrence maximum. Safety National Casualty Company also provides $2.0 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District has had no worker's compensation claims in the past two fiscal years. UNEMPLOYMENT COMPENSATION \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the general fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nThe School District has had no unemployment claims in the past two fiscal years. SURETY BOND The School District purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ 50,000.00 \r\n \r\nNOTE 10: FUND BALANCE CLASSIFICATION DETAILS \r\n \r\nThe School District's financial statements include the following amounts presented in the aggregate at June 30, 2016: \r\n \r\nNonspendable Inventories Prepaid assets \r\nRestricted Continuation of federal programs Capital projects Debt service \r\n \r\n$ 46,225.18 91,836.49 $ 138,061.67 \r\n \r\n$ 258,625.71 76,704.63 \r\n967,425.00 \r\n \r\n1,302,755.34 \r\n \r\nUnassigned \r\n \r\n2,773,322.37 \r\n \r\nFund Balance, June 30, 2017 \r\n \r\n$ 4,214,139.38 \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\nNOTE 11: BROADBAND SPECTRUM LEASE \r\nEffective August 8, 2005, the School District entered into a five year lease agreement, with automatic renewals, with Nextel Spectrum Acquisition Corporation for the lease of excess spectrum capacity on Education Broadband Service licenses currently held by the School District. These licenses were granted to the School District by the Federal Communications Commission. The lease agreement requires monthly lease payments over the term of the lease, of which $28,459.44, was recognized during fiscal year 2016 as a general revenue on the Statement of Activities. \r\n \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 12: SIGNIFICANT COMMITMENTS OPERATING LEASES \r\n \r\nThe School District leases copiers under the provisions of one or more long-term lease agreements classified as operating leases for accounting purposes. Rental expenditures under the terms of the operating leases totaled $25,674.76 for governmental activities for the year ended June 30, 2016. The following future minimum lease payments were required under operating leases at June 30, 2016: \r\n \r\nYear Ending \r\n \r\nGovernmental Funds \r\n \r\n2017 2018 2019 2020 \r\n \r\n$ \r\n \r\n13,943.92 \r\n \r\n9,403.08 \r\n \r\n3,114.96 \r\n \r\n504.80 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n26,966.76 \r\n \r\nNOTE 13: 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 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). Additional information about the School OPEB Fund is disclosed in the State of Georgia Comprehensive Annual Financial Report. This report can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012 pay approximately 25% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\npremiums 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 $746.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2016 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2016 2015 2014 \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,233,296.80 \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,108,601.40 \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,120,379.00 \r\n \r\nNOTE 15: RETIREMENT PLANS \r\n \r\nThe School District participates in various retirement plans administered by the State of Georgia, as further explained below. \r\n \r\nTEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description: All teachers of the School District as defined in O.C.G.A 47-3-60 and certain other support personnel as defined by 47-3-63 are provided a pension through the Teachers Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAn 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 payroll of which 13.95% of payroll was required from the School District and 0.35% of payroll was required from the state. For the current fiscal year, employer contributions to the pension plan were $1,767,095.82 and $41,337.02 from the School District and the State, respectively. \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\nContributions: The general assembly makes an annual appropriation to cover the employer contribution to PSERS on behalf of local school employees (bus drivers, cafeteria workers, and maintenance staff). The annual employer contribution required by statute is actuarially determined and paid directly to PSERS by the State Treasurer in accordance with O.C.G.A. 47-4-29(a) and 60(b). Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. The current fiscal year contribution was $64,257.00. \r\n \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions \r\n \r\nAt June 30, 2016, the School District reported a liability of $17,326,290.00 for its proportionate share of the net pension liability for TRS ($17,739,013.00). \r\n \r\nThe TRS net pension liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the net pension liability, the related State of Georgia support, and the total portion of the net pension liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 17,326,290.00 \r\n \r\nState of Georgia's proportionate share of the net pension liability associated with the School District \r\n \r\n412,723.00 \r\n \r\nTotal \r\n \r\n$ 17,739,013.00 \r\n \r\nThe net pension liability for TRS was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The School District's proportion of the net pension liability was based on contributions to TRS during the fiscal year ended June 30, 2015. \r\nAt June 30, 2015, the School District's TRS proportion was 0.113809%, which was an increase of 0.000387% 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 $267,010.00. \r\nThe PSERS net pension liability was measured as of June 30, 2015. The total pension liability used to calculate the net pension liability was based on an actuarial valuation as of June 30, 2014. An expected total pension liability as of June 30, 2015 was determined using standard roll-forward techniques. The State's proportion of the net pension liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2015. \r\nFor the year ended June 30, 2016, the School District recognized pension expense of $1,286,455.00 for TRS and $15,923.00 for PSERS and revenue of $42,304.00 for TRS and $15,923.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2016, the School District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: \r\n \r\nTRS \r\n \r\nDeferred Outflows Deferred Inflows \r\n \r\nof Resources \r\n \r\nof Resources \r\n \r\nDifferences between expected and actual \r\n \r\nexperience \r\n \r\n$ \r\n \r\n- $ \r\n \r\n152,394.00 \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\n \r\n- \r\n \r\n1,461,491.00 \r\n \r\nChanges in proportion and differences between \r\n \r\nSchool District contributions and proportionate \r\n \r\nshare of contributions \r\n \r\n401,374.00 \r\n \r\n- \r\n \r\nSchool District contributions subsequent to the \r\n \r\nmeasurement date \r\n \r\n1,767,095.82 \r\n \r\n- \r\n \r\nTotal \r\n \r\n$ 2,168,469.82 $ 1,613,885.00 \r\n \r\nThe School District contributions subsequent to the measurement date of $1,767,095.82 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2018 \r\n \r\n$ (599,875.00) \r\n \r\n2019 \r\n \r\n$ (599,875.00) \r\n \r\n2020 \r\n \r\n$ (599,877.00) \r\n \r\n2021 \r\n \r\n$ 591,835.00 \r\n \r\n2022 \r\n \r\n$ (4,719.00) \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2015 was determined by an actuarial valuation as of June 30, 2014, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\n3.75%  7.00%, average, including inflation \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table for Males or Females set back two years for males and set back three years for females. \r\n \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \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\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases Investment rate of return \r\n \r\nN/A \r\n7.50%, net of pension plan investment expense, including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2014 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined \r\n \r\nusing a log-normal distribution analysis in which best-estimate ranges of expected future real rates of \r\n \r\nreturn (expected returns, net of pension plan investment expense and inflation) are developed for \r\n \r\neach major asset class. These ranges are combined to produce the long-term expected rate of return \r\n \r\nby weighting the expected future real rates of return by the target asset allocation percentage and by \r\n \r\nadding expected inflation. The target asset allocation and best estimates of arithmetic real rates of \r\n \r\nreturn for each major asset class are summarized in the following table: \r\n \r\nLong-term \r\n \r\nTarget \r\n \r\nexpected real \r\n \r\nAsset class \r\n \r\nallocation \r\n \r\nrate of return* \r\n \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \r\nTotal \r\n \r\n30.00% 39.70% \r\n3.70% 1.60% 18.90% 6.10% \r\n100.00% \r\n \r\n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \r\n \r\n* Rates shown are net of the 3.00% assumed rate of inflation \r\n \r\nDiscount rate: The discount rate used to measure the total TRS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2016 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the School District's proportionate share of the net pension liability to changes in the discount rate: The following presents the School District's proportionate share of the net \r\npension liability calculated using the discount rate of 7.50%, as well as what the School District's \r\nproportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.50%) or 1-percentage-point higher (8.50%) than the current rate: \r\n \r\nTeachers Retirement System: \r\n \r\n1% Decrease (6.50%) \r\n \r\nCurrent Discount Rate (7.50%) \r\n \r\n1% Increase (8.50%) \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\n$ 29,773,920.00 $ \r\n \r\n17,326,290.00 $ 7,066,482.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publically available at www.trsga.com/publications and http://www.ers.ga.gov/formspubs/formspubs.html. \r\n \r\nNOTE 16: RELATED PARTY TRANSACTIONS \r\n \r\nDuring the year under review, the School District conducted business with one related party, Rozier Auto Parts. Rozier Auto Parts is owned by the Finance Director's husband's family. Current year expenditures for Rozier Auto Parts totaled $10,091.84. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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\nTotal \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\n2016 2015 \r\n \r\n0.113809% $ 17,326,290.00 $ 0.113422% $ 14,329,374.00 $ \r\n \r\n412,723.00 $ 17,739,013.00 $ 12,299,400.07 329,613.00 $ 14,658,987.00 $ 11,837,505.64 \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\n140.87% 121.05% \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 BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY PUBLIC SCHOOLS EMPLOYEES RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"2\" \r\n \r\nYear Ended \r\n \r\nSchool District's proportion of the \r\nnet pension liability \r\n \r\nSchool District's proportionate share of the net pension liability \r\n \r\nState of Georgia's proprotionate share of the net \r\npension liaibility associated with the School District \r\n \r\n2016 2015 \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\n267,010.00 $ 239,626.00 $ \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 \r\npercentage of the total pension liability \r\n \r\n267,010.00 $ 688,106.87 \r\n \r\nN/A \r\n \r\n239,626.00 $ 688,182.25 \r\n \r\nN/A \r\n \r\n87.00% 88.29% \r\n \r\nThis schedule is intended to show information for 10 years. Additional years will be displayed as they become available. \r\n \r\n- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION REQUIRED SUPPLEMENTARY INFORMATION \r\nSCHEDULE OF CONTRIBUTIONS TEACHERS RETIREMENT SYSTEM OF GEORGIA \r\nFOR THE YEAR ENDED JUNE 30 \r\n \r\nSCHEDULE \"3\" \r\n \r\nYear Ended \r\n \r\nContractually required contribution \r\n \r\nContributions in relation to the contractually required \r\ncontribution \r\n \r\nContribution deficiency (excess) \r\n \r\n2016 \r\n \r\n$ \r\n \r\n1,767,095.82 $ \r\n \r\n1,767,095.82 $ \r\n \r\n- \r\n \r\n2015 \r\n \r\n$ \r\n \r\n1,579,743.81 $ \r\n \r\n1,579,743.81 $ \r\n \r\n- \r\n \r\n2014 \r\n \r\n$ \r\n \r\n1,423,695.76 $ \r\n \r\n1,423,695.76 $ \r\n \r\n- \r\n \r\n2013 \r\n \r\n$ \r\n \r\n1,380,909.79 $ \r\n \r\n1,380,909.79 $ \r\n \r\n- \r\n \r\n2012 \r\n \r\n$ \r\n \r\n1,221,429.07 $ \r\n \r\n1,221,429.07 $ \r\n \r\n- \r\n \r\n2011 \r\n \r\n$ \r\n \r\n1,231,297.28 $ \r\n \r\n1,231,297.28 $ \r\n \r\n- \r\n \r\n2010 \r\n \r\n$ \r\n \r\n1,269,220.96 $ \r\n \r\n1,269,220.96 $ \r\n \r\n- \r\n \r\nSchool District's covered-employee \r\npayroll \r\n \r\nContribution as a percentage of covered- \r\nemployee payroll \r\n \r\n$ 12,667,465.64 $ 12,299,400.07 $ 11,837,505.64 $ 12,348,962.55 $ 12,111,410.43 $ 12,199,012.56 $ 13,255,014.01 \r\n \r\n13.95% 12.84% 12.03% 11.18% 10.08% 10.09% \r\n9.58% \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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION \r\nFOR THE YEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"4\" \r\n \r\nTeachers Retirement System \r\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\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\n \r\nJune 30, 2013 Entry age Level percentage of payroll, closed 30 years Five-year smoothed market 3.00% 3.75  7.00%, including inflation 7.50%, net of pension plan investment \r\nexpense, including inflation \r\n \r\nPublic School Employees Retirement System \r\n \r\nChanges of assumptions: 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\n \r\nMethod and assumptions used in calculations of actuarially determined contributions: The actuarially determined contribution rates in the schedule of contributions are calculated as of June 30, three years prior to the end of the fiscal year in which contributions are reported. The following actuarial methods and assumptions were used to determine the contractually required contributions for year ended June 30, 2016 reported in that schedule: \r\n \r\nValuation date Actuarial cost method Amortization method Remaining amortization period Asset valuation method Inflation rate Salary increases Investment rate of return \r\nCost-of living adjustments \r\n \r\nJune 30, 2013 Entry age Level dollar, closed 25 years Five-year smoothed market 3.00% N/A 7.50%, net of pension plan investment \r\nexpense, including inflation 1.50% semi-annually \r\n \r\n- 34 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND \r\nSCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"5\" \r\n \r\nREVENUES \r\nProperty Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous \r\nTotal Revenues \r\nEXPENDITURES \r\nCurrent Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Community Service Operations Food Services Operation \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 \r\nAdjustments \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ \r\n \r\n3,667,884.00 $ \r\n \r\n3,667,884.00 $ \r\n \r\n3,687,759.38 $ \r\n \r\n19,875.38 \r\n \r\n36,000.00 \r\n \r\n36,000.00 \r\n \r\n39,029.77 \r\n \r\n3,029.77 \r\n \r\n14,741,038.30 \r\n \r\n14,950,560.03 \r\n \r\n15,507,161.84 \r\n \r\n556,601.81 \r\n \r\n2,857,045.00 \r\n \r\n3,187,733.00 \r\n \r\n3,381,443.04 \r\n \r\n193,710.04 \r\n \r\n369,200.00 \r\n \r\n369,200.00 \r\n \r\n429,646.24 \r\n \r\n60,446.24 \r\n \r\n3,200.00 \r\n \r\n3,200.00 \r\n \r\n5,678.32 \r\n \r\n2,478.32 \r\n \r\n276,590.00 \r\n \r\n299,590.00 \r\n \r\n903,430.96 \r\n \r\n603,840.96 \r\n \r\n21,950,957.30 \r\n \r\n22,514,167.03 \r\n \r\n23,954,149.55 \r\n \r\n1,439,982.52 \r\n \r\n14,110,064.39 \r\n809,614.83 254,313.51 371,819.43 456,730.40 1,400,508.50 172,023.93 1,480,283.68 1,253,744.37 \r\n31,074.44 291,669.67 \r\n1,454,695.00 \r\n22,086,542.15 \r\n(135,584.85) \r\n \r\n14,978,012.96 \r\n844,243.10 596,570.80 371,819.43 467,590.40 1,404,691.76 170,384.85 1,480,613.79 1,371,617.49 \r\n31,074.44 265,367.00 \r\n1,462,546.00 \r\n23,444,532.02 \r\n(930,364.99) \r\n \r\n14,562,022.69 \r\n894,123.04 428,638.58 368,016.17 454,196.47 1,517,241.67 146,885.27 1,667,333.48 1,316,368.34 \r\n26,205.08 184,981.07 \r\n46,613.47 1,849,525.40 \r\n23,462,150.73 \r\n491,998.82 \r\n \r\n415,990.27 \r\n(49,879.94) 167,932.22 \r\n3,803.26 13,393.93 (112,549.91) 23,499.58 (186,719.69) 55,249.15 \r\n4,869.36 80,385.93 (46,613.47) (386,979.40) \r\n(17,618.71) \r\n1,422,363.81 \r\n \r\n(50,000.00) (185,584.85) 2,642,933.29 \r\n(6,697.17) \r\n \r\n(50,000.00) (980,364.99) 2,642,933.29 \r\n(47,725.83) \r\n \r\n(32,100.00) 459,898.82 2,710,110.93 \r\n- \r\n \r\n17,900.00 1,440,263.81 \r\n67,177.64 47,725.83 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n2,450,651.27 $ \r\n \r\n1,614,842.47 $ \r\n \r\n3,170,009.75 $ 1,555,167.28 \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 $477,654.15 and actual expenditures of $477,300.62. \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- 35 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nSCHEDULE \"6\" \r\n \r\n. FUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Improving Teacher Quality State Grants Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Direct Rural Health Development Network Grant \r\nTotal Expenditures of Federal Awards \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\n366,199.35 1,362,201.49 \r\n1,728,400.84 \r\n \r\n84.027 84.173 \r\n \r\nH027A150073 H173A150081 \r\n \r\n381,772.46 23,397.00 \r\n405,169.46 \r\n \r\n84.048 84.367 84.358 84.371 84.010 84.287 \r\n \r\nV048A150010 S367A150001 S358B150010 S371C110049 S010A150010 S287C150010 \r\n \r\n24,918.62 86,337.38 47,242.55 245,553.97 482,686.03 297,280.57 \r\n1,184,019.12 \r\n1,589,188.58 \r\n \r\n93.912 \r\n \r\nD06RH27765-02-01 \r\n \r\n214,367.02 \r\n \r\n$ \r\n \r\n3,531,956.44 \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 Bleckley County Board of Education (the \"Board\") under programs of the federal government for the year ended June 30, 2016. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net assets of the Board. \r\nNote 2. Summary of Significant Accounting Policies \r\nExpenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments , or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards , wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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- 36 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2016 \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 Special Education Programs Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Amended Formula Adjustment Categorical Grants Pupil Transportation Regular Nursing Services Education Equalization Funding Grant Other State Programs Food Services Math and Science Supplements Preschool Handicapped Program Principal Staff and Professional Development Pupil Transportation - State Bonds Teachers Retirement Vocational Education \r\nHuman Services, Georgia Department of Family Advocate Program Family Connection \r\nOffice of the State Treasurer Public School Employees Retirement \r\nSee notes to the basic financial statements. \r\n \r\nSCHEDULE \"7\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n640,214.26 \r\n \r\n752,937.00 127,643.00 1,749,687.00 517,936.00 830,227.00 \r\n96,979.00 1,509,253.00 1,322,554.00 \r\n468,106.00 2,565,982.00 \r\n626,515.00 199,696.00 104,120.00 280,508.00 \r\n83,400.00 49,801.00 \r\n476,580.00 682,530.00 646,958.00 (679,776.00) \r\n369,923.00 45,000.00 \r\n1,586,943.00 \r\n40,616.00 3,634.77 \r\n57,192.00 1,372.00 \r\n77,220.00 41,337.02 63,740.88 \r\n58,075.91 46,000.00 \r\n64,257.00 \r\n$ 15,507,161.84 \r\n- 37 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nPROJECT \r\nThe issuance of general obligation bonds in the principal amount not to exceed $9,000,000.00 to pay the costs of, \r\n(a) acquiring, constructing, and equipping a new Bleckley County Middle School. \r\n(b) renovating, improving, constructing and equipping new and existing school buildings, athletic facilities and other educational facilities. \r\n(c) the acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, together with school buses, maintenance vehicles and equipment computers and related technology, textbooks, vocational, fine arts, physical education and athletic equipment and safety and security equipment, and; \r\n(d) the costs of issuance of the Bonds including capitalized interest. \r\n(e) a portion of the principal and interest on the above described general obligation bonds. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\n$ \r\n \r\n- $ \r\n \r\n- $ \r\n \r\n- $ 9,493,942.55 $ 9,493,942.55 $ \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n225,167.75 \r\n \r\n225,167.75 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n5,235.00 \r\n \r\n5,235.00 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n355,625.00 \r\n \r\n355,625.00 \r\n \r\n- \r\n \r\n7,000,000.00 \r\n \r\n11,165,869.05 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n$ 7,000,000.00 $ 11,165,869.05 $ \r\n \r\n- $ 10,079,970.30 $ 10,079,970.30 $ \r\n \r\n- \r\n \r\nSCHEDULE \"8\" \r\nESTIMATED COMPLETION \r\nDATE \r\nComplete Complete \r\nComplete Complete September \r\n2022 \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 Bleckley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ 1,520,195.50 \r\n \r\nCurrent Year \r\n \r\n267,025.00 \r\n \r\nTotal \r\n \r\n$ 1,787,220.50 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 39 - \r\n \r\n SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 17, 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 Bleckley 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 Bleckley 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 July 17, 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\nOur consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified certain deficiencies in internal control that we consider to be a material weakness and significant deficiencies. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a \r\n \r\n material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying Schedule of Findings and Questioned Costs as item FS 2016-002 to be a material weakness. \r\nA significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs as items FS 2016-001 and FS 2016-003 to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether the School District's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. \r\nSchool District's Response to Findings \r\nThe School District's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The School District's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the School District's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the School District's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\nGreg S. Griffin State Auditor \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 17, 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 Bleckley 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 Bleckley 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 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 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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 Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nControl Procedures at the Central Office Accounting Controls (OVERALL) Cash and Cash Equivalents Capital Assets Employee Compensation Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nDue to our limited size, we are unable to have the separation of duties that is recommended and/or required. As of fiscal year 2016, we have put in more review steps of employees to minimize risk, such as, bookkeepers reconciling each other's accounts and principals reviewing quarterly statements which are then sent to the Finance Director for review. \r\n \r\nFS 2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nFinding Status: \r\n \r\nUnresolved \r\n \r\nThe Finance Director now has more experience preparing financial statements. We attend all trainings given by the Georgia Department of Education and the Georgia Department of Audits and Accounts. The Superintendent and Finance Director are annually reviewing all parts of the financial statement preparation process. \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n BLECKLEY 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\nYes \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with 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\n- 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2016-001 Control Categories: \r\nInternal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls at the Central Office Accounting Controls (Overall) Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None FS 2015-001 \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide adequate internal controls at the central office. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nCondition: Accounting Controls (Overall) \r\n The School District does not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial applications and school food service point of sale system. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining the custody of assets. In addition, the School District does not have a formal policy for requesting, granting, modifying and removing user access to financial applications or the school food service point of sale system. \r\n \r\nExpenditures/Liabilities/Disbursements  Our review of sixty-five expenditures revealed the following deficiencies: o Two expenditures did not agree to the invoice or contract amount. o Twelve expenditures did not show evidence of proper approval prior to purchase. o One expenditure did not have evidence to support goods were received from the vendor. o One expenditure was charged to the incorrect function. o One expenditure was not charged to the correct period. \r\n \r\nGeneral Ledger  Our review of twenty-eight journal entries revealed the following deficiencies: o Five journal entries were not posted accurately. o Three journal entries did not have proper approval. o Two journal entries were not adequately documented. o One journal entry did not include documentation of a preparer. \r\n \r\nCause: In discussing this deficiency with the School District, they stated that these issues were a result of a lack of separation of duties and internal control procedures within the finance department. \r\n \r\n- 2 - \r\n \r\n BLECKLEY 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\nEffect or Potential Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. In addition, the lack of controls impacted its reporting of financial position and results of operations. \r\n \r\nRecommendation: The School District should review accounting procedures in place and design and implement procedures relative to the above control categories to strengthen the internal controls over the accounting functions. Management should ensure that proper separation of duties exists. In the case when management determines that separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. \r\n \r\nViews of Responsible Officials: We concur with this finding. Due to limited funding, employees will continue to share tasks. Management will make its best effort to segregate duties among existing employees. \r\n \r\nFS 2016-002 Control Category: Internal Control Impact: Compliance Impact: Repeat of Prior Year Finding: \r\n \r\nInternal Controls Over Financial Reporting Financial Reporting Material Weakness None FS 2015-002 \r\n \r\nDescription: The School District did not have adequate internal controls in place over the financial statement reporting process. The original financial statements, as presented for audit, contained material and significant errors and omissions. \r\n \r\nCriteria: The School District is required to maintain a system of controls over the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The School District's internal controls over GAAP financial reporting should include adequately trained personnel with the knowledge, skills and experience to prepare GAAP based financial statements and include all disclosures as required by the Governmental Accounting Standards Board (GASB). \r\n \r\nGASB Statement No. 34, Basic Financial Statements  Management's Discussion and Analysis- for State and Local Governments (Statement), requires governments to present government-wide and fund financial statements as well as a summary reconciliation of the (a) total governmental fund 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 II-2 Annual Financial Reporting of the Financial Management for Georgia Local Units of Administration provides that School Districts must prepare their financial statements in accordance with generally accepted accounting principles. \r\n \r\n- 3 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCondition: The following errors and omissions were noted in the School District's financial statements, note disclosures and supplementary information presented for audit: \r\n Net pension liability was not booked correctly on the government wide statements. A misclassification in the amount of $14,329,374.00 was noted between net pension liability and deferred inflows. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n Transfers were not booked correctly on the governmental fund statements. Misclassifications in the amounts of $1,117,072.57, $127,400.00 and $3,924.92 were noted between transfers in and transfers out in the capital projects fund, debt service fund and general fund, respectively. Adjustments to the financial statements were proposed by the auditors and accepted by the School District. \r\n Net position on the government wide statements was misclassified by $2,682,053.00 between Net Investment in Capital Assets, Restricted for Continuation of Federal Programs, Capital Projects and Unrestricted. Adjustments to the financial statements were proposed by the auditors and accepted by the School District. \r\n Fund balance on the governmental fund statements was misclassified by $1,348,955.52 between Nonspendable, Restricted and Unassigned. The School District did not record Restricted Fund Balance for any funds on the financial statements. Adjustments to the financial statements were proposed by the auditors and accepted by the School District. \r\n Special Purpose Local Option Sales Tax (SPLOST) revenue was not booked correctly on the government wide statements. A misclassification in the amount of $971,569.08 was noted between SPLOST revenues for debt service and SPLOST revenues for capital projects. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n Capital gifts and grants revenue was not booked correctly on the government wide statements. A misclassification in the amount of $277,924.34 was noted between capital gifts and grants revenue and miscellaneous revenue for E-rate funding. An adjustment to the financial statements was proposed by the auditors and accepted by the School District. \r\n Numerous errors were noted with the cash balances disclosed by the entity, including carrying amount, bank balance, FDIC insured balances, and collateral balances. Adjustments to the Notes to the Financial Statements were proposed by the auditors and accepted by the School District. \r\n The School District did not disclose non-monetary transactions, interfund transfers, operating leases, tax anticipation notes and related party transactions. Adjustments to the Notes to the Financial Statements were proposed by the auditors and accepted by the School District. \r\n Numerous errors were noted with the Schedule of Proportionate Share of the Net Pension Liability for TRS, Schedule of Proportionate Share of the Net Pension Liability for PSERS, Schedule of Contributions to TRS, Notes to the Required Supplementary Information, Schedule of State Revenue and Schedule of SPLOST Expenditures. Adjustments were proposed by the auditors and accepted by the School District. \r\n The Reconciliation of the Governmental Funds Balance Sheet and Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances contained significant errors. Adjustments were proposed by the auditors and accepted by the School District. \r\n Other audit adjustments and reclassifications were proposed and accepted by the client to properly present the School District's financial statements, note disclosures and supplemental information. \r\n- 4 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nCause: In discussing this deficiency with the School District, they stated that these issues were a result of the entity's failure to fully understand the financial reporting process. \r\nEffect or Potential Effect: Material 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. \r\nRecommendation: As a part of internal controls over the preparation of financial statements, including disclosures and schedules, the School District should 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. The School District should consider implementing the use of a review checklist to assist in the review process over the financial statements. \r\nViews of Responsible Officials: We concur with this finding. The Finance Director and Superintendent will implement procedures to have a thorough review of financial statements before submission. These changes will be effective for fiscal year 18 financial statements. \r\n \r\nFS 2016-003 Control Categories: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nInternal Control Procedures over School Activity Accounts Revenues/Receivables/Receipts Expenditures/Liabilities/Disbursements Funds Held for Others Significant Deficiency None \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. \r\n \r\nCondition: The following deficiencies were noted with the School District's school activity accounts: \r\n \r\nRevenues/Receivables/Receipts  The key accounting function of receipt preparation and record keeping were not adequately separated.  Our examination of twenty receipts revealed the following discrepancies: o Seven receipts could not be traced to a deposit slip. o Two receipts were misclassified as governmental activity. o Two receipts did not have evidence of proper approval. \r\n- 5 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2016 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nExpenditures/Liabilities/Disbursements  The key accounting functions of check preparation and record keeping were not adequately separated.  Our examination of twenty expenditures revealed the following discrepancies: o Five checks used to get cash for ticket sales and concessions at sporting events were made payable to \"Cash\". o Three expenditures did not have evidence of the appropriate approver. o Three expenditures did not have the original invoice. o Two expenditures did not agree to the invoice amount. o One expenditure did not have an approved purchase request. o Two expenditures did not have appropriate evidence of receipt. \r\nFunds Held for Others  Three school activity accounts were misclassified as Governmental Funds rather than Agency Funds.  Two agency accounts had deficit account balances. \r\nCause: In discussing this deficiency with the School District, they stated that the errors were made due to the schools not having a school activity account policy manual. In addition, the schools do not have adequate personnel in order to be able to separate the duties. \r\nEffect or Potential Effect: Failure to maintain adequate internal controls over school activity accounts increases the risk that misstatements could occur in the financial statements due to errors or fraud and not be detected in a timely manner. \r\nRecommendation: The School District should establish control procedures to ensure that the key accounting functions of receipt preparation, check preparation and record keeping are separated. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that reduce vulnerabilities in ineffectively separated functions and the risk of errors and fraud. In addition, the School District should implement procedures to ensure that receipts and disbursements are adequately documented, recorded, and approved. Management should discontinue writing checks made to \"Cash\" due to the risk of check loss or fraud. The School District should also establish a monitoring process to provide reasonable assurance that transactions are processed according to established procedures. \r\nViews of Responsible Officials: We concur with this finding. School activity procedure manual will be updated effective at the beginning of fiscal year 19 school year. All school bookkeepers will be informed of changes, and all employees will make best effort to segregate duties. \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 6 - \r\n \r\n SECTION V MANAGEMENT'S CORRECTIVE ACTION \r\n \r\n   "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2015-belec-p-btext","title":"Bleckley County Board of Education, Cochran, Georgia, annual financial report for the fiscal year ended June 30, 2015 (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. 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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-bb6-b2015-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2015-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2015 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nI NOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY TEACHERS' RETIREMENT SYSTEM OF GEORGIA \r\n2 SCHEDULE OF CONTRIBUTIONS  TEACHERS' RETIREMENT SYSTEM OF GEORGIA 3 NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 4 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES \r\nIN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nPage \r\n1 2 \r\n4 5 6 7 8 9 10 \r\n31 32 34 35 \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n5 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6 SCHEDULE OF STATE REVENUE 7 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 8 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n36 37 38 39 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 13, 2017 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Bleckley 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 of the Bleckley County Board of Education, as of and for the year ended June 30, 2015, and the related notes to the financial statements, (Exhibits A through I), 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 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 \r\n \r\n2015ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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\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 Bleckley County Board of Education, as of June 30, 2015, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. \r\nEmphasis of Matter \r\nAs described in Note 2 to the financial statements, in 2015, the Bleckley County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions  an amendment of GASB Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB Statement No. 68. The School District restated beginning Net Position for the cumulative effect of these accounting changes. Our opinions are not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information. \r\nAccounting principles generally accepted in the United States of America require that the Schedule of Proportionate Share of the Net Pension Liability, Schedule of Contributions to Retirement Systems, Notes to the Required Supplementary Information and the Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual as presented on pages 31 through 35 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during \r\n2015ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOther Information \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Bleckley County Board of Education's basic financial statements. The accompanying supplementary information, consisting of Schedules 5 through 8, is presented for the purposes of additional analysis and is not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. \r\nThe accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. \r\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated February 13, 2017, on our consideration of the Bleckley County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Bleckley 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:es 2015ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n          BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit \r\nThe Bleckley County School Building Authority was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the Bleckley County Board of Education. The Authority consists of five members appointed by the governing authority of the Bleckley County Board of Education. \r\nThe Bleckley County School Building Authority is a component unit of the Bleckley County Board of Education and as such the Authority's financial activity has been blended with the Bleckley County Board of Education's basic financial statements. \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 Bleckley County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\n \r\n- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\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 types: \r\n Private Purpose Trust fund reports a trust arrangement under which principal and income benefit a scholarship for female students who attend Bleckley County High School. \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nRESTATEMENT OF PRIOR YEAR NET POSITION \r\nFor fiscal year 2015, the School District made several prior period adjustments due to the adoption of GASB Statement No. 68 and GASB Statement No. 71, as described in \"New Accounting Pronouncements\" below, which require the restatement of the June 30, 2014, Net Position in Governmental Activities. The result is a decrease in Net Position at July 1, 2014 of $17,789,800.00. \r\nThis change is in accordance with generally accepted accounting principles. \r\n \r\nNet Position, July 1, 2014, as previously reported Prior Period adjustment - Implementation of GASB 68: Net Pension Liability (measurement date) TRS Deferred Outflows - School District's contribution made during fiscal year 2014 TRS \r\nNet Position, July 1, 2014, as restated \r\n \r\n$ 30,830,929.71 -19,210,756.00 \r\n1,420,956.00 $ 13,041,129.71 \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. The adoption of this statement has a significant impact on the School District's financial statements. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \r\nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement provides specific accounting and financial reporting guidance for combinations in the governmental environment. This statement also requires that disclosures be made by governments about combination agreements in which they engage and for disposals of government operations. The School District did not have any activities of this type during the fiscal year and the adoption of this statement does not have a significant impact on the School District's financial statements. \r\nIn fiscal year 2015, the School District adopted Governmental Accounting Standards Board (GASB) Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date  an amendment of GASB No. 68. The objective of this statement is to improve accounting and financial reporting by addressing an issue in Statement No. 68, Accounting and Financial Reporting for Pensions, concerning transition provisions related to certain pension contributions made to defined benefit pension plans prior to implementation of statement. This statement amends paragraph 137 of Statement No. 68 which limited recognition of pension-related deferred inflows of resources at the transition to circumstances in which it is practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions. The adoption of this statement has a significant impact on the School District's financial statements. As noted above, the School District restated beginning Net Position for the cumulative effect of this accounting change. \r\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits \r\nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The local government investment pool (Georgia Fund 1) administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment practices that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPROPERTY TAXES \r\nThe Bleckley County Board of Commissioners adopted the property tax levy for the 2014 tax digest year (calendar year) on October 4, 2014 (levy date) based on property values as of January 1, 2014. Taxes were due on December 20, 2014 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2014 tax digest are reported as revenue in the governmental funds for fiscal year 2015. The Bleckley County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2015, for maintenance and operations amounted to $3,419,835.91. \r\nThe tax millage rate levied for the 2014 tax year (calendar year) for the Bleckley 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\n14.349 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $239,012.03 during fiscal year ended June 30, 2015. \r\nSALES TAXES \r\nEducation Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,066,054.29 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nPREPAID ITEMS \r\nPayments made to vendors for services that will benefit periods subsequent to June 30, 2015, are recorded as prepaid items. \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- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets \r\n \r\nAll \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n5,000.00 \r\n \r\n$ \r\n \r\n200,000.00 \r\n \r\nN/A 20 to 80 years 10 to 80 years \r\n5 to 50 years 5 to 10 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. \r\nDEFERRED OUTFLOWS/INFLOWS OF RESOURCES \r\nIn addition to assets, the statement of net position and/or the balance sheet will report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of resources that applies to a future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. Under the full accrual method of accounting, the School District has reported deferred outflows of resources related to a defined benefit pension plan, as discussed in Note 16 - Retirement Plans. \r\nIn addition to liabilities, the statement of net position and/or the balance sheet will report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of resources that applies to a future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. Under the full accrual method of accounting, the School District has reported deferred inflows of resources related to a defined benefit pension plan, as discussed in Note 16 - Retirement Plans. This item is reported only in the District-wide Statement of Net Position. Additionally, 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 reporting only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are recognized as an outflow of resources in the fiscal year in which the bonds are issued. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPENSIONS \r\nFor purposes of measuring the Net Pension Liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Teachers' Retirement System of Georgia (TRS) and the Public School Employees Retirement System (PSERS) and additions to/deductions from TRS/PSERS's fiduciary net position have been determined on the same basis as they are reported by TRS/PSERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. See Note 16 - Retirement Plans. \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 is the net amount of the assets, deferred outflows of resources, liabilities and deferred inflows of resources that are not included in the determination of Net Investment of Capital Assets and Restricted Net Position. Included in the deficit reported is the School District's Net Pension Liability of $14,329,374.00, which is required for financial reporting. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Balances of the Governmental Funds at June 30, 2015, are as follows: \r\n \r\nNonspendable Inventories Prepaid Assets \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned Subsequent Period Expenditures \r\nUnassigned \r\n \r\n$ 79,247.06 62,144.62 $ 141,391.68 \r\n \r\n$ 335,826.95 132,325.61 954,625.00 \r\n \r\n1,422,777.56 \r\n \r\n210,927.00 2,021,965.30 \r\n \r\nFund Balance, June 30, 2015 \r\n \r\n$ 3,797,061.54 \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 Fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except for various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\nThe budgetary process begins with the School District's administration presenting an initial budget for the Board's review. The administration makes revisions as necessary based on the Board's guidelines and a tentative budget is approved. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality, as well as the School District's website. At the next regularly scheduled meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. The approved budget is then submitted, in accordance with provisions of Official Code of Georgia Annotated Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal yearend. \r\nSee Schedule 4  General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances  Budget to Actual for a detail of any over/under expenditures during the fiscal year under review. \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \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\nAt June 30, 2015, $156,828.48 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\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. The School District does not have a deposit policy for custodial credit risk. At June 30, 2015, the School District had deposits with a carrying amount of $4,050,079.58, which includes $15,624.42 in Certificates of Deposit that are reported as Investments, and a bank balance of $4,957,475.35. The bank balances insured by Federal depository insurance were $784,352.15 and the bank balances collateralized with securities held by the pledging institution or by the pledging institution's trust department or agent in the School District's name were $4,016,294.72. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2015, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n156,828.48 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n156,828.48 \r\n \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2  Inventories. \r\n \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nBalances July 1, 2014 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2015 \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\nLess Accumulated Depreciation for: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ \r\n \r\n263,770.00 $ \r\n \r\n41,638,113.38 3,325,268.58 1,645,514.39 \r\n \r\n0.00 $ \r\n \r\n2,753.03 $ \r\n \r\n261,016.97 \r\n \r\n43,528.25 114,156.00 \r\n \r\n23,930.96 16,350.00 \r\n \r\n41,681,641.63 3,415,493.62 1,629,164.39 \r\n \r\n8,196,469.94 2,358,700.11 \r\n497,728.75 \r\n \r\n832,861.90 199,601.25 \r\n49,083.74 \r\n \r\n23,930.96 408.75 \r\n \r\n9,029,331.84 2,534,370.40 \r\n546,403.74 \r\n \r\nTotal Capital Assets, Being Depreciated, Net \r\n \r\n35,555,997.55 \r\n \r\n-923,862.64 \r\n \r\n15,941.25 \r\n \r\n34,616,193.66 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 35,819,767.55 $ \r\n \r\n-923,862.64 $ \r\n \r\n18,694.28 $ 34,877,210.63 \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services General Administration Maintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n8,571.60 1,575.80 9,079.88 114,995.44 \r\n \r\n$ 903,260.00 \r\n134,222.72 44,064.17 \r\n$ 1,081,546.89 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \r\n \r\nInterfund transfers for the year ended June 30, 2015, consisted of the following: \r\n \r\nTransfers to \r\n \r\nTransfers From District-wide \r\nCapital Projects \r\nFund \r\n \r\nDebt Service Fund \r\n \r\n$ 1,084,805.63 \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the payment of bonds. \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 has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all potential losses of property due to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and a liability being reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2014 $ 2015 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n13,547.00 $ 0.00 $ \r\n \r\n13,547.00 $ 0.00 $ \r\n \r\n0.00 0.00 \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District has purchased a surety bond to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\nNOTE 9: OPERATING LEASES \r\nBleckley County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2015, for governmental funds amounted to 19,264.31. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ended \r\n \r\nGovernmental Funds \r\n \r\n2016 2017 2018 2019 2020 \r\n \r\n$ \r\n \r\n17,737.80 \r\n \r\n12,275.92 \r\n \r\n4,533.12 \r\n \r\n1,514.40 \r\n \r\n504.80 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n36,566.04 \r\n \r\nNOTE 10: SHORT-TERM DEBT \r\nThe School District issued a tax anticipation note in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. The note was repaid on November 26, 2014. \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIssued \r\n \r\nRedeemed \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Notes $ \r\n \r\n0.00 $ \r\n \r\n376,267.00 $ \r\n \r\n376,267.00 $ \r\n \r\n0.00 \r\n \r\nNOTE 11: LONG-TERM LIABILITIES GENERAL 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 2009 \r\n \r\n2.00 - 5.00% $ \r\n \r\n7,335,000.00 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe changes in Long-Term Liabilities during the fiscal year ended June 30, 2015, were as follows: \r\n \r\nBalance July 1, 2014 \r\n \r\nAdditions \r\n \r\nGovernmental Activities \r\n \r\nBalance \r\n \r\nDeductions \r\n \r\nJune 30, 2015 \r\n \r\nDue Within One Year \r\n \r\nG.O. Bonds Bond Premiums Amortized \r\n \r\n$ 8,130,000.00 $ 315,590.17 \r\n \r\n0.00 $ \r\n \r\n795,000.00 $ 7,335,000.00 $ \r\n \r\n38,253.35 \r\n \r\n277,3360.8020 \r\n \r\n815,000.00 38,253.35 \r\n \r\n$ 8,445,590.17 $ \r\n \r\n0.00 $ 833,253.35 $ 7,612,336.82 $ 853,253.35 \r\n \r\nSCHEDULED MATURITIES OF LONG-TERM LIABILITIES \r\nAt June 30, 2015, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30: \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nUnamortized Bond Premium \r\n \r\n2016 2017 2018 2019 2020 2021-2023 \r\n \r\n$ \r\n \r\n815,000.00 $ \r\n \r\n840,000.00 \r\n \r\n865,000.00 \r\n \r\n895,000.00 \r\n \r\n920,000.00 \r\n \r\n3,000,000.00 \r\n \r\n267,025.00 $ 242,200.00 215,543.75 186,943.75 154,000.00 221,800.00 \r\n \r\n38,253.35 38,253.35 38,253.35 38,253.35 38,253.35 86,070.07 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 7,335,000.00 $ 1,287,512.50 $ \r\n \r\n277,336.82 \r\n \r\nNOTE 12: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $107,115.84 for retirement contributions paid on the School District's behalf by the following State Agencies. \r\nGeorgia Department of Education Paid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $36,430.84 \r\nOffice of the State Treasurer Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $70,685.00 \r\nFunds paid on behalf of the School District are reported in governmental funds. See Note 16 Retirement Plans for the State support related to the Net Pension Liability. \r\n \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \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 EVENT \r\nTAX ANTICIPATION NOTE \r\nOn November 18, 2015, the Bleckley County Board of Education issued a $500,000.00 temporary loan in advance of property tax collections. Proceeds from this short-term loan were used to provide cash for operations until property tax collections were received by the School District. The maturity date of the loan was December 31, 2015. The note was repaid on December 1, 2015. \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 State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n \r\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nParticipating employers are statutorily required to contribute in accordance with the employer contribution rates established by the Board. The contribution rates are established to fund all benefits due under the health insurance plans for both active and retired employees based on projected \"payas-you-go\" financing requirements. Contributions are not based on the actuarially calculated annual required contribution (ARC) which represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. \r\n \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2015: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nJuly 1, 2014  June 30, 2015 \r\n \r\n$945.00 per member per month \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 1, 2014  June 30, 2015 \r\n \r\n$596.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2015 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n2,108,601.40 \r\n \r\n$ \r\n \r\n2,120,379.00 \r\n \r\n$ \r\n \r\n2,041,283.38 \r\n \r\nNOTE 16: RETIREMENT PLANS \r\nBleckley County Board of Education 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 47-3-60 of the Official Code of Georgia Annotated (O.C.G.A.) and certain other support personnel as defined by 47-3-63 are provided pension through the Teachers' Retirement System of Georgia (TRS). TRS, a cost-sharing multiple-employer defined benefit pension plan, is administered by the TRS Board of Trustees (TRS Board). Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. The Teachers' Retirement System of Georgia issues a publicly available separate financial audit report that can be obtained at www.trsga.com/publications. \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nBenefits Provided: TRS provides service retirement, disability retirement, and death benefits. Normal retirement benefits are determined as 2% of the average of the employee's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. An employee is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. Ten years of service is required for disability and death benefits eligibility. Disability benefits are based on the employee's creditable service and compensation up to the time of disability. Death benefits equal the amount that would be payable to the employee's beneficiary had the employee retired on the date of death. Death benefits are based on the employee's creditable service and compensation up to the date of death. \r\n \r\nContributions: Per Title 47 of the O.C.G.A., contribution requirements of active employees and participating employers, as actuarially determined, are established and may be amended by the TRS Board. Pursuant to O.C.G.A. 47-3-63, the employer contributions for certain full-time public school support personnel are funded on behalf of the employer by the State of Georgia. Contributions are expected to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. Employees were required to contribute 6% of their annual pay during fiscal year 2015. The school district's contractually required contribution rate for the year ended June 30, 2015 was 13.15% of annual school district payroll. \r\n \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2015 2014 2013 \r\n \r\n100% 100% 100% \r\n \r\n$ \r\n \r\n1,579,743.81 \r\n \r\n$ \r\n \r\n1,423,695.76 \r\n \r\n$ \r\n \r\n1,380,909.79 \r\n \r\nPUBLIC SCHOOL EMPLOYEES RETIREMENT SYSTEM (PSERS) \r\nPlan description: PSERS is a cost-sharing multiple-employer defined benefit pension plan established by the Georgia General Assembly in 1969 for the purpose of providing retirement allowances for public school employees who are not eligible for membership in the Teachers' Retirement System of Georgia. The ERS Board of Trustees, plus two additional trustees, administers PSERS. Title 47 of the O.C.G.A. assigns the authority to establish and amend the benefit provisions to the State Legislature. PSERS issues a publicly available financial report that can be obtained at www.ers.ga.gov/formspubs/formspubs. \r\n \r\nBenefits provided: A member may retire and elect to receive normal monthly retirement benefits after completion of ten years of creditable service and attainment of age 65. A member may choose to receive reduced benefits after age 60 and upon completion of ten years of service. \r\n \r\nUpon retirement, the member will receive a monthly benefit of $14.75, multiplied by the number of years of creditable service. Death and disability benefits are also available through PSERS. Additionally, PSERS may make periodic cost-of-living adjustments to the monthly benefits. Upon termination of employment, member contributions with accumulated interest are refundable upon request by the member. However, if an otherwise vested member terminates and withdraws his/her member contribution, the member forfeits all rights to retirement benefits. \r\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\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nIndividuals who became members prior to July 1, 2012 contribute $4 per month for nine months each fiscal year. Individuals who became members on or after July 1, 2012 contribute $10 per month for nine months each fiscal year. The State of Georgia, although not the employer of PSERS members, is required by statute to make employer contributions actuarially determined and approved and certified by the PSERS Board of Trustees. \r\n \r\nPension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension \r\n \r\nAt June 30, 2015, the School District reported a liability of $14,329,374 for its proportionate share of the Net Pension Liability for TRS. \r\n \r\nThe TRS Net Pension Liability reflected a reduction for support provided to the School District by the State of Georgia for certain public school support personnel. The amount recognized by the School District as its proportionate share of the Net Pension Liability, the related State of Georgia support, and the total portion of the Net Pension Liability that was associated with the School District were as follows: \r\n \r\nSchool District's proportionate share of the TRS Net Pension Liability \r\n \r\n$ 14,329,374.00 \r\n \r\nState of Georgia's proportionate share of the TRS Net Pension Liability associated with the School District \r\n \r\n329,613.00 \r\n \r\nTotal \r\n \r\n$ 14,658,987.00 \r\n \r\nThe Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The School District's proportion of the Net Pension Liability was based on contributions to TRS during the fiscal year ended June 30, 2014. \r\n \r\nAt June 30, 2015, the School District's TRS proportion was 0.113422%, which was an increase of 0.003173% from its proportion measured as of June 30, 2013. \r\n \r\nAt June 30, 2015, the School District did not have a PSERS liability for a proportionate share of the Net Pension Liability because of a Special Funding Situation with the State of Georgia, which is responsible for the Net Pension Liability of the plan. The amount of the State's proportionate share of the Net Pension Liability associated with the School District is $239,626.00. \r\nThe PSERS Net Pension Liability was measured as of June 30, 2014. The total pension liability used to calculate the Net Pension Liability was based on an actuarial valuation as of June 30, 2013. An expected total pension liability as of June 30, 2014 was determined using standard roll-forward techniques. The State's proportion of the Net Pension Liability associated with the School District was based on actuarially determined contributions paid by the State during the fiscal year ended June 30, 2014. \r\nFor the year ended June 30, 2015, the School District recognized pension expense of $1,119,254.00 for TRS, and $20,810.00 for PSERS and related revenue of $34,661.00 for TRS and $20,810.00 for PSERS. The revenue is support provided by the State of Georgia. For TRS, the State of Georgia support is provided only for certain support personnel. \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAt June 30, 2015, the School District reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources: \r\n \r\nTRS \r\n \r\nDeferred Outflows of \r\n \r\nDeferred Inflows of \r\n \r\nResources \r\n \r\nResources \r\n \r\nNet difference between projected and actual earnings on pension plan investments \r\nChanges in proportion and differences between School District contributions and proportionate share of contributions \r\n \r\n$ \r\n \r\n4,995,523.00 \r\n \r\n$ \r\n \r\n450,504.00 \r\n \r\nSchool District contributions subsequent to the measurement date \r\n \r\n1,579,743.92 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n2,030,247.92 $ \r\n \r\n4,995,523.00 \r\n \r\nBleckley County Board of Education contributions subsequent to the measurement date of June 30, 2014 for TRS are reported as deferred outflows of resources and will be recognized as a reduction of the Net Pension Liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: \r\n \r\nYear Ended June 30: \r\n \r\nTRS \r\n \r\n2016 2017 2018 2019 2020 \r\n \r\n$ -1,146,493.00 \r\n \r\n$ -1,146,493.00 \r\n \r\n$ -1,146,493.00 \r\n \r\n$ -1,146,494.00 \r\n \r\n$ \r\n \r\n40,954.00 \r\n \r\nActuarial assumptions: The total pension liability as of June 30, 2014 was determined by an actuarial valuation as of June 30, 2013, using the following actuarial assumptions, applied to all periods included in the measurement: \r\n \r\nTeachers' Retirement System: Inflation 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, 2013 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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nPublic School Employees Retirement System: \r\n \r\nInflation \r\n \r\n3.00% \r\n \r\nSalary increases \r\n \r\nN/A \r\n \r\nInvestment rate of return \r\n \r\n7.50%, net of pension plan investment expense including inflation \r\n \r\nMortality rates were based on the RP-2000 Combined Mortality Table set forward one year for males for the period after service retirement, for dependent beneficiaries, and for deaths in active service, and the RP-2000 Disabled Mortality Table set back two years for males and set forward one year for females for the period after disability retirement. \r\n \r\nThe actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period July 1, 2004  June 30, 2009. \r\n \r\nThe long-term expected rate of return on TRS and PSERS pension plan investments was determined using a log-normal distribution analysis in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target asset allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: \r\n \r\nAsset class \r\nFixed income Domestic large stocks Domestic mid stocks Domestic small stocks International developed market stocks International emerging market stocks \r\nTotal \r\n* Rates shown are net of the 3.00% assumed rate of inflation \r\n \r\nTarget allocation \r\n30.00% 39.70% \r\n3.70% 1.60% 18.90% 6.10% \r\n100.00% \r\n \r\nLong-term expected real rate of return* \r\n3.00% 6.50% 10.00% 13.00% 6.50% 11.00% \r\n \r\nDiscount rate: The discount rate used to measure the total TRS and PSERS pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will be made at the current contribution rate and that employer and nonemployer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on those assumptions, the TRS and PSERS pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2015 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSensitivity of the Bleckley County Board of Education's proportionate share of the Net Pension Liability to changes in the discount rate: The following presents the School District's proportionate share of the 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$ 26,407,113.00 $ \r\n \r\n14,329,374.00 $ 4,383,606.00 \r\n \r\nPension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued TRS and PSERS financial report which is publically available at www.trsga.com/publications and www.ers.ga.gov/formspubs/formspubs. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \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\nFebruary 13, 2017 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Bleckley 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 Bleckley County Board of Education as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise Bleckley County Board of Education's basic financial statements, and have issued our report thereon dated February 13, 2017. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Bleckley 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 Bleckley County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Bleckley County Board of Education's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n2015YB-30 \r\n \r\n (This page left intentionally blank) \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs as items FS 2015-001 and FS 2015-002, that we consider to be significant deficiencies. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 a certain matter that we have reported to management of Bleckley County Board of Education in a separate letter dated February 13, 2017. \r\nBleckley County Board of Education's Response to Findings \r\nBleckley County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Bleckley County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Bleckley County Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Bleckley County Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:es 2015YB-30 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nFebruary 13, 2017 \r\n \r\nHonorable Nathan Deal, Governor Members of the General Assembly Members of the State Board of Education \r\nand Superintendent and Members of the Bleckley 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 Bleckley County Board of Education's compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. Bleckley 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 Bleckley 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 Bleckley 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 Bleckley County Board of Education's compliance. \r\n2015SA-10 \r\n \r\n (This page left intentionally blank) \r\n \r\n Opinion on Each Major Federal Program \r\nIn our opinion, the Bleckley County Board of Education complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. \r\nReport on Internal Control over Compliance \r\nManagement of Bleckley 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 Bleckley 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 Bleckley 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:es 2015SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2015 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-6121-13-01 Previously Reported Corrective Action Implemented \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\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 deficiencies identified? \r\n \r\nUnmodified \r\nNo Yes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010 \r\n \r\nChild Nutrition Cluster Title I, Grants to Local Educational Agencies \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS 2015-001 Control Category: \r\nInternal Control Impact: Compliance Impact: \r\n \r\nControl Procedure at the Central Office Accounting Controls (OVERALL) Cash and Cash Equivalents Capital Assets Employee Compensation Expenditures/Liabilities/Disbursements General Ledger Significant Deficiency None \r\n \r\nDescription: The accounting procedures of the School District were insufficient to provide for adequate internal controls at the Central Office. \r\n \r\nCriteria: The School District's management is responsible for designing and maintaining internal controls that provide reasonable assurance that transactions are processed according to established procedures. \r\n \r\nCondition: The following deficiencies were noted during our audit procedures: \r\n \r\nAccounting Controls (OVERALL)  The School District does not have adequate logical access controls in place to ensure only appropriate users have access to their significant financial applications and the student information system. For the financial application, we noted several users with access rights that exceeded their need to complete their assigned job functions and two terminated users that still had full access rights. Further, the access granted did not adequately separate the functions of initiating, authorizing, and recording transactions, reconciliations, and maintaining the custody of assets. In addition, the School District does not have a formal policy for managing user access to financial applications or the student information system. \r\n \r\nCash and Cash Equivalents  Employees that had custody of cash also performed bank reconciliations. \r\n \r\nCapital Assets  The School District capitalized repairs and refurbishments made to five buses totaling $71,999.50, that should have been expensed. An adjustment was proposed and accepted to remove these assets from the financial statements.  Eight assets were depreciated in excess of their cost, resulting in a negative book values that totaled $15,123.11, an overstatement of depreciation expense, and an understatement of capital assets.  Depreciation was calculated incorrectly for an additional twenty-six assets which resulted in current year depreciation expense being overstated and capital assets being understated by $2,138.05. \r\n \r\nEmployee Compensation  Personnel and payroll functions were not adequately separated. The same individual that entered employee information into the personnel system also calculated employee compensation, processed payroll transactions, and posted information to the general ledger. \r\n \r\n- 2 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nExpenditures/Liabilities/Disbursements  A review of sixty-six disbursements revealed that six were not adequately documented with pre-approved purchase orders and/or receiving signatures. \r\nGeneral Ledger  A review of sixteen journal entries revealed that two were not adequately documented, three did not indicate the preparer, and one year-end journal entry lacked an adequate description. \r\nCause: In discussing this deficiency with management, they stated that these issues were a result of a lack of separation of duties and internal control procedures within the finance department. The School District stated that the cause was also a result of oversights and a lack of training. \r\nEffect or Potential Effect: Without satisfactory accounting controls and procedures in place, the School District could place itself in a position where potential misappropriation of assets could occur. \r\nRecommendation: Application access controls in the accounting information systems should complement the system of internal control by limiting an employee's access to only the accounting functions necessary for the performance of the employee's duties. Management should ensure that proper separation of duties exists. In the case when management determines separation of duties is not cost beneficial, management should implement compensating controls that assist in assuring that transactions are properly processed and reported. Management should also establish a formal policy for managing user access to financial applications and the student information system. Bank reconciliations should be performed by someone independent of other cash functions. The School District should review accounting procedures in place and design and implement procedures relative to capital assets, employee compensation, disbursements and journal entries to strengthen the internal controls. \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. However, due to limited funding, employees will continue to share tasks. Management will make its best effort to segregate duties among existing employees. All other noted items, such as capital assets, have been corrected as of FY16. \r\nContact Person: Aly Rozier Title: System Bookkeeper Telephone: 478-934-2821 EXT. 1002 Fax: 478-934-9595 E-mail: arozier@bleckley.k12.ga.us \r\n- 3 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nFS-2015-002 Control Category: Internal Control Impact: Compliance Impact: \r\n \r\nControls over Financial Reporting Financial Reporting Significant Deficiency None \r\n \r\nDescription: The School District did not have adequate internal controls over the financial statement reporting process. \r\n \r\nCriteria: Management 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 Statement  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\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 and supplementary information presented for audit: \r\n \r\n Net Investment in Capital Assets was understated by $1,286,760.19, Net Position Restricted for Continuation of Federal Programs was understated by $51,732.44, Net Position Restricted for Capital Projects was understated by $21,322.06, Net Position Restricted for Debt Service was overstated by $25.00, and Net Position Unrestricted was overstated by $1,359,789.69. Corrections were proposed by the auditor and accepted by the School District to properly classify net position on the Government-wide financial statements. \r\n General Fund Unassigned Fund Balance was overstated and Nonspendable Fund Balance was understated by $62,144.62. Corrections were proposed by the auditor and accepted by the School District to properly classify fund balance. \r\n Miscellaneous revenue and expenses were each understated by $69,226.49 on the Government-wide financial statements. Corrections were proposed by the auditor and accepted by the School District to correct these misstatements. \r\n Long-Term Liabilities on the Statement of Net Position were understated by $18,049.11. A correction was proposed by the auditor and accepted by the School District to properly report Long-Term Liabilities. \r\n Note disclosures for Property Taxes, Deposits, On-Behalf Payments, and Net Position all reflected significant errors. Corrections were proposed by the auditor and accepted by the School District to correct these errors. \r\n- 4 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2015 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n Expenditures for the Child Nutrition Cluster (CNC) on the Schedule of Expenditures of Federal Awards were understated by $1,579,096.70. A correction was proposed by the auditor and accepted by the School District to properly report CNC expenditures. \r\n Numerous other audit adjustments were proposed and accepted by the School District to properly present the School District's financial statements. \r\nCause: In discussing these issues with management, they indicated that a lack of proper procedures led to oversights on the part of finance personnel. \r\nEffect or Potential Effect: Numerous significant misstatements and misclassifications were included in the financial statements presented for audit. \r\nRecommendation: The School District should strengthen procedures over the financial statement reporting process to ensure that the financial statements presented for audit, including note disclosures and supplementary schedules are complete and accurate. These controls should include a monitoring process to evaluate the accuracy of the financial statements. These procedures should also be performed by properly trained personnel possessing a thorough understanding of the applicable GAAP statements, GASB pronouncements and the School District's operations. \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The System Bookkeeper will implement procedures to review all parts of financial statements and note disclosures with the Superintendent. These changes will be effective for FY17 financial statements. \r\nContact Person: Aly Rozier Title: System Bookkeeper Telephone: 478-934-2821 EXT. 1002 Fax: 478-934-9595 E-mail: arozier@bleckley.k12.ga.us \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 5 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2014-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2016-03-14"],"dcterms_description":["Annual financial report for the Bleckley 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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, Georgia, annual financial report for the fiscal year ended June 30, 2014 (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-bb6-b2014-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2014-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":null,"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI 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 3 4 5 6 7 8 9 \r\n31 32 33 35 37 \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\nSECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n (This page left intentionally blank) \r\n \r\n SECTION I FINANCIAL \r\n \r\n (This page left intentionally blank) \r\n \r\n Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nMarch 14, 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 Bleckley 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 Bleckley 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 I), 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 \r\n2014ARL-11 \r\n \r\n (This page left intentionally blank) \r\n \r\n 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\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 Bleckley 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 Bleckley County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The School District restated beginning Net Position for the cumulative effect of this accounting change. Our opinion is not modified with respect to this matter. \r\nOther Matters \r\nRequired Supplementary Information \r\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 31, 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 Bleckley 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\nOther Reporting Required by Government Auditing Standards \r\nIn accordance with Government Auditing Standards, we have also issued our report dated March 14, 2016, on our consideration of the Bleckley 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 Bleckley 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:kt 2014ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSTATEMENT OF NET POSITION JUNE 30, 2014 \r\n \r\nEXHIBIT \"A\" \r\n \r\nASSETS \r\nCash and cash equivalents Investments Receivables: \r\nTaxes Intergovernmental: \r\nState Federal Local Interest Other Inventory Prepaid items Capital assets (nondepreciable) Capital assets (depreciable, net of accumulated depreciation) Total assets \r\nLIABILITIES \r\nAccounts payable Salaries and benefits payable Accrued interest payable Bonds payable due within one year Bonds payable due in more than one year, net of unamortized premium \r\nTotal liabilities \r\nNET POSITION \r\nNet investment in capital assets Restricted for: \r\nContinuation of federal programs Capital projects Debt service Unrestricted \r\nTotal net position \r\nThe accompanying notes are an integral part of these financial statements. \r\n \r\nGovernmental Activities \r\n \r\n$ \r\n \r\n3,310,358 \r\n \r\n81,277 \r\n \r\n384,399 \r\n \r\n1,629,717 372,861 8,266 39 54,548 66,031 58,970 263,770 \r\n35,555,996 $ 41,786,232 \r\n \r\n$ \r\n \r\n160,768 \r\n \r\n2,274,165 \r\n \r\n74,781 \r\n \r\n833,253 \r\n \r\n7,612,337 \r\n \r\n$ 10,955,304 \r\n \r\n$ 27,374,176 \r\n359,257 207,440 869,782 2,020,273 $ 30,830,928 \r\n \r\n- 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSTATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nEXHIBIT \"B\" \r\n \r\nFunctions/Programs \r\n \r\nExpenses \r\n \r\nGovernmental activities: \r\n \r\nInstruction \r\n \r\n$ 14,372,083 \r\n \r\nSupport services: \r\n \r\nPupil services \r\n \r\n904,016 \r\n \r\nImprovement of instructional \r\n \r\nservices \r\n \r\n356,884 \r\n \r\nEducational media services \r\n \r\n355,284 \r\n \r\nGeneral administration \r\n \r\n429,012 \r\n \r\nSchool administration \r\n \r\n1,277,394 \r\n \r\nBusiness administration \r\n \r\n102,779 \r\n \r\nMaintenance and operation \r\n \r\nof plant \r\n \r\n1,519,608 \r\n \r\nStudent transportation services \r\n \r\n1,325,554 \r\n \r\nCentral support services \r\n \r\n22,378 \r\n \r\nOther support services \r\n \r\n75,190 \r\n \r\nFood service operations \r\n \r\n1,639,809 \r\n \r\nCommunity service operations \r\n \r\n42,522 \r\n \r\nInterest on long-term debt \r\n \r\n276,923 \r\n \r\nTotal governmental activities $ 22,699,436 \r\n \r\nProgram Revenues \r\n \r\nOperating \r\n \r\nCapital \r\n \r\nCharges for \r\n \r\nGrants and Grants and \r\n \r\nServices \r\n \r\nContributions Contributions \r\n \r\nNet (Expense) Revenue and \r\nChanges in Net Position Governmental \r\nActivities \r\n \r\n$ 159,299 $ 10,457,312 $ \r\n \r\n- $ (3,755,472) \r\n \r\n139,978 \r\n \r\n441,615 \r\n \r\n- \r\n \r\n(322,423) \r\n \r\n- \r\n \r\n245,380 \r\n \r\n- \r\n \r\n302,970 \r\n \r\n- \r\n \r\n523,894 \r\n \r\n- \r\n \r\n712,734 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(111,504) \r\n \r\n- \r\n \r\n(52,314) \r\n \r\n- \r\n \r\n94,882 \r\n \r\n- \r\n \r\n(564,660) \r\n \r\n- \r\n \r\n(102,779) \r\n \r\n- \r\n \r\n743,810 \r\n \r\n- \r\n \r\n(775,798) \r\n \r\n- \r\n \r\n495,031 \r\n \r\n77,220 \r\n \r\n(753,303) \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(22,378) \r\n \r\n- \r\n \r\n68,261 \r\n \r\n- \r\n \r\n(6,929) \r\n \r\n337,284 \r\n \r\n1,302,050 \r\n \r\n- \r\n \r\n(475) \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(42,522) \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n(276,923) \r\n \r\n$ 636,561 $ 15,293,057 $ 77,220 $ (6,692,598) \r\n \r\nGeneral revenues: Taxes: Property taxes, levied for maintenance and operations Sales taxes, for capital projects Intangible taxes Transfer taxes Railroad equipment tax Grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous Total general revenues Change in net position \r\nNet position, beginning of year, as restated Net position, end of year \r\nThe accompanying notes are an integral part of these financial statements. \r\n \r\n$ 3,634,882 898,121 24,591 4,821 7,606 \r\n1,357,269 6,424 \r\n463,619 $ 6,397,333 \r\n(295,265) 31,126,193 $ 30,830,928 \r\n \r\n- 2 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nBALANCE SHEET GOVERNMENTAL FUNDS \r\nJUNE 30, 2014 \r\n \r\nEXHIBIT \"C\" \r\n \r\nASSETS \r\n \r\nGeneral \r\n \r\nDistrict-Wide Capital Projects \r\n \r\nDebt Service \r\n \r\nTotal Governmental \r\nFunds \r\n \r\nCash and cash equivalents Investments Receivables: \r\nTaxes Intergovernmental: \r\nState Federal Local Interest \r\nOther Prepaid items Inventory \r\n \r\n$ 2,298,692 $ 15,462 \r\n303,226 \r\n1,629,717 372,861 8,266 39 54,548 58,970 66,031 \r\n \r\n1,011,641 $ 65,815 \r\n81,173 \r\n- \r\n \r\n25 $ - \r\n- \r\n- \r\n \r\n3,310,358 81,277 \r\n384,399 \r\n1,629,717 372,861 8,266 39 54,548 58,970 66,031 \r\n \r\nTotal assets \r\n \r\n$ 4,807,812 $ 1,158,629 $ \r\n \r\n25 $ 5,966,466 \r\n \r\nLIABILITIES, DEFERRED INFLOWS, AND FUND BALANCES \r\n \r\nLIABILITIES Accounts payable Salaries and benefits payable \r\nTotal liabilities \r\n \r\n$ 154,117 $ 2,274,165 2,428,282 \r\n \r\n6,651 $ - \r\n6,651 \r\n \r\n- $ - $ \r\n \r\n160,768 2,274,165 2,434,933 \r\n \r\nDEFERRED INFLOWS Unavailable revenue - property taxes \r\nTotal deferred inflows \r\n \r\n$ 201,941 $ 201,941 \r\n \r\n- $ - \r\n \r\n- $ - \r\n \r\n201,941 201,941 \r\n \r\nFUND BALANCES Nonspendable: \r\nInventory Prepaid Items Restricted for: Continuation of federal programs Debt service Capital projects Assigned for: Student activities Subsequent year's budget Unassigned \r\nTotal fund balances \r\nTotal liabilities, deferred inflows, and fund balances \r\n \r\n$ 66,031 $ 58,970 \r\n293,226 - \r\n180,766 522,133 1,056,463 $ 2,177,589 $ \r\n$ 4,807,812 $ \r\n \r\n- $ - \r\n944,538 207,440 \r\n1,151,978 $ \r\n1,158,629 $ \r\n \r\n- $ - \r\n25 \r\n- \r\n- \r\n25 $ \r\n \r\n66,031 58,970 \r\n293,226 944,563 207,440 \r\n180,766 522,133 1,056,463 \r\n3,329,592 \r\n \r\n25 $ 5,966,466 \r\n \r\nThe accompanying notes are an integral part of these financial statements. \r\n \r\n- 3 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"D\" RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET POSITION JUNE 30, 2014 \r\n \r\nTotal fund balances - governmental funds (Exhibit \"C\") \r\n \r\n$ 3,329,592 \r\n \r\nAmounts reported for governmental activities in the statement of net position are different because: \r\n \r\nCapital assets used in governmental activities are not financial resources and are not reported in \r\n \r\nthe funds. \r\n \r\nCost \r\n \r\n$ 46,872,665 \r\n \r\nLess accumulated depreciation \r\n \r\n(11,052,899) \r\n \r\n35,819,766 \r\n \r\nOther long-term assets are not available to pay for current-period expenditures and are reported as unavailable revenue in the funds. Property taxes \r\n \r\n201,941 \r\n \r\nLong-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. \r\n \r\nBonds Bond premium, net of amortization Accrued interest \r\n \r\n$ (8,130,000) (315,590) (74,781) \r\n \r\n(8,520,371) \r\n \r\nNet position of governmental activities (Exhibit \"A\") The accompanying notes are an integral part of these financial statements. \r\n \r\n$ 30,830,928 \r\n \r\n- 4 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"E\" STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES \r\nGOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nREVENUES Property taxes Sales taxes State funds Federal funds Charges for services Investment earnings Miscellaneous Total revenues \r\n \r\nGeneral \r\n \r\nDistrict-Wide Capital Projects \r\n \r\nDebt Service \r\n \r\nTotal Governmental \r\nFunds \r\n \r\n$ 3,574,507 $ 29,412 \r\n13,532,942 3,194,604 636,561 5,444 463,619 \r\n$ 21,437,089 $ \r\n \r\n- $ 898,121 \r\n980 899,101 $ \r\n \r\n- $ 3,574,507 \r\n \r\n- \r\n \r\n927,533 \r\n \r\n- \r\n \r\n13,532,942 \r\n \r\n- \r\n \r\n3,194,604 \r\n \r\n- \r\n \r\n636,561 \r\n \r\n- \r\n \r\n6,424 \r\n \r\n- \r\n \r\n463,619 \r\n \r\n- $ 22,336,190 \r\n \r\nEXPENDITURES Current: Instruction Support Services: Pupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Central support services Other support services Food service operation Community service operation Capital outlay Debt service: Principal retirement Interest and fees Total expenditures \r\n \r\n$ 13,470,341 \r\n985,446 356,884 355,284 403,264 1,277,394 102,779 1,534,282 1,281,687 \r\n22,378 75,190 1,596,921 42,522 \r\n- \r\n$ 21,504,372 \r\n \r\nExcess (deficiency) of revenues over expenditures $ \r\n \r\n(67,283) \r\n \r\nOTHER FINANCING SOURCES (USES) \r\n \r\nTransfers in \r\n \r\n$ \r\n \r\n- \r\n \r\nTransfers out \r\n \r\n- \r\n \r\nTotal other financing sources (uses) \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\n32,839 97,491 \r\n \r\n618 $ 130,948 \r\n$ 768,153 \r\n \r\n$ \r\n \r\n- \r\n \r\n(1,076,825) $ (1,076,825) \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n770,000 306,825 $ 1,076,825 \r\n$ (1,076,825) \r\n \r\n$ 1,076,825 \r\n$ 1,076,825 \r\n \r\n$ 13,470,341 \r\n985,446 356,884 355,284 436,103 1,277,394 102,779 1,534,282 1,281,687 \r\n22,378 75,190 1,596,921 42,522 97,491 \r\n770,000 307,443 $ 22,712,145 \r\n$ (375,955) \r\n \r\n$ 1,076,825 \r\n \r\n(1,076,825) \r\n \r\n$ \r\n \r\n- \r\n \r\nNet change in fund balances \r\n \r\n$ \r\n \r\n(67,283) $ (308,672) $ \r\n \r\n- $ (375,955) \r\n \r\nFUND BALANCE, beginning of year FUND BALANCE, end of year \r\n \r\n2,244,872 \r\n \r\n1,460,650 \r\n \r\n$ 2,177,589 $ 1,151,978 $ \r\n \r\nThe accompanying notes are an integral part of these financial statements. - 5 - \r\n \r\n25 \r\n \r\n3,705,547 \r\n \r\n25 $ 3,329,592 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"F\" RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES \r\nFOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nNet change in fund balances - total governmental funds (Exhibit \"E\") \r\n \r\n$ \r\n \r\nAmounts reported for governmental activities in the statement of activities are different because: \r\n \r\nGovernmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. The net effect of the amount by which depreciation expense exceeded capital outlay is to decrease net position. \r\n \r\nCapital outlay Depreciation expense \r\n \r\n$ \r\n \r\n295,605 \r\n \r\n(1,083,416) \r\n \r\n(375,955) (787,811) \r\n \r\nRevenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. \r\nProperty taxes \r\n \r\nIssuance of long-term debt provides current financial resources to governmental funds, while 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. This amount is the net effect of these differences in the treatment of long-term debt and related items \r\n \r\nPrincipal payments - bonds Bond premium amortization expense \r\n \r\n$ \r\n \r\n770,000 \r\n \r\n26,670 \r\n \r\nSome expenses 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\nChange in accrued interest \r\n \r\nChanges in net position of governmental activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n67,981 \r\n796,670 3,850 \r\n(295,265) \r\n \r\nThe accompanying notes are an integral part of these financial statements. \r\n \r\n- 6 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSTATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2014 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS \r\n \r\nCash \r\n \r\nFunds held for others \r\n \r\nLIABILITIES \r\n \r\nNET POSITION Held in trust for private purposes \r\n \r\nTotal liabilities and net position \r\n \r\nPrivate-Purpose Trusts \r\n \r\n$ \r\n \r\n17,708 $ \r\n \r\nAgency Funds \r\n82,976 \r\n \r\n$ \r\n \r\n- $ \r\n \r\n82,976 \r\n \r\n$ \r\n \r\n17,708 $ \r\n \r\n$ \r\n \r\n17,708 \r\n \r\n82,976 \r\n \r\nThe accompanying notes are an integral part of these financial statements. \r\n \r\n- 7 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2014 \r\n \r\nEXHIBIT \"H\" \r\n \r\nInvestment Earnings: Interest \r\n \r\nADDITIONS \r\n \r\nScholarships \r\n \r\nDEDUCTIONS \r\n \r\nChange in net position \r\n \r\nNet Position - Beginning \r\n \r\nNet Position - Ending \r\n \r\nPrivatePurpose Trusts \r\n \r\n$ \r\n \r\n37 \r\n \r\n$ \r\n \r\n1,500 \r\n \r\n(1,463) \r\n \r\n$ \r\n \r\n19,171 \r\n \r\n$ \r\n \r\n17,708 \r\n \r\nThe accompanying notes are an integral part of these financial statements. \r\n \r\n- 8 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nReporting Entity \r\nThe Bleckley 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 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 Bleckley County School Building Authority (Authority) was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities; to acquire the necessary property therefore, both real and personal; and to lease or sell any or all of such facilities, including real and personal property for the benefit of the Bleckley County Board of Education. The Authority consists of five members appointed by the governing authority of the Bleckley County Board of Education. \r\nThe Bleckley County School Building Authority is a component unit of the Bleckley County Board of Education and as such the Authority's financial activity has been blended with the Bleckley County Board of Education's basic financial statements. \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 Bleckley County Board of Education. \r\nDistrict-wide Statements \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n-9- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nDistrict-wide Statements (Continued) \r\n Program revenues include (a) charges paid by the recipients for 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 The General Fund is the School District's primary operating fund. It accounts for and reports all financial resources of the School District, except those resources required to be accounted for in another fund. \r\n The District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), that are restricted, committed, or assigned to expenditure for capital outlays, 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, interest and paying agent's fees. \r\nThe School District reports the following fiduciary fund types: \r\n The Private-Purpose Trust Fund reports a trust arrangement under which principal and income benefit a scholarship for female students who attend Bleckley County High School. \r\n The Agency Funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\n-10- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nBasis of Accounting \r\nThe basis of accounting determines when transactions are reported on the financial statements. The School 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 60 days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general 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 and acquisitions under capital leases are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net position 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 District for teachers' salaries and operating costs through the Quality Basic Education (QBE) Formula Earnings program. State of Georgia law defines the formula driven grant that determines the cost of an academic school year and the State of Georgia's share in this cost. Generally teachers are contracted for the school year (July 1  June 30) and paid over a 12-month contract period, generally September 1 through August 31. In accordance with the requirements of the enabling legislation of the QBE program, the State of Georgia reimburses the School District over the same 12-month period in which teachers are paid, funding \r\n-11- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nBasis of Accounting (Continued) \r\nthe academic school year expenditures. At June 30, the amount of teacher's salaries incurred, but not paid until July and August of the subsequent year are accrued as the State of Georgia has only postponed the final payment of their share of the cost until the subsequent appropriations for cash management purposes. By June 30 of each year, the State of Georgia has a signed appropriation that includes this final amount, which represents the State of Georgia's intent to fund this final payment. Based on guidance in Government Accounting Standards Board (GASB) Statement No. 33, paragraph 74, the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, and the School District recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \r\nNew Accounting Pronouncements \r\nIn fiscal year 2014, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities. The provisions of this Statement establish accounting and financial reporting standards that reclassify, as deferred outflows or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows or inflows of resources, certain items that were previously reported as assets and liabilities. As noted in Note 17, the School District restated beginning Net Position for the cumulative effect of this accounting change. \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. The 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 interestearning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. \r\n-12- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nInvestments (Continued) \r\nFunds may be invested in the following: \r\n(1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a \r\nUnited States government agency, (4) Obligations of any corporation of the United States government, (5) Prime bankers' acceptances, (6) The local government investment pool (Georgia Fund 1) administered by the State of \r\nGeorgia, Office of the State Treasurer, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\nReceivables \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements from Federal, state or other grants for expenditures made, but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nProperty Taxes \r\nThe Bleckley County Board of Commissioners set the property tax levy for the 2013 tax digest year (calendar year) on October 2, 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 Bleckley 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 $3,391,568. \r\nThe tax millage rate levied for the 2013 tax year (calendar year) for the Bleckley 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\n14.250 mills \r\n \r\n-13- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nProperty Taxes (Continued) \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $182,939 during the 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 $898,121 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\nInventories \r\nFood Inventories - On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nPrepaid Items \r\nPayments made to vendors for services that will benefit future periods subsequent to June 30, 2014, are recorded as prepaid items. \r\nCapital Assets \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n-14- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\n \r\nCapital Assets (Continued) \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nLand Land Improvements Buildings and Improvements Equipment Intangible Assets Construction in progress \r\n \r\nCapitalization Policy \r\nAll $ 5,000 \r\n5,000 5,000 200,000 \r\nAll \r\n \r\nEstimated Useful Life \r\nN/A 20 to 80 Years 10 to 80 Years \r\n5 to 50 Years 5 to 10 Years \r\nN/A \r\n \r\nDepreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. \r\nGeneral Obligation Bonds \r\n \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which is not materially different from the effective interest method. 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 fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \r\n \r\nDeferred Outflows / Inflows of Resources \r\nIn addition to assets, the statement of net position and/or the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net resources that applies to future period(s) and therefore will not be recognized as an outflow of resources (expense/expenditure) until then. The School District did not have any items that qualified for reporting in this category for the year ended June 30, 2014. \r\n \r\n-15- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nDeferred Outflows / Inflows of Resources (Continued) \r\nIn addition to liabilities, the statement of net position and/or governmental funds 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 future period(s) and therefore will not be recognized as an inflow of resources (revenue) until that time. The School District has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes and grants and these amounts are deferred and will be recognized as an inflow of resources in the period in which the amounts become available. \r\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: bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted Net Position  This 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 are not in spendable form (e.g., inventory and prepaid items) or are legally or contractually required to be maintained intact (e.g., permanent fund principal). \r\nRestricted  Constraints that 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-16- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) \r\nFund Balances (Continued) \r\nCommitted  Amounts that can only be used for the specific purposes determined by a formal action of the Board. The Board of Education 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  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes within the General Fund. \r\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: BUDGETS \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the General Fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds, except the various school activity (principal) accounts, is prepared and adopted by fund, function and object. The legal level of budgetary control was established by the Board at the aggregate function level. The budget for the General Fund was prepared in accordance with accounting principles generally accepted in the United States of America. \r\n-17- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 3: BUDGETS (CONTINUED) \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 the 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  The Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than 10 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 (OCGA 458-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall not be 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\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, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United \r\nStates or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or \r\nmunicipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that \r\nthe statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the \r\nState of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary \r\ncorporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by 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-18- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 4: DEPOSITS AND INVESTMENTS (CONTINUED) \r\n \r\nCategorization of Deposits - Custodial credit risk is the risk that in the event of 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 bank balances were $3,922,581. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's agent in the School District's name. \r\n \r\nCategorization of Investments At June 30, 2014, the School System had the following investments: \r\n \r\nInvestment Georgia Fund 1 \r\nCertificate of deposit \r\n \r\nMaturities 62 day weighted average \r\nJanuary 14, 2015 \r\n \r\nRating* AAAf \r\nN/A \r\n \r\nFair Value \r\n \r\n$ \r\n \r\n65,815 \r\n \r\n15,462 \r\n \r\n$ \r\n \r\n81,277 \r\n \r\n*Rating as per Standard \u0026 Poor's \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 does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does 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, $1.00 per share. The pool is an AAAf rated investment pool by Standard \u0026 Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2014 was 62 days. \r\nInterest Rate Risk - Interest rate risk is the risk that changes in interest rates of debt investments will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. \r\nCustodial Credit Risk - Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, the School District will not be able to recover the value of the investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. \r\n \r\n-19- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 4: DEPOSITS AND INVESTMENTS (CONTINUED) \r\n \r\nCredit Quality Risk - Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. \r\n \r\nNote 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\nNote 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the capital assets during the fiscal year: \r\n \r\nBeginning Balance \r\n \r\nIn creas es \r\n \r\nDecreas es \r\n \r\nGovernmental activities: \r\n \r\nCapital assets, not being depreciated: \r\n \r\nLand \r\n \r\n$ 263,770 $ \r\n \r\n- $ \r\n \r\n- \r\n \r\nConstruction in Progress \r\n \r\n128,975 \r\n \r\n48,495 \r\n \r\n- \r\n \r\nTotal \r\n \r\n392,745 \r\n \r\n48,495 \r\n \r\n- \r\n \r\nCapital assets, being depreciated: \r\n \r\nBuildings and improvements \r\n \r\n41,444,843 \r\n \r\n15,801 \r\n \r\n- \r\n \r\nEquipment \r\n \r\n3,116,104 \r\n \r\n209,164 \r\n \r\n- \r\n \r\nLand improvements \r\n \r\n1,623,368 \r\n \r\n22,145 \r\n \r\n- \r\n \r\nTotal \r\n \r\n46,184,315 \r\n \r\n247,110 \r\n \r\n- \r\n \r\nLess accumulated depreciation for: \r\n \r\nBuildings and improvements \r\n \r\n(7,369,940) \r\n \r\n(826,530) \r\n \r\n- \r\n \r\nEquipment \r\n \r\n(2,151,162) \r\n \r\n(207,538) \r\n \r\n- \r\n \r\nLand improvements \r\n \r\n(448,381) \r\n \r\n(49,348) \r\n \r\n- \r\n \r\nTotal \r\n \r\n(9,969,483) \r\n \r\n(1,083,416) \r\n \r\n- \r\n \r\nTotal capital assets, being depreciated, net \r\n \r\n36,214,832 \r\n \r\n(836,306) \r\n \r\n- \r\n \r\nGovernmental activities capital assets, net \r\n \r\n$ 36,607,577 $ (787,811) $ \r\n \r\n- \r\n \r\nTrans fers \r\n \r\nEnding Balance \r\n \r\n$ \r\n \r\n- $ \r\n \r\n(177,470) \r\n \r\n(177,470) \r\n \r\n263,770 - \r\n263,770 \r\n \r\n177,470 - \r\n177,470 \r\n \r\n41,638,114 3,325,268 1,645,513 \r\n46,608,895 \r\n \r\n- \r\n \r\n(8,196,470) \r\n \r\n- \r\n \r\n(2,358,700) \r\n \r\n- \r\n \r\n(497,729) \r\n \r\n- \r\n \r\n(11,052,899) \r\n \r\n177,470 \r\n \r\n35,555,996 \r\n \r\n$ \r\n \r\n- $ 35,819,766 \r\n \r\n-20- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 6: CAPITAL ASSETS (CONTINUED) \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nPupil Services General Administration Maintenance and Operations Student Transportation Food Services \r\nTotal Depreciation Expense \r\nNote 7: INTERFUND TRANSFERS \r\n \r\n$ \r\n \r\n896,692 \r\n \r\n$ \r\n \r\n4,286 \r\n \r\n788 \r\n \r\n16,788 \r\n \r\n121,974 \r\n \r\n143,836 42,888 \r\n \r\n$ \r\n \r\n1,083,416 \r\n \r\nInterfund transfers for the year ended at June 30, 2014, consisted of the following: \r\n \r\nTransfers To Debt Service Fund \r\n \r\nTransfers From District-Wide Capital Projects \r\nFund $ 1,076,825 \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the payment of bonds. \r\nNote 8: RISK MANAGEMENT \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions, and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\nThe School District has elected to self-insure for all potential losses of property due to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\n-21- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 8: RISK MANAGEMENT (CONTINUED) \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditures and a liability being reported when it is probable that a loss has occurred, and the amount of the 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\n2013 2014 \r\n \r\nBeginning of Year Liability \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nClaims and Changes in Estimates \r\n \r\n$ \r\n \r\n660 \r\n \r\n$ 13,547 \r\n \r\nClaims Paid \r\n \r\n$ \r\n \r\n660 \r\n \r\n$ 13,547 \r\n \r\nEnd of Year Liability \r\n \r\n$ \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered Superintendent All employees \r\n \r\nAmount $ 50,000 $ 100,000 \r\n \r\nNote 9: OPERATING LEASES \r\n \r\nThe School District has entered into various leases as lessee for copiers. 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 $19,991. Future minimum lease payments for these leases are as follows: \r\n \r\nFiscal Year Ended June 30, \r\n2015 2016 2017 2018 \r\n \r\n$ 18,189 16,223 10,828 3,019 \r\n$ 48,259.00 \r\n \r\n-22- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 10: SHORTTERM DEBT \r\n \r\nTax Anticipation Note \r\n \r\nThe School District issued a tax anticipation note in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections were received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. The maturity date of the loan was December 31, 2013. One draw totaling $335,000 was required to meet the cash flow needs of the School District. The note was repaid on November 27, 2013. \r\n \r\nShort-term debt activity for the fiscal year is as follows: \r\n \r\nBeginning Balance \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nEnding Balance \r\n \r\nTax Anticipation Note $ \r\n \r\n- $ 335,000 $ (335,000) $ \r\n \r\n- \r\n \r\nNote 11: LONGTERM LIABILITIES \r\n \r\nGeneral Obligation Bonds Outstanding \r\n \r\nGeneral obligation bonds currently outstanding are as follows: \r\n \r\nPurpose General Government - Series 2009 \r\nChanges in Long-Term Liabilities \r\n \r\nMaturity 2023 \r\n \r\nInterest Rates 2.00% to 5.00% \r\n \r\nAmount $ 8,130,000 $ 8,130,000 \r\n \r\nThe changes in long-term liabilities during the fiscal year ended June 30, 2014, were as follows: \r\n \r\nBeginning Balance \r\n \r\nG.O. Bonds $ 8,900,000 \r\n \r\nBond Premiums \r\n \r\nAmortized \r\n \r\n342,260 \r\n \r\nTotal \r\n \r\n$ 9,242,260 \r\n \r\nIncreases \r\n \r\n$ \r\n \r\n- \r\n \r\n- \r\n \r\n$ \r\n \r\n- \r\n \r\nDecreases \r\n \r\nEnding Balance \r\n \r\n$ (770,000) $ 8,130,000 \r\n \r\n(26,670) \r\n \r\n315,590 \r\n \r\n$ (796,670) $ 8,445,590 \r\n \r\nDue Within One Year \r\n$ 795,000 \r\n38,253 $ 833,253 \r\n \r\n-23- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 11: LONGTERM LIABILITIES (CONTINUED) \r\nScheduled Maturities of Long-Term Liabilities \r\nAt June 30, 2014, payments due by fiscal year which includes principal and interest for these items are as follows: \r\n \r\nFiscal Year Ended June 30 \r\n2015 2016 2017 2018 2019 2020-2023 \r\nTotal Principal and Interest \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n$ \r\n \r\n795,000 \r\n \r\n$ \r\n \r\n815,000 \r\n \r\n840,000 \r\n \r\n865,000 \r\n \r\n895,000 \r\n \r\n3,920,000 \r\n \r\n289,188 267,055 242,200 215,544 186,944 375,800 \r\n \r\n$ 8,130,000 \r\n \r\n$ \r\n \r\n1,576,731 \r\n \r\nUnamortized Bond Premium \r\n \r\n$ \r\n \r\n38,253 \r\n \r\n38,253 \r\n \r\n38,253 \r\n \r\n38,253 \r\n \r\n38,253 \r\n \r\n124,325 \r\n \r\n$ \r\n \r\n315,590 \r\n \r\nNote 12: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $1,001,425 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 $905,736 \r\nPaid to the Teachers Retirement System For Teachers Retirement System (TRS) Employer's Cost In the amount of $32,026 \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 $63,663 \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \r\n \r\n-24- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \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: OTHER 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 Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Insurance 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). 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% of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the state provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\n-25- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 14: OTHER POST-EMPLOYMENT BENEFITS (CONTINUED) \r\nGeorgia School Personnel Employees Post-Employment Health Benefit Fund (Continued) \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 30 years. \r\nThe combined active and retiree contribution rates established by the Board for employers participating in the School OPEB Fund were as follows for the fiscal year ended June 30, 2014: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible participants: \r\n \r\nPe riod July 2013 - June 2014 \r\nFor non-certificated school personnel: \r\nPe riod \r\n \r\nContribution $945.00 per member per month \r\nContribution \r\n \r\nJuly 2013 - June 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\nCurrently, the state is requiring that local Boards of Education pay only on active employees. The School District's contributions to the health insurance plans for the fiscal years ended June 30, 2014, 2013, 2012 were $2,120,379, $2,041,283, and $2,235,394, respectively, which equaled the required contribution. Currently, the State of Georgia has been making the remaining contributions to fund the pay-as-you-go financing on behalf of all local Boards of Education. \r\n \r\n-26- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\nNote 15: RETIREMENT PLAN \r\nTeachers Retirement System of Georgia (TRS) \r\nPlan Description - The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio state employees is ultimately responsible for the administration of TRS. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by state statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. Normal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by state law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2014, were 6.00% of annual salary. Employer contributions required for fiscal year 2014 were 12.28% of annual salary as required by the June 30, 2011, actuarial valuation. The employer contribution rate will increase to 13.15% effective July 1, 2014. \r\n-27- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 15: RETIREMENT PLAN (CONTINUED) \r\n \r\nTeachers Retirement System of Georgia (TRS) (Continued) \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\n2014 2013 2012 \r\n \r\nPercentage Contributed \r\n100% 100% 100% \r\n \r\nRequired Contribution \r\n$ 1,453,650 1,380,898 1,221,460 \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 Employee's Retirement System of Georgia (PSERS). The PSERS is funded by contributions from employees and the State of Georgia. The School District makes no contribution to this plan. See Note 12: On-Behalf Payments for information on the contributions made by the State of Georgia on behalf of the School District's employees. \r\nNote 16: NEW ACCOUNTING PRONOUNCEMENT \r\nIn fiscal year 2015, the School District will adopt Governmental Account Standards Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pensions. The provisions of this Statement establish accounting and financial reporting standards for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts. Implementation of this statement will require the School District to record a liability for its proportionate share of the Net Pension Liability of pension plans in which it is a member. Actuarial estimates are currently being made to determine the School District's liability, the effects of which are believed to be material. \r\nNote 17: PRIOR PERIOD ADJUSTMENT \r\nIn conjunction with the implementation of Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities, the School District is required to change its accounting treatment of debt issuance costs. The new standard requires that debt issuance costs be recognized as an expense in the period incurred rather than capitalized and recognized as an expense (amortized) in a systematic and rational manner over the duration of the related debt as was the required treatment in prior reporting periods. \r\n \r\n-28- \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nEXHIBIT \"I\" NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2014 \r\n \r\nNote 17: PRIOR PERIOD ADJUSTMENT (CONTINUED) \r\nTherefore, in conjunction with the implementation of Statement No. 65, the following restatements were required to the beginning net position of the Governmental Activities to properly recognize debt issuance costs as expenses in the periods in which they were incurred: \r\n \r\nNet Position, Governmental Activities, previously reported Recognition of issuance costs incurred in prior periods Net Position, Governmental Activities, as restated \r\n \r\n$ 31,222,196 (96,002) \r\n$ 31,126,194 \r\n \r\nNote 18: SUBSEQUENT EVENT \r\nTax Anticipation Note \r\nOn November 20, 2014, the Bleckley County Board of Education issued a $1,000,000 temporary loan in advance of property tax collections. Proceeds from this short-term loan were used to provide cash for operations until property tax collections were received by the School District. The maturity date of the loan was December 31, 2014. One draw totaling $376,267 was required to meet the cash flow needs of the School District. The note was repaid on November 26, 2014. \r\n \r\n-29- \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSCHEDULE \"1\" GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nREVENUES Property taxes Sales taxes State funds Federal funds Charges for services Investment earnings Miscellaneous \r\nTotal revenues \r\nEXPENDITURES Current: \r\nInstruction Support services: \r\nPupil services Improvement of instructional services Educational media services General administration School administration Business administration Maintenance and operation of plant Student transportation services Central support services Other support services Food service operations Community service operations Total expenditures \r\nNet change in fund balances \r\nFUND BALANCE, beginning of year \r\nFUND BALANCE, end of year \r\n \r\nNonappropriated Budget \r\n \r\nOriginal (1) \r\n \r\nFinal (1) \r\n \r\nActual \r\n \r\nVariance With Final Budget \r\n \r\n$ 3,657,645 20,000 \r\n12,583,522 1,579,912 \r\n361,400 1,200 \r\n125,600 $ 18,329,279 \r\n \r\n$ 3,657,645 20,000 \r\n12,772,970 3,162,658 \r\n361,400 1,200 \r\n125,600 $ 20,101,473 \r\n \r\n$ 3,574,507 29,412 \r\n13,532,942 3,194,604 \r\n636,561 5,444 \r\n463,619 $ 21,437,089 \r\n \r\n$ (83,138) 9,412 \r\n759,972 31,946 275,161 4,244 338,019 $ 1,335,616 \r\n \r\n$ 11,861,741 $ 13,537,636 $ 13,470,341 $ 67,295 \r\n \r\n582,300 \r\n \r\n867,918 \r\n \r\n985,446 \r\n \r\n(117,528) \r\n \r\n323,410 \r\n \r\n477,115 \r\n \r\n356,884 \r\n \r\n120,231 \r\n \r\n360,050 \r\n \r\n360,050 \r\n \r\n355,284 \r\n \r\n4,766 \r\n \r\n386,184 \r\n \r\n390,586 \r\n \r\n403,264 \r\n \r\n(12,678) \r\n \r\n1,154,000 \r\n \r\n1,192,140 \r\n \r\n1,277,394 \r\n \r\n(85,254) \r\n \r\n97,373 \r\n \r\n97,373 \r\n \r\n102,779 \r\n \r\n(5,406) \r\n \r\n1,568,138 \r\n \r\n1,607,976 \r\n \r\n1,534,282 \r\n \r\n73,694 \r\n \r\n1,215,505 \r\n \r\n1,344,487 \r\n \r\n1,281,687 \r\n \r\n62,800 \r\n \r\n26,203 \r\n \r\n26,203 \r\n \r\n22,378 \r\n \r\n3,825 \r\n \r\n35,074 \r\n \r\n76,103 \r\n \r\n75,190 \r\n \r\n913 \r\n \r\n1,366,400 \r\n \r\n1,366,500 \r\n \r\n1,596,921 \r\n \r\n(230,421) \r\n \r\n- \r\n \r\n- \r\n \r\n42,522 \r\n \r\n(42,522) \r\n \r\n$ 18,976,378 $ 21,344,087 $ 21,504,372 $ (160,285) \r\n \r\n$ (647,099) $ (1,242,614) $ (67,283) $ 1,175,331 \r\n \r\n2,244,872 \r\n \r\n2,244,872 \r\n \r\n2,244,872 \r\n \r\n- \r\n \r\n$ 1,597,773 $ 1,002,258 $ 2,177,589 $ 1,175,331 \r\n \r\nNote 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 ($425,694) or expenditures ($427,238) of the various school activity 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. See notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR 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 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 Improving Teacher Quality State Grants Rural Education Striving Readers Title I Grants to Local Educational Agencies Twenty-First Century Community Learning Centers Career and Technical Education - Basic Grants to States \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Direct Affordable Care Act Grants for School - Based Health Care Capital Program \r\n \r\nCFDA Number \r\n \r\nPass-Through Entity ID Number \r\n \r\nExpenditures In Period \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A N/A $ \r\n \r\n(1) 1,519,550 (2) \r\n1,519,550 \r\n \r\n* 84.027 \r\n \r\nN/A \r\n \r\n* 84.173 \r\n \r\nN/A \r\n \r\n84.367 \r\n \r\nN/A \r\n \r\n84.358 \r\n \r\nN/A \r\n \r\n* 84.371 \r\n \r\nN/A \r\n \r\n84.010 \r\n \r\nN/A \r\n \r\n84.287 \r\n \r\nN/A \r\n \r\n84.048 \r\n \r\nN/A \r\n \r\n93.501 \r\n \r\nN/A \r\n \r\n465,564 22,860 \r\n488,424 \r\n95,356 56,532 330,740 522,365 224,577 19,103 1,737,097 \r\n231,251 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ \r\n \r\n3,487,898 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) Expenditures for the funds earned on the School Breakfast Program ($291,399) were not maintained separately and are included in the 2014 National School Lunch Program. \r\n \r\n(2) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $127,387. \r\n \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 Bleckley County Board of Education and is presented on the modified accrual basis of accounting used in the presentation of the fund financial statements. See notes to the basic financial statements. \r\n \r\n- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAgency/Funding Grants 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 Primary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Gifted Students - Category VI Remedial Education Program Alternative Education Program Media Center Program 20 Days Additional Instruction Staff and Professional Development Principal, Staff, and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular State Bonds Nursing Services Vocational Supervisors Mid-term Adjustment Hold-Harmless Technology to Support Digital Learning Bonds Education Equalization Funding Grant Food Services Amended Formula Adjustment Other State Programs Move on When Ready Math and Science Supplements Vocational Education Preschool Handicapped State Grant \r\nContract \r\nHuman Resources, Georgia Department of \r\nFamily Connection \r\n(Continued) \r\n- 33 - \r\n \r\nGovernmental Fund Type General Fund \r\n \r\n$ \r\n \r\n637,713 \r\n \r\n805,826 141,542 1,906,575 133,268 854,455 \r\n85,491 (1,052) 1,568,958 1,317,569 486,365 2,146,714 507,821 116,500 109,690 273,901 83,315 50,345 1,511 \r\n466,403 610,142 612,582 \r\n368,103 77,220 43,599 6,683 56,203 18,357 \r\n1,357,269 41,794 \r\n(1,719,900) \r\n200 10,895 55,811 48,069 \r\n45,000 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF STATE REVENUE FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAgency/Funding \r\nOther Community Affairs, Georgia Department of Communities in Schools Dropout Prevention Governor's Office, State of Georgia Children and Youth Coordinating Council Children and Families Abstinence Grant \r\nOn-Behalf Payments Georgia Department of Education Paid to the Teachers Retirement System Office of State Treasurer Paid to the Public School Employees Retirement System \r\nGrand Total \r\n \r\nGovernmental Fund Type General Fund \r\n \r\n$ \r\n \r\n53,873 \r\n \r\n58,443 \r\n \r\n32,026 \r\n \r\n63,663 \r\n \r\n$ \r\n \r\n13,532,942 \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 $905,736 are included as part of the Quality Basic Education revenue allotments. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 34 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\nSCHEDULE \"4\" \r\n \r\nSCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nProject \r\n \r\nOriginal Estimated Cost (1) \r\n \r\nCurrent Estimated Costs (2) \r\n \r\nExpended In Current Year (3) \r\n \r\nExpended In Prior Years (3) \r\n \r\nTotal \r\n \r\nEstimated \r\n \r\nCompletion Completion \r\n \r\nCost \r\n \r\nDate \r\n \r\nThe issuance of general obligation bonds in the principal amount not to exceed $9,000,000 to pay the costs of: \r\n \r\n(a) acquiring, constructing, and \r\n \r\nequipping a new Bleckley County \r\n \r\nMiddle School \r\n \r\n$ \r\n \r\n(b) \r\n \r\nrenovating, \r\n \r\nimproving, \r\n \r\nconstructing, and equipping new and \r\n \r\nexisting school buildings, athletic \r\n \r\nfacilities and other educational \r\n \r\nfacilities \r\n \r\n- $ - \r\n \r\n- $ \r\n \r\n- $ 9,493,943 $ 9,493,943 Complete \r\n \r\n- \r\n \r\n- \r\n \r\n225,168 \r\n \r\n225,168 Complete \r\n \r\n(c) the acquisition of any property, \r\n \r\nboth real and personal, and equipment \r\n \r\nnecessary in connection with the \r\n \r\nabove described capital outlay \r\n \r\nprojects, together with school buses, \r\n \r\nmaintenance vehicles and equipment, \r\n \r\ncomputers and related technology, \r\n \r\ntextbooks, vocational, fine arts, and \r\n \r\nphysical education and athletic \r\n \r\nequipment and safe and security \r\n \r\nequipment, and \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n5,235 \r\n \r\n5,235 Complete \r\n \r\n(d) the costs of issuance of the Bonds including capitalized interest \r\n \r\n7,000,000 11,083,646 \r\n \r\n- \r\n \r\n355,625 \r\n \r\nSeptember - 2017 \r\n \r\n$ 7,000,000 $ 11,083,646 $ \r\n \r\n- $ 10,079,971 $ 9,724,346 \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 Bleckley 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 project. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding \r\n \r\nfor the above project(s) as follows: \r\n \r\nPrior Years \r\n \r\n$ 924,183 \r\n \r\nCurrent Year \r\n \r\n306,825 \r\n \r\nTotal \r\n \r\n$ 1,231,008 \r\n \r\n(5) During fiscal year 2014, the Bleckley County Board of Education paid $618 for dissemination agent services. \r\n \r\n(6) Amounts expended in the District-wide Capital Projects Fund include $130,330 not related to the above SPLOST projects. \r\n \r\n(7) As of June 30, 2014, there were no excess proceeds which were not yet expended. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 35 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION \r\nSCHEDULE OF QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTMENTS AND EXPENDITURES BY PROGRAM GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2014 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDescription \r\n \r\nAllotments From Georgia Department of \r\nEducation (1) \u0026 (2) \r\n \r\nEligible QBE Program Costs \r\n \r\nSalaries \r\n \r\nOperations \r\n \r\nTotal \r\n \r\nDirect Instructional Funds: \r\n \r\nKindergarten Program \r\n \r\n$ 902,406 $ 651,778 $ 12,229 $ 664,007 \r\n \r\nKindergarten Program - Early Intervention Program \r\n \r\n154,863 \r\n \r\n52,993 \r\n \r\n37 \r\n \r\n53,030 \r\n \r\nPrimary Grades (1-3) Program \r\n \r\n2,102,027 \r\n \r\n1,767,502 \r\n \r\n32,024 \r\n \r\n1,799,526 \r\n \r\nPrimary Grades - Early Intervention (1-3) Program \r\n \r\n151,329 \r\n \r\n55,643 \r\n \r\n433 \r\n \r\n56,076 \r\n \r\nUpper Elementary Grades (4-5) Program \r\n \r\n948,487 \r\n \r\n1,213,013 \r\n \r\n21,360 \r\n \r\n1,234,373 \r\n \r\nUpper Elementary Grades-Early Intervention (4-5) Program \r\n \r\n102,946 \r\n \r\n38,572 \r\n \r\n568 \r\n \r\n39,140 \r\n \r\nMiddle Grades (6-8) Program \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nMiddle School (6-8) Program \r\n \r\n1,738,339 \r\n \r\n1,909,532 \r\n \r\n28,598 \r\n \r\n1,938,130 \r\n \r\nHigh School General Education (9-12) Program \r\n \r\n1,483,459 \r\n \r\n1,973,415 \r\n \r\n66,223 \r\n \r\n2,039,638 \r\n \r\nVocational Laboratory (9-12) Program \r\n \r\n514,455 \r\n \r\n489,322 \r\n \r\n15,132 \r\n \r\n504,454 \r\n \r\nStudents with Disabilities \r\n \r\n2,386,733 \r\n \r\n- \r\n \r\n- \r\n \r\n- \r\n \r\nCategory I \r\n \r\n- \r\n \r\n145,270 \r\n \r\n56,931 \r\n \r\n202,201 \r\n \r\nCategory II \r\n \r\n- \r\n \r\n538,596 \r\n \r\n1,063 \r\n \r\n539,659 \r\n \r\nCategory III \r\n \r\n- \r\n \r\n468,500 \r\n \r\n1,523 \r\n \r\n470,023 \r\n \r\nCategory IV \r\n \r\n- \r\n \r\n421,606 \r\n \r\n- \r\n \r\n421,606 \r\n \r\nCategory V \r\n \r\n- \r\n \r\n165,785 \r\n \r\n- \r\n \r\n165,785 \r\n \r\nGifted Student - Category VI \r\n \r\n552,408 \r\n \r\n389,117 \r\n \r\n3,709 \r\n \r\n392,826 \r\n \r\nRemedial Education Program \r\n \r\n143,789 \r\n \r\n59,380 \r\n \r\n648 \r\n \r\n60,028 \r\n \r\nAlternative Education Program \r\n \r\n124,026 \r\n \r\n119,295 \r\n \r\n691 \r\n \r\n119,986 \r\n \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\n \r\n$ 11,305,267 $ 10,459,319 $ 241,169 $ 10,700,488 \r\n \r\nMedia Center Program Staff and Professional Development \r\n \r\n303,937 55,644 \r\n \r\n326,887 - \r\n \r\n25,353 - \r\n \r\n352,240 16,747 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 11,664,848 $ 10,786,206 $ 266,522 $ 11,069,475 \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 budget adjustment. See notes to the basic financial statements. \r\n \r\n- 37 - \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\nMarch 14, 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 Bleckley County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nLadies and Gentlemen: \r\nWe have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of Bleckley 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 Bleckley County Board of Education's basic financial statements and have issued our report thereon dated March 14, 2016. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Bleckley 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 Bleckley County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Bleckley County Board of Education's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n2014YB-10 \r\n \r\n (This page left intentionally blank) \r\n \r\n Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 Bleckley County Board of Education in a separate letter dated March 14, 2016. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, not to provide an opinion on the effectiveness of the Bleckley County Board of Education's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Bleckley County Board of Education's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:kt 2014YB-10 \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\nMarch 14, 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 Bleckley 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 Bleckley 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. Bleckley 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 Bleckley 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 Bleckley 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 Bleckley County Board of Education's compliance. \r\nOpinion on Each Major Federal Program \r\nIn our opinion, the Bleckley 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 Bleckley 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 Bleckley 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 Bleckley 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:kt 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 BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2014 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nFINDING CONTROL NUMBER AND STATUS \r\nFS-6121-12-01 Further Action Not WarrantedFinding was repeated in Fiscal Year 2013 FS-6121-13-01 Partially Resolved  See Corrective Action/Responses \r\nCASH AND CASH EQUIVALENTS Inadequate Internal Control Procedures Finding Control Number: FS-6121-13-01 \r\nThe School District has continued strengthening procedures to ensure that all bank reconciliations are completed and properly approved in a timely manner. The School District continues to tighten internal controls over cash and cash equivalents to ensure that cash is accounted for and reconciled. \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 BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2014 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 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$300,000 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2012-h2013-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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, 32.75042, -83.50018"],"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-bb6-b2012-h2013-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-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","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S REPORT \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET POSITION \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET POSITION \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 10 \r\n25 26 27 29 31 \r\n \r\n  BLECKLEY 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\nSeptember 19, 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 Bleckley County Board of Education \r\nINDEPENDENT AUDITOR'S REPORT \r\nLadies and Gentlemen: \r\nReport on the Financial Statements \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Bleckley 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 Bleckley 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 Bleckley County Board of Education adopted new accounting guidance, Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No. 34 and 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 these matters. \r\nOther Matters \r\nRequired Supplementary Information \r\nManagement has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 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 25, 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 Bleckley 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 September 19, 2014, on our consideration of the Bleckley 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 Bleckley 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  BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET POSITION JUNE 30, 2013 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Local Other Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Long-Term Liabilities \r\nDue Within One Year Due in More Thank One Year \r\nTotal Liabilities \r\nNET POSITION \r\nNet Investment in Capital Assets Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Position \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n3,663,077.05 \r\n \r\n266,288.00 \r\n \r\n449.22 344,188.64 1,596,729.68 476,807.85 \r\n7,128.00 8,161.03 110,458.88 96,003.24 392,744.75 36,214,832.27 \r\n \r\n$ 43,176,868.61 \r\n \r\n$ \r\n \r\n252,091.20 \r\n \r\n2,381,689.98 \r\n \r\n78,631.25 \r\n \r\n811,486.03 8,430,773.74 \r\n \r\n$ 11,954,672.20 \r\n \r\n$ 27,707,577.02 \r\n303,635.81 927,262.50 533,412.80 1,750,308.28 \r\n \r\n$ 31,222,196.41 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n BLECKLEY 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 For Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Position \r\nNet Position - Beginning of Year \r\nNet Position - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 15,032,782.26 $ \r\n869,723.67 356,464.24 351,429.82 533,231.18 1,282,545.66 114,206.98 1,544,587.76 1,170,776.37 \r\n22,474.83 669,199.27 \r\n46,950.71 1,569,221.14 \r\n279,905.22 \r\n$ 23,843,499.11 $ \r\n \r\n19,589.05 \r\n330,443.10 350,032.15 \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$ 10,867,511.92 $ \r\n396,852.57 221,217.38 335,391.14 727,462.34 907,191.48 \r\n7,383.51 768,379.47 130,792.79 \r\n1,052.81 628,980.86 \r\n4,540.26 1,228,652.00 \r\n$ 16,225,408.53 $ \r\n \r\n639,293.90 $ \r\n4,427.63 30,195.42 673,916.95 $ \r\n \r\n-3,506,387.39 \r\n-472,871.10 -135,246.86 \r\n-16,038.68 194,231.16 -375,354.18 -106,823.47 -771,780.66 -1,039,983.58 -21,422.02 -40,218.41 \r\n-42,410.45 20,069.38 -279,905.22 \r\n-6,594,141.48 \r\n \r\n$ \r\n \r\n3,192,179.40 \r\n \r\n7,517.92 \r\n \r\n979,682.95 30,726.37 \r\n1,421,582.00 9,307.61 \r\n813,038.07 \r\n \r\n$ \r\n \r\n6,454,034.32 \r\n \r\n$ \r\n \r\n-140,107.16 \r\n \r\n31,362,303.57 \r\n \r\n$ \r\n \r\n31,222,196.41 \r\n \r\n- 3 - \r\n \r\n BLECKLEY 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\nInterest Taxes 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$ 2,341,376.07 $ 1,321,675.98 $ \r\n \r\n200,551.84 \r\n \r\n65,736.16 \r\n \r\n449.22 270,950.48 1,596,729.68 476,807.85 \r\n7,128.00 8,161.03 110,458.88 \r\n \r\n73,238.16 \r\n \r\n25.00 $ 3,663,077.05 266,288.00 \r\n449.22 344,188.64 1,596,729.68 476,807.85 \r\n7,128.00 8,161.03 110,458.88 \r\n \r\n$ 5,012,613.05 $ 1,460,650.30 $ \r\n \r\n25.00 $ 6,473,288.35 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ 252,091.20 $ 2,381,689.98 133,960.36 \r\n$ 2,767,741.54 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n0.00 $ \r\n \r\n252,091.20 2,381,689.98 \r\n133,960.36 \r\n \r\n0.00 $ 2,767,741.54 \r\n \r\n$ 110,458.88 193,176.93 $ 1,460,650.30 $ \r\n1,941,235.70 \r\n$ 2,244,871.51 $ 1,460,650.30 $ \r\n \r\n$ 25.00 \r\n \r\n110,458.88 1,653,852.23 1,941,235.70 \r\n \r\n25.00 $ 3,705,546.81 \r\n \r\n$ 5,012,613.05 $ 1,460,650.30 $ \r\n \r\n25.00 $ 6,473,288.35 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n BLECKLEY 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 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\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 Unamortized Bond Premiums Capitalized Bond and Other Debt Issuance Costs \r\nTotal Long-Term Liabilities \r\nNet Position of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 3,705,546.81 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n128,974.75 \r\n \r\n1,623,368.39 \r\n \r\n41,444,842.97 \r\n \r\n3,116,104.16 \r\n \r\n-9,969,483.25 \r\n \r\n36,607,577.02 \r\n \r\n133,960.36 \r\n \r\n$ -8,900,000.00 -78,631.25 \r\n-342,259.77 96,003.24 \r\n \r\n-9,224,887.78 \r\n \r\n$ 31,222,196.41 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n BLECKLEY 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 Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nFund Balances - Ending \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,202,592.69 30,726.37 $ \r\n13,793,048.16 3,853,942.37 350,032.15 7,157.67 813,038.07 \r\n \r\n$ 979,682.95 673,916.95 \r\n2,149.94 \r\n \r\n$ 22,050,537.48 $ 1,655,749.84 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n3,202,592.69 1,010,409.32 14,466,965.11 3,853,942.37 \r\n350,032.15 9,307.61 \r\n813,038.07 \r\n23,706,287.32 \r\n \r\n$ 13,943,152.84 \r\n \r\n$ \r\n \r\n869,723.67 356,464.24 351,429.82 533,231.18 1,282,545.66 \r\n95,720.23 $ 1,540,535.76 1,170,776.37 \r\n22,474.83 669,199.27 \r\n46,950.71 1,569,221.14 \r\n \r\n6,850.00 12,827.00 \r\n154,195.75 \r\n \r\n$ \r\n \r\n835,000.00 \r\n \r\n603.75 \r\n \r\n327,050.00 \r\n \r\n$ 22,451,425.72 $ \r\n \r\n173,872.75 $ 1,162,653.75 $ \r\n \r\n$ \r\n \r\n-400,888.24 $ 1,481,877.09 $ -1,162,653.75 $ \r\n \r\n13,943,152.84 \r\n869,723.67 356,464.24 351,429.82 533,231.18 1,282,545.66 102,570.23 1,553,362.76 1,170,776.37 \r\n22,474.83 669,199.27 \r\n46,950.71 1,569,221.14 \r\n154,195.75 \r\n835,000.00 603.75 \r\n327,050.00 \r\n23,787,952.22 \r\n-81,664.90 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ 1,006,441.24 $ \r\n \r\n$ -1,006,441.24 \r\n \r\n$ \r\n \r\n0.00 $ -1,006,441.24 \r\n \r\n1,006,441.24 $ \r\n \r\n$ \r\n \r\n-400,888.24 $ \r\n \r\n475,435.85 $ -156,212.51 $ \r\n \r\n2,645,759.75 \r\n \r\n985,214.45 \r\n \r\n156,237.51 \r\n \r\n1,006,441.24 -1,006,441.24 \r\n0.00 -81,664.90 3,787,211.71 \r\n \r\n$ 2,244,871.51 $ 1,460,650.30 $ \r\n \r\n25.00 $ \r\n \r\n3,705,546.81 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2013 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Position and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Bond Issuance Costs Amortization of Bond Premium \r\nTotal Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Position. In the current year, these amounts consist of: \r\nBond Principal Retirements \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 \r\nChange in Net Position of Governmental Activities (Exhibit \"B\") \r\n \r\n$ \r\n \r\n-81,664.90 \r\n \r\n$ 146,533.75 -1,073,192.42 \r\n \r\n-926,658.67 -2,895.37 \r\n \r\n$ \r\n \r\n-11,636.75 \r\n \r\n41,486.03 \r\n \r\n29,849.28 \r\n \r\n835,000.00 \r\n \r\n6,262.50 \r\n \r\n$ \r\n \r\n-140,107.16 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS JUNE 30, 2013 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n19,171.22 $ \r\n \r\n79,200.17 \r\n \r\nLIABILITIES Funds Held for Others \r\nNET POSITION Held in Trust for Private Purposes \r\nTotal Liabilities and Net Assets \r\n \r\n$ \r\n \r\n79,200.17 \r\n \r\n$ \r\n \r\n19,171.22 \r\n \r\n$ \r\n \r\n19,171.22 $ \r\n \r\n79,200.17 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET POSITION \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2013 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Position \r\nNet Position - Beginning \r\nNet Position - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n40.70 \r\n \r\n$ \r\n \r\n1,000.00 \r\n \r\n$ \r\n \r\n-959.30 \r\n \r\n20,130.52 \r\n \r\n$ \r\n \r\n19,171.22 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBLENDED COMPONENT UNIT \r\nThe Bleckley County School Building Authority was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the Bleckley County Board of Education. The Authority consists of five members appointed by the governing authority of the Bleckley County Board of Education. \r\nThe Bleckley County School Building Authority is a component unit of the Bleckley County Board of Education and as such the Authority's financial activity has been blended with the Bleckley County Board of Education's basic financial statements. \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 Bleckley County Board of Education. \r\nDistrict-wide Statements: \r\nThe Statement of Net Position and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: \r\nThe fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \r\n \r\n- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District reports the following 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), Georgia State Financing and Investment Commission funds, 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 types: \r\n Private Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship for female students who attend Bleckley County High School. \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, and grants. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. The School District considers all intergovernmental revenues to be available if they are collected within 120 days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, both restricted and unrestricted resources are available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The provisions of this Statement establish accounting and financial reporting standards for governments who enter into Service Concession Arrangements (SCA) with other governmental or nongovernmental entities. As of June 30, 2013, the School District has not entered into any arrangements that meet the qualifications to be reported as a SCA in accordance with this standard. \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus - An Amendment of GASB Statements No. 14 and No. 34. The provisions of this Statement modify certain requirements for inclusion of component units in the financial reporting entity. The effects of the adoption of this statement did not change the reporting of the School District's blended component unit, Bleckley County School Building Authority. There were no other applicable reporting changes for the School District. \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. The provisions of this Statement incorporate certain accounting and financial reporting guidance into authoritative GASB literature. \r\nIn fiscal year 2013, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position. The provisions of this Statement establish financial reporting standards for the presentation of deferred outflows of resources and deferred inflows of resources and their effects on a government's net position. The School District changed its presentation of net assets to net position for fiscal year 2013. There were no other applicable reporting changes for the School District. \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits \r\nCash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments \r\nInvestments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\n4. Obligations of any corporation of the United States government, \r\n \r\n5. Prime banker's acceptances, \r\n \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n \r\n7. Repurchase agreements, and \r\n \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\n \r\nRECEIVABLES \r\n \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\n \r\nPROPERTY TAXES \r\n \r\nThe Bleckley County Board of Commissioners adopted the property tax levy for the 2012 tax digest year (calendar year) on October 2, 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 Bleckley 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 $3,091,710.07. \r\n \r\nThe tax millage rate levied for the 2012 tax year (calendar year) for the Bleckley 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\n12.258 mills \r\n \r\nAdditionally, Title Ad Valorem Tax revenues, at the fund reporting level, amounted to $98,975.15 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 $979,682.95 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories \r\nOn the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCAPITAL ASSETS \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: \r\n \r\nCapitalization Policy \r\n \r\nEstimated Useful Life \r\n \r\nLand \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\nConstruction in Progress \r\n \r\nAll 5,000.00 5,000.00 5,000.00 200,000.00 All \r\n \r\nN/A 20 to 80 years 10 to 80 years \r\n5 to 50 years 5 to 10 years \r\nN/A \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 5 to 10 years. \r\nGENERAL OBLIGATION BONDS \r\nThe School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. In the District-wide financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Position. \r\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\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \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\n \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\n \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\n \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\nFund Balances of the Governmental Funds at June 30, 2013, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs $ Capital Projects Debt Service \r\nUnassigned \r\n \r\n$ \r\n \r\n110,458.88 \r\n \r\n193,176.93 533,387.80 927,287.50 \r\n \r\n1,653,852.23 1,941,235.70 \r\n \r\nFund Balance, June 30, 2013 \r\n \r\n$ 3,705,546.81 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general. 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\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. At June 30, 2013, $490,646.08 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\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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\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 $4,719,983.07. The amounts exposed to custodial credit risk are classified into three categories as follows: \r\n \r\nCategory 1 Category 2 - \r\nCategory 3 - \r\n \r\nUncollateralized, Cash collateralized with securities held by the pledging financial institution, or Cash collateralized with securities held by the pledging financial institution's trust department or agent but not in the School District's name. \r\n \r\nThe School District's deposits by custodial risk category at June 30, 2013, are as follows: \r\n \r\nCustodial Credit Risk Category \r\n \r\nBank Balance \r\n \r\n1 \r\n \r\n$ \r\n \r\n490,646.08 \r\n \r\n2 \r\n \r\n0.00 \r\n \r\n3 \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n490,646.08 \r\n \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2013, the carrying value of the School District's total investments was $65,736.16, 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, $1.00 per share. The pool is an AAAf rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2013, was 43 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 6: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2012 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2013 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n10,813.00 $ \r\n \r\n128,974.75 $ \r\n \r\n$ 10,813.00 \r\n \r\n263,770.00 128,974.75 \r\n \r\nTotal Capital Assets, Not Being Depreciated $ \r\n \r\n274,583.00 $ \r\n \r\n128,974.75 $ \r\n \r\n10,813.00 $ \r\n \r\n392,744.75 \r\n \r\nCapital Assets, Being Depreciated: Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 41,434,029.97 $ 3,098,545.16 1,623,368.39 \r\n \r\n10,813.00 $ 17,559.00 \r\n \r\n0.00 $ \r\n \r\n41,444,842.97 3,116,104.16 1,623,368.39 \r\n \r\nLess: Accumulated Depreciation: Buildings and Improvements Equipment Land Improvements \r\n \r\n6,548,832.71 1,944,870.99 \r\n402,587.13 \r\n \r\n821,107.61 206,290.81 \r\n45,794.00 \r\n \r\n7,369,940.32 2,151,161.80 \r\n448,381.13 \r\n \r\nTotal Capital Assets, Being Depreciated, Net $ 37,259,652.69 $ -1,044,820.42 $ \r\n \r\n0.00 $ 36,214,832.27 \r\n \r\nGovernmental Activity Capital Assets - Net $ 37,534,235.69 $ \r\n \r\n-915,845.67 $ \r\n \r\n10,813.00 $ 36,607,577.02 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nMaintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n$ \r\n \r\n6,141.86 \r\n \r\n138,356.26 \r\n \r\n886,808.17 \r\n144,498.12 41,886.13 \r\n \r\n$ 1,073,192.42 \r\n \r\nNOTE 7: INTERFUND TRANSFERS \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$ 1,006,441.24 \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund for the payment of bonds. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \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 has obtained commercial insurance for risk of loss associated with torts, assets, and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaims and Changes in Estimates \r\n \r\nClaims Paid \r\n \r\nEnd of Year Liability \r\n \r\n2012 $ 2013 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n6,076.62 $ 660.00 $ \r\n \r\n6,076.62 $ 660.00 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general worker's compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2 million. The Trust covers the first $1 million of each Employers liability claim with Safety National providing additional Employers Liability limits up to a $2 million per occurrence maximum. Safety National Casualty Company also provides $2 million in aggregate coverage to the Trust, attaching at 110% of the loss fund and based on the Fund's annual normal premium. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nNOTE 9: OPERATING LEASES \r\nBleckley County Board of Education has entered into various leases as lessee for copiers. 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 $7,754.58. Future minimum lease payments for these leases are as follows: \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nYear Ending \r\n2014 2015 2016 2017 2018 \r\nTotal \r\n \r\nGovernmental Funds \r\n \r\n$ \r\n \r\n9,024.36 \r\n \r\n9,024.36 \r\n \r\n7,059.05 \r\n \r\n1,505.04 \r\n \r\n1,141.32 \r\n \r\n$ \r\n \r\n27,754.13 \r\n \r\nNOTE 10: LONG-TERM DEBT \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2009 \r\n \r\n2.00% - 5.00% $ 8,900,000.00 \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\nRevenue Bonds \r\n \r\n$ 835,000.00 $ \r\n \r\nG. O. Bonds \r\n \r\n8,900,000.00 \r\n \r\nBond Premiums Amortized \r\n \r\n383,745.80 \r\n \r\n0.00 $ \r\n \r\n835,000.00 $ 41,486.03 \r\n \r\n0.00 8,900,000.00 $ \r\n342,259.77 \r\n \r\n770,000.00 41,486.03 \r\n \r\n$ 10,118,745.80 $ \r\n \r\n0.00 $ 876,486.03 $ 9,242,259.77 $ 811,486.03 \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\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\n2014 2015 2016 2017 2018 2019 - 2023 \r\n \r\n$ 770,000.00 $ 795,000.00 815,000.00 840,000.00 865,000.00 \r\n4,815,000.00 \r\n \r\n306,825.00 $ 289,187.50 267,055.00 242,200.00 215,543.75 562,743.75 \r\n \r\n41,486.03 41,486.03 41,486.03 41,486.03 41,486.03 134,829.62 \r\n \r\nTotal Principal and Interest \r\n \r\n$ 8,900,000.00 $ 1,883,555.00 $ 342,259.77 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $1,220,014.43 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,140,624.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $27,200.43 \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 $52,190.00 \r\nFunds paid to the Georgia Department of Community Health by the Georgia Department of Education on behalf of the School District are reported as part of the Quality Basic Education revenue allotments on Schedule 3  Schedule of State Revenue. \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 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 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\navailable 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$446.20 per member per month \r\n \r\nNo additional contribution was required by the Board for fiscal year 2013 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\nThe School District's combined active and retiree contributions to the health insurance plans, which equaled the required contribution, for the current fiscal year and the preceding two fiscal years were as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2013 2012 2011 \r\n \r\n100% 100% 100% \r\n \r\n$ 2,041,283.38 $ 2,235,393.68 $ 2,216,983.54 \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- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2013 \r\n \r\nEXHIBIT \"I\" \r\n \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\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\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$ 1,380,897.95 $ 1,221,460.01 $ 1,231,297.28 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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 Food Services Operation Community Services Operation \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\nVARIANCE OVER/UNDER \r\n \r\n$ 3,149,567.00 $ 3,149,567.00 $ 3,202,592.69 $ \r\n \r\n53,025.69 \r\n \r\n20,000.00 \r\n \r\n20,000.00 \r\n \r\n30,726.37 \r\n \r\n10,726.37 \r\n \r\n12,902,169.00 \r\n \r\n12,954,930.00 \r\n \r\n13,793,048.16 \r\n \r\n838,118.16 \r\n \r\n1,015,002.00 \r\n \r\n2,681,106.00 \r\n \r\n3,853,942.37 \r\n \r\n1,172,836.37 \r\n \r\n374,200.00 \r\n \r\n374,200.00 \r\n \r\n350,032.15 \r\n \r\n-24,167.85 \r\n \r\n1,100.00 \r\n \r\n1,100.00 \r\n \r\n7,157.67 \r\n \r\n6,057.67 \r\n \r\n126,300.00 \r\n \r\n126,300.00 \r\n \r\n813,038.07 \r\n \r\n686,738.07 \r\n \r\n$ 17,588,338.00 $ 19,307,203.00 $ 22,050,537.48 $ 2,743,334.48 \r\n \r\n$ 12,429,133.34 $ 14,535,519.71 $ 13,943,152.84 $ 592,366.87 \r\n \r\n497,206.07 240,569.17 369,350.60 402,829.19 1,271,491.01 \r\n97,489.21 1,538,266.82 1,230,803.25 \r\n26,232.69 18,000.00 1,367,250.00 \r\n \r\n854,615.24 443,778.13 369,350.60 561,461.19 1,323,774.09 \r\n97,489.21 1,576,255.18 1,304,814.25 \r\n26,232.69 698,480.00 1,367,800.00 \r\n \r\n869,723.67 356,464.24 351,429.82 533,231.18 1,282,545.66 \r\n95,720.23 1,540,535.76 1,170,776.37 \r\n22,474.83 669,199.27 1,569,221.14 \r\n46,950.71 \r\n \r\n-15,108.43 87,313.89 17,920.78 28,230.01 41,228.43 \r\n1,768.98 35,719.42 134,037.88 \r\n3,757.86 29,280.73 -201,421.14 -46,950.71 \r\n \r\n$ 19,488,621.35 $ 23,159,570.29 $ 22,451,425.72 $ 708,144.57 \r\n \r\n$ -1,900,283.35 $ -3,852,367.29 $ \r\n \r\n-400,888.24 $ 3,451,479.05 \r\n \r\n2,645,759.75 \r\n \r\n2,645,759.75 \r\n \r\n2,645,759.75 \r\n \r\n0.00 \r\n \r\n-8,165.48 \r\n \r\n-18,414.87 \r\n \r\n18,414.87 \r\n \r\n$ \r\n \r\n737,310.92 $ -1,225,022.41 $ 2,244,871.51 $ 3,469,893.92 \r\n \r\nNotes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual \r\n(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. The actual revenues and expenditures of the various principal accounts are $552,187.54 and $531,552.62, 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- 25 - \r\n \r\n BLECKLEY 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 U. S. Department of Agriculture \r\nEducation, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education Title I Grants to Local Educational Agencies \r\nOther Programs Direct Safe and Drug-Free Schools and Communities - National Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Rural Education Striving Readers Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Dodge County Board of Education Drug-Free Communities Support Program Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 1,603,503.61 (1) \r\n \r\n$ 1,603,503.61 \r\n \r\n84.027 84.173 \r\n \r\nN/A $ 441,935.61 \r\n \r\nN/A \r\n \r\n16,646.27 \r\n \r\n$ 458,581.88 \r\n \r\n84.010 \r\n \r\nN/A $ 690,124.82 \r\n \r\n* 84.184 \r\n84.048 84.410 84.367 84.358 84.371 84.287 \r\n \r\n$ 911,664.84 (3) \r\n \r\nN/A \r\n \r\n17,988.26 \r\n \r\nN/A \r\n \r\n1,005.00 \r\n \r\nN/A \r\n \r\n112,775.51 \r\n \r\nN/A \r\n \r\n51,647.22 \r\n \r\nN/A \r\n \r\n209,870.08 \r\n \r\nN/A \r\n \r\n223,907.17 \r\n \r\n$ 1,528,858.08 \r\n \r\n$ 2,677,564.78 \r\n \r\n93.276 \r\n \r\nN/A $ \r\n \r\n1,491.57 \r\n \r\nTotal Expenditures of Federal Awards \r\n \r\n$ 4,282,559.96 \r\n \r\nN/A = Not Available \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $158,444.39. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($268,803.75) were not maintained separately and are included in the 2013 National School Lunch Program. \r\n(3) Includes Federal Assistance of $482,149.02, provided to subrecipients. \r\n \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\n \r\nThe School District did not provide Federal Assistance to any Subrecipient. \r\n \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\n \r\n$ \r\n \r\n605,980.59 \r\n \r\n$ \r\n \r\n605,980.59 \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 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 Nursing Services Education Equalization Funding Grant Food Services State Health Pre-Fund Amount (1) Other State Programs Math and Science Supplements Move On When Ready Grant On Behalf Payments Preschool Handicapped Program Residential Treatment Centers Grant Teachers' Retirement Vocational Education \r\n \r\n880,674.00 140,288.00 1,854,568.00 157,015.00 875,189.00 126,237.00 1,574,653.00 1,486,496.00 324,028.00 2,243,662.00 467,078.00 198,304.00 125,689.00 281,232.00 \r\n85,750.00 50,798.00 \r\n507,222.00 701,850.00 617,145.00 219,281.00 -1,962,861.00 \r\n366,405.00 52,138.00 \r\n1,421,582.00 44,426.00 \r\n-1,140,624.00 \r\n11,259.15 200.00 \r\n1,140,624.00 33,369.00 36,891.76 27,200.43 52,517.98 \r\n \r\n880,674.00 140,288.00 1,854,568.00 157,015.00 875,189.00 126,237.00 1,574,653.00 1,486,496.00 324,028.00 2,243,662.00 467,078.00 198,304.00 125,689.00 281,232.00 \r\n85,750.00 50,798.00 \r\n507,222.00 701,850.00 617,145.00 219,281.00 -1,962,861.00 \r\n366,405.00 52,138.00 \r\n1,421,582.00 44,426.00 \r\n-1,140,624.00 \r\n11,259.15 200.00 \r\n1,140,624.00 33,369.00 36,891.76 27,200.43 52,517.98 \r\n \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\n \r\n$ \r\n \r\n673,916.95 \r\n \r\n673,916.95 \r\n \r\nOffice of the State Treasurer Public School Employees' Retirement \r\n \r\n52,190.00 \r\n \r\n52,190.00 \r\n \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\nOTHER Community Affairs, Georgia Department of Communities in Schools Grant \r\nGovernor's Office, State of Georgia Children and Families Abstinence Grant \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n46,152.45 \r\n \r\n$ \r\n \r\n46,152.45 \r\n \r\n25,279.89 63,157.91 \r\n \r\n25,279.89 63,157.91 \r\n \r\n$ 13,793,048.16 $ \r\n \r\n673,916.95 $ 14,466,965.11 \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 are reported separately in the schedule above, however, the payments are part of the Quality Basic Education revenue allotments for the School District. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS \r\nYEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"4\" \r\n \r\nPROJECT \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) (5) \r\n \r\nTOTAL COMPLETION \r\nCOST \r\n \r\nThe issuance of general obligation bonds in the principal \r\n \r\namount not to exceed $9,000,000.00 to pay the costs of \r\n \r\n(a) acquiring, constructing, and equipping a new Bleckley \r\n \r\nCounty Middle School, \r\n \r\n(b) renovating, improving, constructing and equipping new \r\n \r\nand existing school buildings, athletic facilities and \r\n \r\nother educational facilities, \r\n \r\n(c) the acquisition of any property, both real and personal, \r\n \r\nand equipment necessary in connection with the above \r\n \r\ndescribed capital outlay projects, together with school buses, \r\n \r\nmaintenance vehicles and equipment computers and related \r\n \r\ntechnology, textbooks, vocational, fine arts, physical \r\n \r\neducation and athletic equipment and safety and security \r\n \r\nequipment, and \r\n \r\n(d) the costs of issuance of the Bonds including capitalized \r\n \r\ninterest. \r\n \r\n$ \r\n \r\n7,000,000.00 $ \r\n \r\n$ 11,083,645.55 \r\n \r\n$ 167,022.75 \r\n \r\n9,493,942.55 58,145.00 \r\n5,235.00 355,625.00 \r\n \r\nEXCESS PROCEEDS NOT \r\nEXPENDED \r\n \r\nESTIMATED COMPLETION \r\nDATE \r\nComplete June 2012 \r\nOctober 2012 Complete \r\n \r\n$ 7,000,000.00 $ 11,083,645.55 $ 167,022.75 $ 9,912,947.55 $ \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 Bleckley 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$ 609,658.33 \r\n \r\nCurrent Year Total \r\n \r\n314,525.00 $ 924,183.33 \r\n \r\n(5) During fiscal year 2013, the Bleckley County Board of Education paid principal of $835,000.00 toward retirement of Series 2008 General Obligations Bonds. During fiscal year 2013, the Bleckley County Board of Education paid $6,850.00 for Dissemination Agent Services. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2013 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\nTOTAL QBE FORMULA FUNDS \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) (3) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n966,235.00 $ \r\n \r\n748,449.25 $ 13,763.50 $ \r\n \r\n762,212.75 \r\n \r\n144,140.00 \r\n \r\n268.74 \r\n \r\n44.40 \r\n \r\n313.14 \r\n \r\n2,051,593.00 \r\n \r\n1,988,745.75 \r\n \r\n41,526.11 \r\n \r\n2,030,271.86 \r\n \r\n174,623.00 \r\n \r\n31,769.25 \r\n \r\n111.01 \r\n \r\n31,880.26 \r\n \r\n964,078.00 \r\n \r\n1,218,404.81 \r\n \r\n26,142.71 \r\n \r\n1,244,547.52 \r\n \r\n153,328.00 1,755,218.00 1,635,937.00 \r\n358,805.00 2,456,275.00 \r\n493,963.00 233,531.00 139,739.00 \r\n \r\n69,490.71 1,840,578.73 1,890,222.25 \r\n489,761.15 \r\n145,201.88 485,571.98 1,138,082.60 \r\n10,581.67 52,317.76 368,569.52 114,384.14 178,796.28 \r\n \r\n33,669.10 85,509.87 27,990.80 \r\n787.23 846.60 764.01 \r\n5,085.43 675.20 \r\n1,900.25 \r\n \r\n69,490.71 1,874,247.83 1,975,732.12 \r\n517,751.95 \r\n145,989.11 486,418.58 1,138,846.61 \r\n10,581.67 52,317.76 373,654.95 115,059.34 180,696.53 \r\n \r\n$ \r\n \r\n11,527,465.00 $ 10,771,196.47 $ 238,816.22 $ 11,010,012.69 \r\n \r\n309,700.00 55,827.00 \r\n \r\n325,255.81 \r\n \r\n21,898.34 \r\n \r\n347,154.15 17,675.44 \r\n \r\n$ \r\n \r\n11,892,992.00 $ 11,096,452.28 $ 260,714.56 $ 11,374,842.28 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. (3) Allotments do not include the State Health payments made by GDOE to the Department of Community Health for the certified employees. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 19, 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 Bleckley 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 Bleckley 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 Bleckley County Board of Education's basic financial statements, and have issued our report thereon dated September 19, 2014. \r\nInternal Control Over Financial Reporting \r\nIn planning and performing our audit of the financial statements, we considered Bleckley 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 Bleckley County Board of Education's internal control. Accordingly, we do not express an opinion on the effectiveness of the Bleckley County Board of Education's internal control. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\n \r\n2013YB-30 \r\n \r\n  Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying Schedule of Findings and Questioned Costs as item FS-6121-13-01, that we consider to be a significant deficiency. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 Bleckley County Board of Education in a separate letter dated September 19, 2014. \r\nBleckley County Board of Education's Response to Findings \r\nBleckley County Board of Education's response to the findings identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. Bleckley County Board of Education's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. \r\nPurpose of this Report \r\nThe purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. \r\nRespectfully submitted, \r\n \r\nGSG:as 2013YB-30 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nSeptember 19, 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 Bleckley 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 Bleckley 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. Bleckley 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 Bleckley 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 Bleckley 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 Bleckley County Board of Education's compliance. \r\n2013SA-10 \r\n \r\n  Opinion on Each Major Federal Program \r\nIn our opinion, the Bleckley 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 Bleckley 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 Bleckley 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 Bleckley 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  BLECKLEY 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-6121-12-01 \r\n \r\nUnresolved - See Corrective Action/Responses \r\n \r\nCORRECTIVE ACTION/RESPONSES \r\n \r\nCASH AND CASH EQUIVALENTS Inadequate Internal Control Procedures Significant Deficiency Finding Control Number: FS-6121-12-01 \r\n \r\nWe concur with this finding. The School District has appointed an administrative staff member to assure that there is separation of duties of those who perform monthly bank reconciliations and record keeping/voucher payment functions. \r\n \r\nPRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  BLECKLEY 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; Aggregate Remaining Fund Information \r\n \r\nUnmodified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnmodified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: \r\n \r\nCFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.184 \r\n \r\nChild Nutrition Cluster Safe and Drug-Free Schools and Communities - \r\nNational Programs \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\n- 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nFS-6121-13-01 Inadequate Internal Control Procedures Control Category: Cash and Cash Equivalents Internal Control Impact: Significant Deficiency Compliance Impact: N/A \r\nDescription: This is a repeat finding (FS-6121-12-01) from the year ended June 30, 2012. The accounting procedures were insufficient to provide adequate internal control procedures over the Cash and Cash Equivalents function. \r\nCriteria: The School District's management is responsible for designing and maintaining an adequate system of internal controls to ensure that all cash accounts are supported by and reconciled to either cash on hand or bank accounts held at authorized financial institutions. \r\nCondition: Weaknesses in internal controls related to Cash and Cash Equivalents were as follows: \r\n Bank account confirmed by a bank as being reported under the School District's Federal Identification Number was not recorded on the School District's general ledger; \r\n Three bank accounts were not reconciled to the correct balance on the School District's general ledger; \r\n Not all bank reconciliations were properly approved throughout the year;  Several deposits in transit and outstanding checks were added to the June 2013 bank \r\nreconciliation for items that did not apply to cash; and  Cash and revenue were not reconciled in the Primary School Childcare account. \r\nCause: Discussion with management at the School District revealed that these deficiencies were the result of a lack of training to ensure that internal control policies and procedures were established. \r\nEffect or Potential Effect: The lack of adequate control over cash increases the risk for theft, fraud, or misuse of School District resources that may result in errors and/or irregularities which would not be detected in a timely manner. \r\nRecommendation: The School District should train staff and establish procedures to document timely and accurate reconciliations of bank statements. Additionally, management should document review that bank reconciliations are correct and make required adjustments. \r\nViews of Responsible Officials and Corrective Action Plans: We concur with this finding. The principals and school bookkeepers have been informed that the bank statements must be signed by the person reconciling and by the principal or designee. The system bookkeeper will receive a signed copy of the reconciled bank statement each month for review and for reporting to the board. The bookkeeper will have all the schools reconciled bank \r\n- 2 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2013 \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\nstatements at the end of the fiscal year which should reconcile with the principal accounts that will be booked by the system bookkeeper. We have assigned duties to assure that there is separation of those who perform monthly bank reconciliation and record keeping/voucher payment functions. \r\n \r\nContact Person: Telephone: Fax: Email: \r\n \r\nDebbie Arnold, Administrative Assistant (478) 934-2821 (478) 934-9595 darnold@bleckley.k12.ga.us \r\n \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. \r\n \r\n- 3 - \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2011-h2012-belec-p-btext","title":"Bleckley County Board of Education, Cochran, 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, 32.75042, -83.50018"],"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-bb6-b2011-h2012-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2011-h2012-belec-p-btext"],"dcterms_temporal":null,"dcterms_rights_holder":["\u0026copy; Georgia Department of Audits"],"dcterms_bibliographic_citation":null,"dlg_local_right":null,"dcterms_medium":["state government records","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 10 \r\n25 26 28 \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n30 31 \r\n \r\nSECTION II \r\nCOMPLIANCE AND INTERNAL CONTROL REPORTS \r\nINDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS \r\nINDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 \r\n \r\nSECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\nSECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\n \r\n  BLECKLEY 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\nApril 8, 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 Bleckley County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Bleckley 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 Bleckley 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 Bleckley County Board of Education, as of June 30, 2012, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\nManagement has omitted Management's Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an \r\n2012ARL-11 \r\n \r\n  essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated April 8, 2013, on our consideration of the Bleckley County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 25, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Bleckley County Board of Education's financial statements as a whole. The accompanying supplementary information consists of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the financial statements. The accompanying supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. \r\nA copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012ARL-11 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2012 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Other Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n$ 3,350,322.63 721,462.14 \r\n666.47 304,246.35 1,694,254.06 347,518.42 \r\n25,132.47 131,186.41 107,639.99 274,583.00 37,259,652.69 \r\n$ 44,216,664.63 \r\n \r\n$ \r\n \r\n324,369.86 \r\n \r\n2,326,351.65 \r\n \r\n84,893.75 \r\n \r\n876,486.03 9,242,259.77 \r\n \r\n$ 12,854,361.06 \r\n \r\n$ 27,645,001.73 \r\n309,381.04 919,893.75 136,664.46 2,351,362.59 \r\n$ 31,362,303.57 \r\n \r\n$ 44,216,664.63 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n BLECKLEY 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ 13,732,229.77 $ 12,434.25 \r\n \r\n768,694.68 351,622.67 343,786.83 536,189.25 1,167,690.71 \r\n92,313.84 1,518,371.68 1,086,314.85 \r\n10,918.61 1,001,625.47 \r\n \r\n42,855.46 1,517,303.97 \r\n306,638.97 \r\n \r\n367,340.19 \r\n \r\n$ 22,476,556.76 $ 379,774.44 \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$ 10,781,498.00 \r\n457,490.75 224,184.84 313,344.52 671,533.04 868,957.22 \r\n13,745.91 807,945.71 168,258.31 $ \r\n1,507.26 982,076.25 \r\n6,680.40 1,177,928.52 \r\n$ 16,475,150.73 $ \r\n \r\n$ 152,438.00 152,438.00 $ \r\n \r\n-2,938,297.52 \r\n-311,203.93 -127,437.83 \r\n-30,442.31 135,343.79 -298,733.49 -78,567.93 -710,425.97 -765,618.54 \r\n-9,411.35 -19,549.22 \r\n-36,175.06 27,964.74 -306,638.97 \r\n-5,469,193.59 \r\n \r\n$ 3,189,490.57 7,038.23 \r\n \r\n1,089,604.41 31,171.59 \r\n1,182,762.00 14,276.12 \r\n736,347.22 \r\n \r\n$ 6,250,690.14 \r\n \r\n$ \r\n \r\n781,496.55 \r\n \r\n30,580,807.02 \r\n \r\n$ 31,362,303.57 \r\n \r\n- 3 - \r\n \r\n BLECKLEY 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\nInterest Taxes State Government Federal Government Other Inventories \r\nTotal Assets \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 2,791,082.01 $ 559,215.62 $ \r\n \r\n25.00 $ 3,350,322.63 \r\n \r\n217,158.97 \r\n \r\n348,090.66 156,212.51 \r\n \r\n721,462.14 \r\n \r\n666.47 223,338.18 1,694,254.06 347,518.42 \r\n25,132.47 131,186.41 \r\n \r\n80,908.17 \r\n \r\n666.47 304,246.35 1,694,254.06 347,518.42 \r\n25,132.47 131,186.41 \r\n \r\n$ 5,430,336.99 $ 988,214.45 $ 156,237.51 $ 6,574,788.95 \r\n \r\nLIABILITIES AND FUND BALANCES LIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Deposits and Deferred Revenue \r\nTotal Liabilities FUND BALANCES \r\nNonspendable Restricted Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n321,369.86 $ \r\n \r\n2,326,351.65 \r\n \r\n136,855.73 \r\n \r\n$ 2,784,577.24 $ \r\n \r\n3,000.00 3,000.00 \r\n \r\n$ 324,369.86 2,326,351.65 136,855.73 \r\n$ 2,787,577.24 \r\n \r\n$ \r\n \r\n131,186.41 \r\n \r\n$ 131,186.41 \r\n \r\n178,194.63 $ 985,214.45 $ 156,237.51 \r\n \r\n1,319,646.59 \r\n \r\n2,336,378.71 \r\n \r\n2,336,378.71 \r\n \r\n$ 2,645,759.75 $ 985,214.45 $ 156,237.51 $ 3,787,211.71 \r\n \r\n$ 5,430,336.99 $ 988,214.45 $ 156,237.51 $ 6,574,788.95 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n BLECKLEY 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 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 Unamortized Bond Premiums Capitalized Bond and Other Debt Issuance Costs \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 3,787,211.71 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n10,813.00 \r\n \r\n1,623,368.39 \r\n \r\n41,434,029.97 \r\n \r\n3,098,545.16 \r\n \r\n-8,896,290.83 \r\n \r\n37,534,235.69 \r\n \r\n136,855.73 \r\n \r\n$ -9,735,000.00 -84,893.75 \r\n-383,745.80 107,639.99 \r\n \r\n-10,095,999.56 \r\n \r\n$ 31,362,303.57 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n BLECKLEY 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 Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ 3,218,013.92 31,171.59 $ \r\n13,588,278.48 4,222,072.25 379,774.44 9,953.78 736,347.22 \r\n \r\n$ 1,089,604.41 \r\n4,322.34 \r\n \r\n$ 22,185,611.68 $ 1,093,926.75 $ \r\n \r\n0.00 $ \r\n \r\n3,218,013.92 1,120,776.00 13,588,278.48 4,222,072.25 \r\n379,774.44 14,276.12 \r\n736,347.22 \r\n \r\n0.00 $ 23,279,538.43 \r\n \r\n$ 14,016,640.96 \r\n \r\n$ 14,016,640.96 \r\n \r\n768,694.68 351,622.67 343,786.83 536,189.25 1,167,690.71 \r\n77,002.09 $ 1,524,606.70 1,287,300.20 \r\n10,918.61 1,001,625.47 \r\n42,855.46 1,532,005.16 \r\n \r\n3,675.00 14,325.00 \r\n1,296,777.37 \r\n \r\n768,694.68 351,622.67 343,786.83 536,189.25 1,167,690.71 \r\n80,677.09 1,538,931.70 1,287,300.20 \r\n10,918.61 1,001,625.47 \r\n42,855.46 1,532,005.16 1,296,777.37 \r\n \r\n27,006.65 1,455.30 \r\n \r\n$ 1,000,000.00 1,050.00 \r\n354,575.00 \r\n \r\n1,027,006.65 1,050.00 \r\n356,030.30 \r\n \r\n$ 22,689,400.74 $ 1,314,777.37 $ 1,355,625.00 $ 25,359,803.11 \r\n \r\n$ -503,789.06 $ -220,850.62 $ -1,355,625.00 $ -2,080,264.68 \r\n \r\n$ 1,041,125.00 $ 1,041,125.00 \r\n \r\n$ -1,041,125.00 \r\n \r\n-1,041,125.00 \r\n \r\n$ -1,041,125.00 $ 1,041,125.00 $ \r\n \r\n0.00 \r\n \r\n$ -503,789.06 $ -1,261,975.62 $ -314,500.00 $ -2,080,264.68 \r\n \r\n3,149,548.81 \r\n \r\n2,247,190.07 \r\n \r\n470,737.51 \r\n \r\n5,867,476.39 \r\n \r\nFund Balances - Ending \r\n \r\n$ 2,645,759.75 $ 985,214.45 $ 156,237.51 $ 3,787,211.71 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n BLECKLEY 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\nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nBond Principal Retirements Capital Lease Payments Amortization of Bond Premium \r\nTotal Long-Term Debt Repayments \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 \r\n \r\n$ -2,080,264.68 \r\n \r\n$ 2,868,237.20 -1,049,346.78 \r\n \r\n1,818,890.42 \r\n \r\n-21,485.12 \r\n \r\n-11,636.75 \r\n \r\n$ 1,000,000.00 27,006.65 41,486.03 \r\n \r\n1,068,492.68 \r\n \r\n7,500.00 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 781,496.55 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 \r\n \r\nEXHIBIT \"G\" \r\n \r\nASSETS Cash and Cash Equivalents \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n20,130.52 $ \r\n \r\n55,369.95 \r\n \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\n \r\n$ \r\n \r\n55,369.95 \r\n \r\n$ \r\n \r\n20,130.52 \r\n \r\nTotal Liabilities and Net Assets \r\n \r\n$ \r\n \r\n20,130.52 $ \r\n \r\n55,369.95 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2012 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS Scholarships Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n52.10 \r\n \r\n$ \r\n \r\n500.00 \r\n \r\n$ \r\n \r\n-447.90 \r\n \r\n20,578.42 \r\n \r\n$ \r\n \r\n20,130.52 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBLENDED COMPONENT UNIT \r\nThe Bleckley County School Building Authority was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the Bleckley County Board of Education. The Authority consists of five members appointed by the governing authority of the Bleckley County Board of Education. \r\nThe Bleckley County School Building Authority is a component unit of the Bleckley County Board of Education and as such the Authority's financial activity has been blended with the Bleckley County Board of Education's basic financial statements. \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 Bleckley County Board of Education. \r\nDistrict-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the financial activities of the overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. \r\nThe Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. \r\n Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support of the School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. \r\n Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. \r\n \r\n- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST) and Bond Proceeds that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\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 types: \r\n Private Purpose Trust fund reports trust arrangements under which principal and income benefit a scholarship for female students who attend Bleckley County High School. \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes 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, 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- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCASH AND CASH EQUIVALENTS \r\nComposition of Deposits Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorizes the School District to deposit its funds in one or more solvent banks, insured Federal savings and loan associations or insured chartered building and loan associations. \r\nINVESTMENTS \r\nComposition of Investments Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interestearning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: \r\n1. Obligations issued by the State of Georgia or by other states, \r\n2. Obligations issued by the United States government, \r\n3. Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n4. Obligations of any corporation of the United States government, \r\n5. Prime banker's acceptances, \r\n6. The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n7. Repurchase agreements, and \r\n8. Obligations of other political subdivisions of the State of Georgia. \r\nThe School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration of credit risks, interest rate risks or foreign currency risks. \r\nRECEIVABLES \r\nReceivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. \r\nPROPERTY TAXES \r\nThe Bleckley County Board of Commissioners fixed the property tax levy for the 2011 tax digest year (calendar year) on October 6, 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 Bleckley County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues, at the fund reporting level, during the fiscal year ended June 30, 2012, for maintenance and operations amounted to $3,200,285.67. \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe tax millage rate levied for the 2011 tax year (calendar year) for the Bleckley 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\n12.258 m ills \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,089,604.41 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\nINVENTORIES \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. \r\nCAPITAL ASSETS \r\n \r\nCapital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. \r\n \r\nCapitalization thresholds and estimated useful lives of capital assets reported in the District-wide \r\n \r\nstatements are as follows: \r\n \r\nC a pita liz atio n \r\n \r\nEstim ated \r\n \r\nPolicy \r\n \r\nUseful Life \r\n \r\nLand Land Im provem ents Buildings and Im provem ents Equipm ent Intangible Assets Construction in Progress \r\n \r\nAll \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n$ \r\n \r\n5 ,0 0 0 .0 0 \r\n \r\n$ 200,000.00 \r\n \r\nAll \r\n \r\nN/A 20 to 80 years 10 to 80 years \r\n5 to 50 years 5 to 10 years \r\nN/A \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 5 to 10 years. \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. \r\nNET ASSETS \r\nThe School District's net assets in the District-wide Statements are classified as follows: \r\nInvested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net of outstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. \r\nRestricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for continuation of Federal Programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nUnassigned \r\n \r\n$ \r\n \r\n131,186.41 \r\n \r\n$ \r\n \r\n178,194.63 \r\n \r\n136,664.46 \r\n \r\n1,004,787.50 \r\n \r\n1,319,646.59 2,336,378.71 \r\n \r\nFund Balance, June 30, 2012 \r\n \r\n$ 3,787,211.71 \r\n \r\nWhen multiple categories of fund balance are available for expenditure, the School District will start with the most restricted category and spend those funds first before moving down to the next category with available funds. \r\nUSE OF ESTIMATES \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\nNOTE 3: BUDGETARY DATA \r\nThe budget is a complete financial plan for the School District's fiscal year, and is based upon careful estimates of expenditures together with probable funding sources. The budget is legally adopted each year for the general fund. There is no statutory prohibition regarding over expenditure of the budget at any level. The budget for all governmental funds is prepared and adopted by the Bleckley County Board of Education. 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 BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 4: DEPOSITS AND INVESTMENTS \r\nCOLLATERALIZATION OF DEPOSITS \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\nAcceptable security for deposits consists of any one of or any combination of the following: \r\n1. Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, \r\n2. Insurance on accounts provided by the Federal Deposit Insurance Corporation, \r\n3. Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, \r\n4. Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, \r\n5. Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, \r\n6. Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and \r\n7. Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by or securities guaranteed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. \r\nCATEGORIZATION OF DEPOSITS \r\nCustodial credit risk is the risk that in the event of a bank failure, the School District's deposits may not be returned to it. At June 30, 2012, the bank balances were $4,767,046.73. The bank balances were entirely covered by Federal depository insurance. or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2012, the carrying value of the School District's total investments was $504,746.41, 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\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2012, was 48 days. \r\nNOTE 5: NON-MONETARY TRANSACTIONS \r\n \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNOTE 6: CAPITAL ASSETS \r\n \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernm ental Activities Capital Assets, Not B eing Depreciated: \r\nLand Construction Work In Progress \r\n \r\nBalances July 1, 2011 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2012 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n$ \r\n \r\n1,013,983.68 $ 2,705,901.20 $ 3,709,071.88 \r\n \r\n263,770.00 10,813.00 \r\n \r\nTotal Capital Assets, Not B eing Depreciated $ 1,277,753.68 $ 2,705,901.20 $ 3,709,071.88 $ \r\n \r\n274,583.00 \r\n \r\nCapital Assets, B eing Depreciated: B uildings and Improvem ents Equipment Land Improvements \r\n \r\n$ 37,724,958.09 $ 3,024,768.04 1,623,368.39 \r\n \r\n3,709,071.88 162,336.00 $ \r\n \r\n$ 88,558.88 \r\n \r\n41,434,029.97 3,098,545.16 1,623,368.39 \r\n \r\nLess: Accumulated Depreciation: B uildings and Improvem ents Equipment Land Improvements \r\n \r\n5,765,356.47 1,819,353.33 \r\n350,793.13 \r\n \r\n783,476.24 214,076.54 \r\n51,794.00 \r\n \r\n88,558.88 \r\n \r\n6,548,832.71 1,944,870.99 \r\n402,587.13 \r\n \r\nTotal Capital Assets, B eing Depreciated, Net $ 34,437,591.59 $ 2,822,061.10 $ \r\n \r\n0.00 $ 37,259,652.69 \r\n \r\nGovernmental Activity Capital Assets - Net $ 35,715,345.27 $ 5,527,962.30 $ 3,709,071.88 $ 37,534,235.69 \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nIn s tru c tio n Support Services \r\nM aintenance and Operation of Plant $ Student Transportation Services Food Services \r\n \r\n$ \r\n5 ,8 2 4 .7 3 1 4 4 ,9 3 7 .2 3 \r\n \r\n$ \r\n \r\n8 5 4 ,6 9 4 .6 9 \r\n1 5 0 ,7 6 1 .9 6 4 3 ,8 9 0 .1 3 \r\n1 ,0 4 9 ,3 4 6 .7 8 \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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 p ital Pro je c ts \r\n \r\nDebt Service Fund \r\n \r\n$ 1,041,125.00 \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund as funding for principal and interest payments of the bonds. \r\nNOTE 8: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets, and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as follows: \r\n \r\nBeginning of Year Liability \r\n \r\nClaim s and Changes in Estim ates \r\n \r\nClaim s Paid \r\n \r\nEnd of Year Liability \r\n \r\n2011 \r\n \r\n$ \r\n \r\n2012 \r\n \r\n$ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n23,100.00 $ 6,076.62 $ \r\n \r\n23,100.00 $ 6,076.62 $ \r\n \r\n0 .0 0 0 .0 0 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general worker's compensation insurance coverage. Specific excess of loss insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1 million loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided with limits of $2 million. The Trust covers the first $1 million of each Employers liability claim with Safety National providing additional Employers Liability limits up to a $2 million per occurrence maximum. Safety National Casualty Company also provides aggregate cover to the Trust with a loss fund percentage of 100%, based on the Fund's annual normal premium, up to a maximum limit of indemnity of aggregate limit of $2 million. \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAm ount \r\n \r\nSu p e rin te n d e n t All Em ployees \r\n \r\n$ \r\n \r\n5 0 ,0 0 0 .00 \r\n \r\n$ \r\n \r\n1 0 0 ,0 0 0 .00 \r\n \r\nNOTE 9: OPERATING LEASES \r\n \r\nBleckley County Board of Education has entered into various leases as lessee for copiers. 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 $6,152.99. Future minimum lease payments for these leases are as follows: \r\n \r\nYear Ending \r\n \r\nGovernm ental Funds \r\n \r\n2013 2014 2015 2016 \r\n \r\n$ \r\n \r\n7 ,5 1 9 .3 2 \r\n \r\n7 ,5 1 9 .3 2 \r\n \r\n7 ,5 1 9 .3 2 \r\n \r\n5 ,7 8 4 .1 7 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n2 8 ,3 4 2 .1 3 \r\n \r\nNOTE 10: LONG-TERM DEBT REVENUE BONDS \r\n \r\nThe Bleckley County Board of Education entered into a contract with the Bleckley County School Building Authority (Authority), dated November 25, 2008, for the issuance of revenue bonds to provide funds to acquire, construct and equip capital outlay projects of the School District. Under the terms of the contract, the Authority issued $3,400,000.00 (less issuance costs of $91,810.24) in revenue bonds on behalf of the School District. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \r\n \r\nThe debt at June 30, 2012, associated with this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nBleckley County School Building Authority \r\n \r\n3.0% \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\n$ \r\n \r\n835,000.00 \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2009 \r\n \r\n2.00% - 5.00% \r\n \r\n$ 8,900,000.00 \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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\nCapital Leases \r\n \r\n$ \r\n \r\nRevenue Bonds \r\n \r\nG. O. Bonds \r\n \r\nB ond Premiums Amortized \r\n \r\n27,006.65 $ 1,835,000.00 8,900,000.00 \r\n425,231.83 \r\n \r\n0.00 $ \r\n \r\n27,006.65 $ 1,000,000.00 \r\n41,486.03 \r\n \r\n0.00 835,000.00 $ 8,900,000.00 383,745.80 \r\n \r\n835,000.00 41,486.03 \r\n \r\n$ 11,187,238.48 $ \r\n \r\n0.00 $ 1,068,492.68 $ 10,118,745.80 $ \r\n \r\n876,486.03 \r\n \r\nAt June 30, 2012, payments due by fiscal year which includes principal and interest for these items \r\n \r\nare as follows: \r\n \r\nRevenue Bonds \r\n \r\nPrincipal \r\n \r\nI n te r e st \r\n \r\nFiscal Year Ended June 30: \r\n \r\n2013 \r\n \r\n$ 835,000.00 $ \r\n \r\n12,525.00 \r\n \r\nFiscal Year Ended June 30: \r\n2013 2014 2015 2016 2017 2018 - 2022 2023 - 2027 \r\nTotal Principal and Interest \r\n \r\nGeneral Obligation Debt \r\n \r\nPrincipal \r\n \r\nI n te r e st \r\n \r\nU namortized Bond Premium \r\n \r\n$ $ 770,000.00 \r\n795,000.00 815,000.00 865,000.00 3,615,000.00 2,040,000.00 \r\n \r\n314,525.00 $ 306,825.00 289,187.50 267,055.00 229,600.00 687,887.50 103,000.00 \r\n \r\n41,486.03 41,486.03 41,486.03 41,486.03 41,486.03 165,944.13 10,371.52 \r\n \r\n$ 8,900,000.00 $ 2,198,080.00 $ 383,745.80 \r\n \r\nNOTE 11: ON-BEHALF PAYMENTS \r\nThe School District has recognized revenues and costs in the amount of $1,729,054.34 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Certificated Personnel In the amount of $1,672,093.00 \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $23,299.34 \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 $33,662.00 \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNOTE 12: SIGNIFICANT CONTINGENT LIABILITIES \r\nAmounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. \r\nThe School District is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the basic financial statements. \r\nNOTE 13: POST-EMPLOYMENT BENEFITS \r\nGEORGIA SCHOOL PERSONNEL POST-EMPLOYMENT HEALTH BENEFIT FUND \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. For members with fewer than five years of service as of January 1, 2012, contributions also vary based on years of service. On average, members with five years or more of service as of January 1, 2012, pay approximately 25 percent of the cost of the health insurance coverage. In accordance with the Board resolution dated December 8, 2011, for members with fewer than five years of service as of January 1, 2012, the State provides a premium subsidy in retirement that ranges from 0% for fewer than 10 years of service to 75% (but no greater than the subsidy percentage offered to active employees) for 30 or more years of service. The subsidy for eligible dependents ranges from 0% to 55% (but no greater than the subsidy percentage offered to dependents of active employees minus 20%). No subsidy is available to Medicare eligible members not enrolled in a Medicare Advantage Option. The Board of Community Health sets all member premiums by resolution and in accordance with the law and applicable revenue and expense projections. Any subsidy policy adopted by the Board may be changed at any time by Board resolution and does not constitute a contract or promise of any amount of subsidy. \r\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\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \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, 2012: \r\nFor certificated teachers, librarians and regional educational service agencies and certain other eligible 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\n2 ,2 3 5,3 9 3.6 8 \r\n \r\n$ \r\n \r\n2 ,2 1 6,9 8 3.5 4 \r\n \r\n$ \r\n \r\n2 ,0 6 2,9 1 5.4 9 \r\n \r\nNOTE 14: RETIREMENT PLANS \r\nTEACHERS' RETIREMENT SYSTEM OF GEORGIA (TRS) \r\nPlan Description. The TRS is a cost-sharing multiple-employer defined benefit plan created in 1943 by an act of the Georgia General Assembly to provide retirement benefits for qualifying employees in educational service. A Board of Trustees comprised of active and retired members and ex-officio State employees is ultimately responsible for the administration of TRS. The Teachers' Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\n \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2012 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\n \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 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\n1 ,2 2 1,4 6 0.0 1 \r\n \r\n$ \r\n \r\n1 ,2 3 1,2 9 7.2 8 \r\n \r\n$ \r\n \r\n1 ,2 6 9,2 2 0.9 6 \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\nBus drivers, lunchroom personnel, and maintenance and custodial personnel are members of the Public School Employees' Retirement System of Georgia. The System is funded by contributions by the employees and by the State of Georgia. The School District makes no contribution to this plan. \r\n \r\n- 23 - \r\n \r\n (This page left intentionally blank) \r\n \r\n BLECKLEY 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 Community Services Operations Debt Service \r\nTotal Expenditures \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$ 3,149,696.00 \r\n12,476,748.00 1,118,677.00 355,500.00 2,900.00 141,800.00 \r\n \r\n3,149,696.00 $ \r\n12,476,748.00 1,118,677.00 355,500.00 2,900.00 141,800.00 \r\n \r\n3,218,013.92 $ 31,171.59 \r\n13,588,278.48 4,222,072.25 379,774.44 9,953.78 736,347.22 \r\n \r\n68,317.92 31,171.59 1,111,530.48 3,103,395.25 24,274.44 \r\n7,053.78 594,547.22 \r\n \r\n$ 17,245,321.00 $ 17,245,321.00 $ 22,185,611.68 $ 4,940,290.68 \r\n \r\n$ 12,159,710.23 $ 12,159,710.23 $ 14,016,640.96 $ -1,856,930.73 \r\n \r\n509,320.39 279,763.11 350,748.61 350,545.13 1,248,002.40 \r\n90,001.50 1,445,988.81 1,109,784.98 \r\n23,308.84 27,510.00 1,344,950.00 \r\n \r\n509,320.39 279,763.11 350,748.61 350,545.13 1,248,002.40 \r\n90,001.50 1,445,988.81 1,109,784.98 \r\n23,308.84 27,510.00 1,344,950.00 \r\n \r\n768,694.68 351,622.67 343,786.83 536,189.25 1,167,690.71 \r\n77,002.09 1,524,606.70 1,287,300.20 \r\n10,918.61 1,001,625.47 1,532,005.16 \r\n42,855.46 28,461.95 \r\n \r\n-259,374.29 -71,859.56 6,961.78 \r\n-185,644.12 80,311.69 12,999.41 -78,617.89 \r\n-177,515.22 12,390.23 \r\n-974,115.47 -187,055.16 \r\n-42,855.46 -28,461.95 \r\n \r\n$ 18,939,634.00 $ 18,939,634.00 $ 22,689,400.74 $ -3,749,766.74 \r\n \r\n$ -1,694,313.00 $ -1,694,313.00 $ -503,789.06 $ 1,190,523.94 \r\n \r\n3,149,548.81 \r\n \r\n3,149,548.81 \r\n \r\n3,149,548.81 \r\n \r\n0.00 \r\n \r\n$ 1,455,235.81 $ 1,455,235.81 $ 2,645,759.75 $ 1,190,523.94 \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 budget revenues or expenditures of the various principal accounts. Expenditures for the fiscal year amounted to $476,345.57 and $501,663.07 of revenue was recognized. \r\nThe accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 25 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"2\" \r\n \r\nFUNDING AGENCY PROGRAM/GRANT \r\nAgriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program \r\nTotal Child Nutrition Cluster \r\nOther Programs Pass-Through From Georgia Department of Education Food Services Fresh Fruit and Vegetable Program \r\nTotal U. S. Department of Agriculture \r\nEducation, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Title I, Part A Cluster \r\nOther Programs Direct Safe and Drug-Free Schools and Communities - National Programs Pass-Through From Georgia Department of Education Career and Technical Education - Basic Grants to States Education Jobs Fund Improving Teacher Quality State Grants Rural Education Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Dodge County Board of Education Drug-Free Communities Support Program Grant \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) 1,481,070.03 (1) \r\n1,481,070.03 \r\n \r\n10.582 \r\n \r\nN/A $ \r\n \r\n33,751.34 1,514,821.37 \r\n \r\n84.391 84.027 84.173 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\nN/A \r\n \r\n$ \r\n \r\n7,040.22 533,179.02 \r\n24,901.00 \r\n565,120.24 \r\n \r\n* 84.389 * 84.010 \r\n \r\nN/A \r\n \r\n$ \r\n \r\nN/A \r\n \r\n$ \r\n \r\n1,517.73 735,094.88 \r\n736,612.61 \r\n \r\n84.184 \r\n84.048 84.410 84.367 84.358 * 84.287 \r\n \r\n$ \r\nN/A N/A N/A N/A N/A \r\n$ \r\n$ \r\n \r\n1,279,724.51 (3) \r\n17,274.71 6,212.00 \r\n108,969.13 58,773.39 \r\n306,687.91 \r\n1,777,641.65 \r\n3,079,374.50 \r\n \r\n93.276 \r\n \r\nN/A \r\n \r\n$ \r\n \r\n8,148.50 \r\n \r\nTotal Expenditures of Federal Awards N/A = Not Available \r\n \r\n$ \r\n \r\n4,602,344.37 \r\n \r\n- 26 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"2\" \r\n \r\nNotes to the Schedule of Expenditures of Federal Awards \r\n(1) Includes the Federally assigned value of donated commodities for the Food Donation Program in the amount of $120,646.06. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($259,610.04) were not maintained separately and are included in the 2012 National School Lunch Program. \r\n(3) Includes Federal Assistance of $799,642.50, provided to subrecipients. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services 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 Pupil Transportation - State Bonds Residential Treatment Centers Grant Teachers' Retirement Virtual Schools Grant \r\nOffice of the State Treasurer Public School Employees Retirement \r\n- 28 - \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n602,274.62 \r\n \r\n734,805.00 54,625.00 \r\n1,653,297.00 132,227.00 753,614.00 179,500.00 24,241.00 \r\n1,456,226.80 1,271,013.00 \r\n281,706.00 \r\n1,833,235.00 290,941.00 262,826.00 115,780.00 \r\n249,489.00 76,323.00 51,861.00 \r\n430,979.00 609,285.00 635,420.00 \r\n361,081.00 51,494.00 \r\n1,182,762.00 42,024.00 64,041.40 \r\n-1,980,541.00 \r\n18,621.00 1,672,093.00 \r\n3,289.17 33,107.00 152,438.00 100,493.00 23,299.34 \r\n225.00 \r\n33,662.00 \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2012 \r\nAGENCY/FUNDING CONTRACT Human Resources, Georgia Department of Family Connection OTHER Community Affairs, Georgia Department of Communities in Schools Governor's Office, State of Georgia Children and Families Abstinence Grant \r\n \r\nSCHEDULE \"3\" \r\n \r\nGOVERNMENTAL FUND TYPE GENERAL FUND \r\n \r\n$ \r\n \r\n43,994.01 \r\n \r\n16,000.00 70,527.14 \r\n \r\n$ 13,588,278.48 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n BLECKLEY 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\nAcquiring, constructing, equipping and furnishing new school buildings and facilities useful and desirable, including a new middle school and physical education/athletic facilities; adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable, including physical \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n0.00 September 2012 \r\n \r\neducation/athletic facilities; \r\n \r\n$ \r\n \r\n17,275.00 $ \r\n \r\n17,275.00 \r\n \r\nSeptember 2012 \r\n \r\nacquiring technology and safety improvements; \r\n \r\n12,515.12 \r\n \r\n12,515.12 \r\n \r\nJune 2012 \r\n \r\nacquiring land; \r\n \r\nacquiring any property useful or desirable, both real and personal. \r\n \r\n$ 6,000,000.00 $ 10,214,345.93 \r\n \r\n10,184,555.81 10,184,555.81 \r\n \r\nJune 2012 \r\n \r\n$ 6,000,000.00 $ 10,214,345.93 $ \r\n \r\n0.00 $ 10,214,345.93 $ 10,214,345.93 $ \r\n \r\n0.00 \r\n \r\nThe issuance of general obligation bonds in the principal amount not to exceed $9,000,000.00 to pay the costs of \r\n \r\n(a) acquiring, constructing, and equipping at new Bleckley County Middle School, \r\n \r\n$ 1,296,777.37 $ 8,197,165.18 \r\n \r\nJune 2012 \r\n \r\n(b) renovating, improving, constructing, and equipping new and existing school buildings, athletic facilities and other educational facilities, \r\n \r\n14,325.00 \r\n \r\n43,820.00 \r\n \r\nJune 2012 \r\n \r\n(c) the acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, together with school buses, maintenance vehicles and equipment, computers and related technology, textbooks, vocational, fine arts, physical education and athletic equipment and safety and security equipment, and \r\n \r\n5,235.00 \r\n \r\nOctober 2012 \r\n \r\n(d) the costs of issuance of the Bonds including capitalized interest. \r\n \r\n355,625.00 \r\n \r\n$ 7,000,000.00 $ 10,916,622.55 \r\n \r\n$ 7,000,000.00 $ 10,916,622.55 $ 1,666,727.37 $ 8,246,220.18 \r\n \r\n$ 13,000,000.00 $ 21,130,968.48 $ 1,666,727.37 $ 18,460,566.11 \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 Bleckley 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$ 609,658.33 \r\n \r\nCurrent Year \r\n \r\n0.00 \r\n \r\nTotal \r\n \r\n$ 609,658.33 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 30 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2012 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n813,480.00 \r\n \r\n70,602.00 \r\n \r\n1,816,932.00 \r\n \r\n159,219.00 \r\n \r\n832,873.00 \r\n \r\n205,852.00 \r\n \r\n23,960.00 1,598,777.00 1,409,190.00 \r\n324,249.00 2,041,120.00 \r\n \r\n319,443.00 279,233.00 127,399.00 \r\n$ 10,022,329.00 \r\n275,970.00 57,424.00 \r\n \r\n786,164.90 475.22 \r\n1,949,351.68 43,868.67 \r\n1,243,260.55 75,282.22 \r\n1,850,138.08 1,936,880.09 \r\n448,437.14 \r\n138,091.43 243,067.65 1,223,114.33 \r\n77,478.41 100,325.24 328,037.61 \r\n85,244.22 157,669.73 \r\n10,686,887.17 \r\n314,045.51 \r\n \r\n15,118.86 60.73 \r\n50,577.12 178.00 \r\n18,740.80 43.62 \r\n12,793.66 38,757.16 112,054.68 \r\n7,797.87 \r\n1,188.34 897.27 986.53 \r\n2,421.75 804.00 \r\n1,689.52 \r\n264,109.91 \r\n25,995.24 \r\n \r\n801,283.76 535.95 \r\n1,999,928.80 44,046.67 \r\n1,262,001.35 75,325.84 \r\n12,793.66 1,888,895.24 2,048,934.77 \r\n456,235.01 \r\n139,279.77 243,964.92 1,224,100.86 \r\n77,478.41 100,325.24 330,459.36 \r\n86,048.22 159,359.25 \r\n10,950,997.08 \r\n340,040.75 18,149.97 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 10,355,723.00 11,000,932.68 \r\n \r\n290,105.15 \r\n \r\n11,309,187.80 \r\n \r\n(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n  SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 8, 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 Bleckley 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 Bleckley County Board of Education as of and for the year ended June 30, 2012, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated April 8, 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 Bleckley County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Bleckley 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 Bleckley County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Bleckley County Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\n \r\n2012YB-30 \r\n \r\n  Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. However, we consider item FS-6121-12-01 described in the accompanying Schedule of Findings and Questioned Costs to be a significant deficiency in internal control over financial reporting. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 Bleckley County Board of Education in a separate letter dated April 8, 2013. \r\nBleckley 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 Bleckley 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 Bleckley County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012YB-30 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nApril 8, 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 Bleckley 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 Bleckley 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. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 Bleckley 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 Bleckley County Board of Education's compliance with those requirements. \r\nIn our opinion, the Bleckley 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 Bleckley 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 Bleckley 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 Bleckley 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 Bleckley County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2012SA-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2012 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nI SUMMARY OF AUDITOR'S RESULTS \r\n \r\nFinancial Statements \r\n \r\nType of auditor's report issue: Governmental Activities; General Fund; Capital Projects Fund; Debt Service Fund; Aggregate Remaining Fund Information \r\n \r\nUnqualified \r\n \r\nInternal control over financial reporting: \r\n \r\n Material weakness identified? \r\n \r\nNo \r\n \r\n Significant deficiency identified? \r\n \r\nYes \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnqualified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.010, 84.389 84.287 \r\n \r\nChild Nutrition Cluster Title I, Part A Cluster Twenty-First Century Community Learning Centers \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nCASH AND CASH EQUIVALENTS Inadequate Internal Control Procedures Significant Deficiency Finding Control Number: FS-6121-12-01 \r\n \r\nCondition: The accounting procedures were insufficient to provide adequate internal control procedures over the Cash and Cash Equivalents function. \r\n \r\n- 1 - \r\n \r\n BLECKLEY 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: The School District's management is responsible for designing and maintaining an adequate system of internal controls to ensure all cash accounts are supported by and reconciled to either cash on hand or bank accounts held at authorized financial institutions. \r\nQuestioned Cost: N/A \r\nInformation: Weaknesses noted in internal controls related to Cash and Cash Equivalents were as follows: \r\n Bank accounts confirmed by a bank as being reported under the School District's Federal Identification Number were not recorded on the School District's general ledger. \r\n A bank account was not reconciled to the correct balance on the School District's general ledger. \r\n Controls were not operating effectively to ensure all bank reconciliations were properly approved throughout the year. \r\n The School District incorrectly applied cash disbursements for items that should have been recorded as accounts payable at year end causing an understatement of cash and liabilities at June 30, 2012. \r\nCause: These deficiencies were the result of management's failure to ensure internal control procedures were established, implemented and functioning as intended with regard to Cash and Cash Equivalents. \r\nEffect: The lack of adequate control over cash increases the risk for theft, fraud, or misuse of School District resources that may result in errors and/or irregularities which would not be detected in a timely manner. \r\nRecommendation: The School District should establish procedures to ensure bank reconciliations are completed and administrative reviews are performed. In addition, management should determine bank reconciliations are correct and required adjustments are made. \r\nIII FEDERAL AWARD FINDINGS AND QUESTIONED COSTS \r\nNo matters were reported. \r\n- 2 - \r\n \r\n SECTION V MANAGEMENT'S RESPONSES \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES \r\nYEAR ENDED JUNE 30, 2012 \r\n \r\nFinding Control Number: FS-6121-12-01 \r\n \r\nWe concur with this finding. The School District has appointed an administrative staff member to assure that there is separation of those who perform monthly bank reconciliation and record keeping/voucher payment functions. These changes will be implemented by March 29, 2013. \r\n \r\nContact Person: Telephone: Fax: Email: \r\n \r\nDebbie Arnold, Financial Administrator (478) 934-2821, Ext. 1002 (478) 934-9595 darnold@bleckley.k12.ga.us \r\n \r\n "},{"id":"dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2010-h2011-belec-p-btext","title":"Bleckley County Board of Education, Cochran, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)","collection_id":"dlg_ggpd","collection_title":"Georgia Government Publications","dcterms_contributor":["Georgia. Department of Audits and Accounts, issuing body."],"dcterms_spatial":["United States, Georgia, 32.75042, -83.50018"],"dcterms_creator":["Georgia. Department of Audits and Accounts"],"dc_date":["2011-06-30"],"dcterms_description":["Began with fiscal year ended June 30, 2009.","Report year covers fiscal year.","Fiscal year ended June 30, 2014 (online surrogate) (received 6/27/16 via FTP from Georgia Dept. of Audits and Accounts); title from PDF cover (Georgia Government Publications database, viewed September 16, 2022).","Fiscal year ended June 30, 2020 (online surrogate) ((Georgia Government Publications database, viewed September 16, 2022)."],"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":["Bleckley County Board of Education--Appropriations and expenditures--Periodicals.","Bleckley County (Ga.). Board of Education","Education--Georgia--Bleckley County--Auditing--Periodicals.","Education--Georgia--Bleckley County--Finance--Statistics--Periodicals.","Education--Auditing","Education--Finance","Expenditures, Public","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Georgia Government Documents--Serial"],"dcterms_title":["Bleckley County Board of Education, Cochran, Georgia, annual financial report for the fiscal year ended June 30, 2011 (including independent auditor's reports)"],"dcterms_type":["Text"],"dcterms_provenance":["University of Georgia. Map and Government Information Library"],"edm_is_shown_by":["https://dlg.galileo.usg.edu/do:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-b2010-h2011-belec-p-btext"],"edm_is_shown_at":["https://dlg.galileo.usg.edu/id:dlg_ggpd_y-ga-ba800-b-pr1-be26-bb6-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","official reports","audits","financial statements","financial records"],"dcterms_extent":null,"dlg_subject_personal":null,"iiif_manifest_url_ss":null,"dcterms_subject_fast":["Bleckley County Board of Education--fast","Education--Auditing--fast","Education--Finance--fast","Expenditures, Public--fast","Georgia--Bleckley County--fast--https://id.oclc.org/worldcat/entity/E39PBJc7X4dJvY6vcK8HGp9qwC","Periodicals--fast","Statistics--fast"],"fulltext":"BLECKLEY COUNTY BOARD OF EDUCATION \r\nCOCHRAN, GEORGIA \r\nANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 \r\n(Including Independent Auditor's Reports) \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\n \r\nFINANCIAL \r\n \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\n \r\nEXHIBITS \r\n \r\nBASIC FINANCIAL STATEMENTS \r\n \r\nDISTRICT-WIDE FINANCIAL STATEMENTS \r\n \r\nA \r\n \r\nSTATEMENT OF NET ASSETS \r\n \r\nB \r\n \r\nSTATEMENT OF ACTIVITIES \r\n \r\nFUND FINANCIAL STATEMENTS \r\n \r\nC \r\n \r\nBALANCE SHEET \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nD \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\n \r\nTO THE STATEMENT OF NET ASSETS \r\n \r\nE \r\n \r\nSTATEMENT OF REVENUES, EXPENDITURES AND CHANGES \r\n \r\nIN FUND BALANCES \r\n \r\nGOVERNMENTAL FUNDS \r\n \r\nF \r\n \r\nRECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT \r\n \r\nOF REVENUES, EXPENDITURES AND CHANGES IN FUND \r\n \r\nBALANCES TO THE STATEMENT OF ACTIVITIES \r\n \r\nG \r\n \r\nSTATEMENT OF FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nH \r\n \r\nSTATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\n \r\nFIDUCIARY FUNDS \r\n \r\nI \r\n \r\nNOTES TO THE BASIC FINANCIAL STATEMENTS \r\n \r\nSCHEDULES \r\n \r\nREQUIRED SUPPLEMENTARY INFORMATION \r\n \r\n1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND \r\n \r\nSUPPLEMENTARY INFORMATION \r\n \r\n2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 3 SCHEDULE OF STATE REVENUE \r\n \r\nPage \r\n1 2 4 5 6 7 8 9 10 \r\n27 28 30 \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - \r\n \r\nSECTION I \r\nFINANCIAL \r\nSCHEDULES \r\nSUPPLEMENTARY INFORMATION \r\n4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES \r\nGENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM \r\n \r\nPage \r\n32 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  SECTION I FINANCIAL \r\n \r\n  Russell W. Hinton \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 19, 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 Bleckley County Board of Education \r\nINDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nLadies and Gentlemen: \r\nWe have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Bleckley 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 Bleckley 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 Bleckley County Board of Education, as of June 30, 2011, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. \r\n \r\n2011ARL-11 \r\n \r\n  The Bleckley County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. \r\nIn accordance with Government Auditing Standards, we have also issued our report dated July 19, 2012, on our consideration of the Bleckley County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. \r\nThe Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. \r\nOur audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Bleckley 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  BLECKLEY COUNTY BOARD OF EDUCATION \r\n \r\n  BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2011 \r\nASSETS \r\nCash and Cash Equivalents Investments Accounts Receivable, Net \r\nInterest Taxes State Government Federal Government Local Other Inventories Deferred Charges Capital Assets, Non-Depreciable Capital Assets, Depreciable (Net of Accumulated Depreciation) \r\nTotal Assets \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Interest Payable Retainages Payable Long-Term Liabilities \r\nDue Within One Year Due in More Than One Year \r\nTotal Liabilities \r\nNET ASSETS \r\nInvested in Capital Assets, Net of Related Debt Restricted for \r\nContinuation of Federal Programs Debt Service Capital Projects Unrestricted \r\nTotal Net Assets \r\nTotal Liabilities and Net Assets \r\n \r\nEXHIBIT \"A\" \r\n \r\nGOVERNMENTAL ACTIVITIES \r\n \r\n$ \r\n \r\n4,057,922.49 \r\n \r\n3,298,068.14 \r\n \r\n1,093.94 347,087.49 1,660,332.78 560,583.60 \r\n10,158.95 131,490.63 \r\n95,046.98 119,276.74 1,277,753.68 34,437,591.59 \r\n \r\n$ \r\n \r\n45,996,407.01 \r\n \r\n$ \r\n \r\n382,173.07 \r\n \r\n2,323,577.49 \r\n \r\n92,393.75 \r\n \r\n1,430,217.20 \r\n \r\n1,068,492.68 10,118,745.80 \r\n \r\n$ \r\n \r\n15,415,599.99 \r\n \r\n$ \r\n \r\n24,786,633.41 \r\n \r\n283,746.72 1,092,393.75 1,504,125.30 2,913,907.84 \r\n \r\n$ \r\n \r\n30,580,807.02 \r\n \r\n$ \r\n \r\n45,996,407.01 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 1 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES \r\nFOR THE YEAR ENDED JUNE 30, 2011 \r\n \r\nGOVERNMENTAL ACTIVITIES \r\nInstruction Support Services \r\nPupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services 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 Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Capital Projects Other Sales Tax Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous \r\nTotal General Revenues \r\nChange in Net Assets \r\nNet Assets - Beginning of Year \r\nNet Assets - End of Year \r\n \r\nEXPENSES \r\n \r\nCHARGES FOR SERVICES \r\n \r\n$ \r\n \r\n14,858,130.21 $ \r\n \r\n820,641.83 296,641.41 334,138.28 656,541.37 1,285,758.38 119,314.80 1,411,456.19 1,221,872.79 \r\n10,810.21 1,041,439.37 \r\n \r\n43,572.38 1,713,740.83 \r\n382,813.49 \r\n \r\n$ \r\n \r\n24,196,871.54 $ \r\n \r\n14,704.37 \r\n345,634.29 360,338.66 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 2 - \r\n \r\n EXHIBIT \"B\" \r\n \r\nPROGRAM REVENUES OPERATING GRANTS AND \r\nCONTRIBUTIONS \r\n \r\nCAPITAL GRANTS AND CONTRIBUTIONS \r\n \r\nNET (EXPENSES) REVENUES \r\nAND CHANGES IN NET ASSETS \r\n \r\n$ \r\n \r\n12,445,475.01 $ \r\n \r\n409,819.15 157,501.95 311,564.38 858,837.45 839,290.89 \r\n7,964.00 742,303.09 \r\n76,647.82 62.96 \r\n982,905.04 \r\n \r\n300.50 1,264,257.97 \r\n \r\n$ \r\n \r\n18,096,930.21 $ \r\n \r\n181,310.91 $ \r\n1,908.54 76,292.00 \r\n7,634.15 267,145.60 $ \r\n \r\n-2,216,639.92 \r\n-410,822.68 -139,139.46 \r\n-22,573.90 202,296.08 -446,467.49 -111,350.80 -667,244.56 -1,068,932.97 -10,747.25 -58,534.33 \r\n-43,271.88 -96,214.42 -382,813.49 \r\n-5,472,457.07 \r\n \r\n$ \r\n \r\n3,156,244.42 \r\n \r\n7,469.03 \r\n \r\n1,052,969.31 30,587.24 \r\n1,492,901.00 37,887.41 \r\n778,160.29 \r\n \r\n$ \r\n \r\n6,556,218.70 \r\n \r\n$ \r\n \r\n1,083,761.63 \r\n \r\n29,497,045.39 \r\n \r\n$ \r\n \r\n30,580,807.02 \r\n \r\n- 3 - \r\n \r\n BLECKLEY 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\nInterest Taxes 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$ 3,055,369.28 $ 1,002,553.21 \r\n \r\n$ 4,057,922.49 \r\n \r\n214,907.58 2,612,423.05 $ 470,737.51 \r\n \r\n3,298,068.14 \r\n \r\n1,093.94 246,921.72 1,660,332.78 560,583.60 \r\n10,158.95 131,490.63 \r\n95,046.98 \r\n \r\n100,165.77 \r\n \r\n1,093.94 347,087.49 1,660,332.78 560,583.60 \r\n10,158.95 131,490.63 \r\n95,046.98 \r\n \r\n$ 5,975,905.46 $ 3,715,142.03 $ 470,737.51 $ 10,161,785.00 \r\n \r\nLIABILITIES AND FUND BALANCES \r\nLIABILITIES \r\nAccounts Payable Salaries and Benefits Payable Retainages Payable Deposits and Deferred Revenue \r\nTotal Liabilities \r\nFUND BALANCES \r\nNonspendable Restricted Assigned Unassigned \r\nTotal Fund Balances \r\nTotal Liabilities and Fund Balances \r\n \r\n$ \r\n \r\n344,438.31 $ 37,734.76 \r\n \r\n2,323,577.49 \r\n \r\n1,430,217.20 \r\n \r\n158,340.85 \r\n \r\n$ 2,826,356.65 $ 1,467,951.96 \r\n \r\n$ 382,173.07 2,323,577.49 1,430,217.20 158,340.85 \r\n$ 4,294,308.61 \r\n \r\n$ \r\n \r\n95,046.98 \r\n \r\n$ \r\n \r\n95,046.98 \r\n \r\n188,699.74 $ 2,247,190.07 $ 470,737.51 \r\n \r\n2,906,627.32 \r\n \r\n1,190,806.97 \r\n \r\n1,190,806.97 \r\n \r\n1,674,995.12 \r\n \r\n1,674,995.12 \r\n \r\n$ 3,149,548.81 $ 2,247,190.07 $ 470,737.51 $ 5,867,476.39 \r\n \r\n$ 5,975,905.46 $ 3,715,142.03 $ 470,737.51 $ 10,161,785.00 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 4 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET \r\nTO THE STATEMENT OF NET ASSETS JUNE 30, 2011 \r\n \r\nEXHIBIT \"D\" \r\n \r\nTotal Fund Balances - Governmental Funds (Exhibit \"C\") \r\nAmounts reported for Governmental Activities in the Statement of Net Assets are different because: \r\nCapital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: \r\nLand Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation \r\nTotal Capital Assets \r\nTaxes that are not available to pay for current period expenditures are deferred in the funds. \r\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 Capital Leases Payable Unamortized Bond Premiums Capitalized Bond and Other Debt Issuance Costs \r\nTotal Long-Term Liabilities \r\nNet Assets of Governmental Activities (Exhibit \"A\") \r\n \r\n$ 5,867,476.39 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n1,013,983.68 \r\n \r\n1,623,368.39 \r\n \r\n37,724,958.09 \r\n \r\n3,024,768.04 \r\n \r\n-7,935,502.93 \r\n \r\n35,715,345.27 \r\n \r\n158,340.85 \r\n \r\n$ -10,735,000.00 -92,393.75 -27,006.65 \r\n-425,231.83 119,276.74 \r\n \r\n-11,160,355.49 \r\n \r\n$ 30,580,807.02 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 5 - \r\n \r\n BLECKLEY 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 Dues and Fees Interest \r\nTotal Expenditures \r\nExcess of Revenues over (under) Expenditures \r\nOTHER FINANCING SOURCES (USES) \r\nTransfers In Transfers Out \r\nTotal Other Financing Sources (Uses) \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\n \r\nGENERAL FUND \r\n \r\nDISTRICTWIDE \r\nCAPITAL PROJECTS \r\nFUND \r\n \r\nDEBT SERVICE \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n3,201,727.51 \r\n \r\n$ \r\n \r\n30,587.24 $ 1,052,969.31 \r\n \r\n14,357,539.18 \r\n \r\n190,853.60 \r\n \r\n5,308,584.03 \r\n \r\n360,338.66 \r\n \r\n20,944.90 \r\n \r\n16,942.51 \r\n \r\n734,340.29 \r\n \r\n43,820.00 \r\n \r\n$ \r\n \r\n24,014,061.81 $ 1,304,585.42 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n3,201,727.51 1,083,556.55 14,548,392.78 5,308,584.03 \r\n360,338.66 37,887.41 \r\n778,160.29 \r\n25,318,647.23 \r\n \r\n$ \r\n \r\n13,708,680.80 $ \r\n \r\n12,265.10 \r\n \r\n$ 13,720,945.90 \r\n \r\n820,641.83 296,641.41 334,138.28 656,541.37 1,284,308.36 106,628.05 1,401,016.53 1,047,526.53 \r\n10,810.21 1,041,439.37 \r\n43,572.38 1,707,656.33 \r\n \r\n1,450.02 4,035.00 \r\n6,242,215.41 \r\n \r\n820,641.83 296,641.41 334,138.28 656,541.37 1,285,758.38 106,628.05 1,405,051.53 1,047,526.53 \r\n10,810.21 1,041,439.37 \r\n43,572.38 1,707,656.33 6,242,215.41 \r\n \r\n89,561.31 6,000.99 \r\n \r\n$ \r\n \r\n965,000.00 \r\n \r\n1,050.00 \r\n \r\n384,050.00 \r\n \r\n1,054,561.31 1,050.00 \r\n390,050.99 \r\n \r\n$ \r\n \r\n22,555,163.75 $ 6,259,965.53 $ 1,350,100.00 $ 30,165,229.28 \r\n \r\n$ \r\n \r\n1,458,898.06 $ -4,955,380.11 $ -1,350,100.00 $ -4,846,582.05 \r\n \r\n$ $ -1,034,525.00 \r\n \r\n1,034,525.00 $ \r\n \r\n1,034,525.00 -1,034,525.00 \r\n \r\n$ -1,034,525.00 $ 1,034,525.00 $ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n1,458,898.06 $ -5,989,905.11 $ \r\n \r\n-315,575.00 $ -4,846,582.05 \r\n \r\n1,690,650.75 \r\n \r\n8,237,095.18 \r\n \r\n786,312.51 \r\n \r\n10,714,058.44 \r\n \r\nFund Balances - Ending \r\n \r\n$ \r\n \r\n3,149,548.81 $ 2,247,190.07 $ \r\n \r\n470,737.51 $ \r\n \r\n5,867,476.39 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 6 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF \r\nREVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2011 \r\n \r\nEXHIBIT \"F\" \r\n \r\nTotal Net Change in Fund Balances - Governmental Funds (Exhibit \"E\") \r\nAmounts reported for Governmental Activities in the Statement of Activities are different because: \r\nCapital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: \r\nCapital Outlay Depreciation Expense \r\nExcess of Capital Outlay over Depreciation Expense \r\nTaxes reported in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. \r\nThe net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, donations, and disposals) is to decrease net assets. \r\nBond issuance costs, deferred gains on refundings and similar items when debt is first issued are reported as an expenditure in Governmental Funds, but are reported as deferred charges on the Statement of Net Assets and amortized over the term of the debt, using the straight-line method. The details of this difference in the current period are as follows: \r\nAmortization of Bond Issuance Costs \r\nRepayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: \r\nBond Principal Retirements Capital Lease Payments Amortization of Bond Premium \r\nTotal Long-Term Debt Repayments \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 \r\n \r\n$ -4,846,582.05 \r\n \r\n$ 5,865,377.37 -855,010.60 \r\n \r\n5,010,366.77 \r\n \r\n-38,014.06 \r\n \r\n-133,657.12 \r\n \r\n-11,636.75 \r\n \r\n$ 965,000.00 89,561.31 41,486.03 \r\n \r\n1,096,047.34 \r\n \r\n7,237.50 \r\n \r\nChange in Net Assets of Governmental Activities (Exhibit \"B\") \r\n \r\n$ 1,083,761.63 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 7 - \r\n \r\n ASSETS Cash and Cash Equivalents \r\n \r\nBLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\nEXHIBIT \"G\" \r\nAGENCY FUNDS \r\n \r\n$ \r\n \r\n20,578.42 $ \r\n \r\n38,077.11 \r\n \r\nLIABILITIES Funds Held for Others \r\nNET ASSETS Held in Trust for Private Purposes \r\n \r\n$ \r\n \r\n38,077.11 \r\n \r\n$ \r\n \r\n20,578.42 \r\n \r\nTotal Liabilities and Net Assets \r\n \r\n$ \r\n \r\n20,578.42 $ \r\n \r\n38,077.11 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 8 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS \r\nFIDUCIARY FUNDS YEAR ENDED JUNE 30, 2011 \r\nADDITIONS Investment Earnings Interest \r\nDEDUCTIONS None Change in Net Assets \r\nNet Assets - Beginning \r\nNet Assets - Ending \r\n \r\nEXHIBIT \"H\" \r\n \r\nPRIVATE PURPOSE TRUSTS \r\n \r\n$ \r\n \r\n89.45 \r\n \r\n$ \r\n \r\n0.00 \r\n \r\n$ \r\n \r\n89.45 \r\n \r\n20,488.97 \r\n \r\n$ \r\n \r\n20,578.42 \r\n \r\nThe notes to the basic financial statements are an integral part of this statement. - 9 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY \r\nREPORTING ENTITY \r\nThe Bleckley County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. \r\nBlended Component Unit The Bleckley County School Building Authority was created by House Bill 1312 during the 2008 session of the Georgia General Assembly. The purpose of the Authority is to provide, acquire, construct, equip, maintain, and operate public service facilities, to acquire the necessary property therefore, both real and personal, and to lease or sell any or all of such facilities, including real and personal property for the benefit of the Bleckley County School District. The Authority consists of five members appointed by the governing authority of the Bleckley County School District. \r\nThe Bleckley County School Building Authority is a component unit of the Bleckley County Board of Education and as such the Authority's financial activity has been blended with the Bleckley County Board of Education's basic financial statements. \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 Bleckley 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\n \r\n- 10 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nFund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting of internal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. \r\nThe School District reports the following major governmental funds: \r\n General Fund is the School District's primary operating fund. It accounts for and reports all financial resources not accounted for and reported in another fund. \r\n District-wide Capital Projects Fund accounts for and reports financial resources including Special Purpose Local Option Sales Tax (SPLOST), Bond Proceeds and grants from Georgia State Financing and Investment Commission that are restricted, committed or assigned to the expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. \r\n Debt Service Fund accounts for and reports financial resources that are restricted, committed, or assigned including taxes (sales) legally restricted for the payment of general long-term principal and interest. \r\nThe School District reports the following fiduciary fund types: \r\n Private Purpose Trust funds report trust arrangements under which principal and income may be expended to provide scholarships for female students who attend Bleckley County High School. \r\n Agency funds account for assets held by the School District as an agent for various funds, governments or individuals. \r\nBASIS OF ACCOUNTING \r\nThe basis of accounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. \r\nThe School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. \r\n \r\n- 11 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nGovernmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. \r\nThe School District funds certain programs by a combination of specific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. \r\nThe State of Georgia reimburses the School System for teachers' salaries and operating costs through the Quality Basic Education Formula Earnings program (QBE). Generally teachers are contracted for the school year (July 1  June 30) and paid over a twelve month contract period, generally September 1 through August 31. In accordance with the respective rules and regulations of the QBE program, the State of Georgia reimburses the School System over the same twelve month period in which teachers are paid. At June 30, the amount of teachers' salaries incurred but not paid until July and August of the subsequent year are accrued. Since the State of Georgia recognizes its QBE liability for the July and August salaries at June 30, the School System recognizes the same QBE as a receivable and revenue, consistent with symmetrical recognition. \r\nNEW ACCOUNTING PRONOUNCEMENTS \r\nIn fiscal year 2011, the School District adopted the Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The provisions of this Statement establish accounting and financial reporting standards for all governments that report governmental funds. It establishes criteria for classifying fund balances into specifically defined classifications and clarifies definitions for governmental funds. \r\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 \r\n \r\n- 12 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nselecting 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\n(1) Obligations issued by the State of Georgia or by other states, \r\n \r\n(2) Obligations issued by the United States government, \r\n \r\n(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, \r\n \r\n(4) Obligations of any corporation of the United States government, \r\n \r\n(5) Prime banker's acceptances, \r\n \r\n(6) The Georgia Fund 1 administered by the State of Georgia, Office of the State Treasurer, \r\n \r\n(7) Repurchase agreements, and \r\n \r\n(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 Bleckley County Board of Commissioners fixed the property tax levy for the 2010 tax digest year (calendar year) on September 16, 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 Bleckley 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 $3,194,258.48. \r\n \r\nThe tax millage rate levied for the 2010 tax year (calendar year) for the Bleckley County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): \r\n \r\nSchool Operations \r\n \r\n11.50 mills \r\n \r\n- 13 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nSALES TAXES \r\n \r\nSpecial Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $1,052,969.31 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. \r\n \r\nINVENTORIES \r\n \r\nFood Inventories On the basic financial statements, inventories of donated food commodities used in the preparation of meals are reported at their Federally assigned value and purchased foods inventories are reported 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 Intangible Assets Construction in Progress \r\n \r\nAll $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 200,000.00 \r\nAll \r\n \r\nN/A 20 to 80 years 10 to 80 years \r\n5 to 50 years 5 to 10 years \r\nN/A \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 5 to 10 years. \r\n \r\n- 14 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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. Bond issuance costs are reported as deferred charges and amortized over the term of the debt. \r\nIn the fund financial statements, the School District recognizes bond premiums and discounts, as well as bond issuance costs during the fiscal year bonds are issued. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 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 bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. \r\nUnrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. \r\nFUND BALANCES \r\nThe School District's fund balances are classified as follows: \r\nNonspendable  Amounts that cannot be spent either because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. \r\nRestricted  Constraints are placed on the use of resources are either (1) externally imposed conditions by creditors, grantors, contributors, or laws and regulations of other governments or (2) imposed by law through constitutional provisions or enabling legislation. \r\nCommitted  Amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the Board of Education. The Board of Education is the School District's highest level of decision-making authority, and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board. Committed fund balance also should incorporate contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. \r\n \r\n- 15 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nAssigned  Amounts that are constrained by the School District's intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (1) the Board of Education or (2) the budget or finance committee, or the Superintendent, or designee, to assign amounts to be used for specific purposes. \r\n \r\nUnassigned  The residual classification for the General Fund. This classification represents fund balances that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. \r\n \r\nFund Balances of the Governmental Funds at June 30, 2011, are as follows: \r\n \r\nNonspendable Inventories \r\nRestricted Continuation of Federal Programs Capital Projects Debt Service \r\nAssigned Subsequent Period Expenditures \r\nUnassigned \r\n \r\n$ \r\n$ 188,699.74 1,533,140.08 1,184,787.50 \r\n \r\n95,046.98 \r\n2,906,627.32 1,190,806.97 1,674,995.12 \r\n \r\nFund Balance, June 30, 2011 \r\n \r\n$ \r\n \r\n5,867,476.39 \r\n \r\nThe Bleckley County Board of Education recognizes that the maintenance of a fund balance is essential to the preservation of the financial integrity of the District and is fiscally advantageous for both the District and its taxpayers. This policy establishes goals and provides guidance concerning the desired level of fund balance maintained by the District to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. The School District also seeks to maintain the highest possible credit ratings which are dependent, in part, on the School District's maintenance of an adequate fund balance. \r\n \r\nUSE OF ESTIMATES \r\n \r\nThe preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. \r\n \r\nNote 3: DEPOSITS AND INVESTMENTS \r\n \r\nCOLLATERALIZATION OF DEPOSITS \r\n \r\nOfficial Code of Georgia Annotated (O.C.G.A.) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. If a depository elects the pooled method (O.C.G.A. Section 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. \r\n \r\n- 16 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \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. At June 30, 2011, the bank balances were $5,033,313.14. The bank balances were entirely covered by Federal depository insurance or collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. \r\nCATEGORIZATION OF INVESTMENTS \r\nAt June 30, 2011, the carrying value of the School District's total investments was $3,083,160.56, which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Fund 1, formerly referred to as LGIP, administered by the State of Georgia, Office of the State Treasurer which is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of the State Treasurer for the Georgia Fund 1 (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. Additional information on the Georgia Fund 1 is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at www.audits.ga.gov/SGD/CAFR.html. \r\nThe Primary Liquidity Portfolio consists of Georgia Fund 1 which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2011, was 59 days. \r\n \r\n- 17 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 4: NON-MONETARY TRANSACTIONS \r\nThe School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 2 - Inventories \r\nNote 5: CAPITAL ASSETS \r\nThe following is a summary of changes in the Capital Assets during the fiscal year: \r\n \r\nGovernmental Activities Capital Assets, Not Being Depreciated: \r\nLand Construction in Progress \r\n \r\nBalances June 30, 2010 \r\n \r\nIncreases \r\n \r\nDecreases \r\n \r\nBalances June 30, 2011 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n$ \r\n \r\n263,770.00 \r\n \r\n9,589,713.58 $ 5,813,660.10 $ 14,389,390.00 \r\n \r\n1,013,983.68 \r\n \r\nTotal Capital Assets Not Being Depreciated \r\nCapital Assets Being Depreciated Buildings and Improvements Equipment Land Improvements \r\n \r\n$ 9,853,483.58 $ 5,813,660.10 $ 14,389,390.00 $ 1,277,753.68 \r\n \r\n$ 24,433,176.10 $ 14,024,781.99 $ \r\n \r\n2,689,696.21 \r\n \r\n416,325.28 \r\n \r\n1,623,368.39 \r\n \r\n733,000.00 $ 81,253.45 \r\n \r\n37,724,958.09 3,024,768.04 1,623,368.39 \r\n \r\nLess Accumulated Depreciation For: Buildings and Improvements Equipment Land Improvements \r\n \r\n5,769,671.82 1,689,417.71 \r\n301,999.13 \r\n \r\n607,034.65 199,181.95 \r\n48,794.00 \r\n \r\n611,350.00 69,246.33 \r\n \r\n5,765,356.47 1,819,353.33 \r\n350,793.13 \r\n \r\nTotal Capital Assets Being Depreciated, Net \r\n \r\n$ 20,985,152.04 $ 13,586,096.67 $ \r\n \r\n133,657.12 $ 34,437,591.59 \r\n \r\nGovernmental Activity Capital Assets - Net \r\n \r\n$ 30,838,635.62 $ 19,399,756.77 $ 14,523,047.12 $ 35,715,345.27 \r\n \r\nCapital assets being acquired under capital leases as of June 30, 2011, are as follows: \r\n \r\nGovernmental Funds \r\n \r\nEquipment Less: Accumulated Depreciation \r\n \r\n$ \r\n \r\n77,269.00 \r\n \r\n11,590.35 \r\n \r\n$ \r\n \r\n65,678.65 \r\n \r\n- 18 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nCurrent year depreciation expense by function is as follows: \r\n \r\nInstruction Support Services \r\nMaintenance and Operation of Plant Student Transportation Services Food Services \r\n \r\n$ \r\n \r\n$ \r\n \r\n5,824.73 \r\n \r\n143,534.70 \r\n \r\n670,528.42 \r\n149,359.43 35,122.75 \r\n \r\nNote 6: INTERFUND TRANSFERS \r\n \r\n$ \r\n \r\n855,010.60 \r\n \r\nInterfund transfers for the year ended June 30, 2011, consisted of the following: \r\n \r\nTransfer to \r\n \r\nTransfers From \r\nDistrict-wide Capital Projects \r\n \r\nDebt Service Fund \r\n \r\n$ 1,034,525.00 \r\n \r\nTransfers are used to move sales tax revenues collected by the District-wide Capital Projects Fund to the Debt Service Fund as funding for principal and interest payments of bonds. \r\n \r\nNote 7: RISK MANAGEMENT \r\n \r\nThe School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. \r\n \r\nThe School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. \r\n \r\nThe School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years. \r\n \r\nThe School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. \r\n \r\n- 19 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nChanges in the unemployment compensation claims liability during the last two fiscal years are as \r\n \r\nfollows: \r\n \r\nClaims and \r\n \r\nBeginning of Year \r\n \r\nChanges in \r\n \r\nClaims \r\n \r\nEnd of Year \r\n \r\nLiability \r\n \r\nEstimates \r\n \r\nPaid \r\n \r\nLiability \r\n \r\n2010 $ 2011 $ \r\n \r\n0.00 $ 0.00 $ \r\n \r\n19,006.00 $ 23,100.00 $ \r\n \r\n19,006.00 $ 23,100.00 $ \r\n \r\n0.00 0.00 \r\n \r\nThe School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the Safety National Casualty Company to provide coverage for potential losses sustained by the Trust in excess of $1,000,000.00 loss per occurrence, up to the statutory limit. Employers' Liability insurance coverage is also provided by Safety National Casualty Company with a loss fund percentage of 100%, based on the Fund's annual normal premium, up to a maximum limit of indemnity of aggregate limit of $2,000,000.00. \r\n \r\nThe School District has purchased surety bonds to provide additional insurance coverage as follows: \r\n \r\nPosition Covered \r\n \r\nAmount \r\n \r\nSuperintendent All Employees \r\nNote 8: OPERATING LEASES \r\n \r\n$ \r\n \r\n50,000.00 \r\n \r\n$ \r\n \r\n100,000.00 \r\n \r\nBleckley County Board of Education has entered into various leases as lessee for copiers. These \r\n \r\nleases are considered for accounting purposes to be operating leases. Lease expenditures for the \r\n \r\nyear ended June 30, 2011, for governmental funds amounted to $17,981.20. Future minimum \r\n \r\nlease payments for these leases are as follows: \r\n \r\nGovernmental \r\n \r\nYear Ending \r\n \r\nFunds \r\n \r\n2012 2013 2014 2015 2016 \r\n \r\n$ \r\n \r\n11,318.40 \r\n \r\n4,833.28 \r\n \r\n3,876.00 \r\n \r\n3,876.00 \r\n \r\n2,584.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n26,487.68 \r\n \r\nNote 9: LONG-TERM DEBT \r\n \r\nCAPITAL LEASES \r\n \r\nThe Bleckley County Board of Education entered into various lease agreements for the purchase of school buses. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. \r\n \r\n- 20 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nREVENUE BONDS \r\nThe Bleckley County Board of Education entered into a contract with the Bleckley County School Building Authority (Authority), dated November 25, 2008, for the issuance of revenue bonds to provide funds to acquire, construct and equip capital outlay projects of the School District. Under the terms of the contract, the Authority issued $3,400,000.00 (less issuance costs of $91,810.24) in revenue bonds on behalf of the School District. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the School District will exercise its power of taxation to the extent necessary to pay the amounts required to be paid by the contract. \r\nThe debt at June 30, 2011, associated with this agreement is as follows: \r\n \r\nPurpose \r\n \r\nInterest Rate \r\n \r\nAmount \r\n \r\nBleckley County School Building Authority \r\n \r\n3.0% \r\n \r\nGENERAL OBLIGATION DEBT OUTSTANDING \r\n \r\nGeneral Obligation Bonds currently outstanding are as follows: \r\n \r\n$ 1,835,000.00 \r\n \r\nPurpose \r\n \r\nInterest Rates \r\n \r\nAmount \r\n \r\nGeneral Government - Series 2009 \r\n \r\n2.00% - 5.00% \r\n \r\n$ 8,900,000.00 \r\n \r\nThe changes in Long-Term Debt during the fiscal year ended June 30, 2011, were as follows: \r\n \r\nGovernmental Funds \r\n \r\nBalance July 1, 2010 \r\n \r\nAdditions \r\n \r\nDeductions \r\n \r\nBalance June 30, 2011 \r\n \r\nDue Within One Year \r\n \r\nCapital Leases Revenue Bonds General Obligation Bonds Bond Premium Amortized \r\n \r\n$ \r\n \r\n116,567.96 $ \r\n \r\n2,800,000.00 \r\n \r\n8,900,000.00 \r\n \r\n466,717.86 \r\n \r\n0.00 $ \r\n \r\n89,561.31 $ 965,000.00 \r\n41,486.03 \r\n \r\n27,006.65 $ 1,835,000.00 8,900,000.00 \r\n425,231.83 \r\n \r\n27,006.65 1,000,000.00 \r\n41,486.03 \r\n \r\n$ 12,283,285.82 $ \r\n \r\n0.00 $ 1,096,047.34 $ 11,187,238.48 $ 1,068,492.68 \r\n \r\n- 21 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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\nCapital Leases \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\nRevenue Bonds \r\n \r\nPrincipal \r\n \r\nInterest \r\n \r\n2012 2013 \r\n \r\n$ \r\n \r\n27,006.65 $ \r\n \r\n1,455.30 $ \r\n \r\n1,000,000.00 $ 835,000.00 \r\n \r\n40,050.00 12,525.00 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n27,006.65 $ \r\n \r\n1,455.30 $ \r\n \r\n1,835,000.00 $ \r\n \r\n52,575.00 \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\nBond Premium \r\n \r\n2012 2013 2014 2015 2016 2017 - 2021 2022 - 2023 \r\n \r\n$ \r\n \r\n$ \r\n \r\n770,000.00 \r\n \r\n795,000.00 \r\n \r\n815,000.00 \r\n \r\n4,480,000.00 \r\n \r\n2,040,000.00 \r\n \r\n314,525.00 $ 314,525.00 306,825.00 289,187.50 267,025.00 917,487.50 103,000.00 \r\n \r\n41,486.03 41,486.03 41,486.03 41,486.03 41,486.03 207,430.16 10,371.52 \r\n \r\nTotal Principal and Interest \r\n \r\n$ \r\n \r\n8,900,000.00 $ \r\n \r\n2,512,575.00 $ \r\n \r\n425,231.83 \r\n \r\nNote 10: ON-BEHALF PAYMENTS \r\n \r\nThe School District has recognized revenues and costs in the amount of $77,244.56 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. \r\n \r\nGeorgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certificated Personnel In the amount of $39,917.16 \r\n \r\nPaid to the Teachers' Retirement System of Georgia For Teachers' Retirement System (TRS) Employer's Cost In the amount of $21,793.40 \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 $15,534.00 \r\n \r\n- 22 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nNote 11: SIGNIFICANT COMMITMENTS \r\n \r\nThe following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2011, together with funding available: \r\n \r\nProject \r\n \r\nUnearned Executed Contracts \r\n \r\nFunding Available From State \r\n \r\nBleckley County Middle School \r\n \r\n$ \r\n \r\n1,386,043.00 $ \r\n \r\n673,894.80 \r\n \r\nThe amounts described in this note are not reflected in the basic financial statements. \r\n \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\n \r\nNote 13: POST-EMPLOYMENT BENEFITS \r\nGeorgia School Personnel Post-employment Health Benefit Fund \r\nPlan Description. The Georgia School Personnel Post-employment Health Benefit Fund (School OPEB Fund) is a cost-sharing multiple-employer defined benefit post-employment healthcare plan that covers eligible former employees of public school systems, libraries and regional educational service agencies. The School OPEB Fund provides health insurance benefits to eligible former employees and their qualified beneficiaries through the State Employees Health Benefit Plan administered by the Department of Community Health. The Official Code of Georgia Annotated (O.C.G.A.) assigns the authority to establish and amend the benefit provisions of the group health plans, including benefits for retirees, to the Board of Community Health (Board). The Department of Community Health, which includes the School OPEB Fund, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. \r\nFunding Policy. The contribution requirements of plan members and participating employers are established by the Board in accordance with the current Appropriations Act and may be amended by the Board. Contributions of plan members or beneficiaries receiving benefits vary based on plan election, dependent coverage, and Medicare eligibility and election. On average, plan members pay approximately 25 percent of the cost of the 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\n- 23 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \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, 2011: \r\n \r\nFor certificated teachers, librarians and regional educational service agencies: \r\n \r\nJuly 2010 - April 2011 May 2011 - June 2011 \r\n \r\n21.955% of covered payroll for August - May Coverage 1.429% of covered payroll for June - July Coverage \r\n \r\nFor non-certificated school personnel: \r\n \r\nJuly 2010 - December 2010 January 2011 - May 2011 June 2011 \r\n \r\n$162.72 per member per month $218.20 per member per month $246.20 per member per month \r\n \r\nThe Department of Education was appropriated an additional $25,081,633 for non-certificated personnel health insurance payments. The amount attributable to the School District is reflected in the On-behalf note disclosure. \r\n \r\nNo additional contribution was required by the Board for fiscal year 2011 nor contributed to the School OPEB Fund to prefund retiree benefits. Such additional contribution amounts are determined annually by the Board in accordance with the School plan for other post-employment benefits and are subject to appropriation. \r\n \r\nThe School District's combined active and retiree contributions to the health insurance plans, which \r\n \r\nequaled the required contribution, for the current fiscal year and the preceding two fiscal years were \r\n \r\nas follows: \r\n \r\nPercentage \r\n \r\nRequired \r\n \r\nFiscal Year \r\n \r\nContributed \r\n \r\nContribution \r\n \r\n2011 2010 2009 \r\nNote 14: RETIREMENT PLANS \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n2,216,983.54 2,062,915.49 1,563,115.70 \r\n \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\nOn October 25, 1996, the Board created the Supplemental Retirement Benefits Plan of the Georgia Teachers' Retirement System (SRBP-TRS). SRBP-TRS was established as a qualified excess benefit plan in accordance with Section 415 of the Internal Revenue Code (IRC) as a portion of TRS. The purpose of SRBP-TRS is to provide retirement benefits to employees covered by TRS whose benefits are otherwise limited by IRC Section 415. Beginning July 1, 1997, all members and retired former members in TRS are eligible to participate in the SRBP-TRS whenever their benefits under TRS exceed the IRC Section 415 imposed limitation on benefits. \r\n \r\n- 24 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS \r\nJUNE 30, 2011 \r\n \r\nEXHIBIT \"I\" \r\n \r\nTRS provides service retirement, disability retirement, and survivor's benefits. The benefit structure of TRS is defined and may be amended by State statute. A member is eligible for normal service retirement after 30 years of creditable service, regardless of age, or after 10 years of service and attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. \r\nNormal retirement (pension) benefits paid to members are equal to 2% of the average of the member's two highest paid consecutive years of service, multiplied by the number of years of creditable service up to 40 years. Early retirement benefits are reduced by the lesser of one-twelfth of 7% for each month the member is below age 60 or by 7% for each year or fraction thereof by which the member has less than 30 years of service. It is also assumed that certain cost-of-living adjustments, based on the Consumer Price Index, will be made in future years. Retirement benefits are payable monthly for life. A member may elect to receive a partial lump-sum distribution in addition to a reduced monthly retirement benefit. Death, disability and spousal benefits are also available. \r\nFunding Policy. TRS is funded by member and employer contributions as adopted and amended by the Board of Trustees. Members become fully vested after 10 years of service. If a member terminates with less than 10 years of service, no vesting of employer contributions occurs, but the member's contributions may be refunded with interest. Member contributions are limited by State law to not less than 5% or more than 6% of a member's earnable compensation. Member contributions as adopted by the Board of Trustees for the fiscal year ended June 30, 2011, were 5.53% of annual salary. The member contribution rate will increase to 6.00% effective July 1, 2012. Employer contributions required for fiscal year 2011 were 10.28% of annual salary as required by the June 30, 2008, actuarial valuation. The employer contribution rate will increase to 11.41% effective July 1, 2012. \r\nEmployer contributions for the current fiscal year and the preceding two fiscal years are as follows: \r\n \r\nFiscal Year \r\n \r\nPercentage Contributed \r\n \r\nRequired Contribution \r\n \r\n2011 2010 2009 \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\n100% \r\n \r\n$ \r\n \r\nPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM (PSERS) \r\n \r\n1,231,297.28 1,269,220.96 1,197,442.65 \r\n \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 BLECKLEY 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 Community Services Food Services Operation \r\nDebt Service \r\nTotal Expenditures \r\nNet Change in Fund Balances \r\nFund Balances - Beginning \r\nAdjustments \r\nFund Balances - Ending \r\n \r\nNONAPPROPRIATED BUDGETS \r\n \r\nORIGINAL (1) \r\n \r\nFINAL (1) \r\n \r\nACTUAL AMOUNTS \r\n \r\n$ \r\n \r\n3,146,102.00 $ \r\n \r\n3,146,102.00 $ \r\n \r\n3,201,727.51 \r\n \r\n20,000.00 \r\n \r\n20,000.00 \r\n \r\n30,587.24 \r\n \r\n12,670,872.00 \r\n \r\n13,059,318.00 \r\n \r\n14,357,539.18 \r\n \r\n1,069,512.00 \r\n \r\n3,502,292.00 \r\n \r\n5,308,584.03 \r\n \r\n395,850.00 \r\n \r\n395,850.00 \r\n \r\n360,338.66 \r\n \r\n2,500.00 \r\n \r\n2,500.00 \r\n \r\n20,944.90 \r\n \r\n121,200.00 \r\n \r\n121,200.00 \r\n \r\n734,340.29 \r\n \r\n$ \r\n \r\n17,426,036.00 $ \r\n \r\n20,247,262.00 $ \r\n \r\n24,014,061.81 \r\n \r\n$ \r\n \r\n11,018,026.00 $ \r\n \r\n13,671,632.32 $ \r\n \r\n13,708,680.80 \r\n \r\n497,492.00 246,897.00 343,570.00 316,795.00 1,136,525.00 133,265.00 1,465,122.00 1,020,121.00 \r\n22,807.00 18,000.00 \r\n1,200,760.00 \r\n \r\n962,590.06 387,876.00 343,637.00 887,297.08 1,247,116.00 146,145.00 1,500,421.07 1,114,239.00 \r\n22,807.00 1,460,330.24 \r\n1,201,391.30 \r\n \r\n820,641.83 296,641.41 334,138.28 656,541.37 1,284,308.36 106,628.05 1,401,016.53 1,047,526.53 \r\n10,810.21 1,041,439.37 \r\n43,572.38 1,707,656.33 \r\n95,562.30 \r\n \r\n$ \r\n \r\n17,419,380.00 $ \r\n \r\n22,945,482.07 $ \r\n \r\n22,555,163.75 \r\n \r\n$ \r\n \r\n6,656.00 $ \r\n \r\n-2,698,220.07 $ \r\n \r\n1,458,898.06 \r\n \r\n1,690,650.75 \r\n \r\n1,690,650.75 \r\n \r\n1,690,650.75 \r\n \r\n-3,676.34 \r\n \r\n2,374.03 \r\n \r\n$ \r\n \r\n1,693,630.41 $ \r\n \r\n-1,005,195.29 $ \r\n \r\n3,149,548.81 \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\nSee notes to the basic financial statements. \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 27 - \r\n \r\n BLECKLEY 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 U. S. Department of Agriculture \r\nEducation, U. S. Department of Educational Technology State Grants Cluster Pass-Through From Georgia Department of Education Education Technology State Grants \r\nSpecial Education Cluster Pass-Through From Georgia Department of Education Special Education ARRA - Grants to States ARRA - Preschool Grants Grants to States Preschool Grants \r\nTotal Special Education Cluster \r\nTitle I, Part A Cluster Pass-Through From Georgia Department of Education ARRA - Title I Grants to Local Educational Agencies Title I Grants to Local Educational Agencies \r\nTotal Title I, Part A Cluster \r\nOther Programs Direct Safe and Drug-Free Schools and Communities - National 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 Rural Education Safe and Drug-Free Schools and Communities - State Grants Twenty-First Century Community Learning Centers \r\nTotal Other Programs \r\nTotal U. S. Department of Education \r\nHealth and Human Services, U. S. Department of Pass-Through From Dodge County Board of Education Drug-Free Communities Support Program Grant \r\n \r\nCFDA NUMBER \r\n \r\nPASSTHROUGH \r\nENTITY ID \r\nNUMBER \r\n \r\nEXPENDITURES IN PERIOD \r\n \r\n* 10.553 * 10.555 \r\n \r\nN/A \r\n \r\n(2) \r\n \r\nN/A $ 1,652,434.60 (1) \r\n \r\n$ 1,652,434.60 \r\n \r\n84.318 \r\n \r\nN/A $ \r\n \r\n8,983.00 \r\n \r\n* 84.391 * 84.392 * 84.027 * 84.173 \r\n \r\nN/A $ N/A N/A N/A \r\n$ \r\n \r\n246,796.89 13,255.00 \r\n471,292.38 23,648.00 \r\n754,992.27 \r\n \r\n84.389 84.010 \r\n \r\nN/A $ N/A \r\n \r\n186,379.17 815,764.05 \r\n \r\n$ 1,002,143.22 \r\n \r\n84.184 \r\n84.048 * 84.410 \r\n84.365 84.367 84.358 84.186 84.287 \r\n \r\n$ 1,329,942.16 (3) \r\n \r\nN/A \r\n \r\n24,317.63 \r\n \r\nN/A \r\n \r\n493,054.00 \r\n \r\nN/A \r\n \r\n2,069.00 \r\n \r\nN/A \r\n \r\n128,925.07 \r\n \r\nN/A \r\n \r\n53,945.32 \r\n \r\nN/A \r\n \r\n1,152.00 \r\n \r\nN/A \r\n \r\n273,794.82 \r\n \r\n$ 2,307,200.00 \r\n \r\n$ 4,073,318.49 \r\n \r\n93.276 \r\n \r\nN/A $ \r\n \r\n8,859.88 \r\n \r\nTotal Expenditures of Federal Awards N/A = Not Available \r\n \r\n$ 5,734,612.97 \r\n \r\n- 28 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS \r\nYEAR ENDED JUNE 30, 2011 \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 $176,038.50. \r\n(2) Expenditures for the funds earned on the School Breakfast Program ($246,090.60) were not maintained separately and are included in the 2011 National School Lunch Program. \r\n(3) Includes Federal Assistance of $852,703.13, provided to subrecipients. \r\nMajor Programs are identified by an asterisk (*) in front of the CFDA number. \r\nThe accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley 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\nSCHEDULE \"2\" \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 29 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nGRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program \r\nEducation, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Nursing Services 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 Pupil Transportation - State Bonds Residential Treatment Centers Grant Teachers' Retirement Virtual Schools Grant \r\nGeorgia State Financing and Investment Commission Reimbursement on Construction Projects \r\nOffice of the State Treasurer Public School Employees Retirement \r\nCONTRACT Human Resources, Georgia Department of Family Connection \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n738,266.20 \r\n \r\n$ \r\n \r\n738,266.20 \r\n \r\n862,324.55 143,488.00 1,814,496.00 262,406.00 854,311.00 285,694.00 \r\n8,415.00 1,613,271.00 1,709,503.45 \r\n402,234.00 \r\n2,200,976.00 327,665.00 229,582.00 129,398.00 -1,549.00 285,379.00 88,561.00 52,836.00 \r\n495,449.00 699,687.00 642,805.00 \r\n372,285.00 52,138.00 \r\n1,492,901.00 45,868.00 61,085.68 \r\n-1,856,732.00 \r\n9,074.00 39,917.16 20,076.29 20,158.00 76,292.00 57,756.00 21,793.40 \r\n175.00 \r\n \r\n862,324.55 143,488.00 1,814,496.00 262,406.00 854,311.00 285,694.00 \r\n8,415.00 1,613,271.00 1,709,503.45 \r\n402,234.00 \r\n2,200,976.00 327,665.00 229,582.00 129,398.00 -1,549.00 285,379.00 88,561.00 52,836.00 \r\n495,449.00 699,687.00 642,805.00 \r\n372,285.00 52,138.00 \r\n1,492,901.00 45,868.00 61,085.68 \r\n-1,856,732.00 \r\n9,074.00 39,917.16 20,076.29 20,158.00 76,292.00 57,756.00 21,793.40 \r\n175.00 \r\n \r\n$ 190,853.60 15,534.00 \r\n \r\n190,853.60 15,534.00 \r\n \r\n42,248.98 \r\n \r\n42,248.98 \r\n \r\n- 30 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"3\" \r\n \r\nAGENCY/FUNDING \r\nOTHER Community Affairs, Georgia Department of Communities in Schools \r\nGovernor's Office, State of Georgia Children and Families Abstinence Grant \r\n \r\nGOVERNMENTAL FUND TYPES \r\n \r\nCAPITAL \r\n \r\nGENERAL \r\n \r\nPROJECTS \r\n \r\nFUND \r\n \r\nFUND \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n13,600.00 \r\n \r\n28,170.47 \r\n \r\n$ \r\n \r\n13,600.00 \r\n \r\n28,170.47 \r\n \r\n$ 14,357,539.18 $ 190,853.60 $ 14,548,392.78 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 31 - \r\n \r\n BLECKLEY 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\nAcquiring, constructing, equipping and furnishing new school buildings and facilities useful and desirable, including a new middle school and physical education/athletic facilities; adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable, including physical education/athletic facilities; acquiring technology and safety improvements; acquiring land; acquiring any property useful or desirable, both real and personal. \r\nThe issuance of general obligation bonds in the principal amount not to exceed $9,000,000.00 to pay the costs of (a) acquiring, constructing, and equipping at new Bleckley County Middle School, (b) renovating, improving, constructing, and equipping new and existing school buildings, athletic facilities and other educational facilities, (c) the acquisition of any property, both real and personal, and equipment necessary in connection with the above described capital outlay projects, together with school buses, maintenance vehicles and equipment, computers and related technology, textbooks, vocational, fine arts, physical education and athletic equipment and safety and security equipment, and (d) the costs of issuance of the Bonds including capitalized interest. \r\n \r\nORIGINAL ESTIMATED \r\nCOST (1) \r\n \r\nCURRENT ESTIMATED COSTS (2) \r\n \r\nAMOUNT EXPENDED IN CURRENT YEAR (3) (4) \r\n \r\nAMOUNT EXPENDED IN PRIOR YEARS (3) (4) \r\n \r\nPROJECT STATUS \r\n \r\n$ 17,275.00 12,515.12 \r\n \r\nCompleted Completed \r\n \r\n$ \r\n \r\n6,000,000.00 $ 10,214,345.93 \r\n \r\n$ 10,184,555.81 Completed \r\n \r\n$ \r\n \r\n6,000,000.00 $ 10,214,345.93 $ 29,790.12 $ 10,184,555.81 \r\n \r\n$ 6,181,120.41 $ 2,016,044.77 Ongoing \r\n \r\n43,820.00 \r\n \r\nOngoing \r\n \r\n5,235.00 \r\n \r\nOngoing \r\n \r\n$ \r\n \r\n7,000,000.00 $ 8,500,000.00 \r\n \r\nOngoing \r\n \r\n$ \r\n \r\n7,000,000.00 $ 8,500,000.00 $ 6,230,175.41 $ 2,016,044.77 \r\n \r\n$ 13,000,000.00 $ 18,714,345.93 $ 6,259,965.53 $ 12,200,600.58 \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 Bleckley County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. \r\n \r\n(4) In addition to the expenditures shown above, the School District has incurred interest to provide advance funding for the above projects as follows: \r\n \r\nPrior Years \r\n \r\n$ \r\n \r\n225,608.33 \r\n \r\nCurrent Year \r\n \r\n384,050.00 \r\n \r\nTotal \r\n \r\n$ \r\n \r\n609,658.33 \r\n \r\nSee notes to the basic financial statements. \r\n \r\n- 32 - \r\n \r\n BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) \r\nALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2011 \r\n \r\nSCHEDULE \"5\" \r\n \r\nDESCRIPTION \r\nDirect Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program \r\nTOTAL DIRECT INSTRUCTIONAL PROGRAMS \r\nMedia Center Program Staff and Professional Development \r\n \r\nALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) (2) \r\n \r\nELIGIBLE QBE PROGRAM COSTS \r\n \r\nSALARIES \r\n \r\nOPERATIONS \r\n \r\nTOTAL \r\n \r\n$ \r\n \r\n926,221.00 $ \r\n \r\n139,740.00 \r\n \r\n1,988,484.00 \r\n \r\n256,630.00 \r\n \r\n939,229.00 \r\n \r\n276,256.00 10,281.00 \r\n1,740,805.00 1,612,721.00 \r\n443,622.00 2,389,280.00 \r\n \r\n347,924.00 249,299.00 140,510.00 \r\n$ 11,461,002.00 $ \r\n308,574.00 57,341.00 \r\n \r\n685,131.13 $ 68,147.24 \r\n1,481,290.91 108,181.71 898,915.71 \r\n127,616.42 \r\n1,882,356.14 1,806,013.64 \r\n403,190.46 \r\n134,761.74 361,209.13 982,316.39 \r\n76,340.59 139,226.80 215,094.64 \r\n64,501.71 81,511.46 \r\n9,515,805.82 $ \r\n305,305.94 \r\n \r\n16,097.85 $ 106.67 \r\n36,206.39 357.47 \r\n23,096.56 \r\n151.30 9,185.80 23,885.28 123,919.25 10,560.77 \r\n1,805.27 3,669.18 \r\n457.50 \r\n5,061.05 3,640.30 3,256.67 \r\n261,457.31 $ \r\n24,870.20 12,371.51 \r\n \r\n701,228.98 68,253.91 \r\n1,517,497.30 108,539.18 922,012.27 \r\n127,767.72 9,185.80 \r\n1,906,241.42 1,929,932.89 \r\n413,751.23 \r\n134,761.74 363,014.40 985,985.57 \r\n76,798.09 139,226.80 220,155.69 \r\n68,142.01 84,768.13 \r\n9,777,263.13 \r\n330,176.14 12,371.51 \r\n \r\nTOTAL QBE FORMULA FUNDS \r\n \r\n$ 11,826,917.00 $ \r\n \r\n9,821,111.76 $ 298,699.02 $ 10,119,810.78 \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\nJuly 19, 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 Bleckley 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 Bleckley County Board of Education as of and for the year ended June 30, 2011, which collectively comprise Bleckley County Board of Education's basic financial statements and have issued our report thereon dated July 19, 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 Bleckley County Board of Education is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered Bleckley 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 Bleckley County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Bleckley County Board of Education's internal control over financial reporting. \r\nA deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. \r\n \r\n2011YB-10 \r\n \r\n  Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. \r\nCompliance and Other Matters \r\nAs part of obtaining reasonable assurance about whether Bleckley 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 Bleckley County Board of Education in a separate letter dated July 19, 2012. \r\nThis report is intended solely for the information and use of management, members of the Bleckley County Board of Education, others within the entity, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. \r\nRespectfully submitted, \r\n \r\nGSG:as 2011YB-10 \r\n \r\nGreg S. Griffin State Auditor \r\n \r\n  Greg S. Griffin \r\nSTATE AUDITOR \r\n(404) 656-2174 \r\n \r\nDEPARTMENT OF AUDITS AND ACCOUNTS \r\n270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 \r\nJuly 19, 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 Bleckley 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 Bleckley 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. Bleckley 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 Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley 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 Bleckley 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 Bleckley County Board of Education's compliance with those requirements. \r\nIn our opinion, the Bleckley County Board of Education complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended June 30, 2011. \r\n \r\n2011SA-10 \r\n \r\n  Internal Control Over Compliance \r\nManagement of Bleckley 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 Bleckley 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 Bleckley 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 Bleckley 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-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  BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE \r\nSUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2011 \r\nPRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS No matters were reported. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. \r\n \r\n  SECTION IV FINDINGS AND QUESTIONED COSTS \r\n \r\n  BLECKLEY 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\nNo None Reported \r\n \r\nNoncompliance material to financial statements noted: \r\n \r\nNo \r\n \r\nFederal Awards \r\n \r\nInternal Control over major programs:  Material weakness identified?  Significant deficiency identified? \r\n \r\nNo None Reported \r\n \r\nType of auditor's report issued on compliance for major programs: All major programs \r\n \r\nUnqualified \r\n \r\nAny audit findings disclosed that are required to be reported in \r\n \r\naccordance with OMB Circular A-133, Section 510(a)? \r\n \r\nNo \r\n \r\nIdentification of major programs: CFDA Numbers \r\n \r\nName of Federal Program or Cluster \r\n \r\n10.553, 10.555 84.027, 84.173, 84.391, 84.392 84.410 \r\n \r\nChild Nutrition Cluster Special Education Cluster Education Jobs Fund \r\n \r\nDollar threshold used to distinguish between Type A and Type B programs: \r\n \r\n$300,000.00 \r\n \r\nAuditee qualified as low-risk auditee? \r\n \r\nNo \r\n \r\nII FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS \r\n \r\nNo matters were reported. 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